Restaurants across the state of California have cut at least 10,000 jobs since Democrat lawmakers mandated a $20 minimum wage, according to a major trade group.
According to the California Business and Industrial Alliance (CABIA), thousands of restaurant workers have lost their positions as businesses are forced to cut labor costs and raise their prices in order to survive.
The New York Post reports:
The California Business and Industrial Alliance (CABIA) slammed Democratic Gov. Gavin Newsom for pushing through the law, which went into effect April 1 – and was blamed for forcing one beloved taco chain to shutter 48 locations in the state last week.
“California businesses have been under total attack and total assault for years,” CABIA president and founder Tom Manzo told Fox Business. “It’s just another law that puts businesses in further jeopardy.”
Several major chains – including McDonald’s, Burger King, and even low-cost favorite In-N-Out Burger – jacked up prices to offset the higher wages. Many had to cut employee hours and some have expedited a move to automation.
Manzo said nearly 10,000 jobs have been cut across fast food restaurants since Newsom signed California Assembly Bill 1287 into law last year, adding that officials were living in a “fantasyland” by thinking that drastic wage increases will help workers or businesses.
Just this week, the beloved restaurant chain Rubio’s Coastal Grill, announced that it would be closing 48 locations statewide due to the unaffordable costs of doing business.
“The closings were brought about by the rising cost of doing business in California,” said a statement from a Rubio’s spokesperson. “While painful, the store closures are a necessary step in our strategic long-term plan to position Rubio’s for success for years to come.”
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