California's $20 Minimum Wage Forces Popular Pizza Chain to Shut Down 5 Locations

California's $20 Minimum Wage Forces Popular Pizza Chain to Shut Down 5 Locations

California’s new $20 minimum wage law has led to the sudden closure of multiple Mod Pizza locations in the state and nationwide.

Mod Pizza, often dubbed as “the Chipotle of pizza,” recently shut down its Clovis location near Fresno, as reported by the New York Post.

Fifteen employees were laid off from the Clovis store, with each receiving a $2,000 severance package.

Founded in Seattle in 2008 by Scott and Ally Svenson, Mod Pizza stands for “made on demand.”

This closure aligns with price increases seen at various fast-food chains in California, including McDonald’s, Burger King, Chipotle, and In-N-Out Burger, following Governor Gavin Newsom’s approval of the minimum wage hike.

The new minimum wage law went into effect on Monday.

Employees at Mod Pizza were reportedly informed of the layoffs just two days before their last shifts.

Despite the California Warrant Act mandating a 60-day notice for mass layoffs, a former Mod employee speculated that the $20-an-hour increase might have prompted the closures, although no official reason was given by the corporation.

“Not from corporate directly, but I do have a feeling it had to do with the $20-an-hour increase, seeing as they knew it was coming,” an anonymous former employee told KMPH.

Social media responses varied regarding the decision to close multiple Mod Pizza locations due to the minimum wage hike.

Other fast-food chains are also experiencing price hikes.

McDonald’s CEO Chris Kempczinski noted that rising prices, with some Big Mac meals nearing $18, have deterred customers earning less than $45,000 annually.

Last summer, a McDonald’s franchise in Darien, Connecticut, faced scrutiny for selling a Big Mac combo meal for $17.59 and a Quarter Pounder with Cheese and Bacon meal for $19.

With such high prices, more Americans are opting to eat at home rather than dine out.

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