Rubio's Coastal Grill, a fast-casual Mexican restaurant based in Carlsbad, has abruptly closed 48 stores in California, citing the rising cost of doing business in the state. The company did not elaborate on the closures, which came Friday and stunned workers, but it came two months after the state's $20 an hour minimum wage took effect for fast-food employees. Rubio's said it would keep operating 86 remaining locations in California, Arizona and Nevada.
The company did not say how many employees were let go, but comments posted on social media by employees said they were given no notice, with some saying they received phone calls over the weekend that their jobs had been eliminated. The company was founded in 1983 by Ralph Rubio, who began with a walk-up stand in San Diego. It had nearly 200 stores going into 2020, but later that year, hit hard by the pandemic, the company filed for bankruptcy protection and underwent a complete restructuring.
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