p.s As will the new wage increase in OZ cause some cafes and...

p.s As will the new wage increase in OZ cause some cafes and fast food outlets to possibly close.

Hi Glu----------------- I know there are two sides to a story and in the middle 'the truth'. I never believe all I read on the Net-- However rumours that continually circulate intrigue me and I chase as much info as I can. Endeavour to 'speak' to people 'in the know' and people 'in the area of the news'

I snippet from a news article ( I had in a file for a time) - cannot guarantee its accuracy nor from where it came or date (the latter is of concern to me ).... - interesting, as I have not seen any -direct publication from the 'subject' rejecting such rumour... just saying - I have an open mind... like a parachute , works best that away.
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The new $20 minimum wage per hour for all fast-food restaurant employees in California is turning into a nightmare for McDonald’s franchisees. Facing skyrocketing labor costs, franchisees are forced to make drastic cuts to stay competitive, threatening the very survival of their businesses¹.

Scott Rodrick, who owns 18 McDonald’s locations in California, recently shared his complaints about the new minimum wage during an interview with Fox Business. He described the last 12 days since the law impacted franchisees as a whirlwind. While some restaurant owners and companies have raised menu prices in response to the higher minimum wage, Rodrick cautions that there is a limit to how much customers are willing to pay when dining out. Charging exorbitant prices for items like an Egg McMuffin or a Big Mac is not a sustainable solution for him².

Moreover, fast food affordability has become a concern. Many have observed surging fast food prices across America even before the minimum wage increase took effect. For instance, a TikToker complained about a 40-piece chicken McNuggets and two large fries bundle costing $25.39 plus sales tax in California. Traditionally known for being affordable, fast food chains now face challenges in staying accessible to consumers. McDonald’s CEO, Chris Kempczinski, has acknowledged this and emphasized the need for affordability as they head into 2024².

In summary, the combination of the new minimum wage law and rising labor costs has put significant pressure on McDonald’s franchisees in California, leading to concerns about their viability in the state³.

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