Why? So other businesses could open up and sell the same exact products but not be part of the law? Instead of getting the fast food from a "fast food place" now you get it from a counter in a gas station or a counter in a grocery store or a counter attached to a sit down restaurant so those places can get around this new law? Then what has been accomplished...?
Not all consumers have the time or wealth for sit down restaurants either. Not everyone is so privileged to always be able to go to a sit down restaurant. Not to mention most of the chain sit down restaurants which may be within budget for fast food consumers to switch to serve you what is basically the same as fast food (frozen/reheated stuff, fried stuff) presented on a glass plate and with a tip involved.
Also the sit down restaurants will suffer from this too as employees can get the $20/hr at fast food and will go work at fast food instead... they'll need to increase wages as well, which in turn causes the price increase, which in turn lands them in the same exact spot as the fast food places...
There is zero justification for the attack that has been launched on the fast food industry in California. Also interesting how Starbucks is carefully exempted. If you want to attack all food service businesses and put these rules on them then maybe okay but I even think that is too narrow. Maybe all "food" businesses- and that would include grocery stores.
But the big winner again will be the big corporations who get more royalties. As with most of these so called "Progressive" initiatives which seem to be funded by dark money from big money billionaires (not unlike other political initiatives that get pushed by other "groups") under the guise of helping people (higher wage in this case- which will be washed out through cuts in hours/higher prices on items purchased) the end result is really just even more money for big corporations through the higher royalties they'll receive from the increased prices. I wouldn't be surprised if the investors in the franchisors funded this whole thing. Playing the employees as total tools and fools under the guise of "helping" them.