In a dramatic turn of events, Rubio’s Coastal Grill, a beloved Mexican food chain in California, has announced the closure of 48 restaurants in the state. This is being seen as a direct consequence of the state’s newly implemented $20-an-hour minimum wage for fast food workers.
The closures highlight a growing concern: the impact of what’s been deemed as well-intentioned (but ultimately burdensome) economic policies on American businesses.
The inventor of the fish taco can’t keep up with Bidenomics anymore.
Founded in 1983 by Ralph Rubio, the San Diego-based chain is known for introducing Americans to the fish taco. At its peak, Rubio’s boasted nearly 200 restaurants, primarily in California.
However, the pandemic and stiff competition from giants like Chipotle led to significant downsizing and shutting down locations in Florida and Colorado. Despite restructuring efforts after filing for bankruptcy in 2020, Rubio’s now faces another hurdle – the rising costs associated with California’s escalating minimum wage.
“Fast food” places can’t afford $20 an hour for a worker – and shouldn’t be forced to pay it.
The recent closure of 48 of Rubio’s restaurants, which accounts for over a third of its remaining locations, underscores a broader issue facing businesses in California: the hike to $20 an hour for fast food workers, effective April 1st, has created an unsustainable financial burden for many small and mid-sized chains.
As University of San Diego Economics Professor Alan Gin pointed out to NBC, this wage increase is a significant blow to businesses already struggling with financial difficulties – stemming from the pandemic, short staffing, inflation and other issues.
Rubio’s Coastal Grill is not alone…many places are closing, some permanently.
Rubio’s isn’t alone in their plight. Other chains like BurgerFi and Red Lobster have also been forced to confront the harsh realities of doing business under economic conditions mostly unleashed by Democratic policies.
BurgerFi, which markets itself as an upscale alternative to McDonald’s, is contemplating bankruptcy to escape leases on underperforming locations. Red Lobster has already closed nearly 100 restaurants after filing for bankruptcy in May. These closures are not isolated incidents but part of a worrying trend.
Raise the minimum wage for workers and you end up having no workers… and no business.
The situation at Rubio’s has been particularly aggravating to those who are now former employees who reported that they were informed of the closures with no prior warning, severance, or support. This abrupt decision left many workers scrambling, highlighting the human cost of such economic policies.
Maybe they should set up their tents at the home of California Governor Gavin Newsom and protest him like the antisemites do when they’re upset about what is happening in Gaza.
As UCLA economist Brian Wheaton noted, businesses like Rubio’s, which are substantial but not big enough to leverage significant economies of scale to bring down their fixed costs, are disproportionately affected by such wage hikes.
This wave of closures is not limited to the restaurant industry though. Retailers and healthcare providers are also feeling the pinch, including national coffee/grocery chain Foxtrot who shut down all of their stores in April and mall retailer Express who recently filed for bankruptcy and will shut down 95 outlets.
Walmart can’t afford to run their health centers anymore.
Additionally, Walmart Health is shutting down its 51 health centers and virtual care services in Florida and four other states, citing an unsustainable business model due to challenging reimbursement environments and escalating operating costs.
Despite efforts to provide affordable healthcare since 2019, Walmart found the financial landscape too challenging to continue under the Biden presidency.
Vote out out the Dems or you’ll have to make your own stuff and hunt for your own food someday.
The ripple effects of all of these closures extend beyond the immediate job losses. They signify a broader economic strain that threatens the viability of mid-sized businesses across various sectors. It’s even more unnerving when giants like Walmart can’t even come up with a sustainable operation in today’s business climate – but the big companies are also targets of the left because they don’t pay their “fair share” for anything.
While the intention behind raising the minimum wage is always framed as ensuring a living wage for workers, the real-world consequence is that businesses are being forced to shutter, thus reducing job opportunities and economic activity. In other words, “You’re Fired!” – but those words are coming because of what Commander Biden is doing not the “Apprentice” chief with orange hair.
If the Democrats maintain their death grip on power and uphold their stringent business regulations and bureaucratic hurdles, it’s inevitable that a significant portion of American businesses will continue to close down.
Eventually, Amazon could be the sole survivor. Our other option is to start sewing our own clothes, building our own homes and hunting for our own food, reminiscent of earlier American lifestyles before businesses had the freedom and opportunity to thrive.
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