California's FAST Act, implemented in April 2024, raised the minimum wage for fast food workers to $20 per hour, significantly impacting both workers and business owners. While workers like Edgar Recinos and Selvin Martinez have benefited from increased wages, they face reduced hours, resulting in financial challenges similar to those before the wage hike. The employment rate in California's fast food sector has seen a 3.1% decline, sparking debate among economists about the causes, with some attributing it to the higher wages, while others cite external factors like population changes. Business owners, such as Kerri Harper-Howie, have experienced declining sales and have had to cut labor hours and increase menu prices to manage costs, questioning the sustainability of operating in California. Despite financial strains, some franchise owners remain hopeful, relying on their brand's resilience and past successes to navigate the current economic challenges.

The FAST Act increased the starting wage for fast food workers in California to $20 per hour, surpassing the state's general minimum wage and creating a significant change in the fast food industry landscape.

Despite the wage increase, many workers report reduced hours, leading to financial instability similar to their pre-wage hike conditions. This reduction is partly due to restaurant owners trimming hours and implementing hiring freezes to offset the increased labor costs.

The employment rate in California's limited-service restaurants fell by 3.1% as of March, with over 22,600 jobs lost, a trend seen as more severe than the national average and attributed by some economists to the wage increase.

Economists are split on whether the FAST Act is the direct cause of job losses, with some pointing to the state's slower economic growth and population decrease as influencing factors, while others see the wage increase as a primary reason.

Business owners like Kerri Harper-Howie have faced substantial financial challenges, including declining sales and the need to dip into savings. To curb costs, they have streamlined operations, reduced labor hours, and raised menu prices, affecting customer purchasing power.

The FAST Act has led to higher menu prices in California, with a reported 1.9% increase relative to other states, impacting sales and the purchasing habits of customers earning less than the new fast food wage.

Despite the economic difficulties, some business owners remain hopeful about the future, relying on their long-standing experience and brand resilience to overcome the current challenges posed by the new wage policy.