CA's 20 Dollar Minimum wage already killing jobs and shuttering companies.

[Threadkilla]

This is from the OC register:   

The new California $20 minimum wage for most fast-food restaurants hit April 1. It jumped $4.50 from the $15.50 on Dec. 31. That increase definitely is helping the 500,000 workers getting the pay boost – those who will keep their jobs. Some early reports from Monday are showing businesses being slammed by the higher costs.

Subway franchise owner Keith Miller told NBC 7 San Diego, “You keep kind of wondering when you’re going to break the camel’s back?”

“We’re having to get more efficient,” Michaela Mendelsohn, who manages 170 employees at El Pollo Loco, told NPR. “So really, what’s left is … to reduce labor hours. And I hate saying that.”

The wage increase is “unprecedented as far as I know,” Raymond Sfeir, director of the A. Gary Anderson Center for Economic Research at Chapman University, told us. He warned the increase will bring layoffs, higher prices for consumers, more use of technology such as automatic burger flippers and restaurant closures.

“The unfortunate part is that many franchisees are small operators and not owners of dozens if not hundreds of restaurants,” he warned. They’re the small capitalists who are the heart of a local economy, contributing to charities and sponsoring little-league times. 

 California’s unemployment rate for February was 5.3%, the highest of any state. Sfeir speculated the higher wage might kill 3% of jobs in the “limited service restaurants and other eating places” sector, which includes fast-food restaurants. That would add about 0.12 percentage points to the state’s unemployment rate, raising the total to 5.42%.
We won’t know the overall effect for several months as the higher wage plays out. But the higher prices for consumers are on top of the overall inflation of the past four years. The Consumer Price Index for February jumped 3.2% from the year prior, still above the 2% considered reasonable. That’s on top of the sticker shock consumers still are suffering from prices rising 7% in 2021, 6.5% in 2022 and 3.4% in 2023. 

Costs are piling up like spoiled ketchup on a rancid burger patty.

Several Mom and pops with 10 or less locations have been forced to shutter their business.  There has been a viral video of the Mcdonals 25 dollar deal which is a 40 piece nugget and 2 large fries.  

Bidenomics and Democrat golden boy and perhaps Bidens chosen replacemant Gavin Newsom are job killing machines.    How Newsom is a Democrat darling is mind boggling.  

[Ohio Elite]

Thank God I live in Ohio...

[JimmyBT]

Gee who could have ever seen this coming?   

[Threadkilla]

8 minutes ago, JimmyBT said:

Gee who could have ever seen this coming?   

It's what the left does, they've been whining about it for years, they get what they ask for and it further demolishes the state

[braves121]

56 minutes ago, Threadkilla said:

This is from the OC register:   

The new California $20 minimum wage for most fast-food restaurants hit April 1. It jumped $4.50 from the $15.50 on Dec. 31. That increase definitely is helping the 500,000 workers getting the pay boost – those who will keep their jobs. Some early reports from Monday are showing businesses being slammed by the higher costs.

Subway franchise owner Keith Miller told NBC 7 San Diego, “You keep kind of wondering when you’re going to break the camel’s back?”

“We’re having to get more efficient,” Michaela Mendelsohn, who manages 170 employees at El Pollo Loco, told NPR. “So really, what’s left is … to reduce labor hours. And I hate saying that.”

The wage increase is “unprecedented as far as I know,” Raymond Sfeir, director of the A. Gary Anderson Center for Economic Research at Chapman University, told us. He warned the increase will bring layoffs, higher prices for consumers, more use of technology such as automatic burger flippers and restaurant closures.

“The unfortunate part is that many franchisees are small operators and not owners of dozens if not hundreds of restaurants,” he warned. They’re the small capitalists who are the heart of a local economy, contributing to charities and sponsoring little-league times. 

