A beloved restaurant now closes 48 locations in California after a thorough review of its operations and the current business climate.
Rubio’s Coastal Grill closed 48 underperforming locations in California as of Friday, a company spokesperson wrote in an email to Restaurant Dive.
The decision followed a “thorough review of its operations and the current business climate,” the spokesperson said.
“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 closures were brought about by the increased cost of doing business in the Golden State, the spokesperson said.
Rubio’s is among the first regional restaurant chains to close a high number of stores following California’s implementation of the $20 minimum wage for fast food chains with 60 or more units.
Mod Pizza closed 27 stores nationwide earlier this year, but only five were in California.
Others brands, including Chipotle, Domino’s, Shake Shack and Portillo’s, have increased prices and are looking at labor-saving technology like kiosks in reaction to the state’s increased labor costs.
Rubio’s store count is now 86 stores across California, Arizona and Nevada. Last year, it underwent a rebrand with “A Taste of Baja” brand positioning to better capture the “laid back, beachy Baja lifestyle.”
That branding included new signage, refreshed store decor and packaging. It also offered several shrimp dishes as part of an LTO.
As of 2023, the company’s sales were $220 million, according to Technomic estimates posted on Restaurant Business.
The Mexican chain declared bankruptcy in 2020 due to the impact of COVID, leaving it with 150 stores, but hasn’t added many stores since then.
Prior to its latest round of closures, Rubio’s had 134 stores.
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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois
Other Economy News Today
An unexpected restaurant now abruptly closes 7 locations in one state after revealing plans to shutter a total of 36.
TGI Fridays is closing a total of seven restaurants in one state as part of the company’s ongoing growth strategy.
This comes after the chain abruptly closed 36 locations across 12 states in at the beginning of the year, per The-Sun.
The restaurant chain will pull the plug on seven locations across the state of New Jersey in the coming weeks.
Today, Fridays will welcome in famished diners at its location in Brick for the final time.
“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Weldon Spangler, CEO of TGI Fridays earlier this week.
“We are at the helm of a pivotal moment that will allow us to explore boundless advancement, expansion, and innovation to keep delivering ‘That Fridays Feeling’ that our fans know and love.”
Before the closures, TGI Fridays had about 270 US locations, according to the company’s website.
“As part of the store closures, TGI Fridays is offering more than 1,000 transfer opportunities, which represents over 80% of total impacted employees,” the company previously said in a statement.
“Our top priority has always been delivering a superior experience for each and every TGI Fridays guest, and we’ve identified opportunities to optimize and streamline our operations to ensure we are best positioned to meet – and exceed – on that brand promise,” said Ray Risley, US president and chief operating officer, in the release.
Eight other locations were sold to former CEO Ray Blanchette, a longtime stakeholder who will acquire the previously corporate-owned restaurants.
The sale comes as major changes have been made to the brand’s leadership, including the news of Weldon Spangler being made CEO.
“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Spangler in a statement.
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