California fast-food managers rake in massive raises – despite restaurants hiking prices, shutting stores over $20 minimum wage

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Managers astatine California fast-food restaurants person softly raked successful monolithic raises – contempt awesome chains hiking prices and immoderate shutting locations aft the authorities passed a $20 minimum wage.

While nan salary bump for workers from $16 an hr has garnered overmuch of nan attention, a abstracted proviso that has received little announcement since nan arguable law went into effect April 1 besides boosted salary for managers astatine quick-service restaurants by 25% — to slightest $83,200, from $66,560.

Raising Cane’s, a chickenhearted digit accelerated nutrient chain, was forced to hike salary for managers by 25% aft California enacted a caller minimum costs law. Los Angeles Times via Getty Images

At nan fast-growing chickenhearted concatenation Raising Cane’s, wide managers successful nan authorities tin now spot their yearly salary scope $174,000 from bonuses based connected their location’s income and profit, according to nan Wall Street Journal.

Monique Pizano, a 27-year-old wide head astatine a Raising Cane’s location successful Carson, Calif., astir 15 miles southbound of Los Angeles, saw her yearly guidelines net emergence from $79,000 to $85,000 aft nan rule was implemented, nan Journal reported.

Pizano, who manages 96 employees, is eligible for a monthly prize of betwixt $5,000 and $7,500 if she hits definite financial milestones pinch nan Baton Rouge, La.-based concatenation — which has astir 90 of its 700 restaurants successful California.

The Carson location attracts an mean of 700,000 customers per twelvemonth and does astir $9 cardinal successful yearly sales.

“It’s been life-changing for my family,” Pizano told nan Journal.

Raising Cane’s has immoderate 90 locations successful California. The concatenation has much than 700 locations nationwide. Getty Images for NYCWFF

However, nan fast nutrient minimum costs law has been achy for galore businesses nan Golden State.

A caller study by nan analytics patient recovered that visits to celebrated accelerated nutrient chains including McDonald’s, Wendy’s and Burger King person decreased since nan caller rule went into effect.

In nan 8 weeks spanning April and May, ft postulation astatine Burger King fell 3.86%, while Wendy’s was down 3.24% and McDonald’s slipped 2.5%, according to nan report.

Fast nutrient workers saw their minimum costs emergence from $16 an hr to $20 an hr opening April 1. Getty Images

Meanwhile, Rubio’s Coastal Grill was forced to shutter dozens of locations crossed California. The company, which precocious revenge for Chapter 11 bankruptcy protection, cited nan expanding costs of doing business successful nan state.

Another accelerated nutrient restaurant, Fosters Freeze, precocious closed a location adjacent Fresno, saying nan franchise proprietor could nary longer spend to salary workers nan upgraded salaries.

In nan six-month play starring up to nan caller rule being enacted, accelerated nutrient prices successful California roseate connected mean by 7% — forcing franchisees successful nan authorities to slash activity hours, postpone superior improvements and expedite nan deployment of automation features specified arsenic self-serve kiosks.

A study published earlier this year by Kalinowski Equity Research recovered that accelerated nutrient chains specified arsenic Wendy’s, Chipotle, Starbucks and Taco Bell raised their paper prices by arsenic overmuch arsenic 8% successful mentation for nan caller minimum costs rule coming into effect.

The rule has besides been blamed for nan decision by In-N-Out Burger to raise its paper prices.

In Los Angeles County, a double-double burger combo astatine In-N-Out sells for $11.44 — a $0.76 summation from past year.

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