California Fast-Food Chains Brace for Minimum Wage Hike Starting April 1

Restaurants in California that are subject to a fresh$ 20 minimum wage starting on April 1 are automating and cutting jobs, while some claim they may raise rates to maintain success.
” To cover the cost of the income increase, we would need to get a middle- single- digit price]percentage ] increase in California”, Jack Hartung, Chipotle’s main financial and administrative official, said during a February earnings call.
The wage increase will result in a 12 to 14 percent increase in the company’s labour costs in 2023, according to El Pollo Loco executives during their own income call earlier this month.
” We’re working on our whole work tables … to see if we can be more effective”, Ira Fils, El Pollo Loco’s chief financial officer, said during the meeting visit….

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