California Food Chains Announce Layoffs Ahead of Minimum Wage Hike

Marya Dunning | March 27, 2024
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Every action has an equal and opposite reaction, and the reaction to an extreme increase in minimum wage tends to be job cuts.

To anybody who has ever opened an economics textbook, this should come as no surprise. However, California Governor Gavin Newsom must have failed to consider this when signing the Fast Act, which raised the minimum wage to $20 for all fast food workers in the state effective April 1.

Unsurprisingly, this resulted in thousands of job cuts, namely in the food industry as multiple companies have announced layoffs in the face of the forced wage hike. In fact, Pizza Hut alone plans to cut over 1,200 jobs.

For reference, that’s twice the number of people in Congress potentially losing their livelihoods.

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Certain Pizza Hut locations plan to end their delivery services altogether, while many other franchises, including Chipotle, are raising their prices to offset labor costs.

Hopefully, if the massive job cuts don’t change Californians’ minds on this policy, the elevated fast food prices will.