This Cafe Chain Is Getting Round California’s Minimal Wage Improve
Last fall, California passed legislation to raise the minimum wage from $16 to $20 per hour at all restaurants with at least 60 locations across the country. Workers can expect to see the wage increase on April 1, 2024. One cafe chain has managed to dodge the minimum wage increase, and only some are celebrating the news.
Panera Bread Avoids New Wage Increase
The new legislation excludes restaurants that make and sell their own bread as a standalone item. Panera Bread is a famous American chain of bakery and cafe fast food restaurants in the U.S. and Canada that makes and sells their bread, which spares them from the hike.
Greg Flynn, the CEO of Flynn Restaurant Group, the company that owns two dozen Panera Bread locations across California, is set to benefit substantially from this new law. According to a New York Post report, California Governor Gavin Newsom signed the law after Flynn donated to Newsom’s campaign. The two also attended the same high school and have made business deals with one another in the past.
Many Are Left Puzzled by the Exemption
The new law leaves many with questions, as the head of the National Restaurant Association, Michelle Kormso, told an industry conference in 2023 that people were confused about the exemption for restaurants that bake and sell their own bread.
While most fast-food workers, apart from those at Panera Bread, celebrate the wage increase, this could mean more unwanted price hikes for customers.
Fast Food Chains Struggle With Rising Costs
Fat Brands chairman Andy Wiederhorn warned that someone will have to foot the wage increase costs. “Everyone wants their employees to make more money, but it just costs. And someone’s got to pay for it. And the restaurant operators don’t have the margin for that. So prices are going to go up,” Wiederhorn said while on The Big Money Show, according to the New York Post.
Customers Should Expect To See More Fast Food Price Increases
Earlier this month, Chipotle announced that it would consider a substantial increase in its prices across California locations to keep up with the new wage increases. Chipotle is one of many fast food chains that may hike their prices to keep up with rising costs and inflation, with McDonald’s potentially following suit. It seems like consumers can’t catch a break as outrageous prices are quickly becoming the new norm.
Customers Express Outrage Over Ridiculous Prices
A McDonald’s in Connecticut was under fire for charging a whopping $18 for a Big Mac combo meal. Sam Learner posted a photo of the McDonald’s menu on X with the caption, “This was at a rest stop, but these McDonald’s prices are nuts right???” Along with the viral Big Mac combo, the menu also featured a Quarter Pounder with cheese combo for $17.99 and a Quarter Pounder Deluxe combo for a staggering $18.99.
Another McDonald’s in Connecticut was criticized for charging over $7 for an Egg McMuffin and almost $6 for a side of hashbrowns.
Fast food lovers may soon be better off cooking at home and avoiding what was once a trusty cheap alternative.
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