California's Fast-Food Industry Faces Financial Strain from New Legislation

An independent advocacy group of McDonald's franchisees in California is opposing a new fast-food bill that would establish a wage floor of $20 per hour for workers at fast-food chains with at least 60 locations nationwide. The group, called the National Owners Association, claims that the bill will cost each restaurant in the state $250,000 annually and warns that similar legislation may follow in other states. McDonald's sent a letter to its restaurant system expressing its efforts to fight the bill and protect franchisees' decision-making abilities. While some franchise and restaurant groups view the compromise as positive, critics argue that the costs will disproportionately affect small business owners. Worker advocates see the bill as a starting point for further improvements in the industry.