Mod Pizza, a fast-casual restaurant with more than 500 locations across the U.S., has reportedly closed dozens of stores in recent weeks, including five of its California restaurants.
In California, the closures occurred on March 22, just days before a controversial new minimum wage law went into effect on April 1, raising the minimum hourly rate for fast-food employees in the state from $16 to $20 per hour.
Mod Pizza, which stands for "made on demand" pizza, was founded in Seattle in 2008. The chain, once deemed "the Chipotle of the pizza industry," sells individual, customizable pizzas cooked at high temperatures in stone ovens.
Employees at the Clovis, CA, location (near Fresno) told Fox26News that the company was not transparent about the closures, informing them only two days before their final shifts.
California's new law applies to fast-food restaurant workers only; the minimum remains $16 in other industries operating in the state, according to the California Labor Commissioner's Office.
The Clovis location was emptied and stripped of its signage and 15 employees were let go. While they were not relocated to other Mod Pizza restaurants, they were reportedly given $2,000 in severance pay, per the New York Post.
While some employees were initially in favor of the minimum wage increase, others now feel that the law may wind up doing more harm than good.
As for the Mod Pizza closures outside of California, a complete list has not yet been reported. But we do know that a Wisconsin location of Mod Pizza also closed abruptly, reportedly leaving some employees without paychecks.