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How restaurants are preparing for California’s minimum wage hike


California Governor Gavin Newsom signed AB 1228 into law in September, which will raise the minimum wage for quick-service workers to $20 per hour starting April 1, with an annual increase in line with inflation. The state’s current minimum wage is $15.50 per hour.

Unsurprisingly, the move sent shockwaves throughout the restaurant industry and, given the timing, was a massive theme throughout third quarter earnings calls. Some companies already have a plan in place, while others are taking more of a wait-and-see approach. Yum Brands is already anticipating an approximately $10 million impact in Q4 at its California-based Habit Burger and Grill.

Alicia Kelso joins the podcast to share how restaurant companies are preparing.

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