Connect with us

California

Will $20 minimum wage crush fast food in California?

Published

on

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.

Advertisement

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.

Advertisement

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%.

Advertisement

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?

Advertisement

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.

Advertisement

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.

Advertisement

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

Advertisement



Source link

California

Signs of spring blooming at Antelope Valley California Poppy Reserve after wet, warm winter

Published

on

Signs of spring blooming at Antelope Valley California Poppy Reserve after wet, warm winter


It’s beginning to look a lot like spring!

The warm and wet weather this winter has led to the start of a dazzling super bloom at the Antelope Valley California Poppy Reserve.

“We had an unseasonably warm winter as well, so there’s actually a lot of growth,” said Callista Turney with California State Parks. “We’re having early wildflowers that are already at the park. So if you look at the poppy live cam, it shows a lot of orange already.”

The rain has helped the early blooms, but it’s actually the heat that accelerated the growth of the flowers.

Advertisement

“It will actually speed up the growth of the plants, so some of them were already blooming and that’s going to cause those blossoms to accelerate faster towards seed production. And the blossoms that are in the process of being formed, those are going to open up soon as well.”

We also sometimes see great super blooms in Death Valley National Park, Anza-Borrego Desert State Park, Joshua Tree and the Mojave National Preserve.

“It’s definitely a rare occurrence because we don’t always have the right conditions. It’s gotta be the weather, the wind, the rain, all coming together,” said Katie Tilford, Director of Development and Communications with the Theodore Payne Foundation.

If it continues to stay unseasonably warm, we’ll see a shorter bloom. The key to a longer season is milder weather.


Copyright © 2026 KABC Television, LLC. All rights reserved.

Advertisement



Source link

Continue Reading

California

Republican governor candidate Chad Bianco says he’s the ‘antithesis to California state government’

Published

on

Republican governor candidate Chad Bianco says he’s the ‘antithesis to California state government’


We are counting down to the California governor’s race. Chad Bianco, the sheriff of Riverside County, is one of the two biggest names running on the Republican ticket.

In a one-on-one interview with Eyewitness News political reporter Josh Haskell, Riverside County Sheriff Chad Bianco said, “I am the antithesis to California state government because I am going to take a nuclear bomb into that building and absolutely destroy everything that they do to us behind closed doors.”

Although he’s been elected by the voters twice, Bianco says he’s not a politician — which is why he believes his campaign for California governor is resonating, as reflected in the polls.

“President Trump, in one year, from 2025 when he took over, until now, did absolutely nothing to harm California. What’s harming California is 30 years of Democrat one-party rule that have created an environment here that no one can live in anymore. They’ve only been successful here in California because we vote D no matter what. You vote D or die. I mean, that’s it. Charles Manson would be elected in California if he was the only Democrat on the ballot,” Bianco said.

Advertisement

Bianco isn’t the only conservative Republican running for governor, and according to polling, he’s neck-and-neck with former Fox News host Steve Hilton.

SEE ALSO: CA governor candidate Steve Hilton says ‘everybody supports’ Trump’s immigration policies

Leading in some polls in the wide-open California Governor’s race as the June primary creeps closer is Republican and former Fox News host Steve Hilton.

“Steve has no chance of winning in November. The Democrats know that I’m going to win in November, and so they have to do everything they can to keep me out of that,” Bianco said.

When asked about the affordability crisis in the state, Bianco said, “Almost the entire issue of affordability in California is because of regulation, excessive regulation imposed by government. Every single regulation can be signed away with the governor’s signature.”

Advertisement

“It is a drug and alcohol addiction problem that, and a mental health problem,” he said about the homelessness crisis. “Every single bit of money that is going to these nonprofits that say ‘homeless,’ zero money. You’re getting absolutely nothing. I can’t tell you that we would end what we see in the homeless situation within a year, but I guarantee you we would never see it again after two years.”

