California McDonald’s franchisee Scott Rodrick tells how the ‘ugly hand of inflation’ is affecting both sides of his business, the $20 minimum wage mandate and a new value meal at the chain.
After facing a business “whirlwind” for more than two months, an open California McDonald’s franchise has been forced to permanently close one of its locations.
Scott Rodrick, owner of the McDonald’s in the Stonestown Galleria in southwest San Francisco, announced that their last day of business was June 23 in a typed note posted on the restaurant’s door.
“It has been a pleasure for my entire team and myself to serve the 19th Avenue and Ingleside neighborhoods for over 30 years,” Rodrick reportedly wrote. “All of our valued team members have been offered opportunities to continue working with my restaurant company at other nearby McDonald’s.”
Rodrick also told an ABC 7 reporter that the decision was “devastating” for his family and confirmed in a statement Monday morning to Fox News Digital that “this has been a really difficult morning for my family and my employees.” .
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Scott Rodrick’s Stonestown Galleria McDonald’s restaurant closed for good on June 23. (Getty Images)
“Economic headwinds aren’t just affecting fast-food franchises, large and small. Most restaurants are facing unprecedented challenges — fine dining, casual dining, independent or a brand franchise like me — this critical sector of California is struggling,” Rodrick said.
Recent data from Placer.ai found that as a result of the new law, most quick service chains in the state have raised their menu prices in the mid-single digits to the mid-teens, percentage-wise, and the price increases are hurting business. .
The analysis also showed that restaurant foot traffic dropped dramatically after the wage increase was approved.
McDonald’s California Franchisee Scott Rodrick Joins ‘Varney & Co.’ to discuss California’s highly controversial $20 minimum wage increase.
“My decision not to renew my lease after 30 years at Stonestown Mall was driven primarily by the economics of the lease. Discussions over the past year between myself and the landlord failed to find a mutually acceptable, commercially viable framework,” said Rodrick for Fox News Digital. “Unprecedented changes in California’s economic landscape, coupled with a flurry of ill-timed legislative mandates, greatly narrowed the restaurant’s path to extending its term into a new term.”
The business owner previously told FOX Business’ Stuart Varney that the minimum wage law had him considering raising menu prices and reducing hours, but that layoffs were “the last thing” he wanted to do .
“The last 12 days since this unprecedented law impacted franchises in California have literally been a whirlwind. Honestly, it feels like an eternity,” Rodrick previously said during an appearance on “Varney & Co.”
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Former Fosters Freeze assistant general manager Monica Navarro reacts to the sudden closing and how others are reacting on ‘The Bottom Line.’
“I understand that my clients’ appetite for higher prices is not unlimited. So when I price to relieve margin pressure, it has to be done thoughtfully and with a plan. $10 for an Egg McMuffin or $20 for a Big Mac, to me, that’s a non-starter,” he continued.
Rodrick’s McDonald’s now joins other popular grocery chains like Arby’s, Fosters Freeze, Rubio’s Coastal Grill, Red Lobster and others that have closed locations following the minimum wage mandate.
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