 California’s unemployment rate for February was 5.3%, the highest of any state. Sfeir speculated the higher wage might kill 3% of jobs in the “limited service restaurants and other eating places” sector, which includes fast-food restaurants. That would add about 0.12 percentage points to the state’s unemployment rate, raising the total to 5.42%.
We won’t know the overall effect for several months as the higher wage plays out. But the higher prices for consumers are on top of the overall inflation of the past four years. The Consumer Price Index for February jumped 3.2% from the year prior, still above the 2% considered reasonable. That’s on top of the sticker shock consumers still are suffering from prices rising 7% in 2021, 6.5% in 2022 and 3.4% in 2023. 

Costs are piling up like spoiled ketchup on a rancid burger patty.

Several Mom and pops with 10 or less locations have been forced to shutter their business.  There has been a viral video of the Mcdonals 25 dollar deal which is a 40 piece nugget and 2 large fries.  

Bidenomics and Democrat golden boy and perhaps Bidens chosen replacemant Gavin Newsom are job killing machines.    How Newsom is a Democrat darling is mind boggling.  

The law only applies to restaurants with 60 or more locations, small businesses are exempt from the new wage, how exactly were several mom and pops with 10 or less locations forced to shutter their business?

[Offthemat]

6 minutes ago, Threadkilla said:

It's what the left does, they've been whining about it for years, they get what they ask for and it further demolishes the state

They create the problem, then they create problems trying to correct the problem they created.  It’s like job security. 

[JimmyBT]

38 minutes ago, braves121 said:

The law only applies to restaurants with 60 or more locations, small businesses are exempt from the new wage, how exactly were several mom and pops with 10 or less locations forced to shutter their business?

Gee, could it be that they can’t find workers now unless they pay the $20 per hour?????   They’re screwed either way. 

Edited April 10, 2024 by JimmyBT

[Threadkilla]

32 minutes ago, braves121 said:

The law only applies to restaurants with 60 or more locations, small businesses are exempt from the new wage, how exactly were several mom and pops with 10 or less locations forced to shutter their business?

Mom and pops was an overreach, but the effects are being felt like Mods Pizza with 560 locations which couldn't handle the 15.50 minimum wage. There are stories of hundreds of Employees that have shown up to work and either have a termination notice or the business is shuttered ie: the lemoore Foster freeze.   Foster freeze has 607 locations 

[braves121]

8 minutes ago, Threadkilla said:

Mom and pops was an overreach, but the effects are being felt like Mods Pizza with 560 locations which couldn't handle the 15.50 minimum wage. There are stories of hundreds of Employees that have shown up to work and either have a termination notice or the business is shuttered ie: the lemoore Foster freeze.   Foster freeze has 607 locations 

you brought up the perfect example, Foster Freeze is shutting down locations in California to get under the 60 locations in California to avoid the new law. There were 64 locations. With this example I am not sure how strong the case is still about small business owners suffering, maybe more so corporate greed and trying to squeeze all time high profits out of us while decreasing their costs. 

[braves121]

14 minutes ago, JimmyBT said:

Gee, could it be that they can’t find workers now unless they pay the $20 per hour?????   They’re screwed either way. 

That is the hand of the free market. If someone can not afford to employ people at a competitive rate, maybe they don't make enough to sustain that business. 

[Threadkilla]

31 minutes ago, braves121 said:

That is the hand of the free market. If someone can not afford to employ people at a competitive rate, maybe they don't make enough to sustain that business. 

Government overreach I'm the free market is the problem   

[JimmyBT]

53 minutes ago, braves121 said:

That is the hand of the free market. If someone can not afford to employ people at a competitive rate, maybe they don't make enough to sustain that business. 

Obviously they don’t.   Government intervention kinda makes that a stupid comment. 

Edited April 10, 2024 by JimmyBT

[Ohio Elite]

1 hour ago, braves121 said:

That is the hand of the free market. 

Did you read the title of the thread??

