Since the law took effect on April 1, approximately 10,000 positions across popular chains like Pizza Hut and Burger King have been eliminated, according to a report from a state trade group.

Adding to the economic turmoil, beloved Mexican chain Rubio's Coastal Grill recently filed for Chapter 11 bankruptcy, resulting in the closure of 48 locations across California. The drastic measures taken by these businesses can be attributed to the increased labor costs incurred by the new minimum wage law.

The California Business and Industrial Alliance (CABIA) criticized Governor Gavin Newsom for pushing through this law, which has had the unintended consequence of forcing businesses to raise prices to remain financially viable. In response, CABIA created a tongue-in-cheek advertisement titled 'In Memoriam: Victims of Newsom's Minimum Wage' in Thursday's edition of USA Today. The mock 'obituaries' featured popular brands, highlighting the challenges faced by smaller establishments like Rubio's, as well as fast food giants such as Pizza Hut, Burger King, Subway, and McDonald's.

Businesses have been forced to make difficult decisions in the face of the wage increase. A McDonald's franchisee, for instance, is reportedly contemplating reducing store hours, increasing menu prices, and delaying renovations to offset the impact of the $20 hourly minimum wage for fast-food workers. Furthermore, even before the law was officially passed earlier this year, chains like Pizza Hut and Round Table had already let go of over a thousand delivery workers in anticipation of the financial implications.

Signed into law by Governor Newsom in September of the previous year, the legislation raises the minimum wages for fast-food workers to $20 an hour at chains with more than 60 locations across the United States. This represents a 25% increase from California's standard minimum wage of $16 an hour that went into effect in January. At the federal level, the minimum wage has not seen any changes in decades and remains stagnant at $7.25 an hour.

Tom Manzo, the president and founder of CABIA, expressed his dissatisfaction with officials who believe that significant wage increases will benefit workers and businesses. He labeled such thinking as a "fantasyland" and argued that continuously raising prices is not a sustainable solution. Manzo asserts that consumers will not pay $20 for a Big Mac, and the consequences of this wage hike are already visible.

Critics have warned that as businesses grapple with rising labor costs, they may turn to digital ordering kiosks as a means to reduce staffing expenses. One Burger King franchisee with 140 restaurants in the West Coast has already announced plans to install digital kiosks in all locations within two months, significantly ahead of the original timeline of five to ten years.

Governor Newsom, a Democrat, believes that this law brings the state closer to fair wages, improved working conditions, and enhanced training for fast-food workers. In contrast, Republican critics argue that the wage hike will simply result in job loss as workers are replaced by self-checkouts and automated systems.

The impact of California's $20-an-hour minimum wage is being felt keenly throughout the fast food industry as businesses struggle to adapt to the new financial landscape. As the debate continues between critics and proponents of the law, the long-term consequences for workers and the industry as a whole remain uncertain.