California franchise owner discusses the impact of $20 minimum wage for fast food workers 

Lol is it not like that ...I always ask the starting pay and pay raises at my interview

Exactly. I saw a RU-vid video where they paid for a McDonald's meal worth $16/17. It won't surprise me to see it go to $20+ per meal.

Maybe it is time to switch to healthier diet like cooking your own meals

If you ever flew across country and had to change planes you paid $10 for something that should only be $5. If you ever went to big sports game you paid $10 for something that should only be $5. I have been to towns which grow fast for various reasons and sometimes the only place to eat are the same fast food offerings on turnpikes or highway exchanges.

​@@GeorgeSchneider8889people won't have a choice 😅

@@hvyarms4496 People always have a choice. That’s the beauty of Capitalism.

There's the same amount of work to be done. If a business could magically cut hours it would, even if employees made 1 cent per hour. Nonsensical

@@TheBilly Hours do get cut and the work is put on others who are more valuable to the employer. You have no clue how businesses work.

​​@@TheBilly😂 no if your over head is is higher then profit people are going home because less customers means less work

Ambulance drivers aren't what you think they are from tv. I experienced it in real life and spoke with people about it after... ambulance drivers make around $21 an hour which is nothing after taxes. they only have to know cpr and basic life support to my knowledge. they can get speeding or camera tickets and have to pay for them... it's a junk job that people only take because it's their best option or to move up... but all the money goes to the owners. it's disgusting... the main point we need to focus on is that way too many people have trouble paying for rent and daily living. they can't afford mental health breaks that other countries give like France. we're guaranteed nothing most times. everyone should have a shot to thrive similar to the 70s and 80s and 90s, even the 2000s weren't too expensive. and the owners still take home multiple millions and the people directly below are overpaid

You're right, many classes of workers are oppressed! Good point

That is very true. Both on taxing higher cost and income.

Are you for real? I don’t think anyone refuses income increase because their taxes might go up!

And you don't think the government legislated that raise with the idea that they would collect more taxes from the employee as well as the business? Of course they had something to gain. All they acieved was to drive inflation up. What's left of those four dollars, after taxes , won't buy them much. They'll be lucky if they even keep their jobs. ​@musicgram08

@@Fishseaofcortez Exactly.

Inflation is the hidden tax

He did state that he was going to move business to Nevada instead of California, which, if he moves the majority of his businesses to Nevada, he can claim his taxes there instead of in California. Nevada has NO State Income Tax.

People, $1.11 an hour pay raise per employee would never justify raising the prices nearly double by going from $5 or $6 to $12-$15. That's insane. This f****** raise has everyone focusing on the wrong thing The real problem is the greed of the companies that own everything The companies that started jacking the prices up the moment Americans started to say I want to work less and spend more time with my children I had fun with my kids during the pandemic lockdown I'll work out as a lawyer out of my house instead of a firm so I can spend more time with my kids and then at the same time that was when we were trying to raise our ability to monitor what pharmaceutical companies charge us for prescriptions Right after they said hell no and made sure we didn't get what we wanted and Biden kissing their corporate addiction machine executives asses all along the way. The raise is not the issue. Why people need this raises the issue. And the next issue coming is going to be had a deal with all the people that are going to be robbing each other because it's impossible to shoplift for food in the store because these stores have put everything on such a lockdown that when everyone gets fired from losing their job to AI and no one's done anything to watch out for this even though you seen what happens when 30 people Robin Nordstrom at the same time in Oakland and they get all the handbags they want well next time when they can't get handbags or food cuz there's none on their shelves you have to ask for it all to be brought to you or have it delivered they're going to be rubbing the delivery man they're going to be robbing the people that have it at their doorstep they're going to be robbing the person walking down the sidewalk who looks like they might have cash in their pocket and then the person that gets robbed well one they get robbed that sucks it does and to the person that does it well they're going to start throwing them in jail and they know where everyone is because just like Mr wonderful said a couple weeks ago we can scan your retinas in photographs and moody and film can be wearing a mask we'll find you still and you'll never work for him again and if you steal something from these things well there's a reason why all these rich people have been invented investing in corporate prisons and by corporate I mean funded privately They plan on filling them up and then the next 10 years I think it's going to be like the hunger games without the enjoyment of the games it's just going to be people hungry and then those on the other side of the f****** city or state with all the money inside bubble protected worlds of beauty. No one's keeping their eye on the prize except for the people that hold all the keys.

