Impact of $20 Minimum Wage on Fast-Food Franchisees in California
Major fast-food franchisee in California, Harsh Ghai, is rushing to install kiosks at his restaurants to save money as the $20 minimum wage affects businesses. The higher payroll costs are making it challenging for franchisees to remain profitable, leading to cost-cutting measures such as reducing employee hours and installing kiosks.
Key Points
- Franchisees installing kiosks to save money
- Challenges in remaining profitable with higher payrolls
- Cost-cutting measures being implemented
Pros
- Higher wages for fast-food workers
Cons
- Potential loss of jobs due to automation and cutbacks
- Closure of businesses due to increased costs