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A McDonald’s location in San Francisco closed after over three decades, with the franchisee owner citing California’s new $20 minimum wage as a significant factor in the decision.
The closure at Stonestown Galleria was also influenced by challenges in rent negotiation and high operating costs.
The franchisee expressed the immense difficulty of running a family-owned business in California under the current economic conditions.
The change proved to be “an extraordinary headwind against operating a successful, family owned business,” franchisee Scott Rodrick said.
“It has never been as challenging in my 30 years of owning a franchise in California as it is today,” he added.
“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 wrote.
He added, “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.”
Despite offering affected employees positions at nearby locations, the closure reflects a trend seen in other chains like Rubio’s Coastal Grill facing closures and bankruptcies due to increased business costs in the state.