🍕Pizza Hut Fired 1,200 People… ❌🥺

According to CBS News, Pizza Hut is set to lay off 1,200 workers in California.

Why? There’s a new minimum wage law that requires employers to pay their staff more money.

Chipotle and McDonald’s, also in response to the new law, are raising menu prices in California.

Understand: THIS is what really happens when the minimum wage gets raised.

What people think happens: All employees keep their jobs, simply getting to take home more money while the business keeps less bottom-line money. This is what your favorite politician / socialist wants you to believe happens.

This does NOT happen. As a matter of fact, it NEVER happens.

Let me help you understand why.

Businesses exist and sustain because they understand their economics. Your business will not last long with bad economics or poor financial management. Businesses, just like you and me, want and expect to do better financially as time goes on. Publicly held businesses, like Pizza Hut (owned by YUM! Brands) answer to shareholders. It’s not just a personal choice for one person. When’s the last time you volunteered for a pay cut?

Exactly.

What does this have to do with the minimum wage? Everything.

To keep the math simple, if you have staff who are worth $10 per hour — meaning, one hour of their work is producing $10 worth of value for you — then you pay them what they are…