California
California fast food wage hike has had detrimental impact, puts businesses in 'jeopardy,' critic says
California franchise operator Alex Johnson estimates his ten restaurant locations will be out $470,000 total due to the state’s new minimum wage law.
California Gov. Gavin Newsom’s successful push to hike the minimum wage for many of the state’s fast food workers is having a devastating impact on businesses, who have been forced to cut labor costs to survive, critics say.
Prices at major brands like Chipotle, McDonald’s and other fast food giants have increased in a move to keep up with the $20 per hour workers have been paid since the new wage went into effect on April 1. The rule impacts restaurants that have at least 60 locations nationwide, except those that make and sell their own bread.
The California Business and Industrial Alliance (CABIA) said nearly 10,000 jobs have been cut across fast food restaurants since Newsom signed California Assembly Bill 1287 into law last year. To highlight what it says are the unintended consequences of the law, CABIA has taken out an ad in Thursdsay’s statewide edition of USA Today with mock “obituaries” of popular fast food brands.
NEARLY 80% OF AMERICANS NOW CONSIDER FAST FOOD A ‘LUXURY’ DUE TO HIGH PRICES
A car goes through the drive-thru at a McDonald’s restaurant in San Pablo, California. Fast food chain restaurants are being hurt by an increase in the minimum wage for workers, a trade group says. (Justin Sullivan/Getty Images / Getty Images)
It highlights multiple restaurants that have had to raise prices and lay off workers to stay afloat and, in some cases, shut down stores. The ad features news clips documenting changes made by brands like El Pollo Loco, Subway and Burger King across the state.
“California businesses have been under total attack and total assault for years,” CABIA president and founder Tom Manzo told FOX Business. “It’s just another law that puts businesses in further jeopardy.”
When he signed the law, Newsom said the state was getting “one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast food workers a stronger voice and seat at the table.”
Governments, unlike private businesses, have options when they run out of money, said Manzo, who said officials were living in a “fantasyland” by thinking that drastic wage increases will help workers or businesses.
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The California Gov. Gavin Newsom-approved $20 minimum wage is causing the “collapsing of businesses,” says Los Angeles restaurant owner Angela Marsden. (Getty Images/Fox News Digital/Photo illustration / Fox News)
“You can only raise prices so much,” he said. “And you’re seeing it. People are not going to pay $20 for a Big Mac. It’s not going to happen.”
He noted that to comply with the law, some restaurants have cut employee hours and will most likely move toward automation in the future.
In the weeks before the wage hike went into effect, some California fast food owners began letting go of workers in anticipation of the increased labor costs. In December 2023, the Southern California Pizza Co., which owns multiple Pizza Huts stores, announced layoffs of around 841 delivery drivers across the state.
Meanwhile, the increase in pay comes as inflation has resulted in higher prices for fast food items. A recent survey conducted by LendingTree found 78% of consumers now consider fast food to be a “luxury” purchase due to how expensive the meals have become.
FOX Business’ Brian Brenberg looks at rising fast food prices under President Biden.
FOX Business has reached out to Newsom’s office.
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Part of the push for the hike was to give fast food workers more financial freedom in a state known for its high cost of living. However, critics contend fast food jobs were meant for young people as a stepping stone.
“It’s a starter industry,” Manzo said. “You get a job as a kid working in a fast food restaurant and you learn some good work ethic and that takes you into life.”
California traveled to Louisville, Ky., in search of a statement win against the No. 14 Louisville Cardinals (7-2, 4-2 ACC), and the Golden Bears (6-4, 3-3 ACC) pulled out all the stops Saturday evening to earn the upset, 29-26, in overtime.
On the first play of the game, California quarterback Jaron-Keawe Sagapolutele threw a lateral to his slot receiver, Jacob de Jesus, who then connected with Trond Grizzell on a deep 27-yard pass. While the Golden Bears would not score on the drive, their fast and aggressive play early on silenced much of the 51,381 in attendance.
