Rubio’s Coastal Grill attributes closure of nearly 50 locations to high business costs in California | News

Rubio’s Coastal Grill is closing down 48 of its restaurants in California due to rising business costs in the state. The West Coast food chain, known for its fish tacos, will keep 86 locations open in California, Arizona, and Nevada. 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. According to a Chapter 11 filing shared with the Washington Examiner, the company believes the best path forward is through a court-supervised sale process.

Carl DeMaio, chairman of Reform California, attributed the closures to a minimum wage increase in the state, claiming that state politicians have declared war on small businesses. California mandated a $20 minimum wage for fast-food restaurant employees on April 1. DeMaio criticized California Democrats and Gavin Newsom for making inflation worse.

In addition to Rubio’s Coastal Grill, In-N-Out, a burger chain mainly based in California, closed its location in Oakland due to rising crime in the area. The closure marked the first location In-N-Out has ever shut down. These closures highlight the challenges faced by businesses in California due to rising costs and economic conditions.