Pizza Hut Franchisees Lay Off More Than 1,200 Delivery Drivers in California as Restaurants Brace for $20 Fast-Food Wages
27th December 2023
This is elementary economics: If you raise the price of something, people buy less of it. If you raise the price of labor, businesses employ fewer laborers. Somehow politicians (especially proglodyte politicians) seem to think they can get around reality just by writing a law.
Mark Kalinowski, a restaurant-industry analyst, wrote in a note this week that he expected “more harm to come” in various ways as fast-food chains “take action in an attempt to blunt the impact of higher labor costs.”
Chains such as Chipotle and McDonald’s said they planned to pass the costs of higher wages in California to customers by raising menu prices.