The California law mandating a statewide minimum wage of $20 per hour for restaurant workers is generating predicted consequences.  It is estimated that there were 720,000 fast food and limited-service restaurant workers in California at the end of 2023.  This figure is down by 1.3 percent from September.   In contrast, total employment in the state declined by 0.2 percent. 

Given that the economy still recovering from the effects of COVID and inflation operators are reluctant or unable to pass on increased wages to consumers.  Accordingly, restaurants are reducing head count and hours.  Pizza Hut franchisees have eliminated most of their drivers, most of whom will be employed by independent delivery services.  Some stores have revised menus to reduce labor and are evaluating installation of mechanical handling equipment.