$15 Minimum Wage Is Bad News for Working Class Americans, Says Andy Puzder
*By Michael Teich*
Restaurants across the country are facing higher labor costs and minimum wage hikes, and that could spell doom not only for the businesses themselves, but also for working class Americans, according to former CKE Restaurants CEO Andy Puzder.
"People believe they are helping the working poor, but in fact, you're actually hurting them," Puzder told Cheddar on Friday.
The call for a $15 minimum wage has been an intensely debated topic. Proponents claim it's necessary to help workers meet their basic cost of living needs and shrink the income inequality gap, while critics argue hiking wages too high will result in layoffs and store closures. More than 20 states plan to raise their minimum wages in the upcoming year in some capacity, according to a new report by the National Employment Law Project. California, New York, and the District of Columbia, which collectively represent about 18 percent of the workforce, have each committed to gradually raising their minimum wage to $15 an hour.
"I'm opposed to raising it to the point where it kills entry level jobs for the working poor, for working class Americans," Puzder said.
"$15 an hour really kills entry level jobs," he added.
Puzder, who led several restaurant chains ー including Carl's Jr. and Hardee's from 2000 to 2017 ー anticipates a miscalculated wage hike will result in increased dependence on automation in the restaurant industry, as well as in other businesses that rely on easily-automated tasks. While he said he supports paying workers a livable wage, Puzder believes $15 an hour is simply too high.
"That's going to encourage restaurant owners to go to automation," he said. "The threat of automation to the human workforce is very real, and let's not push it any faster than we need to."
McDonald's ($MCD), Chipotle ($CMG), and Starbucks ($SBUX) are among the chains dealing with higher labor costs; several are already investing in automation and self-ordering technology. In June, McDonald's said it plans to add self-service kiosk technology to 1,000 stores every quarter for the next two years or so. In the U.S., up to 73 million jobs could be eliminated by 2030 through A.I. and automation, according to a McKinsey study.
For full interview [click here](https://cheddar.com/videos/higher-labor-costs-a-top-risk-for-restaurants-in-2019-says-andy-puzder).
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