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The astonishing number of fast food jobs lost – and restaurants shut – because of California’s new $20-an-hour minimum wage

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The astonishing number of fast food jobs lost – and restaurants shut – because of California’s new -an-hour minimum wage


Fast food chains in California are slashing jobs – as a way to cut costs after the minimum wage in the state was hiked to $20-an-hour. 

Almost 10,000 positions across chains from Pizza Hut to Burger King have been cut since the law came into effect on April 1, according to a report from a trade group in the state. 

On top of that, chains have been shuttering restaurants – including beloved Mexican chain Rubio’s Coastal Grill, which this week filed for Chapter 11 bankruptcy and closed 48 locations in the state.  

The California Business and Industrial Alliance (CABIA) slammed Governor Gavin Newsom was for pushing the law through, which has also meant businesses in the state have had to raise prices.   

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To highlight the impact of the law, the trade group created out an advert in Thursday’s edition of USA Today with mock ‘obituaries’ of popular brands.

California Governor Gavin Newsom signed the fast-food bill surrounded by workers at the SEIU Local 721 in Los Angeles on September 28, 2023

The tongue-in-cheek advert, titled ‘In Memoriam: Victims of Newsom’s minimum wage’, highlighted the issues faced by smaller brands including Rubio’s, and fast food giants including Pizza Hut, Burger King, Subway and McDonald’s. 

It features news clips documenting the changes made by companies in response to the wage increase.

This includes raising prices, letting go of workers to cut labor costs – and in some cases shutting down locations. 

One says: ‘A McDonald’s franchisee who owns 18 outposts in California is considering reducing store hours, hiking menu prices and delaying renovations to offset the impact of the state’s $20 hourly minimum wage for fast-food workers.’

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Even before the law was made official earlier this year, chains including Pizza Hut and Round Table let go of more than a thousands delivery workers to brace for the financial ramifications of the change. 

The law signed by Newsom in September last year increases fast-food workers’ minimum wages to $20-an-hour at chains with more than 60 locations in the US.

That is 25 percent more than the standard minimum wage of $16-an-hour in California, which itself came into effect in January.

On a national level, Congress has not touched the minimum wage in decades – it is still $7.25-an-hour. Instead, so-called ‘wage wars’ play out on a state level. 

‘California businesses have been under total attack and total assault for years,’ CABIA president and founder Tom Manzo told Fox Business. 

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‘It’s just another law that puts businesses in further jeopardy.’

He said that officials were living in a ‘fantasyland’ if they think drastic wage increases will actually help workers or businesses. 

‘You can only raise prices so much,’ Manzo told the outlet. ‘And you’re seeing it. People are not going to pay $20 for a Big Mac. It’s not going to happen.’ 

To highlight the impact of the law, the trade group took out a fake ad in Thursday's edition of USA Today with mock 'obituaries' of popular brands

To highlight the impact of the law, the trade group took out a fake ad in Thursday’s edition of USA Today with mock ‘obituaries’ of popular brands

Rubio's Coastal Grill announced it would shut 48 restaurants in the state this week (Pictured: The grand opening of the third Rubio's location in the Pacific Beach neighborhood of San Diego, California in 1986)

Rubio’s Coastal Grill announced it would shut 48 restaurants in the state this week (Pictured: The grand opening of the third Rubio’s location in the Pacific Beach neighborhood of San Diego, California in 1986)

Critics warned that businesses would turn to digital ordering kiosks as a way to cut down on wage costs for staff

Critics warned that businesses would turn to digital ordering kiosks as a way to cut down on wage costs for staff

When the Democrat governor signed the law in 2023, 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.’

But Republican critics claimed the wage hike would simply mean workers are replaced with self-checkouts and ‘robot cooks.’ 

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Harsh Ghai, a Burger King franchisee with 140 restaurants on the West Coast announced in April how he planned to have digital kiosks installed in all his locations in two months. 

Until the wage hike, he planned to roll them out over the next five to ten years. 

‘We have kiosks in probably about 25 percent of our restaurants today,’ Ghai told Business Insider at the time.

