Take out restaurant workers scramble to complete the order. (Photo: James Kirkikis, Shutterstock)
Governor’s Office Gets Snarky With the Globe Over 10,000 Fast Food Jobs Lost
‘It’s just another law that puts businesses in further jeopardy’
By Katy Grimes and Evan Symon, June 10, 2024 11:02 am
Last week the Globe reported that California has lost just under 10,000 fast food jobs since the new $20 minimum wage for fast food employees was first signed into law late last year, according to the California Business and Industrial Alliance (CABIA).
CABIA cited data and a report from the Hoover Institution at Stanford University.
This article apparently displeased the Governor’s office. We received an email from Brandon Richards (He/Him), Deputy Director of Communications in the Office of Governor Gavin Newsom, asking for a retraction or correction and claiming the state has gained jobs since the $20 per hour fast food minimum wage.
Hey Katy and Evan,
Happy Saturday – I saw your outlet’s articles and wanted to reach out because the main crux is not accurate – and is unfortunatelypushing a false narrative to your readers. Many other outlets have sense added context and changed headlines and hoping you all will do so too – given the facts below.
HERE ARE THE FACTS: According to the Bureau of Labor Statistics, California has added jobs in limited service restaurants (fast food) both since Gov. Gavin Newsom signed AB 1228 the FAST Recovery Act in September 2023 and since the law’s new $20 minimum wage for fast food workers took effect April 1, 2024.
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- According to the BLS, there were 736,500 jobs in California limited service restaurants in September 2023. In April 2024 there were 741,000 jobs in the industry. That is an increase of 4,500.
- Similarly, there were 734,400 fast food jobs in California in April 2023, and a year later, in April 2024, there were 741,000 jobs. That is an increase of 6,600.
- According to the BLS, there were 736,500 jobs in California limited service restaurants in September 2023. In April 2024 there were 741,000 jobs in the industry. That is an increase of 4,500.
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- It is just not true that the fast-food industry has cut jobs since the signing of the FAST Recovery Act or since its historic minimum wage increase went into effect.
- In fact, leading up to this year’s implementation the number of employees in this sector increased each month leading up to April.
- It is just not true that the fast-food industry has cut jobs since the signing of the FAST Recovery Act or since its historic minimum wage increase went into effect.
The data is from https://data.bls.gov/PDQWeb/sm and I have included a screen shot below for ease. The data the trade group uses cherry picks from Aug/Sept 2023 to Jan 2024 (an incomplete and inaccurate use of the data) – leaving out the data from the months of February, March, and April – which all saw increases.
Would you consider a retraction? If not, looking forward to including this information in the current article and highlighting the actual data rather than a trade group’s slanted view.
Thanks,
Brandon
BRANDON RICHARDS (He/Him)
Deputy Director of Communications
Office of Governor Gavin Newsom
916.340.4079 | @BrandonRichards
The Globe replied back:
I don’t see where a retraction or a correction is necessary. Our article reported on CABIA’s findings, and CABIA CEO Tom Manzo even said, “We’ll look at state figures when they come out, but through CABIO’s findings, it is at 10,000.” And CABIA President and founder Tom Manzo said on Wednesday that, even before AB 1228, California businesses were struggling for years because of state regulations.
What we will do is a follow up article analyzing the BLS numbers, and the numbers California reported to the BLS. We also will be watching next quarter to see if California made adjustments to what was reported to the BLS.
Regards,
Katy
Brandon (He/Him) was not happy with our response, and sent another email – this one with more bold and caps:
It’s completely disingenuous to your readers to selectively leave out THREE MONTHS OF NEW data – including the first set of the data when the law in question is actually now in effect.
I realize the data doesn’t fit the Globe’s false narrative, but Katy facts are facts. When will you retract or update your fictitious error-riddled piece?
Best,
Brandon
However, Brandon (He/Him) forgets that there were a lot of firings in the lead-up to the law taking effect; the rise he is noting is actually a natural seasonal trend; and the data he is citing covers limited service restaurants and OTHER restaurants which covers a variety of places.
Here is what the Globe reported:
“Following the signing of AB 1228 in October by Governor Gavin Newsom ushering in the new $20 minimum wage, a massive jump from the $16 minimum wage, has had multiple companies take extreme measures,” the Globe reported. “Some, like Chipotle and McDonalds, have announced already raised prices before the wage raise date of April 1st. Others are investing in automated kiosks and other automated devices to help reduce the number of employees. Some stores outright closed.”
