Recently, Mod Pizza closed down five of its locations in California and laid off workers just before the state’s new $20-an-hour minimum wage law for fast-food workers began.
This action is part of a larger trend, as the chain shut down 27 stores across the country. These closures come amid concerns from employees and businesses about the financial impacts of the wage increase, which has also resulted in higher prices on menus at fast-food restaurants across California.
While a higher wage can bring financial benefits, some, like a former Mod Pizza employee who lost their job, question whether the negative consequences, such as job losses, outweigh the positives.
The law has been associated with significant price increases in fast food, as seen in the sudden rise in the cost of a Burger King meal right after the law was implemented.
From The Club
Shutting down 5 locations ahead of a state’s new minimum wage rate for fast food workers sparks seems like an odd move. If MOD pizza is closing down all of the stores to spite California, it seems a bit odd of a move because I’m pretty sure California doesn’t care; but the people who had jobs that are now unemployed are the ones suffering.
Image via Mod Pizza