Left-wing activists and content creators are desperately trying to seize on a nationwide economic problem and blame Donald Trump for it. However, the truth is that most of the current collapse in major fast-food chains is directly tied to the artificially high minimum wages imposed in many Democrat-run states.
Yes, technology is a factor too—but when analysts simply look at nationwide averages, it creates the illusion that the entire country is failing equally. In reality, most fast-food chains want to operate in left-wing states, but those very states and cities are dragging the entire business model down.
When a restaurant closes—even a franchise—it permanently eliminates a revenue stream that, in previous years, could have been used as leverage for expansion or borrowing. The land beneath the restaurant becomes another liability. For example: if a McDonald’s location fails because a left-wing mayor destroyed the surrounding neighborhood, the commercial property loses significant value. You can’t sell it for anything meaningful if there is no longer a viable business in the area.
All of this contributes to profitable stores being financially dragged down by unprofitable ones.
Why Minimum Wage Increases Destroy Entry-Level Jobs
Entry-level jobs were never supposed to be career positions. Raising the minimum wage forces employers to pay entry-level workers like skilled tradesmen. And if you understand basic economics, you know what comes next:
If minimum wage is $30 per hour and I’m a truck mechanic, I now want $85 per hour.
If you’re economically illiterate, you might not understand why this is a problem. Businesses do not have unlimited capital. This is one of the reasons so many people distrust central banks and fiat-currency spending—because government can print money out of thin air, people begin to falsely assume private businesses can too.
But they can’t.
If there is no profit, a business goes bankrupt.
And when minimum wages rise, private businesses cannot lower operational costs. Therefore:
- Consumers must pay more, or
- The business collapses.
This is the stupidity of politicians like Bernie Sanders, AOC, and the current mayor of New York. Their disastrous ideas get political traction, and they end up damaging America’s economy. Socialism is foolish, and writing about it becomes exhausting because of how fundamentally irrational it is.
Fast Food Chains Are Collapsing Across Blue States—and Nationwide
Fast-food chains are struggling in California, New York, and across the Northeast due to high operating costs, minimum-wage hikes, inflation, and changing consumer behavior. Other chains are beginning to collapse nationwide.
Here is a breakdown:
States and Regions Facing Major Challenges
California
- Rubio’s Coastal Grill filed for bankruptcy, closing numerous Los Angeles locations.
- High costs—including the new $20 minimum wage for fast-food workers—are unsustainable.
Northeast & Los Angeles
- Sweetgreen has seen significant declines in sales in key urban centers, driven by inflation and reduced consumer spending.
Indiana
- Franchisees of I Heart Mac & Cheese have filed complaints of misrepresented costs and a failing business model.
Arizona
- Southern Arizona chain eegee’s filed for bankruptcy after a buyout resulted in higher prices and lower food quality.
Nationwide Closures
- Wendy’s plans to close hundreds of stores; same-store sales dropped 4% in the first nine months of 2025.
- Pizza Hut is shutting down locations across the country due to an outdated dine-in model and high delivery labor costs.
- Subway closed 631 U.S. restaurants in 2024, continuing a decline from its 2015 peak.
Why Fast Food is Failing
- High Operating Costs
- Minimum wage hikes
- Skyrocketing rent
- Inflation
- Supply-chain disruptions
These raise expenses faster than menu prices can be increased.
- Changing Consumer Behavior
- Americans are buying cheaper options like frozen supermarket meals.
- Families are cutting back due to inflation and economic uncertainty.
- Increased Competition
More fast-casual and delivery-first chains are disrupting traditional fast-food operations.
- Outdated Business Models
Brands relying on outdated dine-in or old delivery models are losing ground to modern, efficient competitors.
Final Thoughts
Socialism—and socialist economic policies—are wrecking American fast-food chains. Minimum-wage mandates, inflation, mismanagement, and unrealistic ideological experiments are destroying businesses that once provided millions of young Americans with their first job.
Consider making Jesus Christ your Lord and Savior today, because socialism truly is foolishness at every level.