When challenged on that prediction, pointing to how the state doesn’t have the facilities to treat the number of people living on our streets, Bianco responded, “We have been conditioned to believe that buildings take five years to build. It takes 90 days or less to build a house, but in California, it takes three to five years because the government won’t allow it. The regulations that are destroying this state are going to be removed with me as the governor.”

Bianco also said California jails shouldn’t have to play the role of treatment facilities.

Although he says he supports the Trump administration and wants the president’s endorsement, Bianco has been traveling the state — meeting not just with Republicans, but Democrats and independents as well. He says all of our state government officials have failed.

The primary election is June 2.

Advertisement

No clear front-runner in race for California governor, new poll shows

A new poll shows there’s still no clear front-runner in the race to replace Gov. Gavin Newsom.

Copyright © 2026 KABC Television, LLC. All rights reserved.



Source link

Advertisement
Continue Reading

California

PlayOn Sports fined $1.1 million by California watchdog over student data violations

Published

on

PlayOn Sports fined .1 million by California watchdog over student data violations


California’s privacy watchdog has ordered PlayOn Sports to pay a $1.10 million fine and change how it handles consumer data after finding the company’s practices violated state law in ways that affected students and schools in the state.

The California Privacy Protection Agency Board issued the decision following a settlement reached by CalPrivacy’s Enforcement Division.

The decision is the first by the board to address privacy violations involving students and California schools.

Schools across the country use PlayOn Sports’ GoFan platform to sell digital tickets to high school sporting events, theater performances, and homecoming and prom dances, with attendees presenting tickets at the door on their mobile phones.

Advertisement

Schools also use PlayOn Sports’ platforms for other sports-related activities, including attending games, streaming them online, and looking up statistics about teams and players.

In California, about 1,400 schools contract with PlayOn Sports for these services.

[RELATED] X faces possible fines as EU probes Grok nonconsensual, sexualized deepfakes

GoFan is also the official ticketing platform for the California Interscholastic Federation, the governing body for high school sports.

According to the board’s decision, PlayOn Sports used tracking technologies to collect personal information and deliver targeted advertisements to ticketholders and others using its services.

Advertisement

The company allegedly required Californians to click “agree” to tracking technologies before they could use their tickets or view PlayOn Sports websites, without providing a sufficient opt-out option.

“Students trying to go to prom or a high school football game shouldn’t have to leave their privacy rights at the door,” said Michael Macko, CalPrivacy’s head of enforcement. “You couldn’t attend these events without showing your ticket, and you couldn’t show your ticket without being tracked for advertising. California’s privacy law does not work that way. Businesses must ensure they offer lawful ways for Californians to opt-out, particularly with captive audiences.”

The decision also describes students as a uniquely vulnerable population and warns that targeted advertising systems can subject students to profiling that can follow them for years, expose them to manipulative or harmful content, and develop sensitive inferences about their lives.

Instead of providing its own opt-out method, PlayOn Sports directed students and other users to opt out through the Network Advertising Initiative and the Digital Advertising Alliance, which the decision said violated the company’s responsibility to provide its own way for consumers to opt out. The company also allegedly failed to recognize opt-out preference signals and did not provide Californians with sufficient notice of its privacy practices.

“We are committed to making it as easy as possible for all Californians — from high school students to older adults, and everyone in between — to make the choice of whether they want to be tracked or not,” said Tom Kemp, CalPrivacy’s executive director. “Californians can opt-out with covered businesses, and they can sign up for the newly launched DROP system to request that data brokers delete their personal information.”

Advertisement

Beyond the $1.10 million fine, the board’s order requires PlayOn Sports to conduct risk assessments, provide disclosures that are easy to read and understand, and implement proper opt-out methods.

The order also requires the company to comply with California’s privacy law prohibiting the selling or sharing of personal information of consumers between 13 and 16 without their affirmative opt-in consent.



Source link

Continue Reading

Trending