Restaurant industry eyes have been fixed on the impact of the minimum wage law for fast-food workers in California. Data is bringing a fuller story more into focus.

While QSRs did see a spike in closures after the law was signed – 71 percent in California compared to 25 percent nationally – that has leveled off where closures are at the same pace as nationally/comparable states and more related to economic factors than the law, according to “Assessing the Impact of California’s QSR Minimum Wage Law: What the Data Reveals," an in-depth analysis from global location intelligence provide dataplor.

"We were interested in this topic because we’d heard anecdotal evidence about the new minimum wage law leading to increases in restaurant closures," Geoff Michener, CEO and founder of dataplor, told Modern Restaurant Management (MRM) magazine. "With our ability to drill down into location data for different types of businesses across the globe, we wanted to see how the data compared to the public perceptions of closures. Our findings after studying restaurant closure data in California and comparable states speak to the importance of considering national macroeconomic factors—and not just local-level policy impacts—when making business plans."

When the dataplor team initially looked at the dining points of Interest (POIs) closure rates for California, they saw a strong spike in April 2024 (up 80 percent between March and April, compared to the year prior when they were down by 80...

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