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CALIFORNIA’S $22/HOUR FAST-FOOD BILL HAS STARTUPS SEEING GREEN
September 07, 2022
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While most of us had Monday off for Labor Day, some people still clocked in.
For example, the state of California signed an interesting bill into law.
The FAST Recovery Act aims to lift quick-serve restaurant (QSR) employees by
guaranteeing a $22-per-hour minimum wage in what is being lauded as one of the
most significant bits of labor legislation in our nation’s history.
While those fighting for the rights of workers applauded the bill’s passing, the
response was understandably mixed.
Among those most upset are – to what should come as no surprise – the restaurant
operators themselves.
Not long after the minimum wage was raised $15 an hour, something broadly fought
by the industry, these additional rate hikes threaten to further cut into the
bottom line.
For what it’s worth, this law pertains to QSRs (read: fast food) that are part
of a chain (clowns, kings, chihuahuas, colonels, etc.), do not offer table
service (or only in a limited capacity), and where customers pay before eating.
You may be wondering why we’re talking about this. After all, you won’t see
McDonald’s opening a Reg CF raise anytime soon.
It’s because proponents argue that the result will be sweeping legislative
changes across every state in America, thereby ushering in a new era of
fast-food labor.
And because, the reality is, this bill might not create the intended effect.
Even before the prospect of $22-per-hour wages, these operators were grappling
with the reality of a labor crisis. The quit rate among hospitality workers was
more than twice as high as the national industry average. The number of
restaurant employees in the U.S. dropped by 2.2 million between 2019 and 2020.
While this should provide an influx in demand for these positions, at their new
cost, it could be a losing proposition for the businesses themselves.
As a result, the real impact of this legislation could be an accelerated
timeline… elsewhere.
Bubbling under the surface of the QSR – and overall “R” industry – is the
forthcoming automation revolution.
While there is still some distance to go until these automated solutions are
affordable enough for widespread adoption, there are already a host of them in
American kitchens today.
And these cost-cutting developments are underway as we speak.
Following California’s announcement – and its expected impact on other states –
the demand for these solutions is sure to skyrocket.
So be sure to keep your eyes peeled for startups addressing this need. There are
going to be some big winners.
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MEET NEIL PATEL
Neil Patel is a successful entrepreneur and investor who has been active in the
startup scene for nearly two decades. Born in London, England, he moved with his
family to Orange County, California when he was two years old, where he was
surrounded by entrepreneurs and innovators from an early age. Neil is the
founder of several companies, including Crazy Egg, Hello Bar, and Quicksprout –
companies that established Neil as one of the world’s leading digital marketers.
But Neil spends more time these days on the other side of the table – as an
angel investor. He has made some unbelievable returns backing early-stage
startups. Now, he’s here to teach you to do the same. Neil launched the Angels &
Entrepreneurs Network to pull back the curtain on the world of “pre-IPO”
investment, because he believes everyone should have access to the same playing
field – not just society’s high and mighty.
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ABOUT US
The Angels & Entrepreneurs Network is the first of its kind – showing
ground-floor opportunities into some of the world’s hottest startups and
trendiest enterprises, those determined to change the world… and show investors
huge profits along the way.
Click Here to check out the Codes of Conduct for the Network forums!
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