business planner salary

Business Planner Salary

Average business planner base salary in the united states.

Average Base Salary

$115,354 Per Year

Salary Range: $50,636 to $231,654

75%  

90%  

How Much Does a Business Planner Make Per Year in the United States?

The national average salary for a  Business Planner is $115,354 per year in the United States. It can vary depending on the employer and the skills required for that position, but generally, it will be about $115,354 or more annually for a gross salary . Taxes impact salaries, so to get the net salary we’ve crunched the data and gotten the tax information on what the take-home pay would be after the effective income tax rates.  

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Knowledge and Expertise

Soft skills, what is the salary range of a business planner.

Business Planner salaries vary depending on the company you work for, your experience level, industry, education, and years of experience. The average annual salary is around $115,354 but a Business Planner can earn a base salary anywhere from $50,636 to $231,654 per year with some companies paying more than others.

Pay ranges on average for a Business Planner job title only vary a good amount, which may mean that there are many opportunities to earn more income in the future regardless of the employers or your location, industry, and experience.

A salary range that varies also means there is ability to move up within the company, as there may be as many opportunities for advancement or to change your job title. This opportunity for  advancement can help with can increase their job satisfaction and motivation.

What are the Highest Salaries for a Business Planner?

The highest Business Planner salaries in the top 10% earn more than $231,654 per year . The salary range for the top 75% – 90% is between and $204,762 and $231,654 annually.

This salary data and salary estimates come from our Average Pay’s salary database of carefully collected and detailed information about pay across many industries and categories, along with different types of labor data.

What are the Lowest Salaries for a Business Planner?

The lowest Business Planner salaries are in the bottom 10% of earners who make less than $50,636 per year . The salary range for the lowest 10% – 25% is between $50,636 and $55,934 annually.      

What is a Good Salary for a Business Planner?

If we only look at the data for Business Planner salaries and we don’t compare it to any other jobs,  a good salary for a Business Planner job would be over $115,354 per year . This is the average salary for this position in the United States.  An excellent pay for a Business Planner would be anything over the top 75%, which is $204,762 annually .

How Can I Increase My Salary as a Business Planner?

There are a few ways you can increase your average salary for a profession as a Business Planner. One way is to get promoted to a higher level and take on more duties within your employer. Another way is to gain more experience and skills in your career. You can also try negotiating higher compensation next performance review, when you are up for renewal or starting a new contract with a business.

Finally, you can look for a new job at a different employer that pays more. One thing not to overlook is companies often give their employees incentives and benefits outside of salaries. The total compensation, like healthcare, paid vacation days, 401k matches, bonuses, overtime, professional development, a career path in the company, and other benefits, need to be considered, which can add up to a lot more money than just a salary increase.

What are the Top Paying Industries for a Business Planner?

The top paying industries for a Business Planner job vary depending on the position’s specific responsibilities, employers, and qualifications. However, some common reported high-paying industries for include the following:

• Professional, Scientific, and Technical Services
• Educational Services
• Federal Government
• Management of Companies and Enterprises
• Finance and Insurance

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Business Practices Officer

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Does a Business Planner Have a Good Quality of Life?

Based on an average 2-bedroom apartment rental price, a Business Planner would pay 15.63% of their monthly take-home pay towards rent. That’s $1,310 per month or $15,720 yearly for a two-bedroom apartment.

The rent is less than 30% of the monthly take-home pay for an Business Planner, which can helps lessen a financial burden and impact their quality of life.

This is because a high rent-to-income ratio would leave less money each month for other expenses, such as food, transportation, recreation, and activities. It can lead to financial stress, impacting overall job satisfaction and motivation.

Considering the cost of living in a city when considering whether to accept a job offer is essential. If the cost of living is too high, it might not be worth it, even if the salary is good.

Does a Business Planner make good money?

 In general, a Business Planner can make a good salary. The national average salary is $52,632 annually which is less than the average Business Planner salary, meaning most earn a livable wage. According to data and labor statistics from the Bureau of Labor Statistics , the average Business Planner pay is above the median salary.

