Fast food restaurants close following minimum wage hike

California’s new minimum wage law has caused the Fosters Freeze in Lemoore to close its doors.

Multiple fast food restaurants in the Central Valley have shut down after the $20 minimum wage law took effect this week. 

According to reports, a Fosters Freeze in Lemoore and five Mod Pizza locations in California have shuttered. 


The backstory: California’s new fast food minimum wage law took effect on Monday, raising the hourly minimum to $20. 

The big picture: KMPH reported that a Fosters Freeze in Lemoore shut down on Monday without giving advance notice to its employees. 

  • Assistant General Manager Monica Navarro told KMPH that the restaurant’s owner, Loren Wright, had previously told her that the new minimum wage law would be very hard on him. 
  • Mod Pizza also shut down five restaurants in California this week as the chain closed 27 of its locations nationwide. 
  • That includes the Clovis location, which reportedly did not give its employees notice until two days before it closed. 

What they’re saying: Wright told KMPH that he tried to keep the Fosters Freeze open but was not able to make it work with the new wage hike. 

  • “Small businesses can’t survive a 120% plus min wage increase over the last 10 years. We are all more broke than we were 10 years ago its clear raising min wage isn’t helping,” Wright wrote in a statement. 
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