In response to the upcoming wage hike for fast food workers in California, restaurant operators across the state are exploring various strategies to mitigate the increased costs. Starting next Monday, the hourly wage for fast food workers will rise from $16 to $20 per hour, causing executives at McDonald's and Chipotle Mexican Grill to already indicate possible menu price hikes.

To cope with the wage increase, some California-based restaurant chains are turning to automation. El Pollo Loco has announced plans to automate its salsa-making process, while Jack in the Box is currently testing fryer robots and automated drink dispensers to reduce their reliance on employees.

However, these changes have not been without consequences. In December, two major Pizza Hut franchise operators announced that they would be laying off all in-house delivery drivers due to Assembly Bill 1228, which was passed in the state Legislature and signed into law by Governor Gavin Newsom in September. This bill, seen as a critical cost-of-living boost for quick-service restaurant workers in the state, resulted in a statewide union launch and the successful lobbying for the wage increase.

Some individual restaurant owners have reluctantly made difficult decisions to cope with the wage hike. Alexander Johnson, who owns 10 Auntie Anne's and Cinnabon locations in California, had to reduce his staff by approximately 10 employees. In a similar move, the owner of Round Table Pizza locations, Excalibur Pizza, has issued a state WARN notice stating that 73 driver positions will be eliminated by mid-April.

The impact of the wage increase is significant, as an estimated 70% of Californians consume fast food each week. In light of these challenges, consumer reporter David Lazarus from KTLA 5 News argues that fast food operators find themselves at a crossroads, which is largely a result of their own success. Lazarus believes that this situation reflects an unsustainable business model rather than a need to keep wages in check.

Restaurant operators in California face the difficult task of striking a balance between fairly compensating their workers and maintaining affordable prices. As the wage hike looms, the industry is left searching for innovative solutions to navigate these changes that have far-reaching implications for both employers and employees alike.