However, salaries can vary depending on the company you work for, what you are responsible for, education, college degree, work experience, job market, and your experience level. The highest-paid can earn upwards of 231,654 per year, while the lowest-paid income is less than 50,636 annually.

If you want to maximize your earnings as a Business Planner, take on more responsibility, and gain more experience in related skills. Also, build interpersonal skills and strong leadership skills, get a certification in your field and then negotiate for a higher salary next performance review, when you are up for renewal or starting a new contract with a business.

The best thing you can do is develop yourself and gain knowledge. Many courses, additional training, and professional development opportunities in your area can help increase your skills and development in your job or related field.

You can also get your resume reviewed and look for a new employer that will hire and pay more or look for a career change that is hiring and may interest you more.

Salaries are also relative to the cost of living in different parts of the country. For example, the compensation for a Business Planner will need to be higher if it is in or closer to larger cities like New York City or some states like California. The increase in pay in these areas is because of the higher than average cost of living and more interested applicants for employment versus someone living in a small town. With the cost of housing increasing  and medical care premium costs, it is essential to ensure you are getting paid what you are worth.

How do I know I’m being paid fairly as a Business Planner?

The easiest way is to see how close your current salary is to the average pay for your position in your state and city. If your income is below the estimated average wage in your area, you can try to negotiate for a raise.

You can use our research and tools to discover the average salary for a Business Planner in your city or region to see if you are being compensated fairly. You may also compare your income to similar jobs and careers to determine whether you are underpaid or overpaid. Lastly, you can set up job alerts to see how the job market trends.

A few other ways you can research whether you’re being paid fairly as a Business Planner is to do a job search to look at job postings for similar positions and see the estimate for the listed salary range. You can also talk to people in your network who have similar jobs and ask them what they earn. Finally, you can try negotiating a higher pay when you are up for renewal, having a performance evaluation, or starting a new contract.

What Factors Determine the Salary of a Business Planner?

The money a Business Planner can make each year greatly depends on a few components that determine an average base salary.

The company you work for is one of the main factors that affect how much a Business Planner earns.

The compensation will also depend on the location, as some states and cities have a higher cost of living than others. Other factors that affect compensation are the number of hours worked, company size, job type, level of experience in your career, and location.

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• United States

Business Planner

$78,950 (usd)/yr, $37.96 (usd) /hr, $13,587 (usd) /yr.

The average business planner gross salary in United States is $78,950 or an equivalent hourly rate of $38. In addition, they earn an average bonus of $13,587. Salary estimates based on salary survey data collected directly from employers and anonymous employees in United States. An entry level business planner (1-3 years of experience) earns an average salary of $44,978. On the other end, a senior level business planner (8+ years of experience) earns an average salary of $100,156.

Data powered by ERI's Salary Expert Database .

This page is a promotion for SalaryExpert’s Assessor Platform and is not intended for professional use.

Professionals should subscribe to SalaryExpert’s Assessor Platform .

ERI’s compensation data are based on salary surveys conducted and researched by ERI. Cost of labor data in the Assessor Series are based on actual housing sales data from commercially available sources, plus rental rates, gasoline prices, consumables, medical care premium costs, property taxes, effective income tax rates, etc.

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$88,682 (USD)

Based on our compensation data, the estimated salary potential for Business Planner will increase 12 % over 5 years.

This chart displays the highest level of education for: Business Planner , the majority at 62% with masters.

Typical Field of Study: Selling Skills and Sales Operations

the United States

Cost of living is calculated based on accumulating the cost of food, transportation, health services, rent, utilities, taxes, and miscellaneous.

The United States of America (USA or U.S.A.), commonly known as the United States (US or U.S.) or America, is a country primarily located in North America, between Canada and Mexico. It is a federation of 50 states, a federal capital district (Washington, D.C.), and 326 Indian reservations. Outside the union of states, it asserts sovereignty over five major unincorporated island territories and various uninhabited islands. The country has the world's third-largest land area, second-largest maritime...

