Rubio’s Coastal Grill Closes 48 California Locations

by Nick
Fast Food

Rubio’s Coastal Grill, a Mexican restaurant chain based in California, has announced the closure of 48 of its restaurants in the state due to increased operating costs following the recent $20 minimum wage mandate.

The decision, affecting nearly one-third of its locations, comes after a thorough review of business operations and the current economic environment, as reported by the Los Angeles Times.


In a statement released on Monday, the restaurant chain expressed that while the closures are difficult, they are essential for the company’s long-term strategy to ensure success in the future.


Despite the closures, Rubio’s will continue to operate 86 remaining locations across California, Nevada, and Arizona.


Ralph Rubio, the founder of the business, did not disclose the number of employees affected by the closures but mentioned that the decision was made due to performance-related reasons.


This move comes in the wake of California’s implementation of a $20 minimum wage for fast-food employees, which has posed challenges for various restaurant chains grappling with rising costs, inflation, and the lingering effects of the COVID-19 pandemic.

Notably, Red Lobster recently announced plans to auction off more than 50 locations nationwide, with California and Florida bearing the brunt of closures.

Several fast-food establishments in California took preemptive measures, such as terminating workers, ahead of the minimum wage law’s enforcement on April 1. This trend, particularly observed among pizza chains, aimed to mitigate potential financial impacts.

The wage law applies to fast-food workers in chains with 60 or more locations nationwide, prompting adjustments and strategic decisions within the industry.

Last year, multiple Pizza Hut franchises in California ceased their delivery services, leading to layoffs and impacts on employment in various counties.

Advocates of the minimum wage increase argue that many fast-food workers are not teenagers in their first job, countering perceptions held by opponents.

Fox News Digital reached out to Rubio’s Coastal Grill for comment, but they did not respond immediately.


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