Rubio’s Coastal Grill is closing down 48 of its restaurants in California, leaving only 86 locations open in the state. The West Coast food chain is facing rising business costs in California and has decided to go through a court-supervised sale process. Half of the closures will take place in the southern part of California, including Los Angeles, Orange counties, and 13 in the San Diego area.
Carl DeMaio, chairman of Reform California, attributed the closures to a minimum wage increase in the state and claimed that politicians have declared war on small businesses. In April, California mandated a $20 minimum wage for fast-food restaurant employees. DeMaio criticized California Democrats and Gavin Newsom for making inflation worse.
In addition to Rubio’s Coastal Grill, In-N-Out closed its location in Oakland due to rising crime in the area. The closure marked the first time In-N-Out has ever shut down a location. These closures highlight the challenges faced by businesses in California due to rising costs and economic conditions.
According to a Chapter 11 filing shared with the Washington Examiner, Rubio’s Coastal Grill believes that going through a court-supervised sale process is the best path forward for their business operations.
The closure of Rubio’s Coastal Grill’s 48 restaurants highlights how difficult it can be for businesses operating on the West Coast due to rising costs and economic conditions. The company’s decision to close half of its locations was driven by factors such as higher labor costs, increased competition from other seafood chains, and changing consumer preferences.
Critics argue that these challenges are caused by state policies such as minimum wage increases that make it harder for small businesses like Rubio’s Coastal Grill to compete with larger corporations.
The closure of In-N-Out’s Oakland location also highlights how rising crime rates can negatively impact businesses operating in high-crime areas.
Overall, these closures serve as a cautionary tale for other businesses operating on the West Coast about the need to carefully consider their operations and adapt quickly to changing market conditions if they want to remain competitive.