1973: ceo to employee compensation ratio was 22.7. 2021, that ratio turned up to 389

It called star bucks

Become a CEO then, or keep munching on sour grapes.

@@taqiyyaconcarne6908 what does that saying mean

@@GeorgeSchneider8889 lol CEO and the franchise owner are two different people. The CEO is making money based on a fixed % of the gross of the Corporation. The Franchise owner makes a % of the net, that the profit after the store pay all the bills

I am pretty sure that is why CA politicians are attacking these taxpayers for liberl popularity. For a state that just let “gig work” companies evade ALL labor laws this looks like politicians lashing out at small biznesses to look powerful.

Not for their bottom line it won't be. Wait until California tells you that your unemployment taxes are going to go up dramatically. Think of fast food like the tobacco industry. The government will never outlaw something that is so profitable in tax revenues.

I do agree with you on junk food being a problem, but it is not an excuse for authoritarianism. Remember that not every customer is obese and unhealthy, so it's unfair to punish them. You have the grandparents on fixed incomes taking their grand kids out for a treat, or people like myself who rarely eat fast-food, but will on occasion. We all have our little weaknesses and vices, we don't need the nanny state coming after them. A free market in medical treatment and insurance people would motivate people to be healthier, not to mention make medical care much cheaper.

More welfare

How does the Nation pay for unemployment insurance, Medicare, Medicaid, and Social Security?

Of course the State don't want to do that. Who's going to pay for their over spending (lavish dinner, pension, etc).

There are massive franchise corporations like ticks on a dog sucking franchise fees and charging for corporate logos and products not helping the local economy! Let the massive companies that can open stores in China and all over the globe like Mickey D figure out how to pay community workers living wages rather than supply those corporations hidden subsidies by their workers needing local social services paid for by other members of community. I for one don’t want any business paying below living wages expecting my wallet to pay extra for the hospital bill, food bill etc to keep underpaid workers alive! I certainly don’t want victimized by a burger flipper stealing things from me because corporate franchise owners won’t pay living wage!

True!! The government doesn't fix problems though

​@musicgram08 we are letting them. They under pay and always increase prices when minimum wage goes up. We blamed them already, that strategy sucks, they dont care. Got anything else?

No they are not coming. Nature abhors vacuum. New businesses will take over

Newcomers are cheaper than ai

If AI could replace people it would. You can't debase yourself enough as a worker to stop AI. Moore's Law makes computation cheaper every year, and eventually even at $0/hr a human being is too expensive, because there's too much overhead in managing them. This is such a worthless talking point to bleat out

@@TheBilly This is an argument of someone who doesn’t know how AI works. Ai requires multiple servers that requires electricity and maintenance staff. AI doesn’t fall from the sky.

He didn't say that, he said that their productivity is so high that if pay had scaled with productivity they would be making that; 20 is still a pittance compared to what the corps are raking in. Where do you think their billions come from exactly?

It’s not funny…cause it’s true!

@@skyak4493 Jokes are better if they are true.

The very bad news is that they are getting fired, not laid off so they won't be eligible for un-employment benefit pay either.

mcdonalds instead chose to pour milliosn into automation research which will render all these unskilled workers obsolete.

@@VOAN California didn't screw employers with huge wages just to let them fire people. They will make them pay unemployment. California WANTS to force fast food out of business.

You will in airports, turnpikes, sports events, highway interchanges and most fast growing communities where developers are paying low wages to illegal transient works like construction. Was visiting Tucson, Arizona and most of the new “restaurants” were fast food massive franchises.

@@musicgram08 I'll just pack my own food like lunchables and beer

They're going to lose their jobs!

