Rubio's Coastal Grill, a Carlsbad-based fast-casual Mexican restaurant, abruptly closed 48 stores in California, citing the rising cost of doing business in the state.
The company did not provide further details about the closures, which occurred Friday and surprised workers but came two months after the state's $20 an hour minimum wage went into effect for fast-food restaurant employees.
The closure marks the latest sign of hardship in a restaurant industry that has been hit by the effects of inflation and higher labor costs.
Iconic seafood chain Red Lobster filed for Chapter 11 bankruptcy last month after closing dozens of locations.
Rubio's said it would continue operating at its remaining 86 locations in California, Arizona and Nevada.
The company, in a statement issued Monday by media strategist Sitrick and Co., said the decision came after a “thorough review of its operations and the current business climate.” A Sitrick spokesman said no Rubio executive would be available for comment.
The company did not say how many employees were laid off, but comments posted on social media by employees said they did not receive any notice, and some said they received phone calls over the weekend saying their jobs had been eliminated.
The company was founded in 1983 by Ralph Rubio, who started with a walk-in booth in San Diego. It had almost 200 stores in 2020, but that same year, hard hit by the pandemic, the company filed for bankruptcy and underwent a complete restructuring. Rubio also attributed the problems to higher costs at the time, specifically citing minimum wage increases as a factor.
Rubio's, in its brief statement Monday, said: “While painful, the store closures are a necessary step in our long-term strategic plan to position Rubio's for success in the years to come.”
The chain, which was acquired by private equity firm Mill Road in 2010 for $91 million and privatized, was previously called “Home of the Fish Taco,” “Rubio's Baja Grill” and “Rubio's Fresh Mexican Grill.”
