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The article discusses the effects of recent wage increases for fast-food and delivery workers in California, New York City, and Seattle:
1. California:
- A new law raised the minimum wage for fast-food workers to $20 per hour.
- This has led to the closure of some prominent restaurants, including a McDonald's in San Francisco and an Arby's in Los Angeles.
- Industry groups claim about 9,500 fast-food jobs have been cut in recent months.
- Menu prices have increased by an average of 7%.
- Foot traffic at fast-food chains has declined between 2-4%.
2. New York City and Seattle:
- New regulations aimed to increase pay for food delivery drivers.
- In Seattle, drivers now earn a minimum of $26.40 per hour plus tips and mileage.
- In New York City, the minimum pay is $19.56 per hour before tips.
- These changes have led to fewer orders, higher fees for customers, and reduced work hours for many drivers.
- Some delivery companies have implemented fixed shifts, causing some drivers to quit.
3. Consequences:
- Businesses are facing higher labor costs, leading to closures and reduced hours.
- Customers are experiencing higher prices and, in some cases, poorer service.
- While some drivers are earning more, many are seeing less work and lower overall income.
4. Reactions:
- Critics argue these wage increases are having negative unintended consequences.
- Seattle is considering repealing its ordinance, while New York City maintains its law is successful.
- California shows no signs of revising its fast-food minimum wage law, and other states are considering similar measures.
The article suggests that these well-intentioned wage initiatives may be having complex and sometimes counterproductive effects on businesses, workers, and consumers.