{"id":2259853,"date":"2024-06-04T18:46:01","date_gmt":"2024-06-04T22:46:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mexican-chain-rubios-closing-48-locations-2-months-after-california-changed-law\/"},"modified":"2024-06-04T18:50:46","modified_gmt":"2024-06-04T22:50:46","slug":"mexican-chain-rubios-closing-48-locations-2-months-after-california-changed-law","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mexican-chain-rubios-closing-48-locations-2-months-after-california-changed-law\/","title":{"rendered":"Rubio&#8217;s, a Mexican chain, is closing 48 locations following a California law change"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmexican-chain-rubios-closing-48-locations-2-months-after-california-changed-law%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2259853&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Rubio&#8217;s Coastal Grill, \u200ba California-based fast-casual chain known for \u2063fish tacos, is closing 48 locations due to the state&#8217;s new $20 minimum wage law. This decision follows financial challenges, including a previous bankruptcy \u2064filing in 2020. The closures highlight the ongoing debate on\u2063 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/unemployment-inflation-and-automation-the-truth-about-the-15-minimum-wage\/\" title=\"Unemployment, Inflation, and Automation: The Truth About The  Minimum Wage\">minimum wage increases<\/a> and\u2062 their impact on businesses \u200clike Rubio&#8217;s. Rubio&#8217;s Coastal Grill, a California-based fast-casual chain known for its signature \u2063fish tacos, has announced the closure of 48 locations in response to California&#8217;s newly implemented $20 minimum\u200b wage law. This\u200b strategic move comes amidst financial struggles, including \u2064a\u200c bankruptcy filing in 2020, shedding light on the contentious discussion surrounding minimum wage hikes\u2064 and their repercussions \u200bon companies such as Rubio&#8217;s.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<header> <a href=\"https:\/\/www.westernjournal.com\/commentary\/\">  Commentary <\/a>   <span> <\/p>\n<p><a href=\"https:\/\/www.westernjournal.com\/author\/aaltomari\/\">  <\/a> <\/p>\n<p> <span>   By <a href=\"https:\/\/www.westernjournal.com\/author\/aaltomari\/%20\"><span>Anthony Altomari<\/span><\/a> <\/span> <span>   June 4, 2024 at 2:28pm <\/span> <\/span>  <\/header>\n<section>\n<p>Rubio\u2019s Coastal Grill, a Carlsbad, California-based fast-casual restaurant chain known for its fish tacos, announced the closure of 48 of its California locations on Monday, citing the state\u2019s new $20 per hour minimum wage law as the reason for the closures.<\/p>\n<p>According to <a href=\"https:\/\/www.sandiegouniontribune.com\/business\/story\/2024-06-03\/hometown-taco-chain-rubios-abruptly-shutters-dozens-of-restaurants-including-13-in-san-diego\" target=\"_blank\" rel=\"noopener\">The San Diego Union-Tribune<\/a>, Rubio\u2019s released a statement through the crisis management firm Sitrick &#038; Co. explaining the decision to close the stores.<\/p>\n<p>\u201cMaking the decision to close a store is never an easy one,\u201d the company said. \u201cThe closings were brought about by the rising cost of doing business in <a href=\"https:\/\/www.westernjournal.com\/inspector-general-releases-damning-report-california-whole-state-defrauding-medicaid-pay-illegal-immigrants\/\" target=\"_blank\" rel=\"noopener\">California<\/a>.<\/p>\n<p>\u201cWhile painful, the store closures are a necessary step in our strategic long-term plan to position Rubio\u2019s for success for years to come.\u201d<\/p>\n<p>Founded in San Diego in 1983, <a href=\"https:\/\/rubios.com\/about-us\/\" target=\"_blank\" rel=\"noopener\">Rubio\u2019s<\/a> bills itself as \u201cThe Home of the Original Fish Taco\u201d and offers an array of Baja-inspired Mexican cuisine.<\/p>\n<p>The chain has faced significant hardships in the last few years, according to the Union-Tribune, which reported it had 170 locations just under four years ago.<\/p>\n<p>With the closures, the company will be down to 86 locations in California, Arizona and Nevada.<\/p>\n<p>In October 2020, Rubio\u2019s filed for Chapter 11 bankruptcy as financial woes caused by COVID-19 pandemic shutdowns took a significant toll on business. While the company was able to recover, California\u2019s new minimum wage law has delivered the chain another blow.<\/p>\n<p>On April 1, <a href=\"https:\/\/www.dir.ca.gov\/dlse\/Fast-Food-Minimum-Wage-FAQ.htm\" target=\"_blank\" rel=\"noopener\">Assembly Bill 1228<\/a> went into effect in the Golden State, raising the<a href=\"https:\/\/www.westernjournal.com\/mcdonalds-25-deal-angers-customers-shows-damage-californias-20-minimum-wage-fast-food-industry\/\" target=\"_blank\" rel=\"noopener\"> minimum wage<\/a> for fast-food restaurant employees to $20 per hour.<\/p>\n<div id=\"firefly-poll-container\">\n<p>Will California ever vote for Republican policies?