business news in context, analysis with attitude

•  From the Wall Street Journal:

"Minimum wage for California fast-food workers is set to rise to $20 an hour in April, a 25% increase from the state’s broader $16 minimum wage. Restaurants including Chipotle, and others say they will raise menu prices in California in response, with some McDonald’s franchisees estimating hundreds of thousands of dollars per restaurant in added labor costs."

According to the Journal, "For every dollar in hourly wage increases, a restaurant needs to increase prices by 2% to make up for the additional cost, industry consulting firm Revenue Management Solutions said. Jack in the Box told investors in November that its prices will rise 6% to 8% companywide this year, primarily to cover increased wages and other costs in California."

The story notes that "California for decades has been a fast-food stronghold, with more people working in restaurants and bars than in any other state, according to the Labor Department. It is the birthplace of McDonald’s, In-N-Out Burger and other chains, and fast-food and other takeaway restaurants employ about 761,900 people in the state, according to California’s employment department."


•  From the Associated Press:

"Target says it will stop selling a product dedicated to Civil Rights icons after a now-viral TikTok spotlighted some significant errors.

"In a video posted earlier this week, Las Vegas high school teacher Tierra Espy displayed how three Civil Rights icons - Carter G. Woodson, W.E.B. DuBois and Booker T. Washington - were misidentified in the magnetic learning activity … Espy said the incident underlines the importance of reviewing products before making them available to consumers — which would help avoid harmful errors like this down the road."

The AP reports that "Target confirmed that it would stop sales of the product.

'We will no longer be selling this product in stores or online,' Minneapolis-based Target said in a statement. 'We’ve also ensured the product’s publisher is aware of the errors'."