The popular West Coast pizza chain has closed five California locations just before the state enacts a new minimum wage law this month that increases fast-food workers’ hourly wages from $16 to $20.
Mod Pizza, nicknamed the “Chipotle of pizza” with 500 stores across the U.S. and Canada, abruptly closed its store in Clovis, near Fresno, two weeks ago, former employees said.
“It seemed like the right time, two weeks before all the fast food restaurants in California closed,” said one of the 15 people laid off. fox 26 tv on tuesday.
Management did not give a clear reason for the closure, but workers suspect minimum wage laws played a role.
“[We didn’t hear] “I received my pay directly from the company, but given that there was a $20 per hour raise, I feel like that had something to do with it,” the former employee said.
The Times has reached out to Mod Pizza, founded in Seattle in 2008 by husband-and-wife team Scott and Allie Svenson, for comment.
As The Post reported, the law went into effect on April 1 and has been blamed for soaring menu prices at major fast food chains such as Burger King.
Former workers said they initially supported the idea of raising the minimum wage, but the cost may have been too high.
“For extra money, yes,” he said. “I mean, no one would turn down a raise, but at the end of the day, was it worth it given the repercussions?”
A former employee lamented the loss of his job, saying: It really sucks. ”
“I put blood, sweat and tears into this,” the worker said.
“We opened a Fresno store. They closed that location. I helped open this location and here we are today. This one is closed as well.”
The 15 laid-off employees were each given $2,000 in severance pay.
Four other recently closed Mod Pizza franchise locations in California were not available.
Named after the acronym for “Made on Demand,” Mod Pizza offers customers the option to create individually customizable pizzas using organic dough.
The company has also closed stores in New Jersey, Texas and Wisconsin as part of a nationwide closure of 22 locations, according to reports from social media.
In Fitchburg, Wisconsin, several MOD employees told the Wisconsin State Journal They were suddenly fired last month and left without being paid.
California fast-food chains have increased menu prices over the past week to offset labor costs due to minimum wage hikes.
At a Burger King in the Los Angeles area, a Texas Double Whopper meal that cost $15.09 on March 29th skyrocketed to $16.89 on April 1st, a huge $1.80 (nearly 12%) price increase for the same meal. became.
A McDonald’s franchisee who owns more than a dozen locations in the San Francisco Bay Area said he could draw the line at charging $20 for a Happy Meal, but he, too, had to raise menu prices.
