California

Will $20 minimum wage crush fast food in California?

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11 months ago

January 22, 2024

Will minimum wage crush fast food in California?

California is on the cusp of putting the fast-food industry into a curious economic experiment – mandating a custom minimum wage for larger restaurant chains.

Come April, fast food’s biggest players will be paying workers $20 hourly vs. 2024’s statewide $16 wage floor. The thinking behind the legislation is that the industry’s workers have long been underpaid, and a bold move was required to get these poorly compensated workers some hope of surviving California’s high cost of living.

Economic history tells me that this labor-intensive industry, despite all of its protests about the government’s hand in the cost of doing business, has managed to thrive.

Fast food lives in a consumer sweet spot: demand, convenience and relative affordability. And this pay hike – equal to minimum wage increases during the past five years – will create grand economic unknowns.

Will jobs be cut? Restaurants closed? Automation expanded? Will prices skyrocket? A mix of these? Or none of the above? Already we’ve seen Pizza Hut franchisees say they’ll cut 2,000 drivers statewide due to the wage hikes.

But you cannot ignore the other side of this equation. As a workplace, fast food is a tough gig.

It’s typically part-time employment with challenging schedules and few, if any, benefits. This slice of food service workers is paid some of the state’s lowest wages. California food workers, by one federal calculation, earn $18 an hour on average vs. $35 for all workers statewide.

To understand this dichotomy, I filled my trusty spreadsheet with several employment and price stats for fast food – employment at limited-services restaurants; a California slice of the Consumer Price Index for dining out, and the minimum wage’s history.

What you see is that fast food is a significant, quick-growth industry. Limited-service restaurants employed 744,000 Californians in 2023 – that’s 4% of the state’s 18 million jobs.

And fast food’s addition of 431,000 workers since 1990 is nearly 8% of all California job growth. These worker additions are on par with the expansion of jobs in transportation and warehousing or local government.

Or look at it this way: Fast food’s 138% hiring spree since 1990 is triple the 44% job growth seen for all industries statewide.

That expansion happened as California’s minimum wage ballooned from $3.35 in 1990 to $15.50 last year. That’s a 363% jump in pay for the bottom-tier worker – nearly a fivefold pop. And it’s more than double the 167% jump in overall inflation.

And over the 33 years, dining-out costs for all kinds of eateries inflated only slightly more than the CPI – up 182%.

But look at fast food’s ebbs and flows over this third of a century, as I slice economic history into three chapters. Fast food’s quickest growth has come as wages and dining out costs jump the most.

1990-2000: $1 burger wars

This era featured big national chains battling for market share with a host of marketing ploys — from cheap food to big promotions for kids’ meals.

California fast food staffing grew by 107,000 or 34% growth, which doubled the statewide 16% hiring expansion. Fast food equaled 5% of the 2 million hires statewide.

This was a period where the minimum wage jumped 72% to $5.75 from $3.35. That was nearly double the 38% overall inflation rate.

But dining-out prices rose only 29% – likely due to the significant marketing battles of that era. Do you remember the $1 burgers and cheap taco promotions?

2001-2012: Double dips

Two recessions – one of legendary scope – cooled fast food and iced the rest of the California economy.

Still, the state’s fast food industry added only 79,000 jobs in this period or 19% growth. At the same time, however, all other bosses in total cut 37,500 California workers. Remember, the dot-com crash and the Great Recession throttled employers’ willingness to add staff in most industries.

In these economically uncertain times, the state’s minimum wage rose only 39% to $8 from $5.75. The bump was on par with the overall inflation rate.

Yet dining-out prices rose faster, a 43% increase, as busy consumers grew fonder of eating away from home.

2013-2023: The boom

Quick-serve eateries have flourished. Smaller chains brought new flavors and excitement to the industry as pandemic-era twists helped popularize take-out and delivery dining.

Fast food added 236,700 jobs or 47% growth – that’s 7% of all hires and double the statewide 22% hiring pace.

In this period, the minimum wage nearly doubled (to $15.50 from $8) vs. 39% overall inflation – most of that hike coming in the past two years.

Please note that dining-out prices jumped 53%, easily exceeding broader inflation.

Bottom line

Ponder fast food’s pricier competition, full-service dining.

From 1990 through 2015, staffing at these two styles of eating out moved essentially in tandem.

Eight years ago, when the state minimum wage was $9, full-service had 626,000 California workers – up 297,000 since 1990. Fast food staffing was 605,000 – up 292,000 in 25 years.

