Wage hikes in California for many fast food workers have left businesses struggling to stay afloat as many have resorted to increased prices and laying off employees.
California Gov. Gavin Newsom's successful push to hike the minimum wage for many of the state's fast food workers is having a devastating impact on businesses, who have been forced to cut labor costs to survive, critics say. Prices at major brands like Chipotle, McDonald's and other fast food giants have increased in a move to keep up with the $20 per hour workers have been paid since the new wage went into effect on April 1.
It highlights multiple restaurants that have had to raise prices and lay off workers to stay afloat and, in some cases, shut down stores. The ad features news clips documenting changes made by brands like El Pollo Loco, Subway and Burger King across the state. "California businesses have been under total attack and total assault for years," CABIA president and founder Tom Manzo told FOX Business. "It's just another law that puts businesses in further jeopardy.
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