California Continues to Fire Fast Food Workers

California's crazy fast-food law raising the minimum wage for workers is predicted to devastate food outlets in the once-Golden State. The law, AB 1228, went into effect earlier this month, mandating that fast food workers receive a twenty-dollar minimum wage. 

Governor Gavin Newsom and his legislative allies hailed the new law as a victory for service workers. The new wages have drastically increased the operating costs of restaurants that are deciding how to stay in business. 

McDonald's Franchise Owner Scott Rodrick told Fox Business that he's trying not to lay off his 800 employees at his eighteen stores. He added that raising prices is another measure he hopes to avoid. However, the owner does have a responsibility to grow his business as he continues to look at every option on the table.

Pizza Factory, with over 100 locations across California, has announced it has to raise prices by ten percent. The additional costs will be passed on to the consumer. If food becomes too expensive, higher costs could limit the number of Californians who decide to buy fast food.

One of the State's biggest franchisers says the wage increase has forced their company to replace humans with machines. Harsh Ghai, who owns Taco Bells, Popeye's Chicken, and one hundred eighty Burger Kings franchises, tells Business Insider that more computer kiosks are on the way to his locations. 

Fast food experts argue that the introduction of computer kiosks could lead to increased profits and lower costs for chains. They predict that, to cover the higher wages, chains may need to raise prices by ten to twelve percent, a significant jump from the industry's usual two to three percent annual increase. 

The tragedy of these business moves is that there will be fewer opportunities for first-time workers or legal immigrants looking for their first job. A job in the fast-food industry is a rite of passage for many Americans beginning their work careers. Sadly, there will be fewer opportunities in California.