Fast-casual Mexican restaurant chain Rubio’s Coastal Grill announced that it is closing 48 locations in California.
The Carlsbad-based chain is closing its underperforming locations due to the current business climate.
The big picture: Rubio’s said it is closing 24 locations in the Los Angeles area, 13 in San Diego and 11 throughout the rest of the state.
- The company said in a statement that the closures are a necessary step in its long-term strategic plan.
- “The closings were brought about by the rising cost of doing business in California,” the company told SFGATE.
State of play: The closures come soon after the state’s new minimum wage law for fast-food workers took effect.
- In April, California fast food employees saw their minimum wage increase from $16 an hour to $20 an hour.
Flashback: Whether or not Rubio’s is shuttering some restaurants due to the new minimum wage law, the company found itself in deep financial trouble during the shutdowns caused by the COVID-19 pandemic.
- In 2020, Rubio’s closed down all of its locations in Florida, Utah and Colorado and also filed for bankruptcy.
