Rubio’s Coastal Grill, a popular restaurant chain renowned for their fish tacos, has announced the closure of 48 locations in California due to the escalating cost of operating. A spokesperson for Rubio’s stated that the closures were necessary to align with the company’s long-term strategy to ensure success in the future.
The decision has left many fans of Rubio’s “Fresh Mex” cuisine disappointed, but experts note that it is not an unexpected move, especially considering the recent minimum wage increase from $16 to $20 per hour. Additionally, Rubio’s had filed for bankruptcy in 2020, further highlighting the challenges faced by the company in the current economic climate.
Economist Brian Wheaton from UCLA explains that companies like Rubio’s, which are already struggling, are particularly vulnerable to rising operating costs. The abrupt closure of locations is a clear indication of the financial strain faced by businesses in California. While the company has not disclosed the number of jobs affected by the closures, Wheaton notes that the state has seen a concerning trend of fast food workers losing their jobs in recent months due to increased minimum wage requirements.
Despite closing down 48 locations in California, Ruby’s plans to keep 86 open and continue serving its loyal customers with its fresh Mexican cuisine. The closures serve as a stark reminder of how businesses face numerous challenges amidst rising costs and economic uncertainty.