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What is a business planner and how to become one

A business planner is a professional who creates and implements business plans and strategies. They conduct research, analyze data, and identify opportunities to improve operations and increase profitability. They also manage the supply chain, develop financial models, and coordinate with other departments to ensure smooth operations. They work closely with business partners to gather requirements and identify cost-saving opportunities through process improvement. They are responsible for developing and implementing strategies to optimize operations and prevent significant losses when problems arise. They use a variety of tools and techniques to manage their tasks effectively.

How long does it takes to become a business planner?

It takes approximately 6 to 7 years to become a business planner.

Year 1-4: Bachelor's Degree Most business planners start with a bachelor's degree, which typically takes four years to complete.

Year 5-6: Master's Degree Following that, a master's degree is common among business planners, adding an additional two years.

Year 7: Experience Finally, gaining 1-2 years of relevant experience is typical in the field.

• Salary $119,250
• Growth Rate 4%
• Jobs Number 60,241
• Most Common Skill Data Analysis
• Most Common Degree Bachelor's degree
• Best State Alaska

Business Planner career paths

Business planners have many career paths available to them, including manager, purchasing manager, and supply chain manager. They can also move into roles such as senior manager-supply chain manager, senior finance analyst, and project manager. Some business planners also go on to become directors of supply chain management, planning managers, and planning directors. They can even become strategists, senior strategists, program managers, and portfolio managers.

Key steps to become a business planner

Explore business planner education requirements, most common business planner degrees.

Bachelor's

Master's

Start to develop specific business planner skills

Business planners are responsible for purchasing, planning, and expediting. They develop strategies to expand revenue and profitability and implement earned value management processes across the organization. They coordinate with QA/QC to ensure production documentation and certification are completed according to ISO 9001 standards. They prepare monthly six-month bom forecasts and administer demographic analysis, market research, and financial analysis for business development. They also generate world-wide demand forecasts and conduct competitive analysis. They create, maintain, and update macro-enabled excel-based financial models to ensure efficiency in the annual planning process. They aid in developing and implementing analysis for the effectiveness of ads to maximize ROI and reduce COGS. They manage supply-planning processes of inventory control, demand planning, and material planning for multiple production lines and locations. They create class-level unit, revenue, and gross margin forecasts and consult ad agencies by preparing market analysis presentations and pitching innovative market concepts.

Research business planner duties and responsibilities

Business planners are responsible for managing purchasing, planning, and expediting. They develop strategies to expand revenue and profitability with key customers, offer daily support to fellow interns and HR professionals, implement earned value management processes, coordinate RMA, stock rotation, and manage EOL product, and direct the initial stages of product development. They also coordinate with QA/QC, administer demographic analysis, market research, and financial analysis, estimate future gross profit, generate world-wide demand forecasts, conduct competitive analysis, create and maintain financial models, and aid in developing and implementing analysis for ad effectiveness. They also manage the supply-planning process, consult ad agencies, prepare market analysis presentations, pitch innovative market concepts, and ensure internal control compliance and data integrity.

• Manage cost-centers and leverage unique Indian production and post- production capabilities and position the company as a prefer production partner.
• Coordinate logistics with multiple carrier partners and multiple distribution centers.
• Coordinate raw material logistics, serum manufacturing, gamma irradiation processing and other serum processes with third party contract manufacturers.
• Lead monthly and quarterly EAC forecasting and consolidate forecasts in support of corporate financial reporting.

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Apply for business planner jobs

Now it's time to start searching for a business planner job. Consider the tips below for a successful job search:

• Browse job boards for relevant postings
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Average business planner salary

The average Business Planner salary in the United States is $119,250 per year or $57 per hour. Business planner salaries range between $85,000 and $166,000 per year.

What Am I Worth?

How do business planners rate their job?

