Rubio’s Coastal Grill has closed 48 restaurants in California, 24 of which are in Southern California. The company said the restaurants were shuttered due to rising costs. On April 1, the state introduced a minimum wage of $20 for fast-food workers, leading to some restaurant closures. Chains, including Red Lobster, have also closed down restaurants in California and other states for various reasons.
Rubio’s Coastal Grill closed 24 restaurants in San Bernardino, Orange, Los Angeles, and Ventura counties and 13 locations in the San Diego area on May 31.
A spokesperson for Rubio released a statement mentioning the closure of 48 “underperforming” Californian restaurants “as of May 31” and that 86 restaurants would continue operating in locations in California, Arizona, and Nevada.
The statement also said, “The closings were brought about by the rising cost of doing business in California” and that they had to be made for Rubio to succeed in the years ahead.
In 1983, Ralph Rubio opened a fish taco walk-up stand in San Diego after enjoying this dish in Baja California. About 200 restaurants have been opened in California and other states. It shuttered restaurants in Florida and Colorado during the pandemic.
Rubio also faced stiff competition from the national chain Chipotle. Rising food prices and increased worker wages have further shut down its restaurants.
The restaurant industry is facing a slump in sales across the nation. Rising food costs lowered spending on discretionary items, and dining out has become the norm. Some global chains have said a price rise will be passed on to customers. Others, such as McDonald’s and Burger King, are expected to introduce $5 meals to bring back customers to their restaurants as the number of visitors has declined considerably.
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