A longstanding McDonald’s located at the Stonestown Galleria shopping mall in San Francisco shuttered its doors on Sunday, marking the end of over 30 years of service. The closure is being attributed to the recent implementation of California’s $20 minimum wage.
The franchise owner, Scott Rodrick, cited the newly increased state-wide minimum wage, alongside challenges such as unyielding landlord negotiations on long-term rent, high property taxes, and a hefty mall tenant fee, as contributing factors to the closure of the Stonestown McDonald’s.
BREAKING NEWS
CALIFORNIA COLLAPSE
San Francisco McDonalds Closing.
The Stonestown Galleria McDonald’s is closing today after 30+ years of thriving business.
It’s just not safe anymore. Families are NOT safe.
In addition, the cost to do business in California is a heavy… pic.twitter.com/OY4Qik4KKt [1]
— World Peace Movement (@darren_stallcup) June 23, 2024 [2]
Following the roll-out of the increased minimum wage on April 1, numerous businesses across California, including the historic Arby’s Roast Beef in Hollywood and multiple Rubio’s Coastal Grill locations, have also faced closures. This trend has been further reflected in the actions of major fast-food chains such as McDonald’s, Wendy’s, Burger King, Starbucks, and Chipotle raising their prices by up to 8% in response to the new regulations.
The price hikes implemented by these fast-food chains have led to a notable decline in customer visits, as reported by analytics firm Placer.ai [4]. These developments underscore the tangible impact of California’s minimum wage increase across the state’s business landscape.
