Fast food restaurants across California have been forced to take drastic measures to stay afloat after the state implemented a $20 minimum wage hike recently.
After 30 years of business, a McDonald’s restaurant in San Francisco is closing its doors due to the measure.
Franchise owner Scott Rodrick said the closure was related to being unable to negotiate reasonable rent with the building’s landlord and taxes as well.
The law, passed by Democrats in the state Legislature last year, is part of an effort to support adults working in the fast food industry.
Many franchise owners in the state have stressed the impact the law is having on them, especially during a time of record high inflation.
“I try to do right by my employees. I pay them as much as I can. But this law is really hitting our operations hard,” Alex Johnson, owner of 10 Auntie Anne’s Pretzels and Cinnabon restaurants in the San Francisco Bay Area, said.
Johnson said sales have slowed in 2024, forcing him to lay off his office staff and rely on his parents to help with payroll and human resources.
Last month, thirteen Rubio’s Coastal Grill locations closed after the cost of living in California continues to soar.
“The closings were brought about by the rising cost of doing business in California. While painful, the store closures are a necessary step in our strategic long-term plan to position Rubio’s for success for years to come,” a spokesperson for Rubio’s said.
The restaurant chain said they would keep 86 locations open throughout California, Arizona and Nevada.
