Fast-Food Wage Hike Laws Blamed for Closures and Job CutsRecent regulations that boosted wages for fast-food employees in California and app delivery drivers in New York City and Seattle are cited in historic restaurant closures and a downward spiral of job cuts and reduced business.





The article discusses the effects of recent wage increases for fast-food and delivery workers in California, New York City, and Seattle:


1. California:

   - A new law raised the minimum wage for fast-food workers to $20 per hour.

   - This has led to the closure of some prominent restaurants, including a McDonald's in San Francisco and an Arby's in Los Angeles.

   - Industry groups claim about 9,500 fast-food jobs have been cut in recent months.

   - Menu prices have increased by an average of 7%.

   - Foot traffic at fast-food chains has declined between 2-4%.


2. New York City and Seattle:

   - New regulations aimed to increase pay for food delivery drivers.

   - In Seattle, drivers now earn a minimum of $26.40 per hour plus tips and mileage.

   - In New York City, the minimum pay is $19.56 per hour before tips.

   - These changes have led to fewer orders, higher fees for customers, and reduced work hours for many drivers.

   - Some delivery companies have implemented fixed shifts, causing some drivers to quit.


3. Consequences:

   - Businesses are facing higher labor costs, leading to closures and reduced hours.

   - Customers are experiencing higher prices and, in some cases, poorer service.

   - While some drivers are earning more, many are seeing less work and lower overall income.


4. Reactions:

   - Critics argue these wage increases are having negative unintended consequences.

   - Seattle is considering repealing its ordinance, while New York City maintains its law is successful.

   - California shows no signs of revising its fast-food minimum wage law, and other states are considering similar measures.


The article suggests that these well-intentioned wage initiatives may be having complex and sometimes counterproductive effects on businesses, workers, and consumers.

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