Fast Food Wages

What was the impact of the new California law on Lawrence Cheng’s staffing at his Wendy’s locations?

• He doubled the number of staff per shift.

• He kept the same number of staff but reduced their hours.

• He reduced the number of employees per shift and worked some hours himself.

• He closed some of his locations due to high labor costs.

How much did California's hourly wage for fast food workers increase on April 1?

• From $10 to $15

• From $15 to $20

• From $16 to $20

• From $18 to $22

According to the U.S. Bureau of Labor Statistics, what happened to job growth in the fast food industry after the wage increase?

• Job losses were reported for two consecutive months.

• No changes in job numbers were recorded.

• The industry gained 8,000 jobs in the first two months after the law.

• There was a decrease of 8,000 jobs in the industry.

What strategy did Juancarlos Chacon implement to manage the increased labor costs?

• He laid off all part-time employees.

• He reduced the size of his stores.

• He raised prices and cut down staffing during non-peak hours.

• He automated operations completely.

How did Julieta Garcia view her reduced work schedule at Pizza Hut?

• It led to financial hardship.

• She disliked having fewer hours.

• It gave her more time with her family and helped her pay bills.

• She was forced to quit her job.

What prediction did Aaron Allen, a restaurant consulting firm CEO, make regarding the impact of rising labor costs?

• Smaller chains might thrive due to community support.

• Larger corporations may automate more to reduce costs.

• There will be no changes in restaurant operations.

• All fast-food restaurants will close down.

What did Gov. Gavin Newsom emphasize regarding the wage increase for fast-food workers?

• It was unnecessary and would harm the economy.

• It was intended to provide a living wage for fast food workers.

• It would only benefit large restaurant chains.

• It would reduce the need for minimum wage laws in California.

What challenge did Enif Somilleda face after the wage increase at her Del Taco location?

• Increased working hours with fewer people per shift.

• A cut in her own wages.

• The ability to hire more staff.

• No significant changes.

What is one reason some fast food operators, like Lawrence Cheng, have opted not to lay off any of their workers despite higher wages?

• They have decided to increase their staff instead.

• They are experimenting with reducing overtime and adjusting schedules.

• They have received state subsidies to maintain employment.

• They are closing locations and consolidating their staff.

According to Joseph Bryant of the Service Employees International Union, what benefit has the wage increase brought to fast food businesses?

• It has discouraged new job applicants from applying.

• It has led to higher turnover rates.

• It has attracted better job candidates and reduced turnover.

• It has made it harder for franchisees to hire new employees.