California's fast-food minimum wage hike is backfiring

California’s fast-food minimum wage hike has been in effect for just one month, and the consequences are proving to be fewer hours and potentially fewer jobs for workers.

Pollo West Corporation, the largest franchisee of El Pollo Loco restaurants in California, has said that its franchises went from profitable to losing money overnight when the fast-food wage hike went into effect. It also said that the franchises have reduced worker hours by 10%. Meanwhile, the restaurants had raised prices in February to prepare for the wage hike, leading to a 3% decline in business.