48 CA Rubios Close Due To Rising Cost Of Doing Business

Rubio’s Coastal Grill announced the locations closed at the end of the day on Friday, May 31.

Jun 1, 2024 6:43 pm PDT | Updated Jun 1, 2024 9:58 pm PDT

ACROSS CALIFORNIA — “The rising cost of doing business in California” contributed to Rubio’s Coastal Grill officials decision to close 48 California locations Friday, a spokesperson told media outlets.

KGTV is reporting Rubio’s closed 48 underperforming locations across California on May 31.

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Rubio’s is among California fast food restaurants affected by an increase in minimum wage costs, which took effect this year. California’s hourly minimum wage increased to $16 for most workers on January 1st and to $20 for fast food workers in April.

Alan Gin, an economics professor with the University of San Diego, told NBC 7 San Diego there have been other factors — on top of the wage increases — affecting Rubio’s, which has had financial difficulties for awhile. In 2015, the business had 193 locations nationwide.

“So –they’ve cut about a third of those and so they’re going to cut another third with the closings that were announced yesterday,” he told NBC.

In 202o, the business filed for bankruptcy, citing COVID-19 as having a significant impact on the business.

“This restructuring plan creates the long-term financial stability we need to continue to serve our communities for years to come,” co-founder Ralph Rubio said in a statement.