Posted on 09/16/2023 4:31:03 PM PDT by lowbridge
The National Owners Association called California’s recently-passed AB 1228 “draconian” and costly to franchisees in a memo distributed to its members.
“The new ‘AB 1228’ legislation has been voted into law and will result in a devastating financial blow to California McDonald’s franchisees at a projected annual cost of $250,000 per McDonald’s restaurant,” the advocacy group representing some 1,000 McDonald’s franchisees said in the memo obtained by FOX Business.
“These costs simply cannot be absorbed by the current business model.”
CNBC earlier reported on the NOA memo.
Among the bill’s key components:
It would raise the minimum wage for fast-food workers to $20 per hour.
It would apply to restaurants with at least 60 locations nationwide, except for restaurants that make and sell their own bread.
It would also create a 10-person council to govern fast-food chains and set guidelines for working conditions and wages.
When signing the original version of the legislation, California Gov. Gavin Newsom said, “California is committed to ensuring that the men and women who have helped build our world-class economy are able to share in the state’s prosperity. Today’s action gives hardworking fast-food workers a stronger voice and seat at the table to set fair wages and critical health and safety standards across the industry.”
The state Senate passed AB 1228 Thursday.
The NOA said franchisees, suppliers and McDonald’s “must engage to support our California McFamily” and identified steps it said they each should take with ideas ranging from the franchisees establishing 501(c)4 entities and state political action committees (PACs) to create an official arm to lobby the government.
(Excerpt) Read more at nypost.com ...
This is a state takeover of private enterprise.
The chain fast food restaurants are on the decline. Their food has gone from acceptable to dry and tasteless, as well as too expensive. The new hot competition is the larger gas station with a food section. The food is tastier, cheaper and faster. According to what I’ve read, that new fast-food model is wiping out the older chains.
More socialist bullshit...
This will not end well.
“In the name of the general welfare, to protect the people’s security, to achieve full equality and total stability, it is decreed for the duration of the national emergency that:
Point One. All workers, wage earners and employees of any kind whatsoever shall henceforth be attached to their jobs and shall not leave nor be dismissed nor change employment, under penalty of a term in jail. The penalty shall be determined by the Unification Board, such Board to be appointed by the Bureau of Economic Planning and National Resources. All persons reaching the age of twenty-one shall report to the Unification Board, which shall assign them to where, in its opinion, their services will best serve the interests of the nation.
Point Two. All industrial, commercial, manufacturing and business establishments of any nature whatsoever shall henceforth remain in operation, and the owners of such establishments shall not quit nor leave nor retire, nor close, sell or transfer their business, under penalty of the nationalization of their establishment and of any and all of their property.
Point Three. All patents and copyrights, pertaining to any devices, inventions, formulas, processes and works of any nature whatsoever, shall be turned over to the nation as a patriotic emergency gift by means of Gift Certificates to be signed voluntarily by the owners of all such patents and copyrights. The Unification Board shall then license the use of such patents and copyrights to all applicants, equally and without discrimination, for the purpose of eliminating monopolistic practices, discarding obsolete products and making the best available to the whole nation. No trademarks, brand names or copyrighted titles shall be used. Every formerly patented product shall be known by a new name and sold by all manufacturers under the same name, such name to be selected by the Unification Board. All private trademarks and brand names are hereby abolished.
Point Four. No new devices, inventions, products, or goods of any nature whatsoever, not now on the market, shall be produced, invented, manufactured or sold after the date of this directive. The Office of Patents and Copyrights is hereby suspended.
Point Five. Every establishment, concern, corporation or person engaged in production of any nature whatsoever shall henceforth produce the same amount of goods per year as it, they or he produced during the Basic Year, no more and no less. The year to be known as the Basic or Yardstick Year is to be the year ending on the date of this directive. Over or under production shall be fined, such fines to be determined by the Unification Board.
Point Six. Every person of any age, sex, class or income, shall henceforth spend the same amount of money on the purchase of goods per year as he or she spent during the Basic Year, no more and no less. Over or under purchasing shall be fined, such fines to be determined by the Unification Board.
Point Seven. All wages, prices, salaries, dividends, profits, interest rates and forms of income of any nature whatsoever, shall be frozen at their present figures, as of the date of this directive.
Point Eight. All cases arising from and rules not specifically provided for in this directive, shall be settled and determined by the Unification Board, whose decisions will be final.[1]’
McDonalds’ here and there are already close to completely automated. Machines work for less compensation.
Panera?
And like increased taxes generally they will reduce revenue, especially after the first year. Then they will have to increase taxes to cover the reduced revenue ad infinitum.
You’ve never been to the bathroom?
Subway
What choice do they have aside from going full automation, or at least minimize employees and just keep the ones to maintain any automatic machinery.
The more disorder, poverty, crime, filth, failure, decay, conflict and despair they create, the more they increase their power.
They control every institution and every failure gives them the opportunity for a new program, regulation or law.
The worse things get, the more powerful they become.
Failure is their superpower.
I am not a lawyer but sounds to me like this violates the interstate commerce clause. Also this thing has the SEIU hands all over it. There is probably a carve out for franchises that sign union contracts and withhold union dues.
NO ACCOUNTING COSTS
NO PAYROLL TAXES
NO w-2’s at year end + postage to send them
No arguments over Bathrooms
No keeping track of hours worked & personnel problems
Subway doesn’t really sell their bread separately though
ATLAS SHRUGGED
I see a lot more fast food upstarts sprouting up locally rather than Buck-ees or Flying-Js. I don't know anyone who prefers Circle K or 7-11 burritos to some of the fast food rivals.
It may be a regional thing. We live in a largely minimum wage community in Arizona although it is on an interstate. When we travel on I-40 through Texas and Oklahoma, there seems to be more well appointed truck stops.
$25 Happy Meal and $50 Big Mac...what could go wrong with this business model?
Bah dump bump!
The first In-N-Out in Idaho is nearing completion. Fortunately, I only live miles away. :)
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.