Decades-Old McDonald’s in San Francisco Closes Due to $20 Minimum Wage

A McDonald’s location in San Francisco has closed its doors after more than three decades, with the franchisee owner citing California’s newly-implemented $20 minimum wage as a significant factor in the decision. The fast-food restaurant at Stonestown Galleria shopping mall, near San Francisco State University and a high school, shut down over the weekend.

Franchisee Scott Rodrick explained to the San Francisco Chronicle that two main issues led to the "long and difficult" decision to close the location he purchased in 2014. Firstly, Rodrick pointed to the inability to negotiate a favorable rent deal with the landlord, compounded by high property taxes and tenant fees at the mall.

• California’s $20 minimum wage for fast-food workers, signed by Democratic Governor Gavin Newsom and effective from April 1, was the second critical issue.

• Rodrick described the new wage as “an extraordinary headwind against operating a successful, family-owned business.”

• The closure reflects broader challenges faced by businesses in California under the state’s high-cost environment.

Rodrick shared his thoughts on the impact of the wage increase, stating, “It has never been as challenging in my 30 years of owning a franchise in California as it is today.” Despite the closure, Rodrick assured that all employees from the Stonestown McDonald’s were offered positions at nearby locations, with most choosing to stay with the company.

This McDonald’s location is not the only casualty of California’s $20 minimum wage. Rubio’s Coastal Grill recently announced the closure of 48 locations in the state, citing rising business costs, and subsequently filed for bankruptcy.

A letter posted at the entrance of the Stonestown Galleria McDonald’s informed customers of the permanent closure. “It has been a pleasure for my entire team and I to serve the 19th Avenue and Ingleside neighborhoods for more than 30 years,” Rodrick wrote. He expressed gratitude to the community, adding, “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.”

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