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McDonald's in the US with a $22 Hourly Wage? Franchise Owners Are Upset...

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Created: 2024-04-03

Created: 2024-04-03 10:03


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■ California Franchise Minimum Wage Increase?


In California, the minimum wage for fast-food workers has recently been adjusted to approximately $20 (approximately ₩27,000), leading franchise owners to express concerns that they may have to close their stores due to this increase.



On the 1st, AP News reported that the minimum wage for California employees working at fast-food chains with at least 60 locations nationwide has been raised to $20. This represents a nearly 30% increase compared to the $15.50 (approximately ₩20,925) minimum wage set in California last year.




This decision was made based on findings that most employees working at fast-food chains are adults supporting families rather than teenagers working part-time jobs. This includes a wide range of industries, such as burgers, pizza, coffee, donuts, ice cream, candy, and beverages.


McDonald's in the US with a $22 Hourly Wage? Franchise Owners Are Upset...


Franchise owners anticipate that this increase will result in higher product prices and reduced employment, ultimately burdening both consumers and workers. Major franchise chains (such as McDonald's) are already experiencing a direct impact.




One franchise has even announced plans for large-scale layoffs as a result of this measure.



One franchise owner stated that this minimum wage increase is expected to increase their annual expenses by over $460,000 (approximately ₩620 million), making price increases inevitable. They also mentioned that they have abandoned plans for opening additional stores due to this.



However, supporters of this minimum wage increase argue that it is a positive step for low-wage workers who have long struggled to make ends meet.



Academia has also expressed a positive stance, claiming that this minimum wage increase has not led to job losses.












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