McDonald's has expressed concerns that the upcoming minimum wage increase in California may adversely impact its franchisees in the state and potentially result in higher prices for customers.
Recently, California Governor Gavin Newsom enacted a law raising the minimum wage for fast food employees at establishments with a minimum of 60 outlets across the country. However, there's an exemption for eateries that produce their own bread. The adjusted wage of $20 per hour for eligible fast-food employees is set to commence on April 1, 2024.
During an earnings discussion on Monday, McDonald’s CEO Chris Kempczinski mentioned that the legislation would result in "a wage impact for our California franchisees." He further noted, "I don’t think at this point, we can’t say exactly how much of that is going to work its way through pricing."
"Certainly, there’s going to be some element of that that does need to be worked through with higher pricing," he explained. "There’s also going to be things that I know the franchisees and our teams there are going to be looking at around productivity. How all of that plays out, there will certainly be a hit in the short-term to franchisee cash flow in California, tough to know exactly what that hit will be because of some of the mitigation efforts."
Kempczinski continued, "Longer term, what we’ve been talking about with our franchisees is this is an opportunity for us to gain share because this is an impact that’s going to hit all of our competitors… We believe we’re in a better position than our competitors to weather this."
Currently, California boasts the highest minimum wage in the country at $15.50 an hour. This rate is scheduled to increase to $16 an hour for all positions in the state come January.
"This is a big deal," remarked Newsom during an event in Los Angeles when he enacted the fast food minimum wage bill in late September.
Furthermore, Newsom countered the perception that fast food roles are solely for teenagers starting their professional journey and seeking experience.
"That’s a romanticized version of a world that doesn’t exist," Newsom said during the event. "We have the opportunity to reward that contribution, reward that sacrifice and stabilize an industry."
Trending Political News
Elementary School Teacher Accused of Raping Students Reveals Shocking Information
An elementary school teacher from Tennessee, alleged to have raped a boy when he was 12, hinted that she might be carrying his child during a phone conversation that was played during court proceedings this week, as per local news sources.
"I'm going to raise this baby. I can do this," was a statement made by Alissa McCommon, a teacher in the fourth grade, during a phone conversation with the victim. This audio was presented in a Tipton County courtroom on Tuesday, as noted by FOX 13 Memphis.
Costco Puts a Limit on Purchases After Quickly Selling Out of New Offering
Whenever Costco lists a certain shiny item for sale online, it's said to sell out rapidly. The wholesaler has made gold bars available on its website, allowing Costco members to invest in them.
"I've gotten a couple of calls that people have seen online that we've been selling one-ounce gold bars," Richard Galanti, Costco's chief financial officer, mentioned to investors in the retailer's fourth-quarter earnings call.
Rapper Reveals How People 'In the Hood' Feel About Trump
Rapper Sexxy Red expressed her opinions about former President Donald Trump's standing in the African American community during a discussion on Tuesday.
During a podcast, host Theo Von inquired of the "Pound Town" artist whether she believed there would be increased support for Trump in the upcoming 2024 elections. An animated reply came from Sexxy Red, also known by her birth name Janae Wherry.
Megyn Kelly Makes Massive Announcement About Her Show
Megyn Kelly, the Sirius XM host, has revealed that she will be interviewing former President Donald Trump on her show “The Megyn Kelly Show” on September 14, marking their first discussion since the notable 2016 presidential election encounter.
This will be Kelly's first one-on-one with Trump in seven years. Her portfolio of interviews includes notable figures such as Republican Florida Governor Ron DeSantis, former UN Ambassador Nikki Haley, and Democratic contender Robert F. Kennedy Jr.
Punishment Handed Down to College Football Player Who Committed Despicable Act in the Middle of the Field
Louisiana Tech's linebacker, Brevin Randle, has been suspended indefinitely following an incident where he stepped on the back of UTEP offensive lineman Steven Hubbard's neck during a game on Friday night. Although Randle wasn't penalized during the match, the event was captured on camera, leading to significant backlash on social media.
"Coach [Sonny] Cumbie and I met with Brevin Randle today and informed him that he has been suspended indefinitely as a result of the incident during last night's game versus UTEP," Louisiana Tech athletics director Eric Wood said in a statement Saturday via ESPN. "In speaking with Brevin, he acknowledges that his action was wrong and understands the consequence of that action.
Al Pacino Gets Bad News From Baby Mama Just 3 Months After She Gave Birth
Three months post the birth of their first child, Al Pacino's partner Noor Alfallah is seeking full custody of the infant.
On Wednesday, in Los Angeles, 29-year-old Alfallah submitted a petition to clarify the parental association involving her, Pacino, and their baby, according to a story by Page Six. This form is traditionally utilized by unmarried pairs to outline the rules concerning custody, financial support for the child, and rights to visitation.