California’s liberal policies continue to wreak havoc on the state’s economy, with yet another law set to drive up costs for businesses and consumers alike. The state’s fast-food chains are already struggling under the weight of a $20 minimum wage mandate.
Governor Gavin Newsom, in his infinite wisdom, has signed into law a ban on “junk fees,” effectively forcing restaurant owners to hike their prices just to stay afloat.
These surcharges were previously utilized by restaurant owners to provide benefits like health care for their employees – sometimes optional for customers.
But now, thanks to this new law, restaurant owners are left with no choice but to raise menu prices.
The attorney general of California has confirmed that these surcharges and fees would be considered illegal under this new law, creating yet another hurdle for the already struggling industry.
Laurie Thomas, Director of the Golden Gate Restaurant Association, expressed concerns about the impact this law will have on restaurants. She fears it could lead to lower wages for employees or deter customers due to higher prices.
Thomas questions whether it would be better to revert back to an old-fashioned tip model and lower salaries or raise prices by 20% or 25%. “It might make a lot of customers happier,” she said.
Restaurants are still struggling after a tough year, and these policies only make things worse.
North Dakota Governor Doug Burgum calls California’s increase in minimum wage a ‘business killer’, highlighting just how out-of-touch California’s liberal policies are with the realities of running a business.
Burgum warns that this new minimum wage law will impact every food-serving business in the state – another clear example of Democrats’ disregard for small businesses.
Marcia Gagliardi, a food writer, also predicts that this law will lead to increased prices for consumers.
She told CBS News Bay Area that she expects restaurants to raise prices by 5% to 15%. “We’re going to be seeing even higher prices based on this unfortunate interpretation. But not all is lost… Things could change,” she said, offering a glimmer of hope in the face of these damaging policies.
Source: State of the Union
Leave a Comment