The fast-casual Mexican-themed restaurant chain Rubio’s Coast Grill has closed 48 of its eateries in California, citing the cost of doing business in the state.
According to Nation’s Restaurant News, the company issued a statement complaining that the “closings were brought about by the rising cost of doing business in California. 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.”
While Rubio’s did not cite the specific cost increases that fueled its decision, one reason could be California’s newly passed AB 1228 law that raised the minimum wage to $20 an hour, a 25% spike from the previous minimum wage. Other California-based restaurants have responded to that new law by either raising menu prices or canceling plans to open new locations.
Of the 48 units that were shut down last Friday, 24 were in the Los Angeles market, 13 were in the San Diego region and 11 were in Northern California. Rubio’s still operates 86 eateries in California, Arizona and Nevada.
Headquartered in Carlsbad, California, Rubio’s was acquired by private-equity firm Mill Road Capital in 2010 for $91 million.
Photo: Willis Lamb / Wikimedia Commons
;
This is why the Democrats need to conquer the whole country. All the productive people are fleeing the communist/socialist/fascist Democrat party in blue states.