Some fast-food restaurant owners in California could be making some cost-cutting decisions as the minimum wage for fast-food workers will rise to $20 an hour on April 1.
KNX News’ Pete Demetriou reported that fast-food restaurant owners will find a myriad of ways to stay open, including the possibility of layoffs. Keith Miller, one of the principals of Franchisee Advocacy Consulting, said that the ability to keep a big enough staff to handle busy periods will be going by the wayside.
“You really can't afford to have staff around hoping it might be busier,” he said. “And so when you get busy, it's a real crunch and quite frankly, a strain on employees.”
Franchise owners may look at other options to stay open to compensate for the increased wage. Other than layoffs, they may consider reducing hours, raising food prices, and reducing product selection.
However, there is an upside to the wage increase. Miller said the higher wage can lead to a more dedicated staff willing to stay on.
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