CKE Restaurants’ CEO: Minimum wage hikes closing locations

Yahoo! Finance

“I’m not saying the government should disappear or I hate the government,” he said. “We need a government. We have a good government, but the government’s gotten overzealous with respect to what it thinks it should do…The government needs to get out of the way.”

CKE Restaurants’ roots began in California roughly seven decades ago, but you won’t see the parent company of Carl’s Jr. and Hardee’s expanding there much anymore.

What’s causing what company CEO Andy Puzder describes as “very little growth” in the state?

In part it’s because “the minimum wage is so high so it’s harder to come up with profitable business models,” Puzder said in an interview. The state’s minimum wage is set to rise to $9 in July, making it among the nation’s highest, and $10 by January 2016.

In cities in other states where the minimum wage has gone up considerably, Puzder said “franchisees are closing locations” after riding out lease expirations.

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4 Comments on CKE Restaurants’ CEO: Minimum wage hikes closing locations

  1. He thinks his frustration is with government. Statism isn’t government. It’s the opposite of government. Statism is rule. Things like wage laws are rule that deny us governance.

  2. I think the minimum wage should be $25 per hour so I can feel better about no jobs being available at a higher rate of non-existent pay.

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