How restaurants are preparing for California’s minimum wage hikeHow 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.