A popular West Coast pizza chain closed five California locations just before the state passed a new minimum wage law this month that raises fast-food workers’ wages by $16 from $20 an hour.
Mod Pizza – which has 500 locations in the United States and Canada and is known as the “Chipotle of pizza” – abruptly closed its store in Clovis, near Fresno, two weeks ago, according to former employees.
One fired employee, who was among the 15 laid off, told Fox 26 TV: “It seemed like good timing, two weeks before every fast food place in California raised wages and we must close.”
A popular West Coast pizza chain closed five California locations just before the state passed a new minimum wage law this month that raises wages for fast-food workers from $16 a Now up to $20.
ALSO READ: California Fast Food Workers Are Losing Their Jobs As Minimum Wage Law Take Effect
Mod Pizza — which has 500 locations in the United States and Canada and is known as the “Chipotle of pizza” — abruptly closed its store in Clovis, near Fresno, two weeks ago, according to former employees.
One fired employee, who was among 15 laid off, told Fox 26 TV on Tuesday: “It seems like a good time, two weeks before every fast food restaurant in California gets a raise and we had to close. The Post requested comment from Mod Pizza, which was founded by husband-and-wife team Scott and Ally Svenson in Seattle in 2008.
The law, which took effect April 1, has been accused of increased menu prices at the level of major fast food chains like Burger King, as The Post reported.
The former worker said that while he initially supported the idea of raising the minimum wage, it may have come at too high a cost “For more money, yes,” he said. “I mean, no one turns down a raise, but at the end of the day, with consequences like these, is it worth it?
Former employee laments job loss, says: “I love this company. It’s really bad. “You know, I put my blood, sweat, and tears into this,” the worker said. “I opened the Fresno location. They closed this place. I helped open this place and now. It’s also closed.
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Each of the 15 laid-off employees received a severance payment of $2,000. Locations are not available for four other Mod Pizza franchises in California that recently closed.
Mod Pizza, named after the acronym “made to order,” gives customers the ability to create individual and customizable pizzas from organic dough. Social media reports say the company has also closed locations in New Jersey, Texas, and Wisconsin as part of 22 shutdowns nationwide.
ALSO READ: McDonald’s CEO Addresses Customers After Facing Extreme Backlash on Overpriced Menu
In Fitchburg, Wis, several Mod employees told the Wisconsin State Journal they were suddenly fired and quit without pay last month. Fast-food chains in California raised menu prices last week to offset labor costs due to increased minimum wages.
At a Burger King in the Los Angeles area, a Texas Double Whopper meal costs $15.09. March 29 rose to $16.89 on April 1, a whopping increase of 1, 80 USD (almost 12%) for the same meal.
A McDonald’s franchisee who owns more than a dozen locations in the San Francisco Bay Area says he has also had to raise menu prices — even though he has set limits by charging $20 per Meal Happy.
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