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As of April 1st, California fast food workers' minimum wage is now $20 per hour, and applies to chains with 60 or more locations across the state. Though there's still nuance to which restaurants this applies, the raise starkly contrasts federal and many state minimum wages. It is even still an increase to the November 2024 California proposal to raise the overall minimum wage to $18 per hour. Typically, restaurant labor costs should account for approximately 30% of total revenue, but rising wages like in California will impact those calculations faster than you might expect. To navigate these growing expenses, discover techniques for managing labor costs that don't sacrifice job satisfaction or customer appreciation. #restaurant #labormanagement #cashmanagement

California fast food workers will have a minimum wage of $20 per hour beginning April 1st. This applies to chains with 60 or more locations across the state. Though there's still nuance to which restaurants this applies, the raise is a stark contrast to federal and many state minimum wages. It is even still an increase to the November 2024 California proposal to raise the overall minimum wage to $18 per hour. Typically, restaurant labor costs should account for approximately 30% of total revenue, but rising wages like in California are going to impact those calculations faster than you might expect. To navigate these growing expenses, discover techniques for managing labor costs that don't sacrifice job satisfaction or customer appreciation. #restaurant #labormanagement #cashmanagement

Embracing technology may hold the key to survival and growth amid rising labor costs in California. Chef Irvine fresh off navigating the challenges of the pandemic, sheds light on the new challenges facing the restaurant industry, with the recent minimum wage hike in California. Renowned for his Food Network show "Restaurant: Impossible," Irvine discusses the impact of rising labor costs on smaller establishments, many of which are grappling with closure or contemplating it due to the strain of increased wages. Irvine remains hopeful about technology's potential to alleviate these pressures. He points to major fast-food chains successfully leveraging tech solutions to trim labor expenses. In a bid to support smaller ventures, Irvine has teamed up with GRUBBRR on a project dubbed Restaurant Revamp. This collaborative initiative is geared towards assisting small restaurant owners in California by introducing them to transformative technologies capable of bolstering profitability and operational efficiency amidst the wage hikes. #RestaurantIndustry #LaborCosts #Technology #SmallBusiness #California #FoodIndustry https://lnkd.in/gSbpZ3pu

Digitization and automation have dominated the restaurant industry in recent years, and may be further accelerated by restaurant worker wage increases. Here's what you need to know.

Digitization and automation have dominated the restaurant industry in recent years, and may be further accelerated by restaurant worker wage increases. Here's what you need to know.

https://lnkd.in/gURFDywY Think about your restaurant's profits the next time you vote. If you are a restaurant owner doing business in California, you've gotta love Gov. Nuisance. You not only have to contend with Joe Biden's economy, but you get to enjoy Gov. Nuisance's efforts to "Build Back Better" the California economy. At last count, Gov. Nuisance was running a $55 billion deficit. The price effect is a concept that looks at the effect of market prices on consumer demand. According to OpenTable, the restaurant reservation site, there were 19 percent fewer diners in 2021 than there were pre-pandemic. In 2022, restaurants rebounded but were still nearly 4 percent short. This year, that number dipped an additional percentage point.Dec 22, 2023 Inflation affects restaurants by chipping away at profit margins on food, and that trickles down to the plate quickly. Why are restaurant profits so low? The average profit margin for restaurants is around 3-5%, but some restaurants can have margins as low as 1%. This is because restaurants have a lot of overhead costs, such as rent, labor, and food costs. In order to be successful, restaurants need to generate a lot of revenue to cover these costs and make a profit.

Digitization and automation have dominated the restaurant industry in recent years, and may be further accelerated by restaurant worker wage increases. Here's what you need to know.

Digitization and automation have dominated the restaurant industry in recent years, and may be further accelerated by restaurant worker wage increases. Here's what you need to know.

🍔📈 California's new $20/hour minimum wage law kicked in on April 1 (nope, not an April Fool's Joke) & it's already tossing up things at your favorite fast food spots. According to a report by Kalinowski Equity Research, The Wendy's Company, Chipotle Mexican Grill, and Starbucks are leading with menu price hikes of up to 8%. Meanwhile, Taco Bell and Burger King are playing it cool with more modest increases. But here's the kicker: while McDonald's has mostly kept its prices steady, everyone’s adjusting in their own way to manage higher labor costs. This isn't just about paying more for your Whopper or burrito... it's a sign of bigger economic shifts that could ripple through industries, ESPECIALLY transportation & logistics. Why should we in logistics care? Well, these changes signal shifts in consumer behavior & operating costs. Higher prices could lead to: 👉 decreased fast food sales 👉 impacting how often + how much restaurants need supplies. 👉 BUT on the flip side, businesses might reevaluate or expand their supply chain strategies to mitigate costs. 🔍 Our Take? This is just the beginning. Read more at The NY Post: https://lnkd.in/g3X6VNvY #transportation #logistics #minimumwage #california #fastfood #economicimpact #businessstrategy