In recent months, the restaurant sector has faced numerous closures, with yet another restaurant chain joining the growing list.
Rubio’s Coastal Grill, the popular fast-casual Mexican chain celebrated for its delectable fish tacos, has recently made the strategic decision to close down 48 underperforming restaurants in the sunny state of California.
This move, aimed to streamline their operations and focus on delivering exceptional dining experiences. Among these closures, 24 were situated in the vibrant city of Los Angeles, while 13 bid farewell to San Diego, and 11 waved goodbye to Northern California.
However, fear not, as Rubio’s still stands strong with 86 locations that continue to serve their mouthwatering fare across the golden trio of California, Arizona, and Nevada.
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So, whether you’re craving their signature fish tacos or yearning for a taste of their Mexican-inspired delights, Rubio’s Coastal Grill is ready to satisfy your culinary desires at their remaining open locations.
Reason For Closing 48 Restaurants By Rubio’s Coastal Grill
The spokesperson for the company revealed that the chain’s decision to close down the 48 restaurants was driven by the increasing expenses of operating in California.
However, despite the difficulty of this decision, the spokesperson emphasized that these store closures are an essential part of Rubio’s Coastal Grill’s strategic long-term plan to ensure the company’s success in the years ahead.
California has recently made a significant change to its minimum wage for fast-food employees at large chain restaurants across the nation. As of April 1, the hourly fee has been raised from $16 to $20.
This boom’s objective is to ensure fair compensation and higher livelihoods for those working in the fast-food industry.
Rubio’s Coastal Grill has been dealing with financial problems for pretty some time now, and it is not only a recent improvement.
When Rubio’s Restaurants Start Failing
According to Restaurant Business Online, the chain’s income started out declining in 2017 and continued to drop even for the duration of the COVID-19 pandemic.
In reality, matters got so awful that Rubio’s Coastal Grill had to file for Chapter 11 bankruptcy in 2020.
To make matters worse, they had to close down more than 25% of their restaurants since 2018, as reported by their sister agency and industry research company Technomic.
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But this is not all. Over the past five years, Rubio’s has seen a consistent lower of 1.1% in system sales, at the same time as different fast-casual Mexican chains have skilled an excellent average boom of 10.4% in the same time frame.
It’s clear that Rubio’s Coastal Grill has been struggling to hold up with the competition and adapt to converting customer choices.
Other Restaurants Closed In California
Amid the COVID-related shutdowns, it became part of a substantial roster of restaurant chains that sought bankruptcy protection. Notable brands like Sizzler and California Pizza Kitchen also found themselves in a similar predicament.
Following the closure of Rubio’s locations in El Dorado Hills and Folsom, California, news of more shutdowns has emerged. Rubio’s Coastal Grill cited the increasing costs of operating in California as the reason behind the closures, as reported by ABC 10.
The El Dorado Hills branch allegedly fell behind on rent payments and was on the verge of being evicted.
Rubio’s Coastal Grill is not the only fast-casual Mexican restaurant chain that has faced the closure of several locations this year. Back in April, Tijuana Flats, a Texas-primarily based chain, had to close down 11 of its restaurants due to declaring Chapter 11 bankruptcy.
Interestingly, 10 of these closures passed off in Florida, at the same time as one unfortunate place became in Virginia, as confirmed by a company representative.
13 Locations Closed In San Diego, California
Rubio’s Coastal Grill spokesperson has officially confirmed the closure of the following locations in San Diego, California:
| Location | Address |
|---|---|
| Chula Vista Eastlake | 1480 Eastlake Pkwy Suite 901, Chula Vista, CA 91915 |
| El Cajon | 419 Parkway Plaza, El Cajon, CA 92020 |
| Escondido | 1485 E Valley Pkwy Suite A-6, Escondido, CA 92027 |
| Kearny Mesa | 9187 Clairemont Mesa Blvd Suite 7, San Diego, CA 92123 |
| La Jolla UCSD campus | 9500 Gillman Drive, Food Ct, La Jolla, CA 92093 |
| La Jolla | 8935 Towne Centre Dr., Suite 100, San Diego, CA 92122 |
| Sorrento Mesa | 9254 Scranton Rd, Ste 105, San Diego, CA 92121 |
| San Marcos | 1158 W San Marcos Blvd suite a, San Marcos, CA 92078 |
| Solana Beach | 437 Hwy 101 #117, Solana Beach, CA 92075 |
| Torrey Highlands | 7835 Highlands Village Pl Suite D101, San Diego, CA 92129 |
| Vista | 1711 University Drive, Suite 110. Vista, CA 92083 |
| Naval Base San Diego | 2260 Callagan Hwy Bldg. 3187, San Diego, CA 92136 |
| Pacific Beach | 910 Grand Avenue, San Diego, CA 92109 |
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