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Shock Move: Celebrity’s Fast-Food Chain Shutters Every Location After Minimum Wage Surge

September 14, 2024
Reading Time: 2 mins read
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Shock Move: Celebrity’s Fast-Food Chain Shutters Every Location After Minimum Wage Surge

Actor and comedian Kevin Hart has learned the hard way that running a business in left-leaning California is no joke. All four locations of his vegan fast-food chain, Hart House, unexpectedly shut down this week without any public explanation. However, it’s likely that the plant-based menu and California’s recent minimum wage hike played a significant role.

According to Eater LA, which covers the restaurant scene in multiple cities, the closures happened abruptly on Tuesday. The company shared the news on Instagram, offering little more than a picture of veggie burgers and a pun-filled message: “To our team, guests, and community, who helped make the change we all craved, a Hartfelt goodbye for now as we start a new chapter.”

That “new chapter” might involve finding a product more appealing to a broader customer base — and operating in a state that isn’t stifling businesses with minimum wage hikes based on ideological goals instead of economic reality. This year, California increased the minimum wage for fast-food workers to $20 per hour, which had predictable consequences.

Even large chains with popular menus like McDonald’s and Subway are struggling under the weight of these rising labor costs. A niche business like Hart House, which offers vegan fast food, was likely already facing challenges. Add in sky-high wages disconnected from the value of the labor, and the outcome seems inevitable.

Of course, mainstream outlets are spinning the story differently. KCAL-TV in Los Angeles reported, “No word on why the chain is closing down,” offering no further explanation. Eater LA pointed to lingering pandemic effects, rising operational costs, and issues in the local entertainment industry but also claimed there’s been a boost in fast-food jobs despite the wage increase.

However, KTLA-TV reported on Monday that these numbers, pushed by Gov. Gavin Newsom, don’t paint the full picture. According to Rebecca Paxton from the Employment Policies Institute, seasonally adjusted data shows fast-food jobs in California have actually dropped by around 3,000. She noted that many employees haven’t lost their jobs entirely but have had their hours drastically reduced.

For the employees of Hart House, those hours have been reduced to zero — but they did get a “Hartfelt goodbye.”

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