Minimum wage update. Let me keep y’all informed what’s going on in these streets. Make sure y’all hit a like for the algorithm. Subscribe to the channel and turn on your notification. That was a cook session right there. Some fast food employees are seeing a raise to get them up to $20 an hour, and some franchise owners say they’re worried about the impact. ABC Ten News reporter Perla Shaheen reveals why the increased wage could both hurt and help people.

The small business owners Ryan Fagale has six businesses in California, but the state’s minimum wage increase for fast food workers has him considering other locations. But if it makes more sense for us to go to other states to grow the business, we are more than willing to do so. A new California law requires a dollar 20 minimum wage specifically for fast food workers employed by certain chains. Fagale says his upcoming point Loma cafe called Coco Playa is exempt from this increase, but that makes it harder to compete with nearby businesses.

You have in n Out, Starbucks, Del Taco, Burger King, all the stones throw away. Can we find employees that are willing to take $16. 85? On the flip side, Fugale also owns five little caesars. 1685. That used to be a good, good wage. 1685. And now it’s above $20 an hour for minimum wage. That is crazy to me. Franchises that are not exempt from the wage increase, we’re gonna have a whole pool of new applicants.

People that have never considered working in fast food jobs are gonna start applying for our jobs in those locations. Fagale says the cost will trickle down to customers. We did have to raise prices just to stay afloat in this market. Be on your way. Fagale is waiting to see the long term economic impact of the wage increase. I wanna keep growing in San Diego, and I just, I hope it’s possible.

I hope that, you know, things don’t get completely out of control. He says that will determine whether Coco playa expands in San Diego or elsewhere. PERla ShahEEN, ABC Ten News so let me pivot for a second. So that’s currently what the sentiment is of business owners over in California. They saying that basically there’s starting to be mass layoffs over there. Take a look. Let’s bring in California restaurant owner and chef Andrew Gruul.

Andrew, good to see you. So, Andrew, make sense of this for me. You’re a California guy. If $20 an hour is good for California restaurant workers, why isn’t $20 an hour good for Gavin Newsom’s restaurant workers? Well, this is classic Newsom classic California. Put another feather in Newsom’s hat of hypocrisy. This actually reminds me a little bit of the pandemic. No, you know, restaurants, Newsom hypocrisy. The guy can’t champion or, you know, stand behind all the things that he kind of virtue signals for.

But that’s just typical. And I mean, that actually applies not just to Newsom. That applies to all of the politicians who are out there talking about, we need $50 minimum wage, which is what Barbara Lee said. But then the government workers themselves are only making 1516, $17 an hour. And it’s absurd, but it’s typical. It’s completely typical of California. So what’s stopping a government worker, for example, of going over and getting a job at a fast food joint, either part time or full time, above the stuff that they got to deal with in the government? So, for example, let’s say you a government worker, and you got to travel all the way downtown, pay for parking, spend a bunch of money on club like, all of the stuff that you got to do to actually be a functioning member and to be a representative of what you’re supposed to be in the government, because we all know that government jobs and nonprofit jobs and stuff like that, they pay significantly less than a private sector.

So let’s say you go into that. What’s stopping a person that ain’t even making that amount of money over at the government from quitting and just going to getting a job at a fast food joint? Outside of the title? Outside, but outside of the representation, I never cared about titles. I never cared about titles in corporate America at all. The only thing that a title could do for me was dress up my resume or dress up my LinkedIn.

Then I can use that to leapfrog into the next position to get a bag. The only thing I cared about was the bag. I never cared about the title. You can have the title. I’ll take the money. What’s stopping a government worker from leaving from where they at or not even just a government worker? Let’s say a plant worker, a factory worker, a tier two worker with all these people, right? What’s stopping them from going and saying, man, I could just go and hang out at the Burger King, eat for free, chill out, and make 2020 $5 an hour.

And I got an upper trajectory of making $25 an hour, not just $20 an hour. What’s stopping them from going to getting another job like that? The stigma. Benefits and stability. What benefits and stability? From the government. You can always go and get another fast food job. You can always go and get it for another fast food job. One of the things they said, I think, is that it’s like a bakery law, yo, shouldn’t McDonald’s qualify for that because they got, like, McMuffins and all of that stuff? I don’t know, man.

I don’t know. It’s so many loopholes. But I’m just trying to figure out what would be stopping a person from going and working that extra job and going to get that money. Every time I’m out here, either see white people or Indians, the ones that’s delivering to me my door dash, white people are Indians is delivering to me my doordash. You know, it’s so funny because if you actually, like, stay in the suburbs or you stay in a, you know, little bit more of an upper scale place or something like that, and you go into these shops, you go into the stores, you go into the restaurants.