@@boat6float he's going to have to pay them with the gold coins in his giant underground swimming pool vault of gold coins, instead of firing them or just shutting down because it's not profitable

You’re dull dude. If the prices go up in wages then the cost of living including groceries, and taxes are going to cost way more. Just because they get more money doesn’t mean life there isn’t going to be less expensive. It’s called being realistic.

@@boat6float a horrid low paying job where you are in non stop poverty. How horrible to loose it. if only they lived in a tent and stopped complaining about living wages.

We need buying power not more dollars an hour

@IL_Bgentyl nah , everybody else got their wage increases . Buisness continues to gouge the public., but now , it's about time that the FF workers get their raise.

You must be young. Go back and look at what unions did to the automobile industry, the textile industry, etc. The problem is nobody wants to pay the cost of that "living wage" you demand. You going to spend $100 to take the family to McDonalds to allow businesses to pay that living wage? I doubt it.

@@Shadow_Banned_Conservative think you miss understood/interpreted what I meant. More money does nothing if inflation meets or beats pay increases. You actually lose money as your tax brackets increase and the government state makes more. So chill on the patronizing.

@@Userqvcqt exactly why you should want buying power. Simplified, you want the ability to buy as much as possible with as minimal of dollars. It’s better if one dollar can buy a carton of milk vs needing $100 for one carton.

Because they did not contribute heavily to Gavin N’s political campaign.

Because it's "Fast Food" technically. Your order comes ready in only a few minutes usually.

Because they're not specifically a bakery that bakes bread from scratch on site. They get mass produced batches shipped to them. That's not a bakery. The bakery is the huge warehouse that they receive their shipments from

@@TheBilly and Panderia does, I suppose. What a tricky way to write the bill and hid one company. thanks for the explanation.

Not really if they have dependents.

You are not paying 50% taxes on 20 an hour, read a book.

Why you didnt stop yourself halfway into 'why doesnt a government lower taxes?' is adorable

because fast food work is unskilled labor and shouldn't get higher pay other than minimum wage so to arbirtrarily the wage is ridiculous and only causes inflation.

Good!

And?

very ignorant comment here. have you seen his P&L?

But they're sooo good

I paid $3.50 for a cinnamon roll at the local donut store and about had a fit. $10? No freaking chance.

Yes, imaginary numbers plucked out of the air are crazy. Cinnabon is not charging $10

how come there isn't conversation about how fast food workers are very unskilled and should not get paid more just because life costs more?

@@royharper2003 "Skilled" and "unskilled" are terms put into the public conversation so that unlivable wages are somehow justified. The fact is these people are productive and meeting the demand for something that consumers want.

@@doingtime20 o oh yes someone that flips burgers for a living should make $100K per year.

@@royharper2003 $20 USD an hour is 38,000 a year.

Everyone in society depends on others for a better life. Or are you going to tell me you generate your own electricity, build your own roads to drive on, collect and purify your own water, grow your own food?

@@cassady7169 great. Then keep working at McDonald’s for $20/hour and become the pride and joy of your family. LOL

@@cassady7169 Those examples you give aren't minimum wage jobs.

finally, a sane person with a brain in the comments.

his company preztel power makes $11.7million a year, he'll be okay.

As profits go up, wages should go up.. We're living in an era of unprecedented profitability for companies.. But people haven't had real wage raises for decades while the cost of living keeps increasing.. and what do companies do with their profits?? A lot of them spend it on stock buybacks and putting more money into the pockets of the CEOs while they let their workers struggle to get by.. Workers should get a fair share.

@@bmay282 Who's stopping them from starting their own business to profit from? Name names!

@@bmay282 Exactly. Note, too, that employee productivity has soared but none of the benefit has been shared with the folks that make that happen. Yes, productivity increases are harder in the hospitality industry, and yes, labor costs are a larger share of operations. But suppliers should be passing along productivity benefits through lower costs, not shipping profits to folks whose income is unearned.

@@movinfawward Employee productivity is going to really have to soar now to make up for the 1-2 people less on shift to handle the workload. Winning!