Fast-forward to 2023. Full-service added just 2,000 positions statewide in eight years. Fast food grew by 139,000.

This growth gap can be tied to everything from changing consumer demands to pandemic business restrictions to fast food’s price advantage.

But far costlier quick-serve meals seem to be a likely outcome of the coming higher minimum wage. Will that ultimately slow fast food’s growth, too?

Jonathan Lansner is business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

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Top 25 California high school boys basketball rankings (12/26/2024)

Published

5 hours ago

December 26, 2024

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Top 25 California high school boys basketball rankings (12/26/2024)

The week between Christmas and New Year’s Day is always revealing for the best boys basketball teams in California and final days of the 2024 calendar year should be no different.

The Damien Classic and Torrey Pines Holiday Classic always present a window of what is in store for the rest of the season and separates the contenders and pretenders. Next weekend at the HoopHall Classic West in Gilbert (Ariz.), Jan. 2-4, will also give the elite teams time to strut their stuff.

There are nine teams among California’s Top 25 still unbeaten at Christmas, a pretty high number, including top-ranked St. John Bosco, No. 6 Riordan and No. 8 De La Salle and No. 9 Montgomery.

Note: Only teams that play for a CIF State California title were considered for this rankings, thus eliminating Prolific Prep of Napa Christian, which can and will play for a mythical national title. Notes and rankings below from Southern Section teams supplied by SBLive’s Tarek Fattal.

The Braves win their Trinity League opener over Orange Lutheran without Brandon McCoy and Elzie Harrington. Christian Collins and Max Ellis led the way. Next up: Platinum Division in Classic at Damien.

Eastvale Roosevelt wins the 2024 Tarkanian Classic in Las Vegas, beating Notre Dame Sherman Oaks in the final, 76-58. / Tarkanian Classic/X

Roosevelt wins the Tarkanian Classic in Las Vegas, beating Notre Dame/Sherman Oaks in the final. Brayden Burries scored 26 points and Issac Williamson had 19.

Nik Khamenia notches 26 points, 10 rebounds and eight assists in a convincing win over JSerra, a team expected to earn an Open Division berth.

Notre Dame suffers its first loss in the Tarkanian Classic final to Roosevelt despite Tyran Stokes scoring 20 points. Lino Mark played just four minutes in an attempt to play while injured. (TYRAN STOKES DEBUT)

Four more wins started with 90-65 blowout of defending state D2 champion Oakland Tech behind 33 points and 10 points from Tounde Yessoufou, and a combined 45 from Julius and Malcolm Price along with Gunner Morinini. Yessoufou is averaging 29.8 points and 7.7 rebounds per game.

Riordan top recruit Jasir Rencher helped lead the Crusaders to a Central Coast Section Open Division title in 2024. After a strong showing at the Section 7 event last weekend, the Crusaders are a team to watch in the Cali Live 2024 in Roseville this weekend. / Photo: Greg Jungferman

Won the Gridley Classic with wins over Branson (68-27), Clovis North (54-52) and previous No. 6 Salesian (52-51) thanks in part to tournament MVP Andrew Hilman (19 points). Texas Tech-bound Jasir Rencher and Irvine signee Nex Emeneke was also All-Tourney.

Carlton Perrilliat also added 11 rebounds in limited minutes.

Carlton Perrilliat swoops in for two of his game-high 22 points in Salesian’s lopsided win over Windward last spring at the at Cali Live 24 in Roseville. / Photo: Gary Jones

Pride lost their first regular-season game since 2022, 52-51 to Riordan, in finals of the Gridley Classic. Salesian missed two free throws with 1.2 seconds to play.

Win over Santa Margarita (61-57) to win the Vountour Classic was team’s most impressive. David Balogun, a rapidly improving 6-6 post, scored 29 to lead the way. Since then breathers over Mountain House (67-35), La Salle (76-26) and Sacred Heart Cathedral (79-39).

The Aztecs from San Diego won five games last week, including four at the Tarkanian Classic to take the Nike Division championship behind division’s Most Outstanding Player J.J. Sanchez, who had 22 points in the finals.

Eagles’ only loss comes this week to unbeaten NorCal power De La Salle, but bounces back with a win over Murrieta Valley.

Trailblazers beat Millikan 87-33 this past week.

The Lions get a taste of Open Division-level hoops in a 65-50 loss to Harvard-Westlake.

Redondo Union is picking up Open Division playoff buzz.

