California's Fast-Food Industry Suffers, While Gavin Newsom Prepares His Exit

Christopher Millette/Erie Times-News via AP

Employment Policies Institute (EPI), a conservative think-tank on fiscal and economic policies surrounding employment and the minimum wage, has released a survey on the effects of California Governor Gavin Newsom's $20-hour minimum wage hike that went into effect in April. As RedState reported, here, here, here, and here, even before it became law, the minimum wage hike had already resulted in layoffs, restaurant closures, reduced service, and higher prices. The EPI study further confirms that this destruction continues apace.

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California fast-food restaurants have been forced to cut back on employee hours, shut down, or consider moving out of state completely because of Gov. Gavin Newsom's new $20-an-hour minimum wage law, a new study has shown. 

The Employment Policies Institute survey of nearly 200 fast-food companies found that 89 percent of those eateries polled have already been forced to reduce scheduled hours for their employees, less than a year since it was passed.

Some have had to lay off staff completely - a prospect many had warned about when the progressive signed the bill into law in the fall.

Others complained that the concerns of small franchisees and their staffers would not be met - something the survey suggests is already occurring as officials continue to bill the law as a success.

The study, meanwhile, also found that of those who remain employed, there's been less access to overtime and opportunities for extra shifts, limiting their overall take-home.

Basically, the law has brought about the exact opposite result of what it claimed to do. This is typical of California, which is now fighting to unravel the damage caused by rampant crime, retail theft, and property destruction brought about by the deceptively implemented Prop 47, which was also engineered by Newsom. As per usual, it was Newsom fluffing his progressive resume while also pacifying the labor unions that contribute exorbitant amounts to his campaign slush funds and effectively run the state.

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The agreement ended a tense standoff between labor unions and the fast food industry that started in 2022 when Democratic Gov. Gavin Newsom signed a law creating a Fast Food Council with the authority to raise wages of fast food workers up to $22 per hour. California’s current minimum wage for all industries in the state is $15.50 per hour.

The $20 hourly wage would be a starting point. The nine-member Fast Food Council, which would include representatives from the restaurant industry and labor, would have the power to increase that minimum wage each year by up to 3.5% or the change in the U.S. consumer price index for urban wage earners and clerical workers, whichever is lower.

Like homelessness, this law is imploding in his face. So, the question is, "Where's Gavin Newsom?" Does he even care that this law has further destroyed the California economy and increased unemployment under his watch? Particularly since he still has his eyes on Washington, D.C., having long abandoned his focus on California.

The answer is obvious. Newsom is much too busy auditioning for either a potential President Kamala Harris cabinet position or he is plotting to shiv her at the still possible open Democrat National Convention in August. Newsom also started a podcast so that he can keep hearing his own voice since the people of California are pretty much tired of it.

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He needs to wipe the brown off his nose first.

No, Newsom has made his bed of progressive poison policies that he thought would help launch him into the presidency. Now, they are sinking him like quicksand. Like VP Kamala Harris, we need to continue to expose his record and the faulty foundation of his political house.

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