New Minimum Wage Caused California a Loss of 4,256 Fast-Food Jobs

With fast food jobs bouncing widely from their low point in the winter to their high point in the summer, both EPI and Newsom appear to be selectively choosing their data to bolster their cases, but the latest quarterly report from the Bureau of Labor Statistics shows an unambiguous decline of 4,256 fast food jobs through June since the law went into effect at the start of April.

Food jobs grew from March to June of 2024 by only 406 jobs, while the year before they grew by 9,118 jobs in the typical hiring ramp-up into the busier summer months, says BLS data analyzed by the Employment Policies Institute.

According to Revenue Management Solutions, a company that analyzes restaurant transactions to optimize menu pricing, California menu prices in June were up 7.5% year-over-year, but foot traffic is down — nationwide menu prices were up 3.1% with foot traffic down 3.6% compared to the year prior.

“This decline is a clear indication that customers are opting to skip a fast-food visit altogether rather than pay higher menu prices,” said RMS.

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ElwoodBlues · M

@trollslayer says

Last time I was in CA i got served food by a robot. Seriously.

I believe you!!

Last time I stopped by a mcdonalds, orders were taken by touchscreens; no need for people manning cash registers.

BTW, sunstroke, California has about 750,000 fast food workers. Automation can absolutely explain a drop of 1.33% in their numbers.

sunsporter1649 · 70-79, M

@ElwoodBlues And ten bucks for a burger has nothing to do with it, right?

ElwoodBlues · M

@sunsporter1649 You've never heard of capitalism?

I know you're allergic to facts, but

“The average price of a Big Mac in the US was $4.39 in 2019,” Erlinger said in his recent letter. “Despite a global pandemic and historic rises in supply chain costs, wages and other inflationary pressures in the years that followed, the average cost is now $5.29. That’s an increase of 21% (not 100%),” he added.

https://corporate.mcdonalds.com/corpmcd/our-stories/article/providing-meaningful-value-to-our-fans-with-a-side-of-facts.html

Vin53 · M

@sunsporter1649 On the McD's app I buy a 1/4 lb w/ cheese a med fry and drink for $7 before taxes. Fact.

SatanBurger · 36-40, FVIP

I don't know what you're on about, they did a recent study about that this October and found that the minimum wage hike was successful and already considering other laws for healthcare workers.

https://www.gov.ca.gov/2024/10/03/californias-20-fast-food-minimum-wage-is-a-win-win-win-research-says/

I'd especially pay close attention to the second link:

https://www.latimes.com/business/story/2024-10-10/column-the-latest-data-on-californias-20-minimum-wage-for-fast-food-workers-higher-pay-no-job-losses-minimal-price-hikes

trollslayer · 46-50, M

Last time I was in CA i got served food by a robot. Seriously.

SatanBurger · 36-40, FVIP

That left the door open for critics of the California minimum to claim that this higher minimum was destined to wreak havoc on fast-food employment. Some jumped the gun by finding job losses even before the law went into effect — ostensibly because employers were cutting jobs in anticipation of higher costs.

As I reported in June, the California Business and Industrial Alliance placed a full-page ad in USA Today, citing the Wall Street Journal’s figure of 10,000 fast-food jobs lost during the fall and early winter and describing 12 restaurants or chains as “victims of Newsom’s minimum wage.”

This was “baloney, sliced thick,” I wrote. Some of the chains listed were victims of other economic factors, such as competition, or financial manhandling by their private equity owners.

https://www.latimes.com/business/story/2024-10-10/column-the-latest-data-on-californias-20-minimum-wage-for-fast-food-workers-higher-pay-no-job-losses-minimal-price-hikes

sunsporter1649 · 70-79, M

@SatanBurger Who cares, it's only 4,000 folks, let them eat cake

SatanBurger · 36-40, FVIP

@sunsporter1649 Sweetheart, if the job losses aren't due to the minimum wage hikes like you said they were, your comment doesn't even make sense. It would only make sense if you were correct but you're not. What's seriously wrong with you that you find out you're wrong and you still wanna keep at it? What is wrong with you? Seriously.

FreestyleArt · 31-35, M

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