Minimum Wage Hike Fails to Dent Southern California's Fast Food Hiring Boom

Despite a significant increase in the minimum wage for the industry's largest chains, Southern California's fast food restaurants have experienced record employment levels in June. This surprising trend defies the predictions of critics who warned that the wage hike would lead to higher menu prices, reduced staffing, and a decline in the restaurant industry's overall health.

Thriving Fast Food Sector Defies Wage Hike Fears

A Closer Look at the Fast Food Job Market

To gauge the impact of the -an-hour minimum wage on the fast food industry, the analysis examined employment data for "limited-service" restaurants in the four-county region of Los Angeles, Orange, Riverside, and San Bernardino. The findings reveal a remarkable story of resilience and growth.In June, the four-county area recorded an all-time high of 361,500 fast food workers, representing a 4.5% share of the region's total employment. This figure marks a significant increase of 400 jobs in June and a robust 7,600 additional positions since March, just before the wage hike took effect.

Comparing Fast Food to Full-Service Restaurants

The fast food industry's hiring patterns are not unique. The region's full-service eateries have also experienced a surge in employment, hitting a record 294,500 workers in June. This represents a monthly increase of 2,000 jobs, an 8,800 rise since March, and a 4,500 year-over-year gain.These employment trends suggest that dining out in Southern California remains popular, with consumers embracing both quick-serve and sit-down establishments. The resilience of the restaurant industry as a whole points to a growing regional economy, which is typically a positive sign for the dining sector.

Broader Economic Trends in Southern California

Examining the fast food industry's performance in the context of the broader regional economy provides further insights. Across all industries in Southern California, employment reached 8 million in June, reflecting a monthly increase of 22,800 jobs, a 72,200 rise since March, and a 115,100 year-over-year gain.While the fast food sector has experienced a 2.2% expansion over the past 12 months, the region's overall job growth has been a more modest 1.5%. Interestingly, the full-service restaurant industry has outpaced both, with a 2.8% increase in staffing levels.Another relevant industry to consider is the hotel sector. The region's hotels employed 92,800 workers in June, representing a monthly increase of 1,100 jobs, a 3,800 rise since March, and a 2,800 year-over-year gain – a 3.1% growth rate.

Geographical Variations in Fast Food Hiring

The fast food industry's hiring patterns are not uniform across the region. A closer examination of the data reveals some interesting geographical differences.In Los Angeles County, the fast food sector reached a record 197,800 workers in June, up 200 from the previous month, 4,400 since March, and 4,300 over the past year. Fast food jobs account for 4.3% of all employment in LA County.The Inland Empire, on the other hand, saw a more mixed picture. While the region recorded 89,500 fast food workers in June, up 200 from the previous month and 1,900 since March, the year-over-year change showed a decline of 1,300 jobs. Fast food represents 5.2% of all employment in the Inland Empire.In Orange County, the fast food workforce remained flat at 74,200 workers in June, with no change from the previous month, a 1,300 increase since March, and no year-over-year change. Fast food jobs account for 4.3% of all employment in Orange County.These geographical variations suggest that the impact of the minimum wage hike has not been uniform across the region, and that individual operators and local market conditions may be playing a significant role in shaping the industry's hiring patterns.