(KTLA) – Rubio’s Coastal Grill, the California-based fast casual restaurant chain, is shuttering 48 “underperforming” locations.
In a statement to NewsNation’s KTLA, a Rubio’s spokesperson cited the “rising cost of doing business” and the “current business climate” in California as key factors for the decision.
The closures, which were announced on Friday, include 24 Rubio’s locations in the Los Angeles area, 13 in San Diego and 11 in Northern California.
“Making the decision to close a store is never an easy one … 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 spokesperson said.
In April, California Assembly Bill 1228 took effect, boosting the minimum wage for fast-food workers from $16 to $20 an hour. Many restaurants have responded by raising menu prices and, in some cases, laying off workers.
Rubio’s did not directly mention the law in its statement.
Rubio’s was founded in 1983 by Ralph Rubio, who was inspired by a spring break visit to San Felipe, Baja California, where he first encountered the fish taco and decided to open a restaurant in his hometown of San Diego.
Over the next 30 years, the company expanded throughout California and beyond with locations in Arizona, Nevada, Utah, Colorado and Florida. That expansion, however, was abruptly halted by the pandemic and all Florida, Utah and Colorado locations were closed by late 2020 – the same year Rubio’s filed for bankruptcy protection.
With Friday’s closures, Rubio’s has shrunk from more than 200 restaurants to 86, a spokesperson said. They now operate in only three states: California, Nevada and Arizona.
