Mod Pizza closes 5 California locations as minimum wage law takes effect

A well-liked West Coast pizza chain shuttered 5 of its California places shortly earlier than the state enacted its new minimal wage regulation this month that raises fast-food staff’ pay from $16 an hour to $20.

Mod Pizza — which has 500 places throughout the US and Canada and has been dubbed “the Chipotle of pizza” — abruptly closed up store at its location in Clovis, close to Fresno, two weeks in the past, based on former workers.

“It simply sort of appeared like the fitting timing, two weeks before all of the fast food locations in California received that improve that we closed,” one fired employee, who was amongst 15 that have been let go, advised Fox 26 TV on Tuesday.

Mod Pizza shuttered 27 places nationwide — together with 5 eating places in California. Mod Pizza

Administration by no means explicitly gave a purpose for the closure, however staff suspect that the minimal wage regulation performed a job.

“[We didn’t hear] from company straight, however I do have a sense it needed to do with the $20 an hour improve, seeing as they knew it was coming,” the previous worker mentioned.

The Put up has sought remark from Mod Pizza, which was based by the husband-and-wife staff of Scott and Ally Svenson in Seattle in 2008.

The regulation, which went into impact on April 1, has been blamed for ballooning menu prices at major fast-food chains like Burger King, as The Put up reported.

The ex-worker mentioned that whereas he initially supported the concept of a rise within the minimal wage, it could have come at too steep of a price.

“For the additional cash, yeah,” he mentioned. “I imply, no person goes to show down a increase, however on the finish of the day, with repercussions like this, was it price it?”

The previous worker lamented the job loss, saying: “I really like this firm. It actually sucks.”

“I put, you understand, blood, sweat, and tears into this,” the employee mentioned.

Mod Pizza, which has greater than 500 places in North America, affords clients an opportunity to make customizable pizzas utilizing natural dough. Mod Pizza

“I opened the Fresno location. They closed that location. I helped open this location, and now. It’s closed as properly.”

Every of the 15 laid-off workers was given a $2,000 severance.

The places of the opposite 4 Mod Pizza franchises in California that have been lately shuttered weren’t obtainable.

Mod Pizza, named after the acronym for “made on demand, affords clients the choice of making particular person, customizable pizzas utilizing natural dough.

Experiences from social media point out that the corporate has additionally shut down places in New Jersey, Texas, and Wisconsin as a part of 22 closures nationwide.

A brand new minimal wage regulation signed by California Gov. Gavin Newsom went into impact on Monday. AP

In Fitchburg, Wis., some Mod workers told the Wisconsin State Journal that they have been abruptly let go and left with out paychecks final month.

Quick meals chains in California have bumped up menu costs up to now week to offset labor prices from the upper minimal wage.

At a Los Angeles-area Burger King, a Texas Double Whopper meal that value $15.09 on March 29 surged to $16.89 on April 1, a whopping improve of $1.80 (almost 12%) for a similar meal.

A McDonald’s franchisee who owns greater than a dozen places within the San Francisco Bay Space mentioned that he, too, needed to jack up menu costs — though he drew the line at charging $20 for a Happy Meal.


Leave a Reply

Your email address will not be published. Required fields are marked *