In a shocking announcement, Rubio’s Coastal Grill, a fast-casual Mexican restaurant chain based in Carlsbad, revealed the sudden closure of 48 stores in California due to the increasing cost of doing business in the state. The closures on Friday caught workers off guard, with the company not providing any additional details on the reasons behind the decision. This move comes two months after California implemented a $20 an hour minimum wage for fast-food employees, which likely played a role in the closures.
Despite the closures, Rubio’s plans to continue operating 86 remaining locations in California, Arizona, and Nevada. The company explained that the decision was made after a thorough review of operations and the current business climate. Unfortunately, no Rubio’s executive was available for comment on the matter.
Employees who were affected by the closures reported receiving no prior notice and being informed of the job loss over the weekend through phone calls. This abrupt decision has left many workers uncertain about their future employment.
Rubio’s was founded in 1983 by Ralph Rubio with a walk-up stand in San Diego and had nearly 200 stores in operation going into 2020. However, due to financial challenges caused by the pandemic, filed for bankruptcy protection later that year. The company underwent a restructuring process and attributed its struggles to increased costs including rising minimum wages.
In a statement released on Monday, Rubio’s expressed that while these store closures are challenging; they are part of a necessary step towards ensuring success in their long-term plan to succeed in years ahead. The chain was acquired by private equity firm Mill Road for $91 million in 2010 and rebranded multiple times over
