Restaurant Chain Closes Nearly 50 California Locations in Response to $20 Minimum Wage Increase

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Rubio’s Coastal Grill, a California-based Mexican restaurant chain, has announced the closure of 48 of its locations throughout the state due to escalating business costs.

According to the Los Angeles Times, the company made the decision to close nearly one-third of its restaurants after a thorough review of its operations and the current economic environment.

The restaurant chain stated on Monday, "While difficult, these closures are a crucial part of our strategic plan to ensure Rubio’s long-term success."

Rubio’s will maintain operations at its 86 other locations spread across California, Nevada, and Arizona.

Ralph Rubio, founder of the restaurant chain, has not specified the number of employees affected by recent layoffs. The company described the affected positions as "underperforming."

This action follows the introduction of a $20 minimum wage for fast-food workers in California two months ago, a move that has seen various restaurant chains struggle with increased labor costs amid ongoing challenges such as inflation and the lingering effects of the COVID-19 pandemic.

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