‘However, the other 75 percent are going to have kiosks in the next probably 30 to 60 days.’



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California chemical tank crisis updates. What happens next?

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California chemical tank crisis updates. What happens next?


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The worst threats from a damaged chemical tank in Southern California have passed, with authorities saying a major explosion was no longer imminent, but evacuations are still in place amid continued risks on May 26.

The damaged tank prompted tens of thousands of evacuations near Garden Grove, California, in Orange County, south of Los Angeles, starting on May 21. The tank, which stores a toxic industrial chemical, overheated and caused pressure to build up.

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Officials have previously said the crisis would lead to a catastrophic explosion or a spill of the roughly 7,000 gallons of methyl methacrylate at the GKN Aerospace manufacturing facility.

By May 25, they were more optimistic.

“The most catastrophic and worst-case scenario was mitigated and resolved,” said TJ McGovern, interim chief of the Orange County Fire Authority, in a news conference the evening of May 25.

The potential for the most serious crisis was averted after officials discovered a crack in the tank, which relieved significant pressure and the likelihood of a BLEVE, or a “boiling liquid expanding vapor explosion.” The evacuation zone was reduced on May 25, but still covered about 16,000 residents, the fire authority said.

“Residents have been displaced from their homes, businesses have been impacted, and I am relieved that many of you will be able to return home,” Garden Grove Mayor Stephanie Klopfenstein said. “Garden Grove will get through this together.”

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President Donald Trump, on May 25, signed an emergency declaration at the federal level.

Thousands of residents can go back home after explosion risk mitigated

Tens of thousands of residents were removed from the evacuation zone as of the evening of May 25.

As people return to their homes, the Environmental Protection Agency said it was conducting air quality tests, which so far were in the clear for harmful exposure to residents, federal on-scene coordinator Chris Myers said.

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Many who evacuated have been staying at shelters set up to house the displaced, and some slept in tents or in their cars nearby. They spent their Memorial Day holiday away from home. At Freedom Hall, a structure at Miles Square Regional Park in Fountain Valley, Michael Friedman told the USA TODAY Network he was tired and frustrated after evacuating from his home on May 22.

“Everyone’s doing their best,” Friedman said. “They really are, but it’s like it’s not like being at home.” 

Nancy O’Leary, who lives in a senior facility in Garden Grove, slept near Friedman at the shelter. Despite the situation, O’Leary was thankful for how helpful she said others were.

“Oh, you have no idea the friends you make in here,” she said. “Sticking together. It’s wonderful.” 

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The risk is not over. What happens next?

Officials said the residents under the most recent evacuation orders live in an area still at risk from the tank. More work will need to be done before the evacuation is lifted entirely, Orange County Fire Authority incident commander Craig Covey said.

Teams are checking the temperature of the tank every 30 minutes, hoping to confirm a downward trend that would indicate risk is lessening. In the smaller risk zone, Covey said there is still a potential for fire.

In the meantime, residents were urged not to enter the evacuation zone and to keep close watch for updates.

“Nothing is worth risking and endangering your lives by trying to go back to your home while an evacuation order is still in effect,” said Sen. Adam Schiff of California. “Don’t put your lives at risk, and don’t put the lives of first responders at risk by getting in their way.”

Contributing: Paris Barraza, Daniella Segura, Dinah Voyles Pulver, Christopher Cann, Thao Nguyen, Ani Gasparyan and Brian Day, the USA TODAY Network

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California man charged with homicide after body found under blanket near road in Pennsylvania

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California man charged with homicide after body found under blanket near road in Pennsylvania


A man from California is facing a list of charges, including homicide, after a body was discovered under a blanket near the shoulder of a road in Dauphin County, Pennsylvania, officials said. 

Ilia Romanchenko is charged with criminal homicide, abuse of a corpse, possession of an instrument of crime and tampering with or fabricating physical evidence, according to online court records. The 25-year-old man from Roseville, California, was arrested on Sunday and is now awaiting his preliminary arraignment. 

