Rubio’s Coastal Grill has announced the closure of 48 of its restaurants in California, citing the increasing business costs in the state. Despite efforts to streamline the company, economic challenges have made it difficult to meet debt obligations, leading to the decision to undergo a court-supervised sale process. The popular West Coast food chain, known for its fish tacos, will continue to operate 86 locations throughout California, Arizona, and Nevada. In a Chapter 11 filing, Rubio’s stated that these closures are primarily impacting the southern part of California, with 13 locations closing in the San Diego area and others in Los Angeles and Orange counties.
Carl DeMaio, chairman of Reform California, tied the closures to the recent minimum wage increase in the state, accusing state politicians of waging war on small businesses. As of April 1, California requires a $20 minimum wage for fast-food restaurant employees, a move that DeMaio criticized as detrimental to businesses. In a statement, DeMaio expressed frustration with the economic policies of Governor Gavin Newsom and California Democrats, suggesting that they are exacerbating inflation issues.
In addition to Rubio’s closures, burger chain In-N-Out recently closed its location in Oakland due to rising crime in the area. This closure marked the first time In-N-Out has shut down a location, highlighting the challenges faced by businesses in California’s current economic and social climate. With these developments, businesses in California are grappling with a range of obstacles that are impacting their operations and decision-making processes.
