Minimum Wage Increase Takes Toll on California’s Fast Food Restaurants, Survey Finds

‘The policy has been a disaster,’ said a researcher for an industry lobbyist. A spokesman for Gov. Newsom calls the survey ‘bogus.’

California Gov. Gavin Newsom signs the fast-food bill surrounded by workers at the SEIU Local 721 in Los Angeles on Sept. 28, 2023. Office of Gov. Gavin Newsom

Two-thirds of California fast food restaurant operators who responded to an online survey believe their costs will increase at least $100,000 annually per location, according to a report released July 19 by the Employment Policies Institute—a Washington D.C.-based lobby group.

Approximately 26 percent of respondents said they expect costs to increase by more than $200,000 at each location.