SHOT: California McDonald’s franchisee mulls reducing hours, lifting prices to offset $20 minimum wage.

Scott Rodrick said he’s had to rethink his business strategy in the wake of the new law, which went into effect April 1 and has spurred some of his fast-food rivals to raise menu prices.

“There is more than extraordinary labor costs stressing restaurant P&Ls right now,” Rodrick, whose 18 McDonald’s are located in northern California, told Business Insider.

“The same grocery inflation that consumers at home worry about is also worrying restaurants just as a basket of groceries.”

“So what I’m really dealing with, outside of the historical pace of things, is this double-barrel shotgun of backdoor food costs and now labor going off and leaving a brutal mark on my unit profitability,” he added.

Rodrick had already lifted his prices between 5% and 7% between January and March in anticipation of the California law going into effect

“The appetite that my customers have for price increases is not unlimited,” he said.

Chaser: California fast food franchisee slams new minimum wage, invests in Nevada over six-figure loss. “I’ve already started to invest in the neighboring state of Nevada, where there just isn’t so much regulation, there isn’t so many different types of people telling you how to run your business.”

Hangover: Small business optimism hits 11-year low as inflation fears won’t go away.