This week, the Employment Policies Institute (EPI) released a new survey of nearly 200 restaurant owners who collectively employ tens of thousands of California employees at hundreds of locations. The first-of-its-kind survey asked about the impacts of a $20 minimum wage. Most have already resorted to price hikes, reducing employees’ hours, or laying off staff entirely. Responses show these consequences will continue to play out in the next year.
A majority say they will limit future expansion within California, instead looking outside the state.
Key findings on Impact of $20 Minimum Wage:
- A majority of restaurants say they have already raised menu prices (98%), reduced employee hours (89%), have limited employee shift pick-up or overtime opportunities (73%) and reduced staff or consolidated positions (70%) as a result of the minimum wage law.
- A majority of restaurants say in the next year they will have to raise menu prices (93%), reduce employee hours (87%), reduce staff or consolidate positions (74%), and limit employee shift pick-up or overtime opportunities (71%).
- Eighty-nine percent of owners say they are less likely to expand inside California (somewhat less likely, 16%; significantly less likely, 73%). A majority (74%) say there is an increase in the likelihood of shutting their restaurants down (somewhat increase, 38%; significantly increase, 36%).
- A majority of respondents (67%) say the minimum wage law will cost their restaurant at least $100,000 per location every year. One in four say it will cost more than $200,000 per location every year.
View the full survey report here.
The full survey conducted by CorCom, Inc. asked California limited-service restaurant operators for feedback on the impacts of the $20 minimum fast food industry wage on their business, and sentiments on future profitability of their businesses in the state.