In a recent statement to its members, the National Owners Association, an advocacy group that represents about 1,000 McDonald’s franchisees, said that California’s new “AB 1228” law is “draconian” and will cost each McDonald’s shop an estimated $25,000. They also made it clear that the current franchisee business model could not support these additional expenses.
The measure introduces several new provisions, one of which being an increase in the minimum wage to $20 per hour for fast food workers. Additionally, a new ten-member committee would be established to supervise pay and working conditions as well as fast-food franchises.
The governor of California, Gavin Newsom, stated that his state was committed to supporting the development of the men and women who had contributed to the expansion of the national economy when he signed the bill into law after it had passed the legislature. He went on to say that fast-food employees would now have a voice in discussions about fair salaries and other crucial issues facing the sector thanks to the new legislation.
The state Senate approved the law on Thursday.
The NOA wrote in the memo that McDonald’s, franchisees, and suppliers ought to figure out how to best assist the “California McFamily.” They advocated for the establishment of a state political action committee that would petition the government as one of the recommendations.
In an effort to save operating expenses, suppliers have also pushed for lower prices for fast-food establishments.