Chipotle’s answer to the fast food bill to increase wages is to raise their prices, according to Chipotle’s CEO, Brian Niccol.
The fast food bill that is being proposed, would see fast food employees wages increasing from $15 to possibly up to $22 an hour.
The outcry from chains, restaurants and corporations prompted many franchisers like McDonald’s, KFC, Burger King and more to pool money towards fighting to have the bill thrown out before it can be enacted.
They raised over 12 million (and climbing) and formed a coalition.
The suits and the shareholders don’t want to upset the status quo within the fast food industry opting to fight fire with wads of cash to stack the odds in their favor.
The creation of the Save Local Restaurants Coalition is ostensibly for business owners, the every man…but in reality, it’s the global corporations (and the ilk) with the most to lose. And they started fighting the bill shortly after California’s Governor Newsom signed it.
Chipotle’s CEO Brian Niccol said that the bill would put a strain on Chipotle’s presence in California leading to less growth within the state and the raising off prices at the locations that are already within it.
“It’s unfortunate because it also impacts the economic model, and that could impact how many restaurants we open in the future in a state like California which is a shame,” Niccol said at the Yahoo Finance All Markets Summit.
It will be a shame…if Niccol’s sees his profits diminish one iota while his employees – the one’s who are on the frontline’s of the restaurant daily, would see a paltry amount of gains compared to the CEO’s yearly take home of $38 million in 2020 with a base salary of $1.5 million.
“We pay well beyond $15 an hour in California. So there is legislation that has the potential to take the hourly wage up to $21, $22 an hour that will put organizations in a place where prices probably have to rise.” Niccol continued.
Service Employees International Union President Mary Kay Henry says about the industries fight against the bill being implemented:
“It’s an act of extraordinary greed and cowardice” in which “fast-food corporations are looking to buy their way out of a law intended to lift pay for their workers, ensure their stores are safe and healthy and improve the industry for everybody…. This isn’t how companies act when they’re proud of their business model.” (via: LA Times)
Niccol’s doesn’t see it the way Mary Kay Henry sees it, that’s for sure.
“And hopefully that legislation doesn’t get in the way of great economics that result in great opportunities for employees and customers. If it does, we will deal with it accordingly…it will be a shame,” Niccol added.
Maybe he can take a little bit from that fat stack he made in 2020 to contribute towards a livable wage for his employees.
Nope, Niccol would pass the wage increase onto the customer’s…which is no surprise.
His comments read like a thinly veiled threat instead of someone who is concerned about “great economics” for all.
