SAN DIEGO (KGTV) — Ryan Feghali has six businesses in California, but the state's minimum wage increase for fast food workers has him considering other locations.
“If it makes more sense for us to go to other states to grow the business, we are more than willing to do so,” Feghali said.
A new California law requires a $20 minimum wage specifically for fast food workers employed by certain chains. Feghali says his upcoming Point Loma cafe called Cocoplaya is exempt from this increase, but that makes it harder to compete with nearby business.
“You have In-N-Out Starbucks, Del Taco, Burger King, all a stones throw away, can we find employees willing to take $16.85?” Feghali said.
On the flip side, Feghali also owns five Little Caesars franchises that are not exempt from the wage increase.
“We’re going to have a whole pool of new applicants. People that have never considered working in fast food jobs are going to start applying to our jobs.”
In those locations, Feghali says the cost will trickle down to customers.
“We did have to raise prices, just to stay afloat in this market.”
Feghali is waiting to see the long-term economic impact of the wage increase.
“I want to keep growing in San Diego. I hope it’s possible I hope things don’t get too out of control.”
He says that will determine whether Cocoplaya expands in San Diego, or elsewhere.