@@Shadow_Banned_Conservative true, to a point. However, workers should not be forced to subsidize businesses by earning less than a survival wage, any more than businesses should operate at less than a profit. These are the same thing. Direct your frustration to the oligarchic profiteers who have raised this operator's costs while using government regulation to protect their far beyond Adam Smith-worthy market shares. They are the ones who are breaking the free market, not some poor schlub making barely enough to pay (monopolized) rent and (monopolized) utilities.

But they have In N Out so.

The real data is we all get fkd every time the minimum wage goes up. My boss won't pay me more just because prices go up everywhere. These people fk up the whole economy just for a "living wage" they know what's gonna happen and want it anyways

No, fast food is going to be in trouble. You can't pass the cost on to consumers if there aren't any consumers. Are you going to pay $100 to take the family to McDonalds? I doubt it.

That is not true. There are air quotes “economists” aligned with liberals that say it’s nothing and there are economists aligned with franchisees and ‘era that say this will raise prices and likely result in closures. For a state that just let “gig work” companies evade ALL labor laws this looks like politicians lashing out at small biznesses to look powerful.

Like who??

LoL...no burgers.

duh

So why don't you get a job where you can earn a living wage?

@@SK-dn9nkI guess those people won’t answer. My understanding after actually talking to young people is having a job or sometimes jobs which seems to pay living wage requires you be fully employed and for various hocus pocus business trickery to avoid expenses associated with full time employees the worker hours are limited.

As a beginner, it's essential for you to have a professional to keep you accountable. I'm guided by Andras Bohm a widely known crypto consuitant

I'm willing to make consultations to improve my situation. What is the most reliable medium to reach him please?

Andras Bohm is the licensed fiduciary I use. Just research the name. You'd find necessary website to work with a correspondence to set up an appointment.

his website appeared right away, You've saved me several hours of research, I appreciate it

Sounds to me like the right lobbyists paid the toll.

@@Shadow_Banned_Conservative There was a power play by rich SV VCs to pass “prop 22”. It enshrined the “contract worker” loophole.

@@skyak4493 Isn't that what I said, just in different words?

Let the small business owners go pick off the blood sucking ticks of their overlords controlling the franchise! All those celebrities making commercials to promote the corporate franchise over mom and pop competition is taking money out of local fast food franchises! How much extra goes to the sports figure endorsements which could go to wages! Hire people that clean and serve a good product rather than underpaid workers that need food stamps and can’t pay their own healthcare bills!

@@Shadow_Banned_Conservative Different mechanism -both forms of corruption.

Is the business open all the time? Then it is not part time job! Only reason would be limited would be owners want to cheat the system where number of full time workers requires other regulated business expenses like healthcare or workers compensation.

Any business can supply experience building!

@@musicgram08 I hear you, the fast food industry is easy to get into without any work history. It used to be the first job for a High Schooler.

@@musicgram08 The franchisors want as much part timers as possible, it's been the industry standard since in Ray Kroc started.

20 an hour in California is not a career, it's not even enough to afford rent.

Makes no sense. The same amount of work to be done exists, and these chains made huge profits. They can continue by simply making less profit

And if all his locations close down, the people who depend on a paycheck from him will have nothing now. Sounds like a big "L" for California workers to me.

Also all his workers will be without jobs and then they will be even more screwed than they already are!

Wrong. Bad business owners will be weed out and better companies will replace them

yes, an IT college educated person who could poetentiall earn 6 figures would readily abandon that earning potentil to work fast food fo a higher starting pay which will never go up.

Except not all businesses operate on same level. These are franchises of massive corporations which add on franchise fees and require consumables from corporate all at markup which leaves local communities. These franchises also have the advertising power of corporate which are funds coming right out of community just like taxes. So not only is that advantage over the potential small competitors there should be bulk purchasing power of franchise system which competes against small competitors. I haven’t seen the media, which profits greatly from franchise advertising budgets, truly present the facts. If a state or community has these massive fast food franchises’ workers needing social services a state has every right to require living wages. Every fast food worker not earning living wages is burden on someone else in communities. It just seems all these celebrities and sports stars getting rich from endorsements isn’t right when actual workers handling your food are not making a living wage! Especially when in some places there are no other jobs except below living wage service and retail jobs!

