In devastating news for small businesses and their employees, yet another California restaurant has been forced to close its doors due to the state’s new $20 minimum wage law. Fosters Freeze in Lemoore made the difficult decision to shut down on Monday, leaving its dedicated team without a job.
Former assistant general manager Monica Navarro spoke out about the sudden closure, expressing her shock and frustration. “It’s a shock,” she said. “It would have been nice to have a notice so we could go get some applications [out], I could prepare them.”
Navarro went on to explain that the team only learned of the closure when they arrived for work on Monday morning. She also revealed that the owner, Loren Wright, had made the decision to close on Friday night because he knew the business couldn’t absorb the wage hike and didn’t want to “ruin their Easter Sunday.”
“He did blame it on the minimum wage increase. Although, from my understanding, I think we were exempt from it because of the amount of locations that he personally owns. But, he did ultimately blame it on that increase,” she said.
“I can see their intentions with increasing the minimum wage, thinking that it will attract more people,” the ex-manager added, “but I honestly don’t think it will work. This is not the first business that’s closing. There’s already a few local businesses for me that are closing, so I feel like this is just only the beginning.”
This heartbreaking situation is just one of many facing small businesses across California as they struggle to keep up with the new minimum wage law. Los Angeles restaurant owner Angela Marsden recently shared her own story, explaining the direct impact it has had on her business. She detailed how the wage increase has forced her to lay off employees and even close one of her locations.
But the sad reality is that this is just the beginning. Navarro explained that there have already been other local businesses forced to close due to the minimum wage increase, and she believes that there will be many more to come.
While the intention behind the minimum wage increase may have been to attract more workers, the reality is that it is causing more harm than good. Navarro, who lost her job as a result of the law, stated that she and her colleagues would have preferred to keep their jobs at a lower hourly rate.
And it’s not just those who have lost their jobs who are feeling the impact. Navarro stated that those who have seen their wages increase to $20 per hour have had their hours severely cut, making their jobs much more difficult.
It’s time for people to wake up and see the damage that these policies are causing to small businesses and their employees. It’s not just a few isolated incidents – it’s a trend that is only going to get worse if something isn’t done to address it. California needs to take a hard look at its policies and consider the consequences they have on the hardworking individuals and small business owners who keep our economy running.
