Impact of California's $20 Minimum Wage Law on McDonald's Franchise
A San Francisco McDonald's franchise closed down after 30 years due to California Gov. Gavin Newsom's new $20 minimum wage law. The closure was related to rent negotiations, taxes, and the new wage law. Approximately 10,000 fast food jobs were slashed in the state in the first two months after the wage increase. Business owners and restaurant goers are feeling the impact.
Key Points
- McDonald's franchise closed due to inability to negotiate rent, taxes, and new minimum wage law
- Approximately 10,000 fast food jobs lost in the state after the wage increase
- Business owners and restaurant goers impacted by the new law
Pros
- Moving one step closer to fairer wages
Cons
- Closure of long-standing businesses
- Job loss for fast food workers