Subway recently announced it would be offering their famous “footlong sandwiches” at a discounted rate nationwide, but will be excluding the state of California.
Due to the minimum wage hike in the state earlier this year, the sandwich chain is excluding the deal in California, along with Hawaii and Alaska.
“Today’s diner is stretched more than ever, and too often that means a tradeoff on quality, variety or flavor to find an affordable meal,” president of Subway North America, Doug Fry, said.
“At Subway, our definition of value is a mix of delicious options at the right price without compromising quality. Our menu is full of footlongs for every budget, and this new deal means our guests can get the sandwiches they crave at a great value.”
Fast food restaurants across California have been forced to take drastic measures to stay afloat after the state implemented the $20 minimum wage hike.
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.
Earlier this summer, 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.
