Liberal Politics: Restaurant Chain Becomes Latest Victim To California’s $20 Minimum Wage Law, Forced To Close 50 Locations

Fox Business

(Fox Business) Rubio’s Coastal Grill, a California Mexican restaurant chain, announced the closure of 48 restaurants in the Golden State amid rising business costs.

The Los Angeles Times reported that the chain decided to shutter nearly one-third of its restaurants following a “review of its operations and the current business climate.”

“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,” the restaurant chain announced Monday.

The company will continue to operate 86 remaining locations across California, Nevada and Arizona.

Rubio's Coastal Grill sign
Rubio’s Coastal Grill has announced the closure of 48 locations in California.  (Adobe Stock)

Ralph Rubio, who started the business, did not disclose how many employees were let go. The company said employees were “underperforming.”

The decision comes two months after California implemented a $20-hour minimum wage for fast-food employees.

Other restaurant chains have struggled in the state amid wage hikes, inflation and other negative factors that have compounded since the COVID-19 pandemic.

Last month, the seafood restaurant chain Red Lobster announced it would auction off over 50 locations nationwide. California and Florida lost the most locations (five each).

Several California fast-food locations terminated workers ahead of the $20 minimum wage law that took effect on April 1.


Red Lobster restaurant
A Red Lobster restaurant in Torrance, California, US, on Wednesday, May 15, 2024. Red Lobster is closing more than 50 of its restaurants across the country, according to a company that helps businesses liquidate restaurant equipment. (Eric Thayer/Bloomberg via Getty Images / Getty Images)

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