For fast food workers across California, April 1 was a good day to clock in.
California’s new law has gone into effect to raise the minimum wage of fast food workers, who are employed by chains of 60 restaurants and more, from $16 to $20 an hour.
“I’m eager for the first big paycheck,” Lizette Aguilar, who has worked for McDonald’s for 14 years, said in Spanish.
But for franchise owners, the dramatic surge in labor costs, including payroll taxes and workers compensation insurance, is a nightmare.
“My average store will go up $180,000 a year,” explained Michaela Mendelshon, who owns six El Pollo Loco franchises in LA and Ventura Counties. “As of today, I am well into the red. We are losing money, so we are going to need to stop the boat from leaking by making changes.”
As with other franchise owners across the state, Mendelshon said menu item…