1 month ago
A pizza concatenation shuttered immoderate of its California locations earlier nan authorities boosted nan minimum costs for accelerated nutrient workers earlier this month.
Mod Pizza, which has 500 locations nationwide, closed 5 shops successful nan authorities astatine nan extremity of March, according to section Fox connection KMPH.
Those shops were among nan complete 2 twelve locations that nan institution closed crossed nan nation. The institution did not specify a reason, but workers successful Clovis, whose shop abruptly closed, told nan outlet they suspected that nan California closures had to do pinch nan caller rule that took effect successful April,
CALIFORNIA FAST FOOD FRANCHISEE SLAMS NEWS MINIMUM WAGE, INVESTS IN NEVADA OVER SIX-FIGURE LOSS
"It conscionable benignant of seemed for illustration nan correct timing, 2 weeks earlier each of nan accelerated nutrient locations successful California sewage that summation that we closed," a Mod Pizza employee, who asked to stay anonymous, told KMPH.
FOX Business reached retired to Mod Pizza for comment.
Pizza boxes beryllium stacked connected a antagonistic astatine a MOD Pizza LLC edifice successful Mount Prospect, Illinois, connected Monday, July 15, 2019. (Christopher Dilts/Bloomberg via Getty Images / Getty Images)
The authorities that went into effect successful California connected April 1 increases nan minimum costs for restaurants that person astatine slightest 60 locations nationwide, isolated from those that make and waste their ain bread, from $16 to $20. This equates to an yearly net of $41,600.
The median fast-food worker successful nan U.S. earned $13.43 an hr successful 2022, while those successful California made an mean of $16.60 an hour, according to nan Bureau of Labor Statistics.
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Gov. Gavin Newsom signed nan legislation, AB 1228, into rule successful September. In summation to nan salary raises, it besides establishes a "Fast Food Council," including representatives for some workers and employers, that tin o.k. further salary increases and group standards for moving conditions.
"California is location to much than 500,000 fast-food workers who – for decades – person been fighting for higher wages and amended moving conditions," Newsom said successful September, adding that nan authorities is taking "one measurement person to fairer wages, safer and healthier moving conditions, and amended training by giving hardworking fast-food workers a stronger sound and spot astatine nan table."
MOD Pizza logos connected their edifice successful Leicester Square. (Dae Rushen/SOPA Images/LightRocket via Getty Images / Getty Images)
The rumor is that respective eateries person begun to trim jobs, successful an effort to get up of nan imaginable financial repercussions. For instance, nan authorities led to nan demise of Fosters Freeze, another accelerated nutrient joint successful nan state.
Monica Navarro, erstwhile adjunct wide head astatine Fosters Freeze successful Lemoore, said connected "The Bottom Line," she recovered retired erstwhile she sewage to activity nan edifice proprietor closed nan doors for good.
The owner, Loren Wright, told KMPH that this was nan "last thing" they wanted to do, but they knew nan business would apt not beryllium capable to sorb nan costs hike.
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Michael Ojeda, 29, a Pizza Hut driver successful Ontario, California, told The Wall Street Journal he received a announcement from Pizza Hut franchisee Southern California Pizza successful December informing him that his past time of activity would beryllium successful February.
"Pizza Hut was my profession for astir a decade and pinch small to nary announcement it was taken away," said Ojeda.
FOX Business' Breck Dumas and Louis Casiano contributed to this report.
