The Foster's Freeze team in Lemoore, California, felt "shock" as they learned of the restaurant's last-minute closure, Monday, following the state's $20 minimum wage law.
Ah yes, an economic expert, a 30 year old who manages a burger shop. I feel like we’re not getting the whole story from the owner. Why would he prefer to close his restaurants entirely over a small increase in costs?
I’ve lived in much smaller areas that have minimum wages of $15 and $18, which is about proportional given the cost of living in CA. Sorry to disrupt the Fox-driven panic but restaurants do still exist and thrive in those cities. The previous minimum wage was $16, also, so while the article wants to make it seem drastic, the increase is really not, especially since many cities already had higher minimums than 16.
Why would he prefer to close his restaurants entirely over a small increase in costs?
The risk is greater than the reward. He didn’t feel he can sustain the business.
Lefties think all business owners are rich. They are not. As such the risk wasn’t worth the reward and he shutdown. A McDonald’s franchisee is closing several McDonald’s because they wouldn’t be profitable.
In the end it’ll mean more people without jobs and the poor will be priced out the labor market.
Your statements have no grounding in logic, history or reality. Check back in 10 years and let me know whether every fast food restaurant in California has closed.
You said paying people enough to afford to live was going to devastate California fast food restaurants. Why will some be able to stay open despite the crushing government regulation that says they have to increase labor expense by 7%?
Labor costs are typically about 1/3 of restaurants expenses. Wages are a fraction of that, and as noted, this only applies to businesses that have over 60 establishments nationwide.
Ah yes, an economic expert, a 30 year old who manages a burger shop. I feel like we’re not getting the whole story from the owner. Why would he prefer to close his restaurants entirely over a small increase in costs?
I’ve lived in much smaller areas that have minimum wages of $15 and $18, which is about proportional given the cost of living in CA. Sorry to disrupt the Fox-driven panic but restaurants do still exist and thrive in those cities. The previous minimum wage was $16, also, so while the article wants to make it seem drastic, the increase is really not, especially since many cities already had higher minimums than 16.
The risk is greater than the reward. He didn’t feel he can sustain the business.
Lefties think all business owners are rich. They are not. As such the risk wasn’t worth the reward and he shutdown. A McDonald’s franchisee is closing several McDonald’s because they wouldn’t be profitable.
In the end it’ll mean more people without jobs and the poor will be priced out the labor market.
Your statements have no grounding in logic, history or reality. Check back in 10 years and let me know whether every fast food restaurant in California has closed.
Who says everyone will close? Such a weird argument.
You said paying people enough to afford to live was going to devastate California fast food restaurants. Why will some be able to stay open despite the crushing government regulation that says they have to increase labor expense by 7%? Labor costs are typically about 1/3 of restaurants expenses. Wages are a fraction of that, and as noted, this only applies to businesses that have over 60 establishments nationwide.