CBS affiliate WHP reported, citing Dauphin County District Attorney Fran Chardo, that Romanchenko was arrested out of the state and is awaiting extradition. The news outlet reported that Romanchenko is charged in connection with the discovery of the body over the weekend. Pennsylvania State Police said in a news release that the body was found on May 23 in Londonderry Township around 10 a.m. near state Route 441. 

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The victim, who has not been publicly identified by police, was described by police as a man with dark brown hair, facial hair and brown eyes, believed to be in his 30s to 40s. He was wearing a black Oakland Raiders shirt and is 5-foot-10, 210 pounds, state police added in the news release. 

Anyone with information on the man’s identity or the case can contact troopers at the state police barracks in Harrisburg at 717-671-7500. Authorities did not release any additional information, including why Romanchenko was in Pennsylvania or how the victim died. The investigation into the man’s death continues. 



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Chemical tank crack eases explosion fears as 50,000 residents flee California

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Chemical tank crack eases explosion fears as 50,000 residents flee California


A damaged chemical tank in southern California cracked over the weekend, which authorities were hopeful would relieve pressure and reduce the risk of an explosion.

Some 50,000 residents in Garden Grove, a city of roughly 170,000 about 40 miles (60km) south of downtown Los Angeles, have been evacuated and are waiting for a resolution.

The tank overheated on Thursday and began venting vapors, leaving local and state officials scrambling to evade a worst possible scenario at the aerospace company site.

No injuries have been yet reported.

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Fire officials planned to send in a team overnight to determine if the pressure has been relieved, which would reduce the worst-case scenario of an explosion, TJ McGovern, the Orange county fire authority interim chief, said in a video posted late on Sunday to the agency’s X account.

Atmospheric modeling showed an active leak from the tank as of Sunday night, McGovern said.

Firefighters have repeatedly sprayed the tank with water in an attempt to cool the chemical inside, methyl methacrylate, which is used to make plastic parts. The tank’s interior reached 100 degrees (37.7 Celsius) on Sunday, an increase of 10 degrees Fahrenheit (5.5 Celsius) since Saturday.

Fire officials over the weekend discovered the tank had cracked, lowering the potential for a devastating blast.

The tank at GKN Aerospace Transparency Systems, which makes parts for commercial and military aircraft, holds 6,000 to 7,000 gallons (22,700 to 26,500 liters) of methyl methacrylate used to make plastic parts.

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Monitoring tests found air pollution around the evacuation zone was within normal limits and specialized equipment is being used to ensure gas is not released, state and federal environmental officials said Saturday.

The first goal of firefighters is to cool off the chemical inside the tank to prevent a leak or explosion.

Drones were monitoring temperatures at 10-minute intervals to watch for any spikes. Containment barriers have been set up to prevent the chemical from getting into storm drains or reaching creeks or the nearby ocean in the event of a spill, the Orange county fire authority division chief, Craig Covey, said on social media.

As the interior temperature rises, methyl methacrylate converts from a liquid to a gas and increases the pressure, according to Andrew Whelton, a Purdue University engineering professor who said the crack could mean product or pressure is being released, reducing the chance of explosion.

“Think of a soda can. If you leave it in a hot car it can explode,” Whelton said. “But if you put a hole in the can, the product is released and the can itself doesn’t explode.”

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Aerial photos taken by the Associated Press showed streets in the area were empty on Sunday, while several evacuation shelters were open. At a high school in neighboring La Palma, people slept in cars or on mats and sleeping bags on the asphalt.

Garden Grove is next to Anaheim, home to Disneyland’s two theme parks, which were not under evacuation orders. Park officials said they were monitoring the situation.

Exposure to methyl methacrylate can cause serious respiratory problems, neurological problems and irritation to the skin, eyes and throat, according to fact sheets about the chemical.

Some Garden Grove residents filed a class action federal lawsuit on Saturday against GKN Aerospace Transparency Systems, which operates the facility where the tank is located. Lawyers for the residents argued that regardless of what happens, property values in the surrounding community are sure to be impacted.

GKN Aerospace did not comment on the lawsuit but has apologized to residents and businesses forced to evacuate. It said Sunday it was “working around the clock to mitigate the risk of a leak”.

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