Citing CA Labor Costs, Dave’s Hot Chicken Turned To Automation: Report

The Governor and Democrats are economic illiterates.  They also have no idea about the effects of artificial wage control by government.  They were warned that if they raised the fast food minimum wage, real people would lose their jobs, fewer would have jobs, it would increase inflation.  Now we have another restaurant protecting itself from the illiterates in Sacramento.

“Last year, California’s minimum wage for fast-food workers rose to $20 an hour. By automating dishwashing, the chain said it was able to pay their remaining workers an additional $2 an hour, the newspaper reported.

Just before the April 2024 minimum-wage increase, Dave’s executives held emergency meetings with franchisees to figure out how to cut costs and boost sales, WSJ reported.

The company said it convinced 80% of franchisees to agree to switching out human dishwashers for automatic ones. About one-fourth of its 270 restaurants are in the Golden State.”

Maybe the good news is that there are fewer jobs for illegal aliens!!

Citing CA Labor Costs, Dave’s Hot Chicken Turned To Automation: Report

This is what the chain reportedly did to pay its remaining workers $2 more per hour as CA’s minimum wage rose.

Kat Schuster,Patch StaffVerified Patch Staff Badge2/11/25    https://patch.com/california/across-ca/citing-ca-labor-costs-daves-hot-chicken-turned-automation-report

CALIFORNIA — Facing rising minimum wages, Dave’s Hot Chicken has reportedly replaced its human dish washers with automated dishwashing equipment, the Wall Street Journal reported.

Last year, California’s minimum wage for fast-food workers rose to $20 an hour. By automating dishwashing, the chain said it was able to pay their remaining workers an additional $2 an hour, the newspaper reported.

Just before the April 2024 minimum-wage increase, Dave’s executives held emergency meetings with franchisees to figure out how to cut costs and boost sales, WSJ reported.

The company said it convinced 80% of franchisees to agree to switching out human dishwashers for automatic ones. About one-fourth of its 270 restaurants are in the Golden State.

The Nashville chicken sandwich chain, which began as a pop-up in Los Angeles in 2017, generates $1 billion in annual sales, the paper reported.

Read more from the Wall Street Journal: How Dave’s Hot Chicken Beat Rising Labor Costs

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