Losses of work in fast food in California increased after passing a minimum wage of $ 20 for some workers, according to a new study.
Berkeley research group A study discovered Not only was 10,700 jobs lost in the sector between June 2023 and June 2024, according to the Bureau of Bureau. But prices in institutions increased by 14.5% after the new minimum wage became a law.
“California fast food restaurants also increased automation and adoption of technology to compensate for growing labor costs,” the study said on February 18th.
“Therefore, it should not be surprising that the number of employees at the restaurant declines.
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Logo McDonald’s and Burger King (Soeren Stache/Picture Alliance via Getty Images)
“Californians carry the cost of increasing the minimum wage through less available jobs and higher food costs,” he added. The study also determined the realization that the legislation of the minimum wage was created by the jobs, according to the California Globe.
The study noted that the authors had “kept” local restaurants, but said that the study was conducted on its own.
Chef Andrew Gruel, a California restorer, told Fox News Digital that he saw early that there could be negative consequences for the service industry.
“I dressed about this month ago,” he said, adding that even though the early economic effects were declared, he suggested that there would be losses.
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Gruel also offered advice to companies that struggle to be up to date with a requirement for a minimum wage.
“Cut the size of the menu, outsource a lot of kitchen work and take advantage of AI to manage the Back Office,” Gruel said.
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Fast food drive (CNW Group/Restaurant Brands International Inc.)
The minimum wage for workers was $ 16 before a minimum wage of $ 20 for fast food workers became a law in April 2024. Government Gavin News said that in September 2023 he would increase workers to earn more as the cost of living.
“Fast food workers in California will now be paid the highest minimum wage of any country in the country. I have just signed an account that will ensure that these workers get a fair salary they deserve,” he tweeted at that time.
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However, the report also warned that it could also result in people who are paid smaller and “accelerated automation”.
“If it is large enough, the combination of elimination and reduction of work could leave workers earning less revenues as a result (minimum wage of) $ 20,” the report said.
“For example, even if no jobs are eliminated (suspicious assumption considering the BLS data considered above), a decrease of 20% in hours that works without increasing overtime would delete financial gains from 25% wages, leaving workers with the same or even less total revenue,” he continued.
California Council for fast food may consider an increase in minimum wage to $ 20.70, according to Magazine for a restaurant.