Updated March 14, 2024

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The Zippia Research Team has spent countless hours reviewing resumes, job postings, and government data to determine what goes into getting a job in each phase of life. Professional writers and data scientists comprise the Zippia Research Team.

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What Does a Business Planning Manager Do?

Find out what a Business Planning Manager does, how to get this job, salary information, and what it takes to succeed as a Business Planning Manager.

The Business Planning Manager plays a strategic role in steering the company’s direction through comprehensive market analysis, forecasting, and resource allocation. This position involves synthesizing complex data into actionable strategies that align with the company’s long-term goals and financial objectives. By closely monitoring industry trends and evaluating business performance, the Business Planning Manager ensures that the organization remains agile and responsive to changing market demands. Collaboration with various departments to develop and implement plans that enhance operational efficiency and profitability is also a significant aspect of the role. Through a balanced approach to risk management and opportunity identification, the Business Planning Manager supports the company in maintaining a competitive edge and achieving sustainable growth.

Business Planning Manager Job Duties

• Develop and implement comprehensive business plans to facilitate achievement by planning cost-effective operations and market development activities.
• Analyze and forecast financial, economic, and other data to provide accurate and timely information for strategic and operational decisions.
• Coordinate cross-functional teams to develop business strategies and objectives, ensuring alignment with corporate goals.
• Evaluate competitive market strategies through analysis of related product, market, or share trends.
• Identify and drive initiatives to improve operational efficiency, including process improvements, cost reduction, and systems enhancements.
• Facilitate communication and collaboration among departments to ensure that business planning and strategies are aligned with company-wide goals.
• Oversee the preparation of operational and risk reports for management analysis.
• Spearhead the development of new business opportunities, including expansion, mergers, acquisitions, and partnerships.

Business Planning Manager Salary & Outlook

Factors affecting a Business Planning Manager’s salary include industry sector, company size, years of experience, and specific skills in strategic planning, financial modeling, and market analysis. Performance outcomes and the ability to influence business growth also significantly impact compensation.

• Median Annual Salary: $110,250 ($53/hour)
• Top 10% Annual Salary: $152,000 ($73.08/hour)

The employment of business planning managers is expected to grow faster than average over the next decade.

This growth is driven by the increasing complexity of global markets, the need for strategic planning in competitive environments, and the demand for innovation in product and service development. Business Planning Managers are pivotal in navigating these challenges, making their role more critical than ever.

Business Planning Manager Job Requirements

Education: A Business Planning Manager typically holds a Bachelor’s Degree in Business Administration, Finance, or a related field. Coursework often includes strategic management, financial analysis, market research, and organizational behavior. Advanced degrees like an MBA can enhance prospects, focusing on leadership, advanced strategic planning, and international business. Specialized courses in data analysis, project management, and economics are also beneficial, equipping candidates with the necessary skills to excel in developing and implementing business strategies.

Experience: Business Planning Managers typically come from diverse experience backgrounds, with a significant portion having substantial experience in strategic planning, financial analysis, and project management. Many have progressed through roles that required increasing responsibility in business strategy and operations. On-the-job training is common, often through mentorship or rotational programs within a company, allowing for hands-on experience in different business units. Training programs focusing on leadership, data analysis, and market research are also valuable, equipping candidates with the skills to lead cross-functional teams and drive business growth. Successful candidates often demonstrate a blend of practical experience in business planning and strategic initiatives, coupled with formal training programs that enhance their analytical and leadership capabilities.

Certifications & Licenses: Certifications and licenses are not typically required for the role of Business Planning Manager.

Business Planning Manager Skills

Strategic Forecasting: Leveraging data-driven insights, a Business Planning Manager predicts market trends to develop strategies that align with organizational goals. This involves synthesizing diverse information sources to anticipate challenges and opportunities, keeping the company agile and competitive.

