McDonald’s in San Francisco closes after 30 years, losing $20 minimum wage

Longtime San Francisco restaurant chain McDonald’s has become the latest victim of California’s new $20 minimum wage, according to reports.

The McDonald’s restaurant in the Stonestown Galleria shopping center, located about eight miles southwest of downtown San Francisco, closed permanently Sunday after more than 30 years of service to the area.

“This is a painful day for my family,” franchise owner Scott Roderick said. According to ABC 7.

Roderick blamed the closure on a number of factors — but said a newly introduced law raising the state minimum wage from $16 to $20 an hour pushed the company to the brink.


The McDonald’s restaurant in the Stonestown Galleria shopping center outside downtown San Francisco was closed Sunday. Google Maps

Combined with the landlord’s refusal to negotiate long-term rent, high property taxes, and mall tenant fees — all of which combined to make the Stonestown McDonald’s the most expensive location to operate outside of its restaurant company — the new wage increase was too much to keep the lights on.

“It has been a pleasure for my entire team and I to serve the 19th Avenue and Ingleside neighborhoods for more than 30 years,” the franchise owner said in a note posted on his door when it closed.

“All of our valued team members have had the opportunity to continue working with my restaurant company or at other nearby McDonald’s restaurants,” Roderick added.

Since the new minimum wage was implemented on April 1, many businesses have closed their doors across California.

One of the recent closings included Arby’s Roast Beef, which had been located on Sunset Boulevard in Hollywood for 55 years, which closed its doors earlier in June.

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“With inflation, food costs skyrocketed, and the $20-an-hour minimum wage was the nail in the coffin,” General Manager Gary Hoch previously said. He told the Los Angeles Times.


Owner Scott Roderick posted a farewell message on the franchise door after more than 30 years in business
Owner Scott Roderick posted a farewell message on the franchise door after more than 30 years in business. Ted Case/KGO-TV

Taco chain Rubio’s Coastal Grill was forced to close dozens of locations across the state in June, only to file for Chapter 11 bankruptcy days later.

Fast food chain Fosters Freeze also closed a location near Fresno, squarely blaming the new minimum wage for its demise.

In other cases, the cost of raising workers’ wages was passed directly to the client.

Chains such as McDonald’s, Wendy’s, Burger King, Starbucks and Chipotle have raised their prices by up to 8% in California.

In contrast, customer visits to these chains decreased, According to analytics firm Placer.ai.

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