At the Restaurant Finance and Development Conference, experts weighed in on California’s $20 minimum wage for fast-food workers, a result of AB 1228.
The law, which took effect in April, led to higher menu prices and a drop in customer traffic.
Revenue Management Solutions reports a 6.5% price hike in California fast food, double the national average of 3.3%, while traffic fell 3.8% in the state compared to 1.8% nationwide.
Greg Flynn, owner of Flynn Group, the largest U.S. franchisee, criticized the new labor board, calling it “silly.”
However, Flynn remains optimistic, noting that success in California requires higher volumes, not lower prices.