@@musicgram08 I am not disputing your post, But reality is franchise stores have to adhere to strict guidelines when it comes to how a franchise is operated. The playing field will never be level when it comes to franchise stores and independent stores, I also believe that people should earn a living wage, but at the same time these people who have championed a living wage laws and have won must also understand the consequences of this action. And this is the major issue with all strikes and wage increases as we move forward --For example a franchised store runs on a 2 to 4% profit margin as I have indicated before, these same franchise store are required to pay in some cases up to 20% monthly of there gross income to the corporate office and this is just one fee and there are many others, for example if you want your franchised store to be remodeled it has to be done and approved by the corporate office and you pay extra for this above your franchise fee, these are just two examples of what a franchised store must do or pay. Lets not even talk about the impact on the community because that is a mute questions, corporate guidelines and rules are put in place for each franchise to increase revenue to the corporate office and in turn the corporate office will guarantee profitability for that location thru corporate assisting in advertising and operation of that franchise. McDonald's, Burger King, Taco Bell, Kentucky Fried chicken and fosters, Denny's, Village Inn, just to name a few. As much as we would like to see the playing field leveled on these type of businesses we also know it will never happen. and one last point to make this California board that is over seeing the wage hikes in that state has the power to raise the hourly wage even higher if they feel the need to. This is most defiantly goring to happen in the near future and you will see more fast food businesses closed there doors. But lets swing back to that $20 dollar wage increase and remember the state will be collecting 14.5% in state income tax,this 14.5% tax will bring the $20 wage down to around $17 dollars (so you just lost $3 dollars just by taking out the 14.5% state tax, now add in all the other deductions and you will see your net income and the higher wage may put a lot of these full time employees in a higher income bracket which will mean less net income per year. Also it is my opinion that California increased the min. wage to get more of the tax that comes with the wage hike.Look I get it people need to make more money as as the daily cost of food and durable goods increase and out pace income. But if anyone reading this post remembers just one thing in this post. "it is always about the money" any decision that is made wither to fire or close a store it is all about the money every time. The communities are a concern as stores continue to close or lay off employees, but in the end it is the owners who will make that call As one worker from Fosters said in a new cast "if I know all this would happen I would have never voted yes on the state bill for higher wages" And businesses are just getting started within the next 12 months after the dust settles we will see the entire damage to the system.

@@user-jf6pz5jx8g Not all states tax wages. No matter taxes are just part of the cost of living, unless work is off the books which many states with illegal employment is the case. I once saw statistics which indicate the federal government tracks how many employees each state has per different businesses. It was glaringly obvious some states known for illegal employment practices had significantly fewer workers in a business than comparable business in another state not known for illegal employment. Taxes are collected to provide community infrastructure and services. Some states take advantage of tourists or other ways with tax programs that don’t require state income taxes. Also federal government taxes take those state income taxes into account so it may not matter in the complete picture of cost of living from state to state. So perhaps California has determined that the franchise owners, who are told by a corporate entity how to run the business, are too inexperienced to determine living wage for employees. Maybe California has determined if the business franchise overlord making so much they can pay huge celebrity endorsements but can’t pick a few of those expensive ticks off the low wage imposed upon those inexperienced dog of a franchisee then good bye fast food franchises and don’t let the state’s door hit you in the greedy backside.

Wouldn't be a bad wage in the midwest, In california you will be living in a van.

It's not only 50 cents... it's 50 cents on top of 50 cents on top of 50 cents on top of 50 cents, etc. The prices are having to go up way more often. These wage hikes are happening faster. There's also inflation, tax and lease hikes. At the same time consumers are cutting back due to these ridiculous menu prices. Double whammy. Do you think every franchisee is rolling in money? In some cases the managers are making more than the owners. There's a breaking point where it's no longer worth it for businesses and consumers. I bet there are kids in california schools right now who have no ambition because they want to make fast food their career now LOL.

Labor up by 25% and you think 5% cost will cover the 4 workers?