Photo by Visual Karsa on Unsplash
Historic San Francisco McDonald’s Closes After 30 Years
June 24, 2024
A San Francisco-area McDonald’s that had been serving the area for more than 30 years has been forced to close its doors, citing increasing costs.
The New York Post reports that the fast-food location, which has been servicing the downtown San Francisco area in the Stonestown Galleria shopping mall, officially shuttered on Sunday, June 23.
The franchise owner, Scott Rodrick, blamed minimum wage spikes, high property taxes, the landlord’s refusal to negotiate on the rent, and mall tenant fees as being behind the closure of the historic location.
“This is a gut-wrenching day for my family,” he said in a statement to ABC 7. “It has been a pleasure for my entire team and I to serve the 19th Avenue and Ingleside neighborhoods for more than 30 years. All of our valued team members have been offered opportunities to continue working with my restaurant company or at other nearby McDonald’s.”
This isn’t the first time that McDonald’s has had to face the repercussions of higher prices due to inflation.
Late last month, Joe Erlinger, president of McDonald’s USA, responded to the outcry on social media regarding an $18 Big Mac meal. Erlinger explained that this particular price was an isolated instance at one of the more than 13,700 locations in the U.S. He underlined that these exorbitant costs are the exception and underlined how crucial it is to give customers clear pricing information.
Erlinger gave background information on the current McDonald’s menu item prices in his digital blog post. “The average price of a Big Mac in the U.S. was $4.39 in 2019,” he stated.
The average cost is currently $5.29 despite a global pandemic, historic increases in supply chain costs, wage pressures, and other inflationary pressures in the years that followed. That is a 21% (not 100%) increase.
Erlinger admitted that several menu items have not increased as much as inflation, even if costs have climbed by about 40% as a result of supply chain problems and labor increases. McDonald’s is dedicated to providing its customers with value and affordability, and this endeavor is part of that commitment. He emphasized that over 90% of franchisees in the United States are selling meal bundles for $4 or less, highlighting the brand’s emphasis on giving affordable options.
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