Ryan Fegali, a business owner with six businesses in California, is considering moving to other states due to a recent increase in the state’s minimum wage for fast food workers. Feghali is open to the idea of expanding his business outside of California if it becomes more practical.
The new California law mandates a $20 minimum wage specifically for fast-food workers at certain chains. While Fegali’s upcoming Point Loma cafe, Cocoplaia, is exempt from this increase, he finds it challenging to compete with nearby non-exempt businesses. He questions whether potential employees would be willing to accept a lower wage of $16.85 compared to nearby national chains such as In-N-Out, Starbucks, Del Taco and Burger King.
On the other hand, Fegali also owns five Little Caesars franchises that are not exempt from the wage increase, leading him to expect an influx of new job applicants. This situation has led to price increases at these locations to ensure continued profitability in a competitive market.
Fegali is looking at the long-term economic effects of raising the minimum wage to determine the future of his business in San Diego. He hopes to continue to grow in this area, but admits that if the business environment becomes too challenging, he may have to consider expanding elsewhere. The success of his business, including the potential expansion of Cocoplaja
