California restaurants are reportedly laying off staff and reducing hours of some workers to cut costs ahead of a California state law taking effect on April 1 that will raise fast-food workers’ hourly wage to $20.
Panera Bread, however, was ruled exempt from the $20-an-hour minimum wage hike by Gov. Gavin Newsom after the billionaire owner of several of the chain’s locations donated to his campaign, according to a report.
Newsom reportedly sought the exemption via the Fast Food Accountability and Standards Recovery Act (FAST Act), which includes an unusual carve-out that excuses “chains that bake bread and sell it as a standalone item.”
Flynn, who attended the same high school as Newsom, has been involved in business dealings with the California governor and has also contributed to Newsom’s political campaigns.
The Story
According to the Wall Street Journal, Pizza joints have a plan to cut the jobs of drivers. Pizza Hut and Round Table Pizza, a Menlo Park chain of 400 pizza parlors, say they will lay off about 1280 delivery drivers this year. Notices have been sent to the drivers.
Southern California Pizza operates 224 Pizza Huts in greater LA and offered $400 in severance to one driver if he’d stay through February. However, the driver made hundreds of dollars weekly in wages and tips, so he took unemployment.
The worker said it was his career for nearly a decade, and he supported his mother and partner with the wages.
“We anticipate third-party delivery providers, in turn, will see a boost in their businesses, which will require additional staff on their end. That said, delivery service fees may increase, and the customer will most likely see even higher prices as a result of this ongoing shift,” the company rep added. “This is the reality of today’s restaurants.”
-
The Importance of Prayer: How a Christian Gold Company Stands Out by Defending Americans’ Retirement
In San Jose, Calif., Brian Hom, the owner of two locations of Vitality Bowls, has dealt with impending increased labor costs by running his Açaí bowl joints with two employees instead of his typical four, according to The Journal.
As a result, it takes longer for customers to receive their orders, which has also increased prices by around 10% to offset higher wages.
McDonalds and Chipotle will also raise prices.
wpDiscuz