<\/p>\n<\/p><\/div>\n<p>Businesses felt the <a href=\"https:\/\/www.westernjournal.com\/n-president-went-toe-toe-stop-price-hike-20-minimum-wage-even-cave\/\" target=\"_blank\" rel=\"noopener\">effects<\/a> of the law even before its effective date. <a href=\"https:\/\/www.wsj.com\/business\/hospitality\/california-restaurants-cut-jobs-as-fast-food-wages-set-to-rise-eb5ddaaa\" target=\"_blank\" rel=\"noopener\">The Wall Street Journal<\/a> reported in March that <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nanny-biden-comes-for-menthols\/\" title=\"Nanny Biden Comes for Menthols\">fast-food restaurants<\/a> had begun laying off employees in anticipation of the wage bump.<\/p>\n<p>According to Alan Gin, a University of San Diego economics professor who spoke with <a href=\"https:\/\/www.nbcsandiego.com\/news\/local\/rubios-closes-13-locations-san-diego-county\/3529962\/\" target=\"_blank\" rel=\"noopener\">KNSD-TV<\/a> about Rubio\u2019s decision to close the locations, the wage increases were a financial obstacle that the company could not overcome.<\/p>\n<p>\u201cThe initial thought that came to mind was that they are going to really be hit hard by this increase in the minimum wage for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-california-fast-food-restaurants-at-center-of-criminal-threats\/\" title=\"Report: California Fast Food Restaurants at Center of Criminal Threats\">fast-food workers<\/a> from $16 per hour to $20 per hour, but there are some other issues as well that Rubio\u2019s is facing,\u201d Gin said.<\/p>\n<p>\u201cThey\u2019ve been having financial difficulties for a long time,\u201d he said. \u201cI haven\u2019t looked at their books or anything like that, but I do know that in 2015 they had 193 locations nationwide. So \u2014 they\u2019ve cut about a third of those and so they\u2019re going to cut another third with the closings that were announced yesterday.\u201d<\/p>\n<p>Although Rubio\u2019s has had a number of financial challenges, the closures demonstrate the profoundly negative impact increases in the minimum wage can have on businesses.<\/p>\n<p>Economists and experts have long debated the economic efficacy of raising the minimum wage.<\/p>\n<p>Some, such as those at the liberal <a href=\"https:\/\/www.americanprogress.org\/article\/raising-minimum-wage-boost-economic-recovery-reduce-taxpayer-subsidization-low-wage-work\/\" target=\"_blank\" rel=\"noopener\">Center for American Progress<\/a>, claim that raises in the minimum wage, particularly at the federal level, would incite an economic recovery and decrease economic inequality in the United States.<\/p>\n<p>Others, such as the <a href=\"https:\/\/hbr.org\/2021\/06\/research-when-a-higher-minimum-wage-leads-to-lower-compensation\" target=\"_blank\" rel=\"noopener\">Harvard Business Review<\/a>, highlight that raising the minimum wage entices employers to shift more and more workers to part-time status, which would render them ineligible for certain benefits, causing negative effects on workers notwithstanding the fact they are still employed.<\/p>\n<p>Still, some are not convinced one way or the other. In a 2021 <a href=\"https:\/\/pubs.aeaweb.org\/doi\/pdfplus\/10.1257\/jep.35.1.51\" target=\"_blank\" rel=\"noopener\">study<\/a>, economist Jeffrey Clemens of the University of California, San Diego noted that certain conservative and liberal stereotypes on the effects of minimum wage increases are not necessarily accurate, and stressed the need for additional empirical research.<\/p>\n<p>What\u2019s better than research, however, are real-life situations like the one facing Rubio\u2019s.<\/p>\n<p>Undoubtedly, when the minimum wage increases, restaurants face direct effects such as higher labor costs. However, many indirect costs can surface that can exacerbate the negative effects.<\/p>\n<p>For restaurants, there\u2019s a chance the cost of business will go up across the board \u2014 things such as food, supply and rent costs are likely to go up when wages increase artificially without a genuine increase in demand. This will lead to restaurants trying to pass on these costs to customers by increasing menu prices.<\/p>\n<p>Minimum wage increases don\u2019t exist in a vacuum. They can have an <a href=\"https:\/\/www.westernjournal.com\/subway-shrink-smallest-size-years-californias-20-minimum-wage-major-damage\/\" target=\"_blank\" rel=\"noopener\">impact<\/a> on a multitude of areas in the economy.<\/p>\n<p>If costs are increasing across the board and restaurants turn to part-time employment, the workers won\u2019t be better off as they\u2019ll face increasing costs in the face of similar or lower real wages.<\/p>\n<p>While the $20 minimum wage may have been just one factor in the decision to close the Rubio\u2019s locations, it surely had no positive impact on the company\u2019s business operations.