California Fast-Food Restaurant Closes Right After $20 Minimum Wage Raise

Workers were shocked 

The new bill went into effect on April 1. It increased the minimum wage from $16 to $20 for fast food workers who work in restaurants with at least 60 locations nationwide, with exceptions. However, employees at Foster’s Freeze in Lemoore did not get increased wages. Instead, they were left without their jobs since the restaurants closed. 

No notice 

Assistant General Manager Monica Navarro spoke to several news outlets, including Fox Business, and confirmed that the workers were given no notice. Instead, the former manager found that the locks had been changed, but soon, a group text confirmed her worst fears. 

People thought it was a joke 

Another former employee, Jason Boado, shared they soon received a group text confirming that the eatery was closing. The workers went to the restaurant on Hanford Armona Rd to get their final paychecks. Many assumed it was a joke until this eye-opening meeting. 

The owner was under stress 

Navarro, a Fresno State University student, worked for Foster’s Freeze in Lemoore for three years and planned to stay until graduation. She shared that the owner previously talked about the challenges of a $20 wage but made it seem like they would work in smaller groups, not that they would be out of work. 

Still, the employees believed things would work out 

The Fresno student further shared that they talked about shifts but felt assured that they would work things out. She noted there were talks about raising prices. The young woman warned that other local establishments and employees may be in similar situations. 

The student’s plea to the public 

Navarro asked people to be kind to fellow fast-food workers. Many will face layoffs due to a wage raise, and some will be yelled at over increased prices while working shorter shifts. Over 1,200 drivers were already fired, and fast-food chains switched to apps like Uber Eats or DoorDash. 

The owner confirmed his reasons for closing 

Loren Wright, the owner of Fosters Freeze, cited the $20 minimum wage legislation as the main reason behind the restaurant’s closure, adding that small businesses cannot survive a 120% plus minimum wage increase over the last decade. 

Dealing with the aftermath of new minimum wages

Navarro told Fox Business she spoke to her former co-workers, who concluded it would have been better if the wages stayed the same instead of losing jobs. She also shared that those who work in the area had their hours harshly cut, with fewer people working in shifts. 

Wrong approach 

A Republican from Yucaipa, Senator Rosilicie Ochoa Bogh, stated that California was already less affordable to families and suggested that it should be lowering living costs instead of going about things the wrong way. 

Consequences for small businesses  

Kelly Seyarto, a Murrieta Republican, also spoke against the bill. The State Senator said that the state should be working toward improving chances for small businesses to grow and increase job opportunities. Seyarto concluded that the bill negatively impacts California’s inflation. 

More closings 

Mod Pizza reportedly closed five California locations, and though management did not disclose why, some former employees shared their suspicions with The Post. One said they allegedly heard it was due to the minimum wage increase. 

More complaints 

The owner of 21 McDonald’s franchises told a Los Angeles news outlet that they could not raise prices enough to pay the new minimum wages. El Pollo Loco said it would look into automation, and numerous eateries have already raised their prices.