It’s been nearly one month since California raised the minimum wage at certain restaurants, which has put a spotlight on a course correction that many see as long overdue, ABC News reported.
But for some — and not just fast food franchise owners — the newly raised bar for compensation also marks a pivotal point for restaurants to remain competitive in an already difficult post-pandemic landscape. The industry with famously thin margins is once again being pushed to make monetary and operational adjustments to stay afloat, all without compromising consumer expectations.
Some customers have already felt the pinch of costs being passed onto them, which restaurant owners and executives at chains like Chipotle and McDonald’s warned could come as a result of the state voting to increase the minimum from $16 to $20 an hour at restaurant chains with at least 60 locations nationwide.
