Business & Tech
Citing CA Labor Costs, Dave's Hot Chicken Turned To Automation: Report
This is what the chain reportedly did to pay its remaining workers $2 more per hour as CA's minimum wage rose.
CALIFORNIA — Facing rising minimum wages, Dave's Hot Chicken has reportedly replaced its human dish washers with automated dishwashing equipment, the Wall Street Journal reported.
Last year, California's minimum wage for fast-food workers rose to $20 an hour. By automating dishwashing, the chain said it was able to pay their remaining workers an additional $2 an hour, the newspaper reported.
Just before the April 2024 minimum-wage increase, Dave's executives held emergency meetings with franchisees to figure out how to cut costs and boost sales, WSJ reported.
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The company said it convinced 80% of franchisees to agree to switching out human dishwashers for automatic ones. About one-fourth of its 270 restaurants are in the Golden State.
The Nashville chicken sandwich chain, which began as a pop-up in Los Angeles in 2017, generates $1 billion in annual sales, the paper reported.
Find out what's happening in Across Californiafor free with the latest updates from Patch.
Read more from the Wall Street Journal: How Dave’s Hot Chicken Beat Rising Labor Costs
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