California minimum wage hike places financial strain on multi-generational McDonald's franchise owner

California's new $20 minimum wage law has placed multiple economic hardships on Scott Rodrick's 18 McDonald's franchises in the state. He has raised prices 5-7% but says more efforts are needed to financially "survive".

Rodrick is considering further price increases, reducing capital expenditures, improving labor efficiency, and growing market share. However, laying off employees is the "last thing" he's considering.

Rodrick warns the wage law is having an "unprecedented impact" on California's franchise business model. He plans to fight to keep his multi-generational family business alive in the state for another 50 years.

Some fast food franchises are dealing with the wage hike by moving their businesses out of California, something Rodrick has considered a "few times" as well.

Rodrick questions whether his daughter, the third generation in the family business, should plan on spending her career operating franchises in California or if moving to another state would be smarter long-term.