Market Analysis: Through the meticulous examination of trends, customer behaviors, and competitor activities, Business Planning Managers can forecast market demands and pinpoint opportunities or threats. This skill hinges on thorough data collection and interpretation to inform strategic decisions.

Financial Modeling: Business Planning Managers create detailed, predictive models of a company’s financial future to forecast revenue, assess risk, and efficiently allocate resources. This requires a solid grasp of accounting principles, spreadsheet software proficiency, and the ability to interpret market trends for data-driven strategic planning.

Risk Management: By identifying potential threats and developing strategies to mitigate them, Business Planning Managers protect the organization’s interests and ensure its long-term sustainability. Analyzing market trends, financial forecasts, and operational vulnerabilities is crucial for preemptively addressing challenges.

Stakeholder Engagement: Building and maintaining strong relationships with investors, partners, and internal teams is critical for aligning business strategies and meeting project milestones. This skill ensures smoother project execution and fosters an environment of trust and mutual respect.

Performance Optimization: Data-driven insights and lean methodologies are used to streamline operations, reduce waste, and boost business efficiency. Analyzing performance metrics, identifying bottlenecks, and implementing strategic interventions are key for sustained organizational improvement.

Business Planning Manager Work Environment

A Business Planning Manager typically operates within a structured office environment, where the workspace is designed to foster both concentration and collaboration. The setup usually includes personal computers, advanced planning software, and access to data analytics tools, essential for strategic decision-making and forecasting.

Work hours might extend beyond the traditional 9-to-5, especially during critical planning phases, though many organizations offer flexibility to accommodate work-life balance. The dress code tends to align with corporate standards, leaning towards business casual or formal, depending on the company’s culture and external meeting requirements.

The role demands frequent interaction with team members, stakeholders, and departments, necessitating strong communication channels and a cooperative atmosphere. Travel may be required for industry events or company-wide meetings, adding variety to the routine.

Professional development opportunities are often available, encouraging continuous learning and advancement in strategic planning methodologies and leadership skills. This role thrives in a setting that values analytical thinking, adaptability, and collaborative problem-solving.

Advancement Prospects

A Business Planning Manager can ascend to higher strategic roles within an organization, such as Director of Strategy or Chief Operations Officer (COO), by demonstrating exceptional analytical, leadership, and decision-making skills. Success in this career path hinges on the ability to drive business growth and efficiency through innovative planning and execution.

To achieve these advancements, a Business Planning Manager should focus on spearheading high-impact projects and initiatives that align with the company’s long-term goals. Gaining experience in cross-functional team leadership and developing a deep understanding of the industry’s competitive landscape are crucial.

Building a track record of successful business plans and strategies that have significantly contributed to the company’s profitability and market position will set a solid foundation for moving into top executive roles. Engaging in high-level decision-making processes and demonstrating a keen insight into market trends and business opportunities are essential steps toward career progression in this field.

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California fast-food wages increasing to $20/hour next month

PASADENA, Calif. (KABC) -- Starting Monday, most fast-food workers in California are getting a big pay raise.

The minimum wage goes up to $20 an hour, up from the $16 an hour for most other workers.

The increase is tied to legislation passed last year and signed by Gov. Gavin Newsom.

There are already reports of some businesses cutting their workforces or raising prices in anticipation of the change.

"The consumer is going to end up paying for it," said Shahan Derian, owner of Lee's Hoagie House in Pasadena. "That's the saddest part."

Lee's Hoagie House isn't covered under the new law but Derian says he'll have to raise wages anyway or his workers will leave for the new higher-paying jobs.

Pizza Hut has already announced plans to lay off about 1,200 workers in California because of the increase.

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• SOUTHERN CALIFORNIA
• GAVIN NEWSOM
• FAST FOOD RESTAURANT
• MINIMUM WAGE

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Higher prices on the menu as fast-food chains brace for California’s big minimum wage jump

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Chipotle, McDonald’s, Starbucks, Jack in the Box and Shake Shack are planning to raise menu prices. Fast-food franchisees are laying off employees or cutting their hours. Smaller independent business owners, meanwhile, worry their workers will bolt unless they also increase wages.