La Mirada forward Gene Roebuck is one of the top 2027 prospects on the West Coast. / Tarek Fattal

La Mirada has been idle since Dec. 14.

Coach Paul Tait is enthused by the play of sophomore point guard Dominic Loehle.

After lopsided win over St. Augustine (77-54), recorded tough wins over Sage Creek (75-66), Mission Hills (67-59) and La Jolla Country Day (80-68).

Monarchs have won five of their last six.

Pius went 2-2 at the Tarkanian Classic.

Jasone Crowe Jr. is averaging 37 points per game.

Had won four straight before losing 63-54 to Brophy College Prep of Phoenix Ariz. (63-54).

Quality win over Pacifica Christian of Orange County without Jeremiah Hampton was impressive. JJ Harris and Louis Bond impressed.

Canyon has won five straight. Brandon Benjamin averaging 30+ points a game.

Damien without big man Nate Garcia (injured).

Twelve straight wins isn’t a bad way to start the season. Defense a big key, holding opponents under 50 seven times, including three straight games limiting opponents to 49 in wins over Riverside poly (61-49), Salesian Los Angeles (93-49) and Wiseburn-Da Vinci (61-49).

Cougars last win came against Long Beach Poly on Dec. 14.

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California has 15 of 25 priciest places to live in US

Published

13 hours ago

December 26, 2024

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California has 15 of 25 priciest places to live in US

No. 1 San Francisco costs 18.2% more than typical US metro. No. 2 LA-OC is 15.5% more expensive.

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Originally Published: December 26, 2024 at 8:08 AM PST

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California Roots Threaten JuJu Watkins’ NCAA Road to Rivaling Caitlin Clark

Published

21 hours ago

December 26, 2024

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California Roots Threaten JuJu Watkins’ NCAA Road to Rivaling Caitlin Clark

Ever since Caitlin Clark left the NCAA to set records in the WNBA, the hunt for the next generational basketball talent has intensified. Among the emerging stars, JuJu Watkins stands out with her electrifying performances for USC and record-breaking milestones. But while her game dazzles on the court, her California roots and unique circumstances create hurdles that may hinder her quest to rival Clark’s legendary NCAA career.

On the latest episode of Fearless with Jason Whitlock, Whitlock tackled the issue, highlighting the contrasting environments between Clark’s Iowa and Watkins’ Los Angeles.

“Well, Caitlin Clark was in Iowa in the middle of nowhere. She wasn’t in the entertainment capital of the world. She wasn’t in a city that had 75-degree weather year-round and open beaches. She went off or she grew up in and continued to play in a little isolated area of the country where people are starved for entertainment. And so she built a huge following right there in the state of Iowa, her home state,” he said.

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The deeper issue, according to Whitlock, is the cultural and entertainment saturation of Los Angeles, where sports often compete with numerous distractions for attention. In contrast, Clark thrived in a basketball-centric environment, with little competition for local and statewide support. While Watkins’ environment may pose unique challenges, her talent remains undeniable.

She recently made history as the fastest Power Five player in women’s college basketball to reach 1,000 career points, accomplishing the feat in just 38 games—two fewer than Clark’s record. With season averages of 24.8 points, 5.8 rebounds, and 3.8 assists on 46.2% shooting, Watkins is unquestionably a dominant force. Yet, as Jason Whitlock put it, the question persists: Can she cultivate the same level of national adoration that Clark commanded?

Balancing brilliance: Can JuJu Watkins thrive amid criticism and California’s spotlight?

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Adding to the debate, Rachel DeMita voiced concerns over how USC is managing Watkins’ playing time on her own podcast. “I don’t think that’s what JuJu needs for the development of her game,” DeMita said, suggesting that keeping Watkins on the court for extended minutes might be more about stat-padding than fostering her growth as a player.

via Imago

Such a strategy could also increase her risk of injury, a significant concern given Watkins’ pivotal role for USC.

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Despite these challenges, Watkins has demonstrated resilience and poise. Her performance this season reflects her ability to adapt and excel under pressure. However, her journey to rival Caitlin Clark’s legacy will require more than individual brilliance. Watkins must navigate the complexities of playing in a city where attention is fragmented, balancing her development with the need to draw a larger following.

Whether she can carve out her own path and emerge as a player of Clark’s stature remains uncertain. For now, her record-breaking performances and undeniable talent keep her firmly in the conversation, as the basketball world watches to see if she can overcome the challenges of her California roots and fulfill her potential as the next NCAA superstar.

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