Arlington, VA – Today, the Employment Policies Institute (EPI) released a new survey of nearly 200 restaurant owners who collectively employ tens of thousands of California employees at hundreds of locations. The first-of-its-kind survey asked about the impacts of a $20 minimum wage. Most have already resorted to price hikes, reducing employees’ hours, or laying off staff entirely. Responses show these consequences will continue to play out in the next year.

A majority say they will limit future expansion within California, instead looking outside the state.

View the full survey report here.

The full survey conducted by CorCom, Inc. asked California limited-service restaurant operators for feedback on the impacts of the $20 minimum fast food industry wage on their business, and sentiments on future profitability of their businesses in the state.

EPI’s research director Rebekah Paxton made the following statement regarding the survey:

“Even before the $20 wage went into effect, fast food restaurants made it clear they would not be able to survive. Now after just a few months, the policy has been a disaster, killing jobs and shuttering restaurants. Governor Newsom and state lawmakers should be listening to small business owners and their employees instead of trying to sugarcoat the truth.”

Key findings on the impact of the $20 minimum wage:

• A majority of restaurants say they have already raised menu prices (98%), reduced employee hours (89%), have limited employee shift pick-up or overtime opportunities (73%) and reduced staff or consolidated positions (70%) as a result of the minimum wage law.
• A majority of restaurants say in the next year they will have to raise menu prices (93%), reduce employee hours (87%), reduce staff or consolidate positions (74%), and limit employee shift pick-up or overtime opportunities (71%).
• Eighty-nine percent of owners say they are less likely to expand inside California (somewhat less likely, 16%; significantly less likely, 73%).A majority (74%) say there is an increase in the likelihood of shutting their restaurants down (somewhat increase, 38%; significantly increase, 36%).
• A majority of respondents (67%) say the minimum wage law will cost their restaurant at least $100,000 per location every year. One in four say it will cost more than $200,000 per location every year.