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McDonald's Blasts California's New Fast Food Law, Claiming 'Draconian' $250K Costs Per Store

  • California's new fast food law AB 1228 imposes a $20 minimum wage and other standards, which a McDonald's group says costs $250K per restaurant annually.

  • The law applies to chains with 60+ locations and establishes a 10-person council to govern wages and working conditions.

  • McDonald's calls it "draconian" and says it makes franchisees liable to lawsuits, potentially forcing corporate control.

  • Supporters say it gives workers a voice and seats at the table to set fair wages and health/safety standards.

  • The McDonald's group says franchisees face unsustainable costs that may shutdown locally-owned restaurants, and calls for remaining unified against similar efforts elsewhere.

yahoo.com
Relevant topic timeline:
Fast-Food Industry and Unions Reach Deal to Increase Minimum Wage to $20/hr, Averting Costly Ballot Fight
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California Groups Reach Deal to Raise Minimum Wage to $20/hr, Averting Ballot Fight
California restaurants and unions have agreed to raise the minimum wage for fast-food workers to $20 per hour, avoiding a potential ballot fight over a previously passed law.
McDonald's franchisees fear 'devastating' costs from California fast-food bill, but compromise reached after lobbying fight
California's landmark fast-food bill, AB 1228, which includes a wage floor of $20 for California workers at fast-food chains with at least 60 locations nationwide, is facing resistance from an independent advocacy group of McDonald's owners who warn that it will be a "devastating financial blow" and cannot be absorbed by the business model.
California to Raise Minimum Wage for Fast Food Workers to $20 per Hour by 2024
California Governor Gavin Newsom has promised to sign a bill into law that will establish a $20 minimum wage for fast food workers, representing a nearly $5 increase, starting April 1, 2024. However, the National Owners Association, a group of McDonald's store owners, has described this move as a "devastating financial blow."
McDonald's Raising Royalty Fees for New Franchisees for First Time in 30 Years
McDonald's is raising its royalty fees for franchisees from 4% to 5%, the first increase in nearly three decades, impacting new franchisees and other scenarios involving the franchisor, in an effort to position itself for long-term success and strengthen the brand value.