Fast food continues to place the blame on nothing but their own greed.
California recently enacted a law increasing the minimum wage, which has companies frown upon the idea of paying their employees more fairly. If one of the largest states in the U.S. increases its minimum wage, it sets the stage for other states to do the same. Can we afford to lose even a fraction of that billions of dollars in funding?
Either way, they are committed to preserving maximum value no matter what. Their argument suggests that these changes are negatively impacting the fast food industry, which, according to an ad in USA Today, will result in thousands of jobs being cut. The $4 price increase is hurting local franchises of restaurants like Pizza Hut and Cinnabon.
The problem is, they seem to be distorting the story. In a Los Angeles Times analysis, analysts zoomed in on the numbers and patterns to see if these claims have any validity. Spoiler alert: It looks like fast-food companies are lying to you.
The fast food industry provides misleading information
The ad in USA Today is factually incorrect. Data shows that fast food employment in California has increased since the ad ran last year, and the rate of growth has continued into April of this year. The idea that fast food restaurants are laying off employees because of the minimum wage increase is a myth. In fact, fast food restaurants pay higher wages than typical retail jobs, so the numbers would naturally trend upwards.
All of this seems like a misdirection from the media. Instead of looking at the underlying issues, fast food companies are rushing to the media to try to hide public perception. Moreover, they try to push the responsibility for food portions and pricing onto their employees. These companies are so great and large that they feel they are untouchable. As a result, consumers push the responsibility onto the employees who are working hard to earn a living wage.
Chain restaurants are trying to change their image with a lot of misinformation. Whether it’s changing the nature of their liabilities or a competitive market trying to squeeze certain restaurants out, the reason is quite simple: fast food companies can’t afford to look weak, especially in a country that enjoys every dollar possible in this economy. They want to keep customers in the cycle of buying from them, even if the price is unfair. They want to have it both ways. It’s up to us to harness the power of the dollar.
