Imagine your town without a McDonalds? Imagine California without a Big Mac. No need to imagine. Thanks to the Democrats and Newsom, McDonalds will not be able to afford to keep their shops open in this Third World State. Sadly, they are telling us NOW—so no one will be surprised.
“In a recent interview, according to thestreet.com, the president of the McDonald’s corporation said it might be impossible to operate in the states of California and Virginia.
Both states have passed what’s being called, “The Fast-Foods Accountability and Standards Recovery Act.”
The new law would require a minimum wage increase to $22 per hour with a 3.5 percent increase each year.
There are 1,218 McDonald’s in California, making it the state with the most franchises.
According to their president, to cover the proposed wage increase, they would be forced to increase prices by 20 percent, which he claims is not sustainable.
Get your McCafe now—it will be a memory very soon.
Santa Clarita may soon find itself without any McDonald’s restaurants in our valley. In fact, all of California may not have any more of the fast-food chain that originated in this state.
Editorial by Carl Goldman, KTHS, 4/20/23 https://www.hometownstation.com/s1-news/c154-editorials/no-more-big-macs-in-california-454824
In a recent interview, according to thestreet.com, the president of the McDonald’s corporation said it might be impossible to operate in the states of California and Virginia.
Both states have passed what’s being called, “The Fast-Foods Accountability and Standards Recovery Act.”
The new law would require a minimum wage increase to $22 per hour with a 3.5 percent increase each year.
There are 1,218 McDonald’s in California, making it the state with the most franchises.
According to their president, to cover the proposed wage increase, they would be forced to increase prices by 20 percent, which he claims is not sustainable.
Laws like this make it very difficult for businesses to succeed.
It will also eliminate many entry level jobs.
McDonald’s Isn’t Big Business
McDonald’s may seem like a big business to the public; however, most McDonald’s are individually owned as franchises.
In Santa Clarita, one local family has owned the majority of McDonald’s in Santa Clarita for decades.
They have given a lot back to our valley.
Owning a small business in California is frustrating. It’s a political nightmare doing business in California. Almost no members of the super majority in the California legislature have experienced the many challenges of owning a small business.
Hence the mass departure of high wage jobs.
People are voting with their feet, which is why Governor Newsom is trying to tax California residents after they move for 10 years! Regardless of which side of the political spectrum anyone falls on, California is quickly becoming a welfare state.
A recent survey showed that living and doing business in Southern California compared with most other states is 140 percent of the cost.
So, $100,000 of expenses in California would only be $60,000 of expenses in many other states.
The Workers’ Comp Scam
Consider this one small element. Los Angeles County has the highest Workers’ Comp cost in the United States. Our insurance companies won’t fight even the most frivolous claim in Los Angeles because the courts almost always side with the worker.
It’s cheaper to settle a claim out of court. A vast legal industry has been created from this imbalance. Just count the number of law firm billboards pushing workers’ comp cases, in English and in Spanish, the next time you drive south of Santa Clarita.
McDonald’s Isn’t Alone
McDonald’s isn’t the only business feeling the California squeeze. Another local business leader is the largest franchise owner of one of the most iconic national restaurant chains. Two of the dozens and dozens of restaurants he owns are in Santa Clarita. Their corporate headquarters are in Valencia. He continues to be one of the largest local donors for our educational institutions and non-profits.
About 10 years ago he shared with me all the new restaurants he was opening. I asked him when he was going to open another in Santa Clarita. He looked me in the eye and said, “I’ll never open another restaurant in California.”
That was over 10 years ago. Opening and running a business in California has become much worse.
Lifeguard For A Spa
The cost of producing our annual KHTS Home & Garden show has escalated throughout the years. Most of the increased costs have gone to our County Government. Permit fees have significantly increased. We now must hire a full-time County Fire Inspector at over $200 per hour for our entire show. Last year, the County forced us to hire a full-time certified lifeguard to watch over one of our vendor’s spas because it had water in it.
It’s Time To Stop The Flight
Doing business in Southern California is challenging enough. Between increased costs, burdensome government mandates and legal pitfalls, it’s no wonder businesses are fleeing the Golden State.
It’s time our legislators and the public developed a better understanding of the challenges small businesses face when remaining in California. Understanding the domino effect of certain policies and restrictions will help. Not viewing small business as “the enemy” will allow California to thrive instead of wilt.
