Reality has once again intruded: California’s $20 an hour minimum wage experiment in fast food is devastating the industry.
The law is a pet project of French Laundry-loving Gov. Gavin Newsom, but it’s only been in effect for a little over two months and the eateries have already cut 10,000 jobs.
Even giant chains like McDonald’s have been hit hard, raising prices, cutting hours and rushing to automate their franchises.
If this law hits the big chains so hard, imagine how it will affect smaller chains.
Actually, there’s no need to imagine it: Rubio’s California Grill, a chain of restaurants, closed 48 locations across the state at the end of May and filed for bankruptcy on Wednesday.
Great job, Gavin!
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This is also hurting consumers: Chick-fil-A’s prices increased by nearly 11% between mid-February and mid-April, while Taco Bell’s prices increased by 3%.
It’s no wonder that 78% of consumers say fast food is a “luxury item” according to a recent survey.
This law, like so many other creations of insanity, is premised on the idea that everyone working low-skill, entry-level jobs “should” make a lot of money.
But a higher minimum wage would mean higher labor costs, so all it would guarantee is fewer such jobs (or higher prices in stores).
So not only will consumers suffer, but so will their children who are looking for their first jobs.
Or people who don’t have enough training, experience or education and are just trying to make a living.
To make matters worse, the law is completely corrupt, with a bizarre exception for places like Panera Grill that bake their own bread and sell it as a standalone item.
The reason there is no need to raise the minimum wage is because the major Panera franchisees are longtime friends and major donors of Newsom.
In other words, law is not about justice or privilege or any of those other left-wing buzzwords.
This is just yet another example of Newsom’s progressive corruption, bringing ease to my friends and economic pain to everyone else.
