Rubio’s Coastal Grill is closing down 48 of its restaurants in California, citing the rising business costs in the state.
The West Coast food chain, known for its fish tacos, will keep 86 locations open throughout California, Arizona, and Nevada. Half of these closures will take place in the southern part of the state, including in Los Angeles and Orange counties, with 13 closing in the San Diego area.
“Despite the company’s best efforts to right-size the company, the continued challenging economic conditions have negatively affected its ability to meet the demands of its debt burden,” a Chapter 11 filing Rubio’s Coastal Grill shared with the Washington Examiner said. “The closings were brought about by the rising cost of doing business in California. While painful, the store closures are a necessary step in our strategic long-term plan to position Rubio’s for success for years to come.”
Carl DeMaio, chairman of Reform California, attributed these closures to a minimum wage increase within the state, claiming that state politicians have “declared war on small businesses.” On April 1, California mandated a $20 minimum wage for “fast-food restaurant employees” under a new law.
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“It is insane. Only Gavin Newsom and California Democrats could make inflation worse than Joe Biden, and they’re doing it,” DeMaio said on America Reports.
In March, burger chain In-N-Out closed its location in Oakland, California, due to rising crime in the area. The fast-food chain is based primarily in California, with the Oakland closure marking the first location it has ever shut down.