You don’t have a whole lot of corporate entities, but it still kind of is more of a, you know, a local economy in which, you know, you know, the person that opened up this store, you know, the person that owns that restaurant or, you know, the person that owns that. That practice or y’all. Y’all kids go to school together, they own that. That karate place. And, you know, the flower shop people, a lot of times these people be there for 30, 40 years, and the people that work there still be there.

Yo, it’s gas stations that, when I moved out here a long time ago, the same people work at the gas stations for the entirety. The entirety of the time that I have been out here. Same people, same routine. Everybody know each other. Oh, man, that’s Mike. What’s going on, Mike? Hey, man, like, you know who is who. We know who even ain’t supposed to be here. A lot of times people say, oh, man, you know, you don’t want to ride through this town, or you don’t ride through that town.

Well, it’s just because we know who really be out here and who don’t be out here. Regardless. If you black, white, they know you. The same way that you roll through the hood is the same way that you can roll through any of these other cities that’s out here, because we know that it’s a strong possibility that you ain’t ever been out here if you ain’t out here from no business, because this is not a tourist destination.

This is a place where people raise their kids quietly. We try to stay away from big box stores. We don’t have a lot of cookie cutter restaurants. There are certain cities that you can’t even open a fast food joint at. You got to go across the street when you get out of the city to open a fast food joint over there. And there’s no big box stores, but it’s all mom and pop spots.

And so when somebody drive through, we know who gonna come and get they gas in the morning? You know who’s gonna go and get some coffee. It’s the same people the same time every day, and it’s normal. And so when we see somebody that’s out here with a raggedy car or it’s a car that we don’t recognize, we know they ain’t even from here. Dang. From here. When we see a car park on the wrong side of the street, oh, man, who is that? We know the same people that park in the same spots and even those same assigned parking spots, but we know whose spot is who because this person parked there every day and that person parked there every day also.

We trick, we completely change in the landscape of what normal looks like, but, or at least over there in California because it’s upending what normal looks like across the board. So it’s going to be a ripple effect. It’s going to be, it’s going to affect mom and pop spots. It’s going to affect pricing. It’s going to affect lifestyles. Most people are just happy to just be there. We have immediately seen, Andrew layoffs, we have seen price increases.

So that’s inflation. That actually layoffs and price increases hurts the people that this new $20 minimum wage Trump. These politicians claim they’re trying to help. This bill was marketed as something that was supposed to help the workers and hurt the corporations, but it’s actually helping the corporations and it’s hurting the workers in the long run. And by virtue these small businesses as well, who ultimately are going to have to pay a lot more than this but don’t have the money to automate.

You see, they’re laying off all these workers and the workers that are staying there, as that girl said, you know, they’re going to have double the amount of work, but then the costs are going to go up, the prices are going to go up, and all those workers in those communities now are going to have to spend more money because the prices of everything have already gone up.

You see, they don’t think these things through. If they wanted to help the worker, they could have cut payroll taxes, which is the highest in the nation. They could have cut the ETT which nobody knows where that is. Well of course they’re not going to cut payroll taxes because California is already in a deficit and they trying to figure out how to plug the holes even though they had a surplus the year before.

Now why would they cut payroll tax? Why would they cut taxes that would take away from nae money and they coffers, but instead make sure that they just put more of the burden on the business owners. It goes to unemployment insurance, any of those things. Put more money. McDonald’s announced over 1200 people. 1200 people is being laid off in California. You’re just gonna get more kiosks, more artificial intelligence and more kiosks in the workers pockets which then could have helped the businesses and they can incentivize the businesses to pay their workers more by virtue of changing that incentive structure.

That’s too common sense though. Andrew, your restaurant owner though, tell us what impact this has had on your ability to run your restaurant. We got about 30 seconds. Well, I think in general what this is going to do is it’s going to kind of change the whole entire economy because prices are going to go up so significantly and we’re going to see that from the distributors, from the food products all around.

Even if you’re not part of this kind of fast food coalition that got targeted by this bill, you see, because by proxy they’re targeting everybody. So it’s going to be difficult. Fortunately, we pay our workers a ton of money because we believe in this, but we’re not doing it because the government’s mandating us to. But you just so that’s largely what’s going on as far as the minimum wage law.

There’s mass layoffs that’s happening across the board. I don’t think that people really care until it affects them. .

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