One of Hollywood’s most iconic restaurants has permanently closed its doors.
The Arby’s Roast Beef franchise in Hollywood, California, which had been in operation for 55 years, shut down on Saturday, according to KTLA.
The restaurant is the latest victim of Bidenomics and California’s new $20 minimum wage law for fast-food workers.
Marilyn Leviton, the 91-year-old owner who has run the franchise since its opening in 1969, cited a combination of devastating economic factors for the closure. The recent legislation that raised the minimum wage for fast food workers to $20 per hour was particularly burdensome.
In September, California Governor Gavin Newsom signed a law raising the minimum wage for fast-food workers to $20 per hour.
Leviton told KTLA 5 News that the franchise had been on the brink of closure for years, with the lockdowns nearly forcing its shutdown, had it not been for federal loans that temporarily kept the business afloat.
Gary Husch, Leviton’s son-in-law and the general manager of the restaurant, echoed these sentiments. Speaking to the Los Angeles Times, Husch emphasized that inflation, the pandemic’s impact on foot traffic, and the wage increase were the key factors in their decision to close.
“With inflation, food costs have skyrocketed and the $20-an-hour minimum wage has been the final nail in the coffin,” Husch said.
Watch the video report from KTLA 5:
“Final nail in the coffin.” 91-year-old owner forced to close iconic Hollywood Arby’s over California’s $20 minimum wage pic.twitter.com/nCndWCfj4h
— Breaking911 (@Breaking911) June 19, 2024
Restaurants across California have cut over 10,000 jobs since Democrat lawmakers mandated a $20 minimum wage, according to a major trade group.
The California Business and Industrial Alliance (CABIA) reports that thousands of restaurant workers have lost their jobs as businesses are compelled to reduce labor costs and increase prices to stay afloat.
“Several major chains – including McDonald’s, Burger King, and even low-cost favorite In-N-Out Burger – jacked up prices to offset the higher wages. Many had to cut employee hours, and some have expedited a move to automation,” the New York Post reported.
The beloved restaurant chain Rubio’s Coastal Grill announced it would be closing 48 locations statewide due to the unaffordable costs of doing business.
Two major Pizza Hut operators in California will lay off all their delivery drivers due to the new law raising the minimum wage to $20 per hour for fast-food employees.
California Governor Gavin Newsom granted an exemption from the state’s new $20 minimum wage law to Panera Bread, as its billionaire CEO Greg Flynn contributes to his political campaigns.
The scandal has been labeled “PaneraGate.”
REPORT: Allegations of corruption surface against California Gov. Gavin Newsom over a minimum wage law exemption for Panera Bread.
— Hank (@HANKonX) March 2, 2024
The exemption reportedly benefits the franchise due to its owner's financial support for Newsom's campaigns.
The law, requiring fast food chains to… pic.twitter.com/7hbcililN8