<\/p>\n<p>Regardless of whatever talking points politicians make on the need for higher wages, California shows how forcing restaurants to pay higher wages has undoubtedly had a negative effect on a state\u2019s economy.<\/p>\n<hr>\n<div>\n<p><b><i>An Important Message from Our Staff:<\/i><\/b><\/p>\n<p><i><span>In just a few months, the world is going to change forever. The 2024 election is the single most important election of our lifetime. <\/span><\/i><\/p>\n<p><i><span>We here at The Western Journal are committed to covering it in a way the establishment media simply will not: We will tell the truth, and they will lie.<\/span><\/i><\/p>\n<p><i><span>But Big Tech and the elites don\u2019t want the truth out. That\u2019s why they have cut us off from 90% of advertisers. Imagine if someone cut your monthly income by 90%. That\u2019s what they\u2019ve done to people like us. <\/span><\/i><\/p>\n<p><i><span>As a staff, we are asking you to <\/span><\/i><a href=\"https:\/\/www.westernjournal.com\/subscribe\/?utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>join us<\/span><\/i><\/a><i><span>  to fight this once-in-a-lifetime fight. Without you not only will The Western Journal fail, but America will fail also. As Benjamin Franklin said, \u201cWe must all hang together, or assuredly we shall all hang separately.\u201d<\/span><\/i><\/p>\n<p><i><span>Will you support The Western Journal today and <\/span><\/i><a href=\"https:\/\/www.westernjournal.com\/subscribe\/?utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>become a member<\/span><\/i><\/a><i><span>? <\/span><\/i><\/p>\n<p><i><span>A Western Journal <\/span><\/i><a href=\"https:\/\/www.westernjournal.com\/subscribe\/?utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>Membership<\/span><\/i><\/a><i><span>  costs less than one coffee and breakfast sandwich each month, and it gets you access to ALL of our content \u2014 news, commentary, and premium articles. You\u2019ll experience a radically reduced number of ads, and most importantly you will be vitally supporting the fight for America\u2019s soul in 2024.<\/span><\/i><\/p>\n<p><i><span>This is the time. America will live or die based on what happens this year. Please <\/span><\/i><a href=\"https:\/\/www.westernjournal.com\/subscribe\/?utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>join us<\/span><\/i><\/a><i><span>  to get the real truth out and to fight the elites, Big Tech, and the people who want America to fail. Together, we really can save the country.<\/span><\/i><\/p>\n<p><b><i>Thank you for your support!<\/i><\/b><\/p>\n<p><i><span>P.S. <\/span><\/i><a href=\"https:\/\/www.westernjournal.com\/subscribe\/?utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>Please stand with us<\/span><\/i><\/a><i><span>!<\/span><\/i><\/p>\n<\/p><\/div>\n<div id=\"author-info-45807\">\n<p><a href=\"https:\/\/www.westernjournal.com\/author\/aaltomari\/\">  <\/a> <\/p>\n<div>\n<p><label for=\"summary-tab-radio-45807\">Summary<\/label><label for=\"more-info-tab-radio-45807\">More<span> Biographical Information<\/span><\/label><label for=\"posts-tab-radio-45807\">Recent<span> Posts<\/span><\/label><label for=\"contact-tab-radio-45807\" onclick=\"if( typeof grecaptcha=='undefined' ) { let cap_s=document.createElement( 'script' ); cap_s.src='https:\/\/www.google.com\/recaptcha\/api.js?render=6LeJFcsUAAAAAPsIEqvB1EebWbZfqRUe6ebMpGy7'; document.body.appendChild( cap_s ); }\">Contact<\/label><\/p>\n<div>\n<p>Anthony Altomari is a commentary writer for the Western Journal. He focuses his writing on culture and politics.<\/p>\n<\/p><\/div>\n<div>\n<p>  Anthony Altomari is a commentary writer for the Western Journal. He focuses his writing on culture and politics. <\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a commentary by Anthony Altomari on June 4, 2024, at 2:28 pm, Rubio&#8217;s Coastal Grill, a Carlsbad-based fast-casual chain famous for fish tacos, revealed the shutdown of 48 California sites. The closures were attributed to the state&#8217;s recent $20 per hour minimum wage law. Reported by The San Diego<\/p>\n","protected":false},"author":2570,"featured_media":2259854,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/06\/Rubios.jpg","fifu_image_alt":"","footnotes":""},"categories":[548],"tags":[],"class_list":["post-2259853","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-conservative-news-daily"],"fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/06\/Rubios.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2259853","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2570"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2259853"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2259853\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2259854"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2259853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2259853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2259853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}