Most notable, however, has been the massive amount of layoffs. Over 1,200 Pizza Hut drivers have had announced lay-offs, and were replaced by services such as DoorDash and Uber Eats. Roundtable Pizza has also done the same with many of their delivery drivers, with many other chains also quietly doing the same for deliveries in the following months, as seen by the jump of fast food businesses on food delivery sites.
“California businesses have been under total attack and total assault for years,” said CABIA CEO Manzo. “It’s just another law that puts businesses in further jeopardy. Nearly 10,000 jobs have been cut across fast food restaurants since Newsom signed the bill into law last year. Officials are living in a fantasyland by thinking that drastic wage increases will help workers or businesses. You can only raise prices so much. And you’re seeing it. People are not going to pay $20 for a Big Mac. It’s not going to happen.”
Others in the industry told the Globe on Thursday that layoffs would likely continue as automation and new, leaner shifts continue to grow.
The Globe will follow all new fast food jobs information and report back.
This is CABIA’s job loss info, citing the Hoover Institution:
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Let’s go Brandon! 😉
F- JOE BIDEN,
THE (HE -HIM), SHOULD TELL YOU ALL YOU NEED TO KNOW ABOUT WHERE HE’S CPMING FROM.
GO WOKE GO BROKE.
California is one of the most expensive states to live in, yet some people expect workers to manage on $16 an hour. The new law, of a min $20 applies to chains with over 60 locations. Rubios, the Mexican restaurant, reacted by closing shops locations, it has over 60, because ever since covid and people working from home, and many still doing it, their foot traffic in many places dried up. Then, there is the higher wage, but without the traffic and the tips which come with it, those places hanging by a thread had to go. There is the high cost of energy, which Biden tried to reduce by insisting the oil companies lower the prices they hiked, nearly trippled, during covid. After Rubios began letting shops go, they did a bankruptcy and have turned the business over to an equity company which, as they do, will strip it further before selling it on. None of this has anything to do with Biden. Has everything to do with the greed of big business and consumers who believe they should get subsidized meals, not just by having cheap labor get it ready for them, but by having the agriculture industry subsidized too. You don’t want govt in your business, or to pay taxes too much, then pay the real price of your food and meals and stop complaining and blaming.
idiot alert
do you have any ide what’s involved in running and owning a restaurant….all the money from sales isn’t profit they have insurance, utilities, fra chise fees on top of that employees,cost of food that is bought that is wasted because of different reasons
Obviously, increased costs foisted by the government upon businesses necessitate owners to modify prices or consider incorporating other technologies that were, previously, considered too costly.
The old saw that “greedy companies” are the fault for low pay and closures does not fly…no company’s leadership wants to close. However, companies may be forced to close if they cannot make a profit.
I don’t see any pronouns listed for the governor. How are we to know whether the governor is a man or a woman or a ____?
This is so fun and YUMMY, just like the defunct Foster’s Freeze used to be! Memories of summer joy and deliciousness, now well on the path to obliteration, courtesy of our “betters.” Thanks all-knowing political leaders, for ALL of your help.
Gee, I wonder who we should go with on this one: The CA Globe, or the Newsom Administration. Globe, Newsom, Globe, Newsom…. hmmm. Tough choice. Not.
Hey Globe. Thanks for telling it like it is. Between Newsoms Lies and Dem Voters having Sh.t for Brains it’s no wonder CA is in trouble
😁👍
Dear moron,
Although I won’t classify an entire political group as sh*t for brains, like you did. I feel pretty confident in calling you a moron. Although I have no doubt you and your family subsist almost entirely on junk food, I don’t Believe California is losing anything by a few fast food joints leaving the state. Good riddance! No one really needs 5 crap palaces on every corner. Maybe losing a few will improve the overall health and well being of our state. As for you, moron, I can only hope you’ll pull up stakes and join the exodus.
Brandon (him/It) is wrong. I went through the McDonalds drive thru last week and a young woman I speak to all the time was in tears. She had been given notice and all she could say was “I really need this job”. Couple days ago I was in Pollo Loco and they no longer take orders from walk-ins, you have to use a self-service kiosk. Sorry Brandon – get out in the real world.