With California’s mandatory minimum wage for fast-food workers set to jump to $20 an hour on Monday, major restaurant chains are scrutinizing every aspect of their businesses to find ways to offset the extra money they will soon be spending on labor. In many cases, customers will end up eating the cost.

“It’s going to be a pretty significant increase to our labor,” Jack Hartung, Chipotle’s chief financial officer, said of the new law during the company’s third-quarter earnings call. He estimated that the burrito chain would boost prices by “a mid-to-high single-digit” percentage as a result. “We are definitely going to pass this on.”

The pay increase established by Assembly Bill 1228 applies to California fast-food workers employed by any chain with more than 60 locations nationwide, and covers corporate-owned and franchised locations. The state has more than 540,000 fast-food workers, about 195,000 of them in Los Angeles and Orange counties, according to the latest May 2022 figures from the U.S. Bureau of Labor Statistics.

The current minimum wage in California, regardless of industry, is $16 an hour, meaning many cashiers, line and prep cooks, counter attendants and baristas will see as much as a 25% raise overnight.

Jaylene Loubet, 25, has worked as a cashier at a McDonald’s in Cypress Park since 2017, initially making $16.25 an hour.

Since then her hourly pay has only risen to $17.50, she said, the same amount that her mother, a longtime cook at the same location, makes. The two live with Loubet’s father in a one-bedroom apartment in Glassell Park, unable to afford a bigger place.

“When you’re in a tough financial situation, even though it’s not enough to be comfortable, it does help,” Loubet said of her upcoming raise. That said, “food is going up as well, rent is going up as well, bills are going up as well. Even with the $20, money is still going to be tight.”

With the federal minimum wage stuck at $7.25 an hour since 2009, many states and cities have taken it upon themselves to lift the pay floor. But the California bump for fast-food workers is unusual for targeting a specific business sector and adjusting the minimum rate by so much at once.

“This is such a dramatic increase on a state minimum wage that was already quite high,” said Harry Holzer, a Georgetown University public policy professor and the Labor Department’s chief economist in the Clinton administration. “The workers who keep their jobs will be happy — they will be better off.”

Less so for consumers of fast food, who will undoubtedly pay more for their burgers, tacos and fried chicken. David Neumark, a minimum-wage expert at UC Irvine, estimated that overall prices will rise between 2.5% and 3.75%.

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That’s relatively small, but comes on top of the steep inflation that customers have faced at fast-food establishments in the last few years. Nationally, prices at limited-service restaurants are up almost 30% from February 2020 levels, according to the Bureau of Labor Statistics. And more fast-food price increases will hit lower-income households harder because they spend a larger share of their income on food and consume disproportionately more fast food.

A spokesperson for McDonald’s said the company was exploring several ways to counterbalance the increase in labor costs and has yet to decide how much it will raise the price of menu items at its corporate-owned stores. At franchise locations, which account for 95% of the brand’s U.S. portfolio, McDonald’s provides “informed pricing recommendations” but final pricing is at the discretion of franchisees, the spokesperson said.

Starbucks said it had elected to raise the pay floor for all levels of employees in California to retain workers and to combat wage compression — when there is little difference in pay between experienced workers and entry-level ones. It plans to offset the increased labor expenditure “through a variety of levers — including near-term pricing as well as other efficiencies,” a spokesperson said.

The economic effects of such a sharp and sudden pay hike are unclear. In general, raising the minimum wage helps large swaths of low-wage workers, bringing some out of poverty , but others will lose out as employers scale back through layoffs, shorter shifts, reduced hiring and other cost-saving measures.

“Where they can automate, they will automate more,” Holzer said. “Maybe some franchises will move out of state.”

The COVID-19 pandemic has already spurred more fast-food operators to install self-service ordering kiosks, and the industry is looking at other ways to depend less on human labor, including the use of robots.

