McDonald's Franchisee Closes Two Locations Over Minimum Wage Hike

The minimum wage change that is occurring slowly but surely across America, state by state, is a good thing for workers, but maybe not so great for owners of chain restaurants.

This fact is front and center in the situation that has played out for two McDonald's locations in California. Franchisee Scott Rodrick has decided to close the doors of his locations due to the lack of profit because of minimum wage hikes.

In California, where the locations are, there has been a targeted fast-food minimum wage increase to $20 an hour across the board. That has been mandated by the California state government.

Rodrick explains why he had to close two of his McDonald's locations due to this fact.

"Since this new wave targeting fast-food franchises took effect last April, my business has certainly experienced the cost pressure," he states.

"I have good people that have worked for my family for decades. I've had to reduce my investment in labor."

Rodrick further explains that instead of cutting labor hours so thin that his locations can barely function, he has been forced to close two of his McDonald's locations in order to be able to turn any sort of profit from his other locations and keep them well-staffed at the same time.

You can tell that Rodrick is not a fan of the aforementioned wage hikes, as he referred to them as "a wage that skyrocketed 25 percent overnight on April 1st."

There is no doubt that this McDonald's franchise owner has a major beef with California's new fast-food minimum wage hike — and now it's hit his former workers.