Before the wage increase, the fast-food employment figure in California was 735,000 workers in March 2024.
From March through May, the fast-food industry in California added 10,000 jobs, according to the U.S. Bureau of Labor Statistics. This growth occurred after the state implemented a $20 minimum wage for fast-food workers, which went into effect on April 1.
The CEO of Olive Garden's parent company, Darden Restaurants, cited inflation and changing consumer behavior as reasons for customer shifts. Inflation has led to higher prices at fast-food chains, driving customers to seek more value at sit-down franchises like Olive Garden. Additionally, lower-income consumers are pulling back on spending, while others are visiting restaurants during mid- and late afternoon, leading to shifts in customer habits.