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Californias new $20-an-hour minimum wage law for fast food workers plunged visits to popular chains as restaurants like McDonalds, Wendys and Burger King hiked prices to offset higher costs, according to a study.

Californias new $20-an-hour minimum wage law for fast food workers led to price hikes and decreased foot traffic at popular chains including McDonalds, Wendys and Burger King, according to a study.

Since the new law went effect in April 1, foot traffic at Burger King fell 3.86%, while Wendys was down 3.24% and McDonalds slipped 2.5%, according to a report by analytics firm Placer.ai.

In-N-Out Burger, the popular fast food chain which also recently raised its menu prices on key items to cope with the increased labor costs, saw 2.59% fewer customers, while Jack in the Box visits were down 0.8%.

“Its early, but were starting to see the ripple effect of the minimum wage increase across the broader restaurant industry,” R.J. Hottovy, the head of analytical research at Placer.ai, wrote in the report.

The law which raised the minimum wage for fast food workers from $16 an hour to $20 — was also blamed for forcing companies like Rubios Coastal Grill to shutter dozens of locations across the state.

Rubios, which last week filed for Chapter 11 bankruptcy protection, cited significant increases to the minimum wage in California as a reason for the closings.

Another fast food restaurant, Fosters Freeze, recently closed a location near Fresno, saying the franchise owner could no longer afford to pay workers the upgraded salaries.

In the six-month period leading up to the new law being enacted, fast food prices in California rose on average by 7% — forcing franchisees in the state to slash work hours, postpone capital improvements and expedite the deployment of automation features such as self-serve kiosks.

The Placer.ai report found that casual dining chains may be benefiting from the erosion of traffic at fast food restaurants.

Olive Garden and Chilis locations in California have seen an uptick in visits that outperformed the national average since the minimum wage law went into effect, according to the report.

Between February and March of this year, Olive Garden saw a 1% increase in customer visits throughout California.

Since the increased minimum wage law went into effect, the figure jumped to 1.88%, according to Placer.ai.

Chilis saw a 3.6% decrease in visits throughout California in February and March.

But in the eight weeks spanning April and May, it saw an increase of 0.19% in visits, the report found.

Casual chains such as Chilis and Buffalo Wild Wings have sought to entice customers through value meals, such as the latters all you can eat wings promotion on Monday and Wednesday that has so far proven successful.

Fast food companies warned that the increased labor costs would be passed on to the consumer in the form of higher menu prices.

In Los Angeles County, a double-double burger combo at In-N-Out now goes for $11.44 — a $0.76 increase from last year, KTLA reported.

In San Francisco’s tourist-heavy Fishermans Wharf location, a double-double burger coupled with french fries and drink costs $13.63 after taxes.

Less hungry customers would still have to shell out $7.50 for the double patty without the sides or beverage, KRON4 reported.

A report published earlier this year by Kalinowski Equity Research found that fast food chains such as Wendy’s, Chipotle, Starbucks and Taco Bell raised their menu prices by as much as 8% in preparation for the new minimum wage law coming into effect.

Wendys raised its menu prices by around 8% while Chipotle Mexican Grill hiked its prices by approximately 7.5%, according to the report.

Starbucks, the Seattle-based coffee chain, raised the prices of its menu items at its California locations by around 7%, while Taco Bell hiked its prices 3%.

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Sports

Sovereignty rallies to win Jim Dandy at Saratoga

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Sovereignty rallies to win Jim Dandy at Saratoga

SARATOGA SPRINGS, N.Y. — Kentucky Derby and Belmont Stakes champion Sovereignty rallied after losing position heading into the final turn to win the $500,000 Jim Dandy by a length at Saratoga on Saturday.

Ridden by Junior Alvarado, Sovereignty ran nine furlongs in 1:49.52 and paid $3 to win as the 1-2 favorite against four rivals, the smallest field of his career.

Hall of Fame trainer Bill Mott said Sovereignty would be pointed toward the $1.25 million Travers on Aug. 23 at the upstate New York track.

Approaching the turn, there were a few tense moments as it appeared Sovereignty was retreating when losing position to the advancing Baeza and deep closers Sandman and Hill Road, leaving Sovereignty in last for a few strides.

Alvarado said he never had a doubt that Sovereignty would come up with his expected run.

“It was everybody else moving and at that time I was just like, ‘Alright let me now kind of start picking it up,'” Alvarado said. “I had 100% confidence. I knew what I had underneath me.”

Baeza, third to Sovereignty in both the Derby and Belmont, finished second. Hill Road was another 9¼ lengths back in third. Mo Plex was fourth and Sandman fifth.

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UK

Man suffers cardiac arrest onboard boat trying to reach UK

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Man suffers cardiac arrest onboard boat trying to reach UK

A man has died after suffering cardiac arrest onboard a boat attempting to reach the UK.

The vessel turned back towards Equihen beach on the French coast yesterday morning.

A nurse tried to resuscitate the man but was unsuccessful.

Pic: PA
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Pic: PA

French authorities have now launched an investigation into the circumstances.

A spokesperson for Doctors Without Borders, also known as MSF, has criticised authorities on both sides of the Channel.

Jacob Burns said: “Yet again we have a tragedy in the Channel, that is the consequence of the deadly, costly and ineffective security policies implemented by the UK and France.”

Pic: PA
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Pic: PA

Later on Saturday, a lifeboat carried migrants who have made the voyage into the Port of Dover.

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Photographs showed them huddled under blankets and orange life jackets on board.

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Protesters clash over asylum hotels

Provisional statistics from the Home Office suggest almost 24,000 people have arrived on small boats in the UK so far this year.

Towns and cities across the UK have seen protests in recent days, primarily outside hotels believed to be housing asylum seekers.

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US

Michigan: 11 people stabbed in US supermarket – with six in critical condition

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Michigan: 11 people stabbed in US supermarket - with six in critical condition

At least 11 people have been stabbed at a Walmart supermarket in Michigan, with six in a critical condition.

Officials say a suspect is in custody – and at this stage, it is believed the attack was a “random act” that involved a folding-style knife near the checkout area.

Sheriff Michael Shea told reporters: “Eleven is 11 too many, but thank God it wasn’t more.”

Pic: AP
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Pic: AP

The suspect, who is from Michigan, is not known to police – and was captured within three minutes thanks to “citizen involvement”.

The attack unfolded in Traverse City – and Tiffany DeFell, who was in the car park at the time, described scenes of chaos.

“It was really scary. Me and my sister were just freaking out,” she said. “This is something you see out of the movies.”

Beyond the six people in a critical condition, it is believed the remaining five were seriously hurt. All 11 are still being treated in hospital.

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Pic: AP
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Pic: AP

Michigan Governor Gretchen Whitmer said: “Our thoughts are with the victims and the community reeling from this brutal act of violence.”

A Walmart spokesperson added that the retailer is working closely with law enforcement.

“Violence like this is unacceptable. Our thoughts are with those who were injured and we’re thankful for the swift action of first responders,” a statement said.

Pic: AP
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Pic: AP

At this stage, the ages of the victims is unclear – but it is not thought any of the victims were Walmart employees.

Traverse City is about 255 miles northwest of Detroit.

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