 

[braves121]

55 minutes ago, JimmyBT said:

Obviously they don’t.   Government intervention kinda makes that a stupid comment. 

While there are government regulations the U.S. does have a free market economy. no one is forcing these businesses to operate in California, they are free to move and cease business within the state.  Just don't understand all the hysteria over making big fast food corps posting record profits pay a livable wage while there are literally exemptions carved out for the small business. If your business does not make enough money to pay people, you do not run a successful business

Edited April 10, 2024 by braves121

[Threadkilla]

54 minutes ago, braves121 said:

While there are government regulations the U.S. does have a free market economy. no one is forcing these businesses to operate in California, they are free to move and cease business within the state.  Just don't understand all the hysteria over making big fast food corps posting record profits pay a livable wage while there are literally exemptions carved out for the small business. If your business does not make enough money to pay people, you do not run a successful business

Do you think regulations might be the problem?  

And yes they are able to move out of the state which they are doing.  BTW, who do you think adds all the regulations?  

Edited April 11, 2024 by Threadkilla

[JimmyBT]

1 hour ago, braves121 said:

While there are government regulations the U.S. does have a free market economy. no one is forcing these businesses to operate in California, they are free to move and cease business within the state.  Just don't understand all the hysteria over making big fast food corps posting record profits pay a livable wage while there are literally exemptions carved out for the small business. If your business does not make enough money to pay people, you do not run a successful business

Nobody is forcing anyone to live in California.  If they can’t afford to live there they can certainly move right???  There are plenty of places to go with a lower cost of living.  

Edited April 11, 2024 by JimmyBT

[Threadkilla]

1 hour ago, JimmyBT said:

Nobody is forcing anyone to live in California.  If they can’t afford to live there they can certainly move right???  There are plenty of places to go with a lower cost of living.  

 

Alot of the big money folks have already left.  Stallone just moved his family to Florida after 51 years in Ca.  Peeps are leaving blue states to go to red states. 

[billyhoyle]

3 hours ago, Threadkilla said:

 

Alot of the big money folks have already left.  Stallone just moved his family to Florida after 51 years in Ca.  Peeps are leaving blue states to go to red states. 

A 77-year-old is moving to Florida???? Stop the presses!!!

[Threadkilla]

4 minutes ago, billyhoyle said:

A 77-year-old is moving to Florida???? Stop the presses!!!

Yeah. I'm sure he's going for the retirement communities.   His wife is 55.

[billyhoyle]

Just now, Threadkilla said:

Yeah. I'm sure he's going for the retirement communities.   His wife is 55.

Rich people like to retire in Florida too.  It's not all those weird communities.  People in their 70s love it there. 

[JimmyBT]

8 hours ago, Threadkilla said:

 

Alot of the big money folks have already left.  Stallone just moved his family to Florida after 51 years in Ca.  Peeps are leaving blue states to go to red states. 

The formula in California can’t work.  Rich people leaving and replaced by people that need to be supported.  Tax income is decreasing while spending is increasing.  If they think they’re debt is bad now just wait. 

[Paul158]

I was relieved to find out that 35 states now require students to take a personal finance course in order to graduate from high school. Now if we could just make it a requirement for ALL Government employees to take a personal finance course. Also take a basic economic course.

[WrestlingRasta]

I like Florida

[Scouts Honor]

17 hours ago, braves121 said:

you brought up the perfect example, Foster Freeze is shutting down locations in California to get under the 60 locations in California to avoid the new law. There were 64 locations. With this example I am not sure how strong the case is still about small business owners suffering, maybe more so corporate greed and trying to squeeze all time high profits out of us while decreasing their costs. 

 

17 hours ago, braves121 said:

That is the hand of the free market. If someone can not afford to employ people at a competitive rate, maybe they don't make enough to sustain that business. 

the GOVT mandating something is not the free market

[ionel]

2 hours ago, WrestlingRasta said:

I like Florida

Says the guy smoking fresh alligator off his back deck.