In yet another example of business-ignorant government officials destroying the economies over which they have an obscene amount of power by pursuing obviously horrible policies based on their ignorant expectations of business rather than the reality of running a successful business, a McDonald’s location that was open for decades in San Francisco had to shut down because of the state’s new minimum wage law.
As background, Gov. Gavin Newsom of California signed, in 2023, a law that raised the minimum wage for fast food workers to $20 per hour. Announcing that law at the time, his office said, “Beginning in April next year, California’s minimum wage for the state’s 500,000 fast-food workers will increase to $20 per hour – the average hourly wage for fast-food workers in 2022 was $16.21. Through the Fast Food Council, workers will have a stronger say in setting minimum wages and working conditions, including health and safety standards.”
At the time, Gov. Newsom said, “California is home to more than 500,000 fast-food workers who – for decades – have been fighting for higher wages and better working conditions. Today, we take one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast-food workers a stronger voice and seat at the table.”
Now, however, the bill has gone into effect and is decimating businesses in the state. Among those that was hard-hit by the new minimum wage law was a McDonald’s location in San Francisco, located in the famous Stonestown Galleria shopping mall, that had been open for over three decades. The restaurant, located near San Francisco State University, had to shut down both because of rent issues and the minimum wage making labor too expensive.
The owner, who purchased the restaurant in 2014, said that the minimum wage increase was “an extraordinary headwind against operating a successful, family owned business.” Continuing, he said that this is the worst things have ever been, saying, “It has never been as challenging in my 30 years of owning a franchise in California as it is today.”
In a letter posted at the entrance to the closed store, he wrote, “It has been a pleasure for my entire team and I to serve the 19th Avenue and Ingleside neighborhoods for more than 30 years.” He continued, “We are thankful to have been a part of your daily meal routine, either for an Egg McMuffin in the morning or a Happy Meal with the kids after an afternoon of shopping at Stonestown.”
Watch Newsom sign the minimum wage law into effect here:
At the time the disastrously bad bill was signed, California Assemblymember Holden said, “Today, we witnessed the signing of one of the most impactful fast food wage laws that this country has ever seen. We did not just raise the minimum wage to $20 an hour for fast food workers. We helped a father or mother feed their children, we helped a student put gas in their car, and helped a grandparent get their grandchild a birthday gift.”
Assemblymember Holden added, “Last month, when we were knee deep in negotiations, hundreds of workers slept in their cars and missed pay days to come give their testimony in committee and defend their livelihood. Sacrifice, dedication, and the power of a government who serves its people is what got us to this moment. My goal for AB 1228 was to bring relief and solutions where they were needed and together with my colleagues and Governor Newsom, that is what we have done. Thank you to the SEIU and all who supported this important effort. We, as a state, should be proud.”
Similarly, David Huerta, President of SEIU California and SEIU USWW, said, “After ten years of vibrant and courageous activism, which included raising the minimum wage for all workers in the state and bringing billions of dollars into working families’ pockets, fast food workers have now achieved something historic. We extend our deepest gratitude to the Governor for his leadership in fighting poverty, empowering workers, and moving us toward a more just and equitable society.”
Featured image credit: Gov. Newsom’s Office
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