Proponents of the new law say fast-food corporations can afford to pay up. The industry has flourished since the pandemic began as customers sought cheap and quick meals, leading to billions in sales and record profits.

But the brands say they, too, have had to contend with high inflation for ingredients and supplies and have already raised wages for their workers without government prompting. Between 2019 and 2022, the average weekly wage for employees at limited-service restaurants jumped 26% to $501.

Franchise owners in particular are anxious about their ability to shoulder the extra costs; labor accounts for roughly a third of a typical fast-food operator’s expenses.

Shortly after Gov. Gavin Newsom signed the pay increase legislation into law in September, hundreds of Pizza Hut franchises in California moved to lay off more than 1,100 delivery drivers , federal and state filings show.

The affected Pizza Huts are run by franchise operators and located from Orange to Stanislaus counties, according to the California Employment Development Department. The layoffs were expected to go into effect in February.

Fast food is tightly woven into the history, cultural life and economic growth of Southern California.

Brothers Richard and Maurice McDonald opened a drive-in restaurant in Pasadena in 1937, a few years before starting the first McDonald’s in San Bernardino. Another pioneer, Carl Karcher , bought a hot dog cart in L.A. in 1941 and went on to found Carl’s Jr.

Taco Bell, In-N-Out Burger and Jack in the Box also come from the region.

Collectively, their explosive growth across the U.S. and sustained success over the decades symbolized the busy American life, the rise of the baby boomer generation and California’s love affair with cars.

Yet the industry has come to be seen as the stereotypical low-wage sector where millions of workers make minimum wage and toil under tough and sometimes unsafe conditions, making it a prime subject of the Fight for $15 movement and such books as “Fast Food Nation.”

The passage of AB 1228 represented a significant win for fast-food workers who for years have organized for better wages and protections. Along with the higher minimum, the new law established a Fast Food Council — composed of business and labor representatives — that has the authority to set future pay increases (at a maximum of 3.5% a year) and develop standards on working conditions and employee safety and training.

‘This is such a dramatic increase on a state minimum wage that was already quite high.’

— Harry Holzer, a Georgetown University public policy professor

Employees at fast-food or limited-service restaurants nationwide work about 25 hours a week on average. Many face unpredictable hours with some called in on short notice or required to work split shifts — two separate periods in one day.

Angelica Hernandez, who works as a cook trainer at a McDonald’s in Monterey Park and was appointed to the Fast Food Council, called the $20 minimum wage “good progress.” But she worries that the restaurant will respond by slashing employee hours, which she said it has done in the past after increasing wages.

“They’re utilizing one person to do the job of two, three or four people,” she said.

Earlier this year, workers formed the California Fast Food Workers Union , which is part of the Service Employees International Union, to bargain with the council. The union has said it plans to push for annual wage increases, predictable schedules and just-cause protections.

Workers can expect to maintain some leverage in future negotiations as growth slows. There is still tight competition for fast-food workers, though not as stiff as at the height of the Great Resignation in 2021-22, when many people quit their jobs and rethought their work and life priorities after COVID-19.

A guaranteed $20 an hour could lure people on the sidelines into the fast-food job market, including teenagers who once dominated the fast-food workforce, economists said.

Over the years, the average age of fast-food workers in the U.S. has been rising gradually as many teens have instead sought enrichment jobs to prepare for college. The median age for fast-food workers is now 22.1, according to the Bureau of Labor Statistics.

Zev Brown, a senior at Eagle Rock High School, has worked government jobs and on political campaigns since his sophomore year, earning $18 to $25 an hour.

Although he knows classmates who have jobs at Starbucks, McDonald’s and Burger King, he said most of his friends prefer to work for local mom-and-pop businesses or start their own money-making ventures.

“People want to work in the neighborhood they call home and the neighborhood in which they go to school,” Brown said. “Side-hustle culture and entrepreneurial culture are really big.”

