Andrew Gruel has weighed in on Rep. Barbara Leeās (D-Calif.) recent comment about raising the federal minimum wage to $50 per hourāa move the celebrity chef said would ācompletely decimate every single business in the state of California.ā
When asked how a $50 minimum wage could be economically sustainable for small businesses operating in the state, Ms. Lee mentioned her background of owning and running a small business for 11 years. She also claimed to have helped create āhundreds of jobsā during her career.
āI know what worker productivity means and that means that you have to make sure that your employees are taken care of and have a living wage,ā she said. ā$104,000 for a family of one [is] barely enough to get by, low income because of the affordability crisis. And so just do the math.ā
āIf this is about actually putting more money in the pockets of the workers, why donāt you just cut payroll taxes so that people are taking more money home?ā he queried. āBecause they canāt; because they canāt afford it.ā
Minimum Wage Hike
Mr. Gruelāwho helms several California-based restaurants, including Calico Fish House in Huntington Beach and Tustinās Big Parmāshared similar sentiments during a recent appearance on Fox Newsās āThe Ingraham Angle.ā
The television personality claimed Ms. Lee was merely trying to gain public favor in a desperate bid for votes in the upcoming election.
āThis is going to lead to upward pressure on all wages,ā he said. āItās going to totally inflate the entire economy of Californiaāwhich is already thereāand there will be no independent businesses in California.ā
āOne hundred percent of the businesses will be run by the state and they will rely on the state,ā he continued. āAnd itās communism-lite.ā
California Minimum Wage
California was one of 22 states to raise its minimum wage in 2024, per USA Today. In September of last year, Gov. Gavin Newsom signed legislation increasing the minimum wage to $20 per hour for the stateās more than 500,000 fast-food employees. The law goes into effect on April 1.
Ms. Leeās current minimum wage proposal of $50 per hour is about seven times the current national minimum wage of $7.25 an hour.
Reps. Adam Schiff (D-Calif.) and Katie Porter (D-Calif.)āwho are also vying for a seat in the marquee congressional raceāhave floated minimum wages ranging between $20 and $25 per hour. However, Republican candidate Steve Garvey, a former Major League Baseball player for the Los Angeles Dodgers and San Diego Padres, said the āminimum wage is where it is and should be.ā
āIf you look at what California has done to fast food franchises right now, increasing the minimum wage to $20 and whatās going to happenāthatās going to increase costs for hardworking Californians to go to a franchise,ā he explained during the debate. āInstead of a Big Mac for $9, it is going to be $15,ā he said.
Mr. Gruel agreed. āLetās just kinda break it down, real simple math,ā he told Ms. Ingraham. āSo if I run 30 percent food cost and 30 percent labor cost and now I double that to 60, and Iām netting 10 percent, which is average for a restaurant, now Iām negative 20 percent.ā
āTo make up for thatāto try to break even and stay aliveāIām gonna have to increase my costs by 4 or 5x [sic],ā he continued. āSo a steak in California would cost roughly $300 at a $50 minimum wage.ā
Original News Source Link – Epoch Times
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