California McDonald's franchisee shares struggle with 'unprecedented' impact of new minimum wage

foxbusiness.com:

California McDonald’s franchisee Scott Rodrick joins ‘Varney & Co.’ to discuss California’s highly controversial $20 minimum wage hike.

California is forcing fast food chains to get creative to afford the state's new $20 minimum wage.

One McDonald's franchise owner, Scott Rodrick, is considering higher menu prices and reduced hours, saying that layoffs are the «last thing» he is considering. 

«The last 12 days since this unprecedented law impacted franchisees in California has literally been a whirlwind. Frankly, it feels like an eternity,» Rodrick said during an appearance on «Varney & Co.»

MCDONALD'S CEO SAYS FAST FOOD CHAIN WILL FOCUS ON AFFORDABILITY AMID OUTRAGE OVER MENU HIKES

The McDonald's logo is seen near the restaurant in Santa Monica, California on November 13, 2023. McDonald's franchisee owner Scott Rodrick revealed that California's new minimum wage law has placed multiple economic hardships on his restaurants.  (Jakub Porzycki/NurPhoto via Getty Images / Getty Images)

"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.

In anticipation of the new law, Rodrick lifted his prices 5% to 7% between January and March. However, he says that more economic efforts are necessary.

«Right now, the focus is survival.»

Rodrick, who owns 18 McDonald's franchises in California, warned that the new law is likely to have an «unprecedented impact» on California's franchise business model. 

«Price is a lever that an independent business owner like myself can look at to relieve this extraordinary, unprecedented