Blair Salisbury is moving ahead with franchising Daddy’s Chicken Shack locations in Southern California.
But the Pasadena restaurant owner doesn’t think it will be easy to get franchisees on board, and he places the blame on a bill passed by California lawmakers in August and signed into law by Gov. Gavin Newsom last month that, among other things, creates a so-called food council with power to set wages and make new regulations for the fast-food industry.
Salisbury, who earlier told the Business Journal he may not proceed with Daddy’s because of the new law, said he decided to go ahead with finding franchisees – he has five years to procure 19 of them – after the bill was amended to cap the minimum wage at $22 an hour, with cost-of-living increases allowed in the future.
“I think it will be much more of a challenge for me to find people who will want to operate (a Daddy’s franchise),” Salisbury said. “Unless my brand does very good in volume sales, then they might say, ‘Well it’s worth the entire labor (cost).’”
The new law, Assembly Bill 257, also known as the FAST Act, creates, among other things, a 10-member council that would set new wage, scheduling and operating rules for fast food restaurants.
The council will sunset on Jan. 1, 2029, and until that time can set minimum standards related to the health, safety, and welfare of fast-food workers. The council’s orders will apply to restaurants in the state that are part of a set of fast-food restaurants consisting of...
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