Stonestown Galleria McDonald’s closes after 30 years: high rent, taxes, California’s minimum wage.

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The McDonald’s at San Francisco’s Stonestown Galleria has closed its doors after 30 years in business. The franchisee owner, Scott Roderick, cited two main reasons for the closure:

  • Rent and Property Taxes: The landlord was unwilling to negotiate a long-term and sensible rent for the Stonestown location. Additionally, the property taxes and shared tenant mall fees were the highest paid for a single location within the company.
  • California’s Minimum Wage: The state’s new minimum wage for fast-food workers, which went into effect on April 1, posed a strain for the business. While the law aimed to acknowledge that many fast-food workers are adults supporting their families, franchise owners have expressed challenges due to increased labor costs during California’s slowing economy.
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This closure marks a significant moment for the franchise and its employees, and Roderick described it as a “gut-wrenching” day for his family.

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