Raising the federal minimum wage is a political and economic debate that has been raging for years, but we’re going to witness a test case play out in one of the nation’s largest states.

In April, the minimum wage for fast food workers in California will be raised to $20 after Gov. Gavin Newsom signed legislation last year that also brought the minimum wage for all workers to $16, which went into effect on January 1. In response, several chains, including McDonald’s and Chiptole, have announced that price hikes are coming.

• Chipotle has increased prices four times over the past two years and said Californianans should expect to see a 5%–9% bump.

Andy Wiederhorn, chair and founder of Fat Brands, which owns 18 restaurant brands including FatBurger and Johnny Rockets, told Retail Brew that the margins for franchisees are very slim, which very likely could mean higher prices for consumers.

“Everyone wants their employees to make more money, but operators have to make money as well,” Widerhorn said. “There’s no room in the restaurant operator’s margin to pay 20% higher minimum wage in some cases.”

Keep reading here.—KM

In a digitized world, shoppers aren’t bound by brick-and-mortar stores—they can shop anywhere, anytime (yes, even there).

Why aren’t more brands meeting shoppers where they are? Only one in three brands offer an app, despite online shopping’s high conversion. It’s time for retail to embrace omnichannel strategies, and the new report from NewStore digs into why.

The 2024 Omnichannel Leadership Report analyzes the online, mobile, and in-store shopping experience of 700 brands in 10 countries from the customer’s point of view. Dig into insights about the state of omnichannel retail and how businesses are transforming their digital strategy.

Grab the full report to learn about:

• leading omnichannel brands + how they deliver a seamless experience
• how NewStore assessed each brand’s omnichannel maturity
• customers’ experience across different channels

Dig into the findings.

It’s hard out there for toymakers right now. Despite efforts to bring in more revenue from IP-led entertainment collaborations, Hasbro and Mattel are both struggling to sell actual toys.

This is especially true for Hasbro, which continues to lag behind its main US rival.

Hasbro’s Q4 revenue dropped 23% and its full year revenue fell 15%, due to sizable declines in its consumer products and entertainment segments. The company said the annual decline in the former was due to “business exits, category trends and inventory management,” while the latter was “due to the writers’ and actors’ strikes.”

“2023 was a productive year for Hasbro, although not without some challenges,” CFO Gina Goetter said in a news release.

Mattel, meanwhile, fared better in Q4 with a 16% bump in net sales, but sales were flat for the full year. In addition, the company is now getting pressure from an activist investor to improve the performance of two of its most iconic product lines.

Keep reading here.—AV

As severe weather in West Africa continues to impact the global cocoa supply, cocoa prices reached a historic high this week, and chocolate makers are starting to feel the crunch.

Hershey CEO Michele Buck said Thursday during the company’s Q4 and full year 2023 earnings call that the company expects “several points of price realization” in 2024 to combat rising cocoa costs, which have surpassed the 1977 peak of $5,379 per ton and could keep surging, according to Bloomberg.

“Given where cocoa prices are, we will be using every tool in our toolbox, including pricing, as a way to manage the business,” Buck noted. As its input costs rise and it looks to boost prices, CFO Steve Voskuil said it will require “enormous collaboration between us and retailers.”

Keep reading here.—EC