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California fast food franchise owners are being forced to cut their employees’ hours following Gov. Gavin Newsom’s $20 minimum wage law, which went into effect in April.
While he used to have “nearly a dozen employees” working the afternoon shift at his Fountain Valley location, he is reportedly down to just seven per shift. Cheng also said he had to raise menu prices by about 8 percent three months before the law went into effect to offset the increased costs.“I’ve been in the business for 25 years and two different brands and I never had to increase the amount of pricing that I did this past time in April,” said Juancarlos Chacon, the owner of nine Los Angeles Jersey Mike’s locations.
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