Fast Food Industry In Peril: California’s $20/hr Wage Law Effects

California leads the nation in several categories. The state is currently dealing with a migrant crisis, a record deficit, and businesses leaving the state due to high crime that goes unpunished. Crime is so bad in California that the beloved burger franchise In-N-Out closed its Oakland location. 

Enjoying a meal in the Golden State is about to get a lot more expensive. Some food industry experts believe a recent new California law could mark the beginning of the end of the fast food industry. The state is known for launching iconic fast food chains like McDonald's and other burger joints.

Assembly Bill 128 raises the hourly wages of fast food workers to twenty dollars an hour. That wage is the highest in the country. There has been some discussion of modifying the bill due to the rise in food prices to cover the raised cost.

California's minimum wage is currently $15.50 an hour. Idaho's is the same as the federal minimum wage of $7.25 an hour. The increase for California fast food workers will take effect on April 1st. The pay increase applies to chains with more than sixty stores nationwide.

LA Times reported that annual raises could be part of the deal that the governor signed. Food industry experts say that the government mandating wage increases could cause them to close locations throughout the state. Other industry insiders believe that robots will replace humans. 

Pasadena-based Miso Robotics has introduced a robot that flips burgers with the aid of Artificial Intelligence called Flippy. The Daily Mail describes how the new all-robotic fast food restaurant will work.

'In addition to Flippy, responsible for deep frying chicken nuggets and French fries, a fellow 'BurgerBot' will be grilling up patties, and a biometric payment system, PopID, will take customers' orders.'