California’s Fast-Food Council is considering another increase to the minimum wage for fast food workers, sparking a heated debate between labor advocates and business owners. While higher salaries aim to address the rising cost of living, many restaurant owners argue that another increase could lead to job losses, reduced hours, and business closures.

At a recent council meeting, members pointed out that California’s living wage is estimated to be over $27 per hour, meaning the current $20 minimum wage for fast food workers still falls short. Advocates argue that another wage hike is necessary to help employees make ends meet in a state where housing, food, and everyday expenses continue to soar.

Many restaurant owners, however, say they are already struggling to survive. Javier Gomez, who owns Capriotti’s Sandwich Shop in Fresno, says an additional wage increase would force him to cut employee hours, reduce menu options, raise prices, and possibly shorten operating hours.

Another business owner at the meeting noted that entry-level jobs weren’t meant to provide a full living wage and that many restaurants can’t afford to offer 40-hour workweeks. Some have already had to lay off workers or close locations after the last wage increase.

The debate over minimum wage increases isn’t new, and studies have reached different conclusions on their impact. Some research suggests higher wages improve worker productivity and boost local economies, while others show job losses and increased automation in response to rising labor costs.

What’s clear is that California’s restaurant industry is at a crossroads. If another wage hike happens, will it help workers achieve a better quality of life or push more businesses to shut their doors? The answer may shape the future of fast-food employment in the state.