Tuesday 25 June 2024

Decades-Old McDonald’s Location In San Francisco Shuts Down After California Institutes $20 Minimum Wage

 A McDonald’s location in San Francisco closed after more than three decades in a move the franchisee owner partially attributed to California’s newly-implemented minimum wage.

The fast-food restaurant at Stonestown Galleria shopping mall near San Francisco State University and a high school shut down over the weekend.

Franchisee Scott Rodrick told the San Francisco Chronicle there were two main reasons behind the “long and difficult” decision to shut down the location that he purchased in 2014.

Rodrick blamed a failure to reach a deal on rent with the landlord as he noted the property taxes and tenant fees are relatively high at the shopping mall.

California’s $20 minimum wage for fast-food workers — that Democratic Governor Gavin Newsom signed last year and went into effect on April 1 — was the second issue he mentioned.

The change proved to be “an extraordinary headwind against operating a successful, family owned business,” Rodrick said.

“It has never been as challenging in my 30 years of owning a franchise in California as it is today,” he added.

Rodrick told local ABC affiliate KGO-TV that all of the employees at the shuttered McDonald’s were offered jobs at nearby locations and most chose to remain with the company.

The home of the Big Mac is not the only chain in which there have been restaurant closures after California instituted its $20 minimum wage earlier this year.

Rubio’s Coastal Grill announced earlier this month the closure of 48 locations in California while citing rising business costs in the state. The chain filed for bankruptcy soon afterwards.

A letter posted at the entrance of the McDonald’s restaurant at Stonestown Galleria announced to customers that the location was permanently closing on Sunday, according to local station KRON4.

“It has been a pleasure for my entire team and I to serve the 19th Avenue and Ingleside neighborhoods for more than 30 years,” Rodrick wrote in the message.

He added, “We are thankful to have been a part of your daily meal routine, either for an Egg McMuffin in the morning or a Happy Meal with the kids after an afternoon of shopping at Stonestown.”

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