(ConservativeHub.com) – Fast food businesses in California have allegedly taken a significant hit after Gov. Gavin Newsom increased the minimum wage in the state to $20. Fox Business reported that according to a non-profit trade organization in the state, many have been left without work, while consumers have struggled with paying costlier menu prices.
Tom Manzo, the president of the California Business and Industrial Alliance (CABIA), stated during an interview on “Fox & Friends” that businesses were tired of the policies in California.
Manzo told interviewer Lawrence Jones one of the biggest issues for California is the continuous increase in cost and “anti-business climate.” He pointed out that CABIA was running an ad because business owners are “fed up,” and the problem is having a “ripple effect.” He further stated that people are unable to afford fast food, which should not be considered a “luxury item.”
CABIA stated that since the increase of the minimum wage through the California Assembly Bill 1228, which was signed last year, almost 10,000 jobs in fast food have been cut. The organization decided to run an ad this week in order to shed light on some of the consequences that it argues the law has had.
CABIA in its ad created mock obituaries for different fast food brands. The ad pushes CABIA’s argument that many restaurants have had to either increase their prices or lay off workers just so they can remain in business, while some stores have had to shut down because of it. The ad includes news clips that document the changes made by a number of brands, including Burger King, Subway, and El Pollo Loco.
A spokesperson for Governor Newsom pushed back against criticism from CABIA. Pointing to data from the Bureau of Labor Statistics, the spokesperson said limited service restaurants in the state saw 4,500 new jobs between September 2023 and the beginning of April 2024.
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