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This bill will also likely accelerate the use of automation in these restaurants, resulting in less workers enjoying the $20/hr rate. Unknown factor is what impact the higher rates have on business.
Company officials reporting third quarter earnings last Thursday said the landmark bill approved last month that will increase wages for fast-food workers to $20 per hour, starting in April 2024, will force the chain to raise wages in the “high teens to 20%” range. About 15% of Chipotle’s units are in California, and the legislation will increase the chain's labor costs overall by roughly 2.5% to 3%, said Jack Hartung, Chipotle's CFO.
This bill will also likely accelerate the use of automation in these restaurants, resulting in less workers enjoying the $20/hr rate. Unknown factor is what impact the higher rates have on business.