This is an AI translated post.
Select Language
Summarized by durumis AI
- Franchise owners are increasingly concerned as California raises the minimum wage for fast food workers to $20.
- The minimum wage increase is expected to lead to higher product prices and job cuts, with some businesses announcing layoffs.
- However, supporters of the minimum wage increase argue that it is a positive step to help low-wage workers make ends meet, and academia has also analyzed that there will be no job losses.
■ Minimum Wage Increase for Franchises in California, USA?
In California, USA, there has been a recent adjustment to the minimum wage for fast food workers, raising it to approximately $20 (approximately 27,000 KRW). This has led to concerns that franchise owners may be forced to close their businesses due to the increase.
On the 1st, AP News reported that the minimum wage for employees in California working for fast food chains with at least 60 locations nationwide has been raised to $20. This represents an increase of nearly 30% from the minimum wage set by California last year, which was $15.5 (approximately 20,925 KRW).
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. This includes a range of industries such as burgers, pizza, coffee, donuts, ice cream, candy, and beverages.
Franchise owners anticipate that the increase will lead to higher product prices or reduced employment, ultimately burdening both consumers and workers. Large franchise companies (including McDonald's) are already experiencing the direct impact of this.
One franchise company has even announced plans for large-scale layoffs as a result of the measure.
One owner stated, 'This minimum wage increase is projected to increase expenses by over $460,000 (approximately 620 million KRW) annually.' He also expressed the inevitability of raising product prices and admitted that plans to open additional stores have been shelved.
However, those who support the minimum wage increase have stated that it is a positive measure for low-wage workers who have been struggling to make ends meet for a long time.
Academic institutions have also expressed a positive view, stating that the minimum wage increase has not resulted in job losses.
This article is written solely for the purpose of information dissemination.
Please note that sponsor and affiliate links may be included in the content, and a certain level of commission may be paid through partner activities.
