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California's $20 Minimum Wage Prompts Fast Food Chains to Cut Hours, Raise Prices

Franchise owners adjust operations to manage increased labor costs, citing challenges and early benefits.

  • Wendy's and Jersey Mike's franchisees have reduced staff hours and increased menu prices.
  • Some operators, like Lawrence Cheng, are filling in shifts themselves to manage costs.
  • The new wage law has led to job cuts, with one Jersey Mike's owner reducing part-time staff by 20 employees.
  • Despite operational challenges, the fast food sector added 8,000 jobs in the first two months post-law.
  • Higher wages are attracting better job candidates, potentially reducing turnover rates.
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