I guess He/HIm???? Doesn’t have to go to fast food joints because I’m sure he has a State issued credit card to pay for all those breakfast, lunch and dinner meetings that are Sooooooo important to us minons. All he has to do is go to any fast food place and he will see the staffing cut in half. We travel a lot to the Central Coast and visit a lot of quick food places. All have had staffing cut and it’s not any quicker in the drive thru lane. Must be nice to be a He/Him.
Oh don’t worry it’s better than that! Any fast food joint on CA state government property was exempted from having to pay the higher $20 hr wage!! Unreal
What does the he/him mean? Vs a they/them. I honestly am asking a question, I don’t understand.
Gov Gruesome must be happy with reports like this because, apparently, he enjoys killing our economy:
“Small business uncertainty reaches pandemic-era levels”
https://www.thecentersquare.com/national/article_ce04a296-2759-11ef-b30b-0b6bab0f46bf.html
And the article doesn’t even mention our very own, completely unnecessary, adding-insult-to-injury-job-destroying $20 CA minimum wage for fast food workers
Because of AB1228 a number of young people will not be able to get summer jobs at fast food restaurants. They will be looking for other things to do which might not be good. Governor Climate Change and It/What don’t take that into consideration? The Left destroys everything it touches.
John, that is another really good and IMPORTANT point in all of this.
What a mess these people make.
thank you for mentioning this. I’m Gen Z and I seriously can’t find work. My elders are criticizing everything but the horrible job market right now. makes me feel worthless as thin the system hasn’t set me up to fail in the first place.
The Demonrats absolutely obliterate or downgrade everything in their path. Poverty and mediocrity follow in their wake.
So we are supposed to believe that raising the wages actually resulted in more jobs?
Oh, sure (facepalm). The lying never ends with these Democrats.
I know! Amazing, isn’t it.
The good news is that no one who is paying attention believes them anymore.
And the request for retraction would indicate that the gov’s office is receiving blowback in a big way.
Dear Brandon,
Unless you have a business degree, stay in your lane. According to Legistorm.com you have degrees in political science. I’m sorry. Get a real job and you’ll understand the mockery.
No doubt the Bureau of Labor Statistics has been weaponized just like every other federal agency under the corrupt Biden regime and the job numbers reported are suspect? Notice how the monthly jobs numbers are usually adjusted downward after being first being announced?
@BrandonRichards (he/him |🏳️🌈 bi+ ) profile on X is just as annoying as his emails to Katy Grimes.
hey Brandon, dump the who what bi+ pronoun crap no one cares if you suck dick or do not suck dick in your spare time,perhaps you should change it to dumb and dumber. now get back to work.
Hey Brandon (He/Him) : you’re a pompous ass and a tool of the WORST Governor in California history.
Your touts of the job “gains” leading up to April are MEANINGLESS, as your dumbass Boss’ minimum wage went in on April Fool’s Day, which is ironically emblematic of Newsom’s entire tenure…a fool…
Admit it, you have EFFED UP ROYALLY and screwed over the entire fast food industry with your FOOLISH and MISGUIDED policies… you did it in,an attempt to buy votes, and the people you thought you were helping are now HURT by YOUR policies..
Please take a BUSINESS class and learn about labor and overhead before you meddle in subjects that they don’t teach “community organizers” or sociology majors….
he him = she it
When I think about California I think of entertainment, Fantasy Land, and plastic surgery. Now I can add great paying minimum wage jobs to the list of illusions. Way to go!
Can we talk about the other businesses hit by this? If you run a small business not under this law, like a small mom n pop, or clothing store, or whatever, and a potential new, entry level employee has the option between you, or taco bell, you better hope you’re able to also offer this new $20/hr wage or you’re out employees. Not to mention how many people quit their jobs to go to fast food? I’m sure all those people are counted in the “jobs gained in the industry,” not considering how many were lost in other areas because other, smaller, businesses, who, although they weren’t required to, couldn’t jump their pay to match…
Every industry is effected by Newscum’s bad decision. Now my skilled employees needed to get a raise to close the minimum wage gap, because they are obviously more skilled than someone flipping burgers. So now, I have to raise rents to compensate for the additional expenses because now my Workers Comp Insurance is through the roof! (It’s based on payroll figures). Everyone in Government should be required to take a course in economics.
How can Brandon not see that the time lines for his statistics overlap?
September 2023. In April 2024 there were 741,000 jobs in the industry. That is an increase of 4,500.
Similarly, there were 734,400 fast food jobs in California in April 2023, and a year later, in April 2024, there were 741,000 jobs. That is an increase of 6,600.
