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LOL as Panera loses its employees to the competition that are forced to pay 8+ dollars more per hour and at a more rapid pace thereafter! And no one wants to ta

LOL as Panera loses its employees to the competition that are forced to pay 8+ dollars more per hour and at a more rapid pace thereafter! And no one wants to take any position at Panera if they can get higher paying food service work across the street! Most workers will just find other employers that pay more and thus the experiment will start for Panera on how the prevailing wage levels in the Golden Bear state will force Panera to raise wages regardless!

roenxi 3y ago
If that was true, it would have happened without the law getting involved. The implications of this are obvious from some basic supply-demand logic. Say before the law came into effect there were 100 people, 100 jobs and the market rate of pay is $12/hr. Now there going to be more people willing to take work (say, 110 people), probably less jobs - say 99 for the sake of argument and the market rate is set to $20/hr. Panera will still fill the same number of positions and likely pay a little less than $12 (maybe $10). They can also offer lower prices so they'll probably do roaring business and make more profit. A carve out won't hurt Panera. It'll make them much more profitable.
yumraj 3y ago
Doesn’t that assume that unlimited jobs are available and every worker has a choice? In reality the $20 jobs will fill first and remaining might have to take $12 jobs. No?
- zmgsabst 3y ago
  Sure — those jobs will go first to the best employees. And Panera will become that place where you know the quality and staff are worse, in both the “get my order wrong” and “seem to have a drug problem” senses. Panera will then have to pay above market to attract quality back when they’ve developed a toxic workplace culture. All while customers are shifting habits.
  - toomuchtodo 3y ago
    Does this law impact the ability of unionized Panera workers to bargain for wages at the same minimum wage floor? There are 188 Panera Bread locations in California [1]. More Starbucks locations have unionized nationwide than that [2]. [1] https://www.panerabread.com/en-us/cafe/locations/ca https://www.panerabread.com/en-us/cafe/locations/ca [2] https://unionelections.org/data/starbucks/ https://unionelections.org/data/starbucks/
    - roenxi 3y ago
      "We can't get a job at any place offering $20/hr, we can only get a job at this place offering $1x/hr. I know, lets start a fight with them!" This strategy will result in many of them becoming unemployed. Although the idea that previously fine employees are suddenly unfit for work is weird and probably wrong, there is little question that there will be people working at Panera who literally can't get a job at higher wages. This place will be their only hope. Biting the invisible hand of the market that feeds them is a terrible plan, they're better off upskilling as best they can and trying to get a job at $20/hr somewhere else.
      - deleted 3y ago
        [deleted]
      - toomuchtodo 3y ago
        Good news! Newsom’s team is stating there is no Panera exception. If because of public backlash, all the better. > Newsom’s legal team has concluded that would not apply to businesses, like many Panera locations, that mix dough at one location and then bake it at stores. https://www.politico.com/news/2024/02/29/gavin-newsom-fast-food-panera-00144282 https://www.politico.com/news/2024/02/29/gavin-newsom-fast-f...
- nomel 3y ago
  I think the stranger assumption is that all of these fast food chains won't just add some simple bread to their menu. Bread is incredibly easy/cheap to make.
  - murderfs 3y ago
    They cannot: (i) An establishment that on September 1, 2022, operates a bakery that produces for sale on the establishment’s premises bread as defined under Part 136 of Subchapter B of Chapter I of Title 21 of the Code of Federal Regulations shall not be considered a fast food restaurant, so long as it continues to operate such a bakery. This exemption applies only where the establishment produces for sale bread as a stand-alone menu item, and does not apply if the bread is available for sale solely as part of another menu item.
perfectstorm 3y ago
they will always find people who are desperate. this will turn into a retention problem for them in the long run. it's unfortunate that the CA governor is married to some bad apples (PGE is another one).
deleted 3y ago
[deleted]
kQq9oHeAz6wLLS 3y ago
Except other places will cut jobs or raise prices (thus reduce demand), so the jobs that are still around at $20/hour will be for fewer hours.
deleted 3y ago
[deleted]

roenxi 3y ago

If that was true, it would have happened without the law getting involved. The implications of this are obvious from some basic supply-demand logic. Say before the law came into effect there were 100 people, 100 jobs and the market rate of pay is $12/hr. Now there going to be more people willing to take work (say, 110 people), probably less jobs - say 99 for the sake of argument and the market rate is set to $20/hr. Panera will still fill the same number of positions and likely pay a little less than $12 (maybe $10). They can also offer lower prices so they'll probably do roaring business and make more profit. A carve out won't hurt Panera. It'll make them much more profitable.

yumraj 3y ago

Doesn’t that assume that unlimited jobs are available and every worker has a choice? In reality the $20 jobs will fill first and remaining might have to take $12 jobs. No?

zmgsabst 3y ago
Sure — those jobs will go first to the best employees. And Panera will become that place where you know the quality and staff are worse, in both the “get my order wrong” and “seem to have a drug problem” senses. Panera will then have to pay above market to attract quality back when they’ve developed a toxic workplace culture. All while customers are shifting habits.
- toomuchtodo 3y ago
  Does this law impact the ability of unionized Panera workers to bargain for wages at the same minimum wage floor? There are 188 Panera Bread locations in California [1]. More Starbucks locations have unionized nationwide than that [2]. [1] https://www.panerabread.com/en-us/cafe/locations/ca https://www.panerabread.com/en-us/cafe/locations/ca [2] https://unionelections.org/data/starbucks/ https://unionelections.org/data/starbucks/
  - roenxi 3y ago
    "We can't get a job at any place offering $20/hr, we can only get a job at this place offering $1x/hr. I know, lets start a fight with them!" This strategy will result in many of them becoming unemployed. Although the idea that previously fine employees are suddenly unfit for work is weird and probably wrong, there is little question that there will be people working at Panera who literally can't get a job at higher wages. This place will be their only hope. Biting the invisible hand of the market that feeds them is a terrible plan, they're better off upskilling as best they can and trying to get a job at $20/hr somewhere else.
    - deleted 3y ago
      [deleted]
    - toomuchtodo 3y ago
      Good news! Newsom’s team is stating there is no Panera exception. If because of public backlash, all the better. > Newsom’s legal team has concluded that would not apply to businesses, like many Panera locations, that mix dough at one location and then bake it at stores. https://www.politico.com/news/2024/02/29/gavin-newsom-fast-food-panera-00144282 https://www.politico.com/news/2024/02/29/gavin-newsom-fast-f...
nomel 3y ago
I think the stranger assumption is that all of these fast food chains won't just add some simple bread to their menu. Bread is incredibly easy/cheap to make.
- murderfs 3y ago
  They cannot: (i) An establishment that on September 1, 2022, operates a bakery that produces for sale on the establishment’s premises bread as defined under Part 136 of Subchapter B of Chapter I of Title 21 of the Code of Federal Regulations shall not be considered a fast food restaurant, so long as it continues to operate such a bakery. This exemption applies only where the establishment produces for sale bread as a stand-alone menu item, and does not apply if the bread is available for sale solely as part of another menu item.

perfectstorm 3y ago

they will always find people who are desperate. this will turn into a retention problem for them in the long run. it's unfortunate that the CA governor is married to some bad apples (PGE is another one).

deleted 3y ago

[deleted]

kQq9oHeAz6wLLS 3y ago

Except other places will cut jobs or raise prices (thus reduce demand), so the jobs that are still around at $20/hour will be for fewer hours.

deleted 3y ago

[deleted]