San Francisco McDonald’s Closes After 30 Years, Citing Minimum Wage Hike

San Francisco McDonald's Closes After 30 Years, Citing Minimum Wage Hike
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A San Fran­cis­co McDon­ald’s fran­chise has closed its doors per­ma­nent­ly after 30 years in busi­ness, cit­ing Cal­i­for­ni­a’s new $20 min­i­mum wage law as a major fac­tor. Locat­ed in the Ston­estown Gal­le­ria mall, the restau­rant shut down on Sunday.

Minimum Wage Hike Blamed

Fran­chise own­er Scott Rodrick point­ed to the increased labor costs as a key rea­son for the clo­sure. He also men­tioned high rent, prop­er­ty tax­es, and mall fees con­tribut­ing to the finan­cial strain. Rodrick offered affect­ed employ­ees the oppor­tu­ni­ty to trans­fer to oth­er McDon­ald’s locations.

The San Fran­cis­co clo­sure fol­lows a string of restau­rant shut­downs across Cal­i­for­nia since the $20 min­i­mum wage took effect in April. Oth­er casu­al­ties include a long-stand­ing Arby’s and sev­er­al Taco Bell and Rubio’s Coastal Grill locations.

Impact on Restaurants

While some restau­rants have raised prices to off­set the min­i­mum wage hike, this has led to few­er cus­tomers. Data shows a decrease in vis­its to major fast-food chains in Cal­i­for­nia since the pol­i­cy change.

The clo­sure of this McDon­ald’s fran­chise high­lights the sig­nif­i­cant chal­lenges Cal­i­for­ni­a’s restau­rant indus­try faces due to the $20 min­i­mum wage. As the eco­nom­ic land­scape evolves, fur­ther clo­sures are a possibility.

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