California's $20 Minimum Wage Spurs Fast-Food Industry Changes
Rising labor costs prompt reduced hours, increased automation, and higher menu prices across the state.
- 89% of fast-food restaurants have cut worker hours since the wage hike in April.
- Major chains are implementing automation to offset increased labor expenses.
- Some restaurants have closed locations or filed for bankruptcy due to financial strain.
- Consumers face higher menu prices as businesses adjust to the new wage.
- The California Food Council is considering an additional 3.5% wage increase for 2025.