California Fast-Food Workers Set For 25% Wage Boost, So Chains Are Gutting Employees and Automating
Beginning in April, California fast-food employees at large chains with 60+ locations will see their hourly pay increase from $16 to $20… assuming they haven’t been canned by then. A recent survey by the Center for Union Facts indicates that only 41% of workers expect their total earnings to go up, while 46% foresee fewer working hours and 40% predict staff cuts.
- Major chains like McDonald’s and Chipotle are preemptively raising prices to offset the wage hike — others are turning to automation like frying robots and automated drink dispensers.
- Smaller chains, unable to make significant investments, are laying off workers and relying more on external delivery services.
Classic debate… How will minimum wage increases impact employment and overall earnings? Leading up to the change, California has already seen a 1.3% decrease in the number of workers as of January compared to last September. In December, Pizza Hut said it would lay off 1.2K drivers in favor of using third-party delivery apps, and some chains are shifting expansion plans outside of California. While Uber drivers still have work (for now), just wait until the food-delivering robots and self-driving cars arrive.
Read: It’s Not Just You, Your Coworker Is A Robot: Why Companies Are Embracing the Humanoid Hype
