Fast Food Chains

At the end of 2010, it became the largest fast food chain worldwide

• Wendy’s

• Pizza Hut

• McDonald's

• Subway

What was the impact of the new California law on Lawrence Cheng’s staffing at his Wendy’s locations?

• He doubled the number of staff per shift.

• He kept the same number of staff but reduced their hours.

• He reduced the number of employees per shift and worked some hours himself.

• He closed some of his locations due to high labor costs.

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CCSS.RL.4.2

CCSS.RL.5.2

CCSS.RI.4.9

CCSS.RI.5.9

CCSS.RL.6.2

According to the U.S. Bureau of Labor Statistics, what happened to job growth in the fast food industry after the wage increase?

• Job losses were reported for two consecutive months.

• No changes in job numbers were recorded.

• The industry gained 8,000 jobs in the first two months after the law.

• There was a decrease of 8,000 jobs in the industry.

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CCSS.RI.4.8

CCSS.RI.5.8

CCSS.RI.6.8

CCSS.RL.4.5

CCSS.RL.6.1

How did Julieta Garcia view her reduced work schedule at Pizza Hut?

• It led to financial hardship.

• She disliked having fewer hours.

• It gave her more time with her family and helped her pay bills.

• She was forced to quit her job.

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CCSS.RL.2.6

CCSS.RL.8.3

What did Gov. Gavin Newsom emphasize regarding the wage increase for fast-food workers?

• It was unnecessary and would harm the economy.

• It was intended to provide a living wage for fast food workers.

• It would only benefit large restaurant chains.

• It would reduce the need for minimum wage laws in California.

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CCSS.RI.11-12.10

CCSS.RI.6.10

CCSS.RI.7.10

CCSS.RI.8.10

CCSS.RI.9-10.10

What challenge did Enif Somilleda face after the wage increase at her Del Taco location?

• Increased working hours with fewer people per shift.

• A cut in her own wages.

• The ability to hire more staff.

• No significant changes.

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CCSS.RL.4.2

CCSS.RL.5.2

CCSS.RI.4.9

CCSS.RI.5.9

CCSS.RL.6.2

According to Joseph Bryant of the Service Employees International Union, what benefit has the wage increase brought to fast food businesses?

• It has discouraged new job applicants from applying.

• It has led to higher turnover rates.

• It has attracted better job candidates and reduced turnover.

• It has made it harder for franchisees to hire new employees.

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CCSS.RI.4.8

CCSS.RI.5.8

CCSS.RI.6.1

CCSS.RI.6.8

CCSS.RL.4.5

Which of the following statements best describes the reaction of major fast-food chain operators to the increased labor costs?

• They have all reduced their prices to maintain customer loyalty.

• They are using a variety of strategies such as raising prices and cutting hours to stay afloat

• They are unaffected by the wage increase due to strong profits.

• They have shifted their business focus away from fast food.

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CCSS.RL.4.2

CCSS.RL.5.2

CCSS.RI.4.9

CCSS.RI.5.9

CCSS.RL.6.2

What change did Cheng anticipate and prepare for by raising menu prices in January?

• Higher taxes on restaurant revenues.

• A decrease in customer demand for fast food.

• The implementation of the wage increase law.

• An increase in rent costs for his locations.

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CCSS.RI.6.1

CCSS.RL.4.1

CCSS.RI.4.1

CCSS.RI.5.1

CCSS.RL.5.1

What is one reason some fast food operators, like Lawrence Cheng, have opted not to lay off any of their workers despite higher wages?

• They have decided to increase their staff instead.

• They are experimenting with reducing overtime and adjusting schedules.

• They have received state subsidies to maintain employment.

• They are closing locations and consolidating their staff.

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CCSS.RL.4.2

CCSS.RL.5.2

CCSS.RI.4.9

CCSS.RI.5.9

CCSS.RI.6.2