Monica Navarro, a former assistant general manager of Fosters Freeze, explained the consequences of California’s increasing minimum wage on employees on Fox Business.
Starting April 1st, California has the highest minimum wage in the US, with most fast food employees currently making $20 per hour. Labor groups extol the advantages of increased salaries, but restaurant owners worry about job losses and higher pricing for consumers. The pay rise, which took effect days earlier, is causing heated controversy.
Pizza chains have already announced intentions to lay off workers. The 400+ restaurants that make up the Round Table franchise in California have stated that they would use outside delivery services instead of their own drivers. As a result, consumers may expect to pay even more for delivery services, too.
After her employer, the Fosters Freeze franchise restaurant in Lemoore, California, declared their closure on April 1, Navarro went on “The Bottom Line” to discuss it. Navarro said that she found out about the closure from colleagues who showed up to work that day, while other employees assumed it was an April Fools’ prank.
Navarro informed the program hosts that while businesses are not required to warn workers in California, it would have been nice if they had.
Fox News anchor Dagen McDowell questioned Navarro about her communication with her boss about the closure and the minimum wage hike for fast food outlets in California from $16 to $20 per hour.
Navarro said that the staff she spoke with would have preferred to maintain the previous salary level because now they have no jobs. The hours of individuals who retained their jobs nearby were drastically reduced. They have a lot more work to do because fewer individuals are working the shifts.
She said she understood wanting people to make more money but doubted it would be successful. This isn’t the only place to go out of business, and she believes this is just the beginning.
In-N-Out, one of California’s most beloved fast food companies, closed its doors in Oakland, California, due to growing crime rates and price rises.
The new $20 hourly wage for fast food employees in California might affect public schools, making school districts fight with restaurant chains for cafeteria staff.
