Governor Gavin Newsom has announced that California’s controversial minimum wage increase has resulted in the addition of approximately 11,000 jobs to the state’s economy. However, celebrity chef Andrew Gruel has criticized the governor’s statements, referring to them as “self-congratulatory propaganda” based on questionable data.
During an appearance on “Varney & Co.,” Gruel stated, “It’s a little early to celebrate this as a victory. This is typical Gavin Newsom self-congratulatory propaganda based on questionable data.” Gruel, who owns five restaurants including one in California, suggested that the job numbers touted by Newsom are not seasonally adjusted and span a period that does not fully reflect the impact of the wage increase.
Gruel further pointed out that even if the data were accurate, the minimum wage hike would still lead to “unintended consequences.” He explained that multi-unit restaurants responded to the wage increase by reducing employees’ hours to avoid paying overtime, causing workers to seek additional jobs. Consequently, instead of one person working 55 or 60 hours, businesses now employ two people working 30 to 32 hours each, making it a full-time job.
The minimum wage increase, which raised the state’s minimum wage to $20 an hour in April, has, according to Gruel, had adverse effects on the food industry. Gruel noted that his restaurants have been inundated with individuals looking for second jobs since the policy took effect.
Gruel also contended that while fast food jobs might have increased by several thousand positions, full-service restaurants have been closing down. He argued that the $20 an hour mandate, although targeted at the fast food sector with 20 or more locations, impacts the entire restaurant industry, particularly full-service establishments.
In conclusion, Gruel emphasized that the policy is artificially inflating the job numbers without considering the broader consequences on the restaurant industry, and the full effects of the data have not yet been observed.
