A pizza chain shuttered some of its California locations before the state boosted the minimum wage for fast food workers earlier this month. Mod Pizza, which has 500 locations nationwide, closed five shops in the state at the end of March, according to local Fox affiliate KMPH. Those shops were among the over two dozen locations that the company closed across the nation.
In addition to the pay raises, it also establishes a "Fast Food Council," including representatives for both workers and employers, that can approve further pay increases and set standards for working conditions.
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Pizza chain closes California locations before minimum wage law took effectAnother company has closed down some pizza shops in California shortly before new legislation took effect that would raise minimum wage for fast food workers in the state.
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Mod Pizza Closes Dozens of Stores Amid Minimum Wage IncreaseMod Pizza, a fast-casual restaurant with more than 500 locations across the U.S., has reportedly closed dozens of stores in recent weeks, including five of its California restaurants. A total of 27 Mod Pizza restaurants were shuttered across the U.S. in total, though the company has yet to comment on the widespread closures. The closures come as California recently passed a law raising the minimum hourly rate for fast-food employees in the state from $16 to $20 per hour. The move is designed to benefit workers, but is widely opposed by restaurant operators, who claim they won't be able to turn a profit.
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