IMPACTS OF THE PROPOSED SAN JOSE FAST FOOD ORDINANCE
EXECUTIVE SUMMARY
Save Local Restaurants commissioned Oxford Economics to calculate high-level cost estimates relating to a proposed city ordinance that would impose new requirements on fast food restaurants in San Jose. Our analysis identified the total combined cost impacts of the four requirements for all San Jose food restaurants as $163 million to $239 million. This equates to a 42% to 61% increase in labor costs.
Component | Per unit cost | Increase in cost across all restaurants in San Jose | As a percentage of total current labor costs for hourly workers |
---|---|---|---|
Impact of new training requirements | $6,897 per restaurant | $5.4 million | 1.4% |
Impact of on-site security requirements | $158,183 to $255,930 per restaurant | $123.7 million to $200.1 million | 31.6% to 51.2% |
Impact of paid leave requirements | $966 per employee | $13.0 million | 3.3% |
Impact of predictable scheduling requirements | $26,117 per restaurant | $20.4 million | 5.2% |
Total Impacts | $207,869 to $305,616 per restaurant | $163 million to $239 million | Around 42% to 61% increase |