Hollywood Arby's closes over California's $20 minimum wage
What specific reasons did the family-owned Arby's on Sunset Boulevard cite for its closure after 55 years of operation?
The family-owned Arby's on Sunset Boulevard cited California's recently enacted $20-an-hour minimum wage law as the primary reason for its closure after 55 years of operation. The restaurant's general manager, Gary Husch, stated that with inflation, food costs have gone up significantly, and the $20-an-hour minimum wage has been the "nail in the coffin." The restaurant had been struggling in recent years, and the pandemic further impacted its business.
How has the change in foot traffic around the Arby's location affected its business operations, as noted by Gary Husch?
The change in foot traffic around the Arby's location has negatively impacted its business operations. Gary Husch, the general manager, mentioned that many offices in the area are now empty, resulting in a significant decrease in foot traffic2. This decline in customers, combined with inflation and rising food costs, has made it difficult for the Arby's location to sustain its business, ultimately leading to its closure after 55 years of operation.
How has the increase in California's minimum wage for fast food workers from $16 to $20 an hour impacted other businesses in the state according to the article?
The increase in California's minimum wage for fast food workers from $16 to $20 an hour has had a significant impact on other businesses in the state. Some businesses, like the Hollywood Arby's, have been forced to close due to the increased labor costs. Other fast food chains, such as McDonald's, Wendy's, and Burger King, have seen a decrease in visits since the law went into effect. Popular chains like In-N-Out Burger have had to raise menu prices to offset the increased labor costs. The law has also mandated 25% pay raises for managers at fast food restaurants.