48 CA Rubio's Close Due To 'Rising Cost Of Doing Business'

ACROSS CALIFORNIA — "The rising cost of doing business in California" contributed to Rubio's Coastal Grill officials decision to close 48 California locations Friday, a spokesperson told media outlets.

KGTV is reporting Rubio's closed 48 underperforming locations across California on May 31.

Rubio's is among California fast food restaurants affected by an increase in minimum wage costs, which took effect this year. California’s hourly minimum wage increased to $16 for most workers on January 1st and to $20 for fast food workers in April.

Alan Gin, an economics professor with the University of San Diego, told NBC 7 San Diego there have been other factors — on top of the wage increases — affecting Rubio's, which has had financial difficulties for awhile. In 2015, the business had 193 locations nationwide.

"So –they’ve cut about a third of those and so they’re going to cut another third with the closings that were announced yesterday," he told NBC.

In 202o, the business filed for bankruptcy, citing COVID-19 as having a significant impact on the business.

"This restructuring plan creates the long-term financial stability we need to continue to serve our communities for years to come," co-founder Ralph Rubio said in a statement.

• Rubio's Coastal Grill Files For Chapter 11 Bankruptcy