San Francisco McDonald’s Closes After 30 Years, Citing California’s New Minimum Wage Law
A San Francisco McDonald’s, which has been operating for over thirty years, was forced to close its doors, citing California’s new minimum wage law that raised the minimum wage for fast food workers to $20 an hour.
“It has been a pleasure for my entire team and I to serve the 19th Avenue and Ingleside neighborhoods for more than 30 years,” read a letter posted at the location when it permanently closed on Sunday.
“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.”
The McDonald’s at Stonestown Galleria shopping mall in San Francisco shut down last weekend. The location’s franchise owner, Scott Rodrick, explained to the San Francisco Chronicle that the decision to shut down was “long and difficult.” He blamed the high property taxes, tenant fees, and the recent minimum wage hike for the closure.
Rodrick stated that these changes created “an extraordinary headwind against operating a successful, family-owned business.”
“It has never been as challenging in my 30 years of owning a franchise in California as it is today,” he explained.
The new California law, which went into effect on April 1 and was signed last year by Governor Gavin Newsom, has been a point of contention. Leading up to its implementation, numerous fast food restaurants in the state indicated that layoffs and/or price hikes would likely result due to the significant rise in labor costs.
This McDonald’s location is one of many businesses that have already been affected by the new law. Recently, Rubio’s Coastal Grill announced that it would be closing 48 locations in California because of the exorbitant business costs in the state. The restaurant chain was then forced to file for bankruptcy soon after.
