Outspoken California McDonald's franchisee becomes latest victim of 'gut-wrenching' closures
Scott Rodrick’s Stonestown Galleria restaurant announced it’s closing on June 23 after 30 years in business
The 'strain' of doing business in California has become 'very real and quite clear': Scott Rodrick
California McDonald's franchisee Scott Rodrick on how the 'ugly hand of inflation' is impacting both sides of his business, the $20 minimum wage mandate and a new value meals at the chain.
After dealing with a business "whirlwind" for more than two months, an outspoken California McDonald’s franchisee has been forced to permanently close one of his locations.
Scott Rodrick, owner of the McDonald’s at Stonestown Galleria just southwest of San Francisco, announced their last day of business was June 23 in a typed note posted on the restaurant’s door.
"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 reportedly wrote. "All of our valued team members have been offered opportunities to continue working with my restaurant company at other nearby McDonald’s."
Rodrick also told an ABC 7 reporter that the decision was "gut-wrenching" for his family, and confirmed in a Monday morning statement to Fox News Digital that "this has been a really tough morning for my family and my employees."
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Scott Rodrick's Stonestown Galleria McDonald's restaurant permanently closed on June 23. (Getty Images)
"The economic headwinds are not just impacting fast food franchisees, large and small. Most restaurateurs are facing unprecedented challenges – fine dining, casual dining, independent or a brand franchisee like me – this critical California sector is struggling," Rodrick said.
Recent data from Placer.ai found that as a result of the new law, most quick-service chains have raised menu prices in the state by anywhere from the mid-single digits to mid-teens, percentage-wise, and the price hikes are hurting business.
The analysis additionally showed that restaurant foot traffic dropped dramatically after the wage hike was enacted.
McDonald’s franchisee owner Scott Rodrick says staff layoffs are the ‘last thing’ he is considering
California McDonald’s franchisee Scott Rodrick joins ‘Varney & Co.’ to discuss California’s highly controversial $20 minimum wage hike.
"My decision to not renew my lease after 30 years at Stonestown shopping center was driven primarily by lease economics. Discussions over the past year between myself and the landlord failed to find a mutually agreeable, commercially sustainable framework," Rodrick told Fox News Digital. "The unprecedented changes to the economic landscape of California, coupled with a host of ill-timed legislative mandates, greatly narrowed the restaurant’s path to extending its tenure into a new term."
The business owner previously told FOX Business’ Stuart Varney the minimum wage law made him consider raising menu prices and reducing operating hours, but that layoffs were the "last thing" he wanted to do.
"The last 12 days since this unprecedented law impacted franchisees in California has literally been a whirlwind. Frankly, it feels like an eternity," Rodrick previously said during an appearance on "Varney & Co."
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'It's a Shock': Fosters Freeze location in California closes over minimum wage hike
Former Fosters Freeze assistant general manager Monica Navarro reacts to the sudden closure and how others are responding on 'The Bottom Line.'
"I realize that my customers' appetite for higher prices is not unlimited. So, when I take price to relieve margin pressure, it has to be done thoughtfully and with a plan. Charging $10 for an Egg McMuffin or $20 for a Big Mac, for me, is a nonstarter," he continued.
Rodrick’s McDonald’s now joins other popular food chains like Arby’s, Fosters Freeze, Rubio’s Coastal Grill, Red Lobster and others who have shuttered locations following the minimum wage mandate.
