California effect: Chain closes nearly 50 locations citing rising cost of doing business

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Another chain is shuttering several locations throughout California, citing a rising cost to do business in the state. However, locations in nearby states are staying open.

Rubio’s Coastal Grill is in the midst of closing 48 under performing locations throughout California due to the "rising cost of doing business in the state." It's following a trend of companies taking similar actions after feeling the stress of having to balance higher labor costs. About 13 of the closures were in the San Diego area, 24 were in the Los Angeles area and 11 were in northern California.

" It's also worth noting, according to Joffe, the actual cost of hiring a "fast food minimum wage employee" is more than $20 per hour given that employers must also pay federal Social Security and Medicare taxes, as well as state Unemployment Insurance and Employment Training Taxes.

 

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