Fast food workers rally at the state Capitol in Sacramento on Aug. 31, 2023. Photo by Rahul Lal for CalMattersAn 11th hour compromise in the Legislature settled a conflict over whether a new state agency would set wages and working conditions in the fast food industry and implicitly undermine the franchise business system.
While the wage increases that would have resulted garnered most of the media attention, erosion of the franchise model was most worrisome aspect to the fast food corporations and their franchisees. Become a CalMatters member today to stay informed, bolster our nonpartisan news and expand knowledge across California.The 2022 legislation would be repealed, the 2023 legislation would be scuttled and a substitute for both would retain the fast food council, but alter its membership slightly, limit its authority to set wages and working conditions, provide a new $20 per hour minimum wage for fast food workers, prohibit local efforts to affect wages, and remove threats to the franchise model.
Haller’s statement hints that on balance, it appears that given the circumstances, the fast food industry’s big players, such as McDonald’s, came out ahead, although their franchisees will feel whatever financial pinch ensues.