McDonalds to leave California a real possibility

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via MSN:

California’s recent hike in the minimum wage to $20 an hour has sent shockwaves through the fast food industry, particularly affecting McDonald’s franchises. Franchise owners are grappling with the unprecedented impact of the wage increase, which has led to higher operational costs and increased menu prices. The situation has become so dire that some McDonald’s locations are on the brink of closing their doors.

Scott Rodrick, who owns 18 McDonald’s franchises in California, has been vocal about the challenges posed by the new minimum wage law. Rodrick described the past few weeks since the law took effect as a “whirlwind” and emphasized that the impact on the franchise business model in California is “unprecedented.” He noted that while raising prices is a necessary step to relieve margin pressure, it must be done thoughtfully. Charging exorbitant prices, such as $10 for an Egg McMuffin or $20 for a Big Mac, is not a viable solution.

 

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These news items highlight the ongoing challenges and changes in the fast-food industry in California, particularly for McDonald’s and its franchisees.

h/t general mishka

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