Major Pizza Chain Goes Out of Business

Photo by Ivan Torres on Unsplash

( – Earlier this month Mod Pizza, a chain with 500 locations nationwide, closed down several of its California locations in anticipation of the increase in minimum wage for fast food workers. 

Local Fox affiliate KMPH reported at the end of March that the chain had closed five stops. These were among the more than two dozen shops that the company had ended up closing across the United States without providing a specific reason. However, workers in Clovis, where the shop had closed without warning, had claimed that they believed that the closure in California had been motivated by the new law that had gone into effect in April. 

One Mod Pizza employee, who opted to remain anonymous, argued that this just seemed like the right timing as the stores closed two weeks before all locations in California were required to increase their minimum wage. 

On April 1, a new legislation went into effect in California which increased the minimum wage for restaurants that have over 60 locations across the nation. However, there is an exception for those locations that make and sell their bread. As part of the new legislation, the minimum wage was increased from $16 to $20 which will bring the annual salary up to $41,600. 

In the United States, the median fast-food worker earned in 2022 around $13.43, while in California they averaged around $16.60 an hour. 

In September, Gov. Gavin Newsom signed AB 1228, legislation that would not only increase the pay but also establish a “Fast Food Council” which would have representatives for employers and workers.

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