Fast Food Chains

At the end of 2010, it became the largest fast food chain worldwide

• Wendy’s

• Pizza Hut

• McDonald's

• Subway

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.

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.

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 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.

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.

Which of the following statements best describes the reaction of major fast-food chain operators to the increased labor costs?

• They have all reduced their prices to maintain customer loyalty.

• They are using a variety of strategies such as raising prices and cutting hours to stay afloat

• They are unaffected by the wage increase due to strong profits.

• They have shifted their business focus away from fast food.

What change did Cheng anticipate and prepare for by raising menu prices in January?

• Higher taxes on restaurant revenues.

• A decrease in customer demand for fast food.

• The implementation of the wage increase law.

• An increase in rent costs for his locations.

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.