California out-gained Louisville in total yards and offensive plays throughout the entire game. The Golden Bears never once trailed the nationally ranked Cardinals by more than one score, despite entering the game as three-score underdogs, according to many sportsbooks’ odds.
Sagapolutele earned the game-winning touchdown in overtime with a nail-biting throw on fourth down. California’s first-year signal-caller found his favorite target of the evening, de Jesus, who brought in the three-yard reception to close out the game.
De Jesus had a game-high 157 receiving yards and hauled in 16 of 23 passes in which he was targeted. His 16 receptions tie Geoff McArthur’s school record for receptions by a receiver in a single game.
In his post-game press conference, Louisville head coach Jeff Brohm praised de Jesus, calling him California’s “best player.”
“… Even at the end, to allow their best player to be one-on-one for an easy throw in the corner… you know, we need to coach better; we need to play better,” Coach Brohm said.
Sagapolutele completed 30 out of 47 passes attempted and racked up 323 passing yards—both career highs. In addition to the game-decider, the quarterback threw his first touchdown of the game in the first quarter, a 20-yard bomb to tight end Landon Morris.
The last time California beat a nationally ranked, top-25 team was on Dec. 5, 2020, when the Golden Bears upset the No. 20 Oregon Ducks, 21-17, for their first win in the 2020 college football season.
With the win, California is now eligible for a post-season bowl bid.
CALIFORNIA (AZFamily) — The mother of a missing California girl has been arrested on charges unrelated to her daughter’s disappearance, but the child still has yet to be found.
FBI Los Angeles announced that 40-year-old Ashlee Buzzard was taken into custody on Friday. However, the whereabouts of her daughter, 9-year-old Melodee Buzzard, remain unknown.
Melodee and Ashlee reportedly went on a road trip as far as Nebraska in a rental white Chevrolet Malibu last month, detectives say. Federal authorities say Melodee and her mother may have passed through Interstate 15 in Littlefield, Arizona while on the drive.
Detectives say Ashlee was arrested for a recent incident where she allegedly prevented a victim from leaving against their will. Authorities say this crime is not connected to the ongoing search for Melodee.
“Although this arrest occurred during the course of the missing person investigation, it is not directly related to Melodee’s disappearance. Sheriff’s detectives remain fully focused on locating Melodee and confirming her safety,” FBI Los Angeles said in a statement.
Ashlee was booked for a felony charge of false imprisonment. She is being held at a jail in Santa Maria, California, with bail set at $100,000.
Melodee was photographed at a rental car agency on Oct. 7, wearing a wig and a hoodie.
The young girl has brown eyes and brown, curly hair that may be straightened or covered with a dark wig. She is between four and four-and-a-half feet tall, weighing between 60 and 100 pounds.
Anyone with information about Melodee is asked to contact detectives at (805) 681-4150 or submit an anonymous tip at (805) 681-4171.
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California
Home Ronald and Nancy Reagan commissioned as California Governor’s Mansion hits the market
A Carmichael home that was originally designed to be California’s official Governor’s Mansion is now up for sale.
The mid-century modern home, located at 2300 California Avenue, was built in 1975 after being commissioned by Ronald and Nancy Reagan to replace the aging governor’s mansion at 16th and H streets in Sacramento.
By the time construction was finished, Reagan had already left office. His successor, Jerry Brown, declined to move in – famously dismissing the Carmichael residence as the “Taj Mahal.”
No California governor ever called the mansion home, with the property being sold to a private citizen in 1983.
A time capsule installed at the property recognizes the home’s history. The capsule is scheduled to be opened on July 4, 2076.
Now, as of Oct. 16, the Carmichael home has hit the market with a list price of $7.5 million. The property spans 4.3 acres that overlook the American River, with the home featuring a total of 8 bedrooms, 8 bathrooms, and 2 half bathrooms.
“You can really feel the history here,” said realtor Hattie Coleman in a statement.
The Carmichael home last sold in 2004 for $4.1 million.
The East Sacramento home Reagan lived in for much of his time as California governor was designated as a historic landmark in 2024.
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