Bidenomics and California’s $20 Minimum Wage Force San Francisco McDonald’s to Close After 30 Years
The McDonald’s at Stonestown Galleria in San Francisco announced it will shut its doors permanently.
After serving the community for more than three decades, this fast-food staple cites the crushing combination of high operational costs and recent legislative changes as the primary reasons for its closure.
The franchisee owner, Scott Rodrick, confirmed the closure in a statement to ABC7’s Dion Lim.
According to Rodrick, the closure is due to two main reasons: an uncompromising landlord who refused to negotiate a “sensible” rent, and the sky-high property taxes and mall fees, which were reportedly the highest paid for any single location within the company.
Rodrick also pointed out that conducting business in California had become increasingly challenging, especially with the state’s new minimum wage for fast-food workers. He described this as a “gut-wrenching” day for his family.
The Stonestown Galleria McDonald’s is closing today after more than 30 years in business.
The franchisee owner Scott Rodrick told me this was for 2 reasons:
He says the landlord was unwilling to negotiate a “sensible” rent & that property taxes and mall fees were the highest… pic.twitter.com/qHmTe3PsQy
— Dion Lim (@DionLimTV) June 23, 2024
A notice posted on its door reads:
Dear McDonald’s Customer,
On June 23, 2024, this restaurant (255 Winston Drive at Stonestown Galleria) will be permanently closing. It has been a pleasure for my entire team and I to serve the 19th Avenue and Ingleside neighborhoods for more than 30 years. 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.
All of our valued team members have been offered opportunities to continue working with my restaurant company at other nearby McDonald’s. We hope that you will continue to visit us at our other neighboring McDonald’s restaurants. Or you can have your favorite McDonald’s meal delivered to you via our digital app.
The fast food chain is the latest casualty of Bidenomics and Governor Newsom’s $20 minimum wage law.
Last week, one of Hollywood’s most iconic restaurants, Arby’s Roast Beef, closed after an impressive 55 years in business.
Gary Husch, Leviton’s son-in-law and the general manager of the establishment, echoed these sentiments. Speaking to the Los Angeles Times, Husch emphasized that the combined effects of inflation, the pandemic’s impact on foot traffic, and the draconian wage increase directly led to their difficult decision.
“With inflation, food costs have skyrocketed and the $20-an-hour minimum wage has been the final nail in the coffin,” Husch said.
In September, California Governor Gavin Newsom (D) signed a law raising the minimum wage for fast-food workers to $20 per hour.
“Eighty percent of the workforce, these fast food places—80 percent of people of color, two thirds—are women, the majority are breadwinners and we have the opportunity to reward that contribution, reward that sacrifice and stabilize an industry in turn. What a remarkable moment,” Newsom said in September during the bill signing.
According to the California Business and Industrial Alliance (CABIA), thousands of restaurant workers have lost their positions as businesses are forced to cut labor costs and raise their prices in order to survive.
“Several major chains – including McDonald’s, Burger King, and even low-cost favorite In-N-Out Burger – jacked up prices to offset the higher wages. Many had to cut employee hours, and some have expedited a move to automation,” the New York Post reported.
The beloved restaurant chain Rubio’s Coastal Grill, announced that it would be closing 48 locations statewide due to the unaffordable costs of doing business.
Two major Pizza Hut operators in California will lay off all of their delivery drivers due to a new law raising the minimum wage to $20 per hour for fast food employees.
California Governor Gavin Newsom (D) carved out an exemption for Panera Bread from the state’s new insane $20 minimum wage law because its billionaire CEO Greg Flynn donates to his political campaigns.
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