After dealing with a business "whirlwind" for more than two months, an outspoken California McDonald’s franchisee has been forced to permanently close one of his locations.
Scott Rodrick, owner of the McDonald’s at Stonestown Galleria just southwest of San Francisco, announced their last day of business was June 23 in a typed note posted on the restaurant’s door.
"It has been a pleasure for my entire team and I to serve the 19th Avenue and Ingleside neighborhoods for more than 30 years," Rodrick reportedly wrote. "All of our valued team members have been offered opportunities to continue working with my restaurant company at other nearby McDonald’s."
Rodrick also told an ABC 7 reporter that the decision was "gut-wrenching" for his family, and blamed the closure on a number of factors but put the onus on California’s $20 minimum wage, which went into effect in April.
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Recent data from Placer.ai found that as a result of the new law, most quick-service chains have raised menu prices in the state by anywhere from the mid-single digits to mid-teens, percentage-wise, and the price hikes are hurting business.
The analysis additionally showed that restaurant foot traffic dropped dramatically after the wage hike was enacted.
The business owner previously told FOX Business’ Stuart Varney the law made him consider raising menu prices and reducing operating hours, but that layoffs were the "last thing" he wanted to do.
"The last 12 days since this unprecedented law impacted franchisees in California has literally been a whirlwind. Frankly, it feels like an eternity," Rodrick previously said during an appearance on "Varney & Co."
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"I realize that my customers' appetite for higher prices is not unlimited. So, when I take price to relieve margin pressure, it has to be done thoughtfully and with a plan. Charging $10 for an Egg McMuffin or $20 for a Big Mac, for me, is a nonstarter," he continued.
Rodrick’s McDonald’s now joins other popular food chains like Arby’s, Fosters Freeze, Rubio’s Coastal Grill, Red Lobster and others who have shuttered locations following the minimum wage mandate.
