A new study reveals a spike in fast-food job losses in California following the introduction of a $20 minimum wage for some workers. Between June 2023 and June 2024, the sector lost 10,700 jobs, and food prices increased by 14.5%. The Berkeley Research Group study also noted that restaurants turned to automation and technology to offset rising labor costs, leading to fewer employees per restaurant.
The study challenges the belief that the wage increase created jobs, highlighting that Californians are facing fewer jobs and higher food costs. Chef Andrew Gruel, a California restaurateur, warned of negative effects early on, advising businesses to reduce menu sizes, outsource labor, and use AI for management.
Although Governor Gavin Newsom supported the wage increase, the report cautioned that it could lead to reduced overall earnings and increased automation.
