The owner of a fast food franchise store which has been operating for more than 30 years has closed his restaurant for good.
The branch of the McDonald’s at Stonestown Galleria, about eight miles south of downtown San Francisco, abruptly shut on Sunday, in what is the latest causality of California’s new $20-an-hour minimum wage.
Workers saw their wages rise from $16 to $20-an-hour on January 1 – but the added expense for owners to pay their workers has hit businesses hard.
Almost 10,000 positions across chains from Pizza Hut to Burger King have been cut since the higher minimal wage came into effect on April 1, according to a report from a trade group in the state.
In some cases, chains have been forced to raise their menu prices.
Wendy’s, Burger King, Starbucks, and Chipotle, have put up the cost of their offerings by up to 8 percent in the Golden State. On top of that, chains have been shuttering restaurants – including beloved Mexican chain Rubio’s Coastal Grill, which earlier this month filed for Chapter 11 bankruptcy and closed 48 locations in the state. Last week, Arby’s Roast Beef that’s been a fixture on Sunset Boulevard in Hollywood for 55 years, which shut its doors.