No – there is an overlap in the time. You can’t add the numbers together. If you are going to quote a statistic, understand it. Both timeline cover Sept-Apr.
Oh – and “since” not “sense” Mr. Communications”
Because when Brandon is busy giving oral service it’s hard to see past the hair so his vision is affected. The Lt. Gov is a moron put in office by Billionaire Money Bundling from Daddy Angelo Tsakopoulos of AKT Development and is rubber stamping all types of developments raking in cash.
Yeah, quote an organization that doesn’t want businesses to be held liable for violating labor laws instead of the actual raw data. I don’t know what I expected from a guy who majored in Geography and Cartography.
Because when Brandon is busy giving oral service it’s hard to see past the hair so his vision is affected. The Lt. Gov is a moron put in office by Billionaire Money Bundling from Daddy Angelo Tsakopoulos of AKT Development and is rubber stamping all types of developments raking in cash.
Really he’s (Dumb/Dumber)
Reality (Dumb/Dumber)
Newsom admin is right!
You are reporting the claim of a lobbyist without checking or context as fact. Yes you attribute it as coming from a group you don’t call a lobbyist/trade group. But that’s not enough for journalistic integrity. you’re supposed to prevent claims and facts separately and in context. you’re supposed to give weight to facts and sources that might counter those claims. instead you stick their claims in the headline which maybe people will read.
try harder.
another great idea from Gavin newsom and this man wants to run for president God help us for you Californians which I am one of them I moved out and left moved to Georgia you notice you’re the ones that are taking the pay cuts and taxes because he spent more than what he had in the first place why don’t you ask him why they’re not taking a cut obviously they’re making too much money God help you California stand strong
I’m a registered Democrat but couldnt bring myself to vote those in office from my city of Los Angeles to the governor. The out right arrogance and ignorance to what it takes to run and operate and business in this state is mind blowing. especially in the restaurant industry which I’ve been in for 30yrs. it’s only gotten harder and far more stressful from the owner to the dishwasher, driver, distributor and grower. Between insurance costs, utilities, taxes and labor, the average restaurant profit of 3-5% there is no money to pay for these insane increases!!!! as a restaurant owner I’m forced AGAIN to cut labor and product quality as there are no other choices. California labor and contractor unions, along with environmentalist have long lost reality and are now just money making machines for their leaders and political agenda. Minimum wage is a wage created for the less experienced, kids and transitional jobs, not for life time “living wage”. Restaurant workers always relied on and appreciated working in a tip industry.
California no longer allows a tip wage like most states implement… that single handedly destroyed the restaurant industry. Common sense is dead!
I just think it’s by design that Newsomes restaurants don’t have to follow the same rules, perhaps he should lead by example and see how it works out for him
Why Can’t goons like Newsom just be good, honest people, is it really that hard to think about other people than himself, the people he’s supposed to serve. Instead Newsom sees himself as king of all collecting power and riches through any means, twisting reality to stay in power, and is completely destroying a state that should be the wealthiest and most prosperous state all the way down to its poorest citizen. Sic Semper Tyrannis.
Political Science and Sociology students should stay out of business altogether! Forgive them, for they know not what they do.
I have lived all 67 years in Cal. I have watched this state slowly erode with it’s left leadership. More and more are leaving because of all the bs. The roads suck, the homeless continues to grow, the lawlessness is rampant, and the idiot leaders keep tying free enterprises hands expecting utopia. I will be leaving too, the state I once loved has turned to shit. Just keep letting in more and more illegals because this shit is just a turd better then their shit, but it will only hasten the complete collapse before much longer. hmm 30 billion lost in EDD, A FEW BILLION HERE AND THERE, no problem, they hide it in the masses that can’t read, write or contribute…..the cookie crumbles….. Gruesome is King of the depleted!!
When the numbers are down the first thing you cut are hours. If you want to keep the good workers you cut staff. Ideology is fun to talk about but in life most people have to deal with reality. Obviously those making the rules don’t have to.
Does anyone realize the governor’s office is claiming no jobs were lost due to the minimum wage increase and shows stats from 4/23-4/24? The $20 increase went into effect on 4/24. Show the stats from 6/23-6/24.
Good Job!!!
👏🏽👏🏽👏🏽
#integrity
Thank you for not backing down from these bullies!
Well, at the very least we know that Gov. Hairdo’s people read The Globe and take it and us, the readers, seriously. Even if they are not serious people.