A long-standing San Francisco McDonald\u2019s franchise has closed down after 30 years because of California Gov. Gavin Newsom\u2019s new $20 minimum wage law, the owner said.<\/p>\n\n\n\n
The Stonestown Galleria McDonald\u2019s became a casualty of the economy on Sunday; franchise owner Scott Rodrick told<\/a> ABC7 that it was a \u201cgut-wrenching day\u201d for him and his family.<\/p>\n\n\n\n Rodrick said the closure was related to being unable to negotiate reasonable rent with the building\u2019s landlord, taxes, and the state\u2019s $20 fast food minimum wage that went into effect<\/a> on April 1. <\/p>\n\n\n\n The previous minimum wage for California fast food workers was $15, more than twice the $7.25 federal minimum wage. <\/p>\n\n\n\n The law<\/a>, which also created a Fast Food Council that has the power to make future increases to the minimum wage, was signed<\/a> by Newsom in 2023 to \u201ctake one step closer to fairer wages, safer and healthier working conditions.\u201d<\/p>\n\n\n\n Assemblymember Chris R. Holden (D), who introduced the bill, claimed the policy was devised to help a \u201cfather or mother feed their children\u2026 a student put gas in their car\u2026 a grandparent get their grandchild a birthday gift.\u201d<\/p>\n\n\n\n Meanwhile, business owners and restaurant goers are the ones being impacted. <\/p>\n\n\n\n In just the first two months after the wage was raised, approximately 10,000 fast food jobs around the state were slashed<\/a>, Breitbart News reported. <\/p>\n\n\n\n \u201cIt has been a pleasure for my entire team and I to serve the 19th Avenue and Ingleside neighborhoods for more than 30 years,\u201d Rodrick said in a note posted on the door of his closed restaurant. <\/p>\n\n\n\n \u201cAll of our valued team members have been offered opportunities to continue working with my restaurant company or at other nearby McDonald\u2019s,\u201d the franchise owner added.<\/p>\n\n\n\n Kerri Harper-Howie, a Los Angeles-based franchisee who owns 21 McDonald\u2019s locations across the state with her sister, said her profits will tank<\/a> while trying to keep up with the new minimum wage. <\/p>\n\n\n\n Harper-Howie, who employs more than 1,000 Californians, told<\/a> KTLA 5 that the law does not make economic sense for workers or business owners.<\/p>\n\n\n\n \u201cWe, as business owners, are not opposed to minimum wage increases,\u201d she said in the weeks leading up to the law taking effect. <\/p>\n\n\n\n \u201cOne of our primary objections is that this wage increase only applies to us,\u201d she continued. \u201cWhy isn\u2019t everyone getting an increase if, fundamentally, [the current] wage is not adequate for people to live? Who then are the customers that are going to be able to afford to pay for the food?\u201d<\/p>\n\n\n\n