After claiming to be out $470,000 due to California's $20 minimum wage hike, franchise operator Alex Johnson is moving future restaurant openings to Nevada.
Restaurateurs in California are starting to take their own action showing disapproval of the newly-enacted statewide $20 minimum wage. "We have a very finite set of economic conditions that need to be met for us to make money. And certainly, this bill has cast doubt to whether we can continue in this state," Alex Johnson, owner of five Cinnabon and five Auntie Anne’s locations in San Francisco, said on "Varney & Co." Tuesday.
The law, which went into effect on Monday, affects restaurants that have at least 60 locations nationwide, except those that make and sell their own bread. Gov. Gavin Newsom signed the legislation, AB 1228, into law in September. In addition to the pay raises, it also establishes a "Fast Food Council," including representatives for both workers and employers, that can approve further pay increases and set standards for working conditions.
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