That said, $20 an hour makes a fast-food job “more enticing for a student,” said his friend, 17-year-old Sawyer Sariñana, who has been making money through photography work.

“I would definitely consider it now — I think that’s a big jump and makes a big difference,” said Sariñana, also a senior at Eagle Rock High School.

It’s been the year of the worker. West Hollywood employers are so over it

Organized labor has been having a moment in L.A. But in West Hollywood, which has the nation’s highest minimum wage, it’s the business owners who’ve been marching.

Dec. 4, 2023

Fast-food locations in grocery stores, airports, hotels, theme parks, sports venues and other businesses are exempt from the minimum-wage increase, as are employers that operate a bakery on the premises — a loophole that has raised questions about whether Panera Bread and others like it must comply.

At first, it might seem that restaurant employers not covered by the mandate now have an advantage: As the big fast-food chains lay off or hire fewer staff, that could expand the pool of available workers — who could be paid less than $20 an hour. But owners of independent fast-casual and full-service restaurants aren’t sure that will be the case, and anticipate having to raise wages to keep pace.

“Every bump in the restaurant labor market raises the prices for everyone, period. It doesn’t leave us out,” said Jeff Strauss, owner of sandwich counter Jeff’s Table in Highland Park.

West Hollywood’s and Seattle’s experiences with rapidly increasing their minimum wages provide a look at how things might go in California after the April 1 wage hike kicks in.

West Hollywood raised its minimum wage to $19.08 an hour in July after vehement opposition from business owners, and just days before chef Josiah Citrin opened his steakhouse and seafood restaurant Charcoal Sunset.

Over the next several months, Citrin said he did everything he could to make it work, including cutting his staff from 50 employees to 30 and rolling out a more limited menu.

‘At a point, you can’t trim anymore. When I closed at the end, there was no more money to operate.’

— Chef-owner Josiah Citrin, who closed Charcoal Sunset shortly after West Hollywood increased its minimum wage to $19.08 an hour

But the high wages and a severe pullback in customer spending due to the Hollywood strikes were too much for the fledgling restaurant to overcome. Citrin closed Charcoal Sunset in February.

“At a point, you can’t trim anymore,” he said. “When I closed at the end, there was no more money to operate.”

Seattle, one of the first in the national Fight for $15 campaign, lifted its minimum wage from $9.47 an hour in April 2015 to $13 in January 2016 — a 37% jump over a nine-month period.

Researchers at the University of Washington found that businesses overwhelmingly survived, said Jacob Vigdor, a University of Washington public policy professor who directed the minimum-wage study.

But overall employment at eating and drinking establishments in Seattle grew at a notably slower pace after 2016, and there was another downside: Employees saw fewer hours of work — on average by about 10%.

In 2017, Seattle made it more costly for restaurant and retail employers to send workers home early and make other scheduling changes. Labor union officials in California are hoping to do the same at fast-food restaurants.

“It was never just about wages,” said April Verrett, the SEIU’s national secretary-treasurer. “This is about empowering workers.”

Times staff writer Suhauna Hussain contributed to this report.

More to Read

Fast-food wage hike puts Democrats on defense as Californians worry about cost of living

April 3, 2024

Your guide to California’s new $20-an-hour minimum wage for fast food workers

April 1, 2024

With fewer options, South L.A. braces for bigger bills at fast-food restaurants

March 29, 2024

Andrea Chang is a wealth reporter for the Los Angeles Times. She was previously a Column One editor, the deputy Food editor and an assistant Business editor, and has covered beats including technology and retail. Chang joined the paper in 2007 after graduating from the Medill School of Journalism at Northwestern University. She grew up in Cupertino, Calif.

Don Lee writes economic stories out of Washington, D.C. Since joining the Los Angeles Times in 1992, he has served as the Shanghai bureau chief and in various editing and reporting roles in California. Lee previously worked at the Kansas City Star. He is a native of Seoul, Korea, and graduated from the University of Chicago.

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Wedding Planner Salary in United States

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