The McDonald’s at Stonestown Galleria in San Francisco has announced it will be closing its doors permanently.
After serving the community for more than three decades, the fast food chain cited a combination of high operational costs and recent legislative changes as the main reasons for the closure.
Franchisee owner Scott Rodrick confirmed the closure in a statement to ABC7’s Dion Lim.
According to Rodrick, the closure is due to two main reasons: an uncompromising landlord who refuses to negotiate a “reasonable” lease, and the property tax and high mall fees, which reportedly pay the highest for a location in the company. .
Rodrick also pointed out that doing business in California is increasingly challenging, especially with the state’s new minimum wage for fast food workers. He described the day as a “stomach ache” day for his family.
Stonestown Galleria McDonald’s is closing today after more than 30 years in business.
Franchisee owner Scott Rodrick says this is for 2 reasons:
They say landlords refuse to negotiate “reasonable” rents and that property taxes and mall fees are the highest… pic.twitter.com/qHmTe3PsQy
— Dion Lim (@DionLimTV) June 23, 2024
The notice posted on the door reads:
Dear McDonald’s customer,
On June 23, 2024, this restaurant (255 Winston Drive at Stonestown Galleria) will close permanently. My entire team and I have had the pleasure of serving the 19th Avenue and Ingleside neighborhoods for over 30 years. We are thankful that it has become part of our daily meal routine, either for an Egg McMuffin in the morning or a Happy Meal with the kids after an afternoon of shopping in Stonestown.
All valued team members have been offered the opportunity to continue working with the restaurant company at another McDonald’s. We hope you will continue to visit other neighborhood McDonald’s restaurants. Or you can deliver your favorite McDonald’s meals through our digital app.
Fast food chains are the latest victims of Bidenomics and Governor Newsom’s $20 minimum wage law.
Last week, one of Hollywood’s best restaurants, Arby’s Roast Beef, closed after 55 years of great business.
Gary Husch, Leviton’s son-in-law and general manager of the establishment, echoed that sentiment. Speaking to the Los Angeles Times, Husch stressed that the combined effects of inflation, the impact of the pandemic on foot traffic, and draconian wage increases immediately led to a difficult decision.
“With inflation, the cost of food has skyrocketed and the minimum wage of $20-an-hour is the final nail in the coffin,” said Husch.
In September, California Governor Gavin Newsom (D) signed legislation raising the minimum wage for fast food workers to $20 an hour.
“Eighty percent of the workforce, these fast food places—80 percent of people of color, two-thirds—are women, the majority are breadwinners and we have the opportunity to reward, reward sacrifice and stabilize the industry in one. What a moment that extraordinary,” Newsom said in September at the bill’s signing.
According to the California Business and Industrial Alliance (CABIA), thousands of restaurant workers have lost their positions as businesses have been forced to cut labor costs and raise prices to survive.
“Some major chains — including McDonald’s, Burger King, and even low-end favorite In-N-Out Burger — are raising prices to offset higher wages. Many have had to cut employee hours, and some have accelerated their move to automation,” New reports. York Post.
Beloved restaurant chain Rubio’s Coastal Grill has announced it will close 48 locations across the country due to the unaffordable cost of doing business.
Two major Pizza Hut operators in California will lay off all of their delivery drivers because of a new law that raises the minimum wage to $20 an hour for fast-food workers.
California Governor Gavin Newsom (D) carved out an exemption for Panera Bread from the state’s crazy new $20 minimum wage law because billionaire CEO Greg Flynn donated to his political campaign.
