How's that $20 minimum wage workin' out for ya, California?
Rubio's Coastal Grill, a California chain is shutting down nearly fifty locations because they are "overtaxed, overburdened, and gasoline [prices are] higher."
'The closings were brought about by the rising cost of doing business in California. While painful, the store closures are a necessary step in our strategic long-term plan to position Rubio's for success for years to come,' they announced in a statement.
'Those business that are not doing very well, near the shutdown margin, this increase in costs when they try to pass it on their consumers ... it may be the thing that pushes them over the edge into a situation where they go out of business,' said UCLA economist Brian Wheaton.
Rubio's started as a walk-up taco stand in San Diego in 1983.
Rubio's Coastal Grill filed for Chapter 11 back in 2020 because of Gavin Newsom's restrictive lockdowns. Then the state raised the minimum wage and effectively finished them off.
High taxes, extreme regulations, and the increased cost of living in San Diego led to the business's failures.
(Maybe they need to think about making shrimp tacos a little further east.)
Jot Condie, president and CEO of the California Restaurant Association, warned that these closures could just be the beginning for the state: 'Daily headlines have chronicled job losses, reduced working hours, restaurant closures and higher prices for California's inflation-weary consumers as a direct result of this minimum wage hike.'
He continued: 'Feedback from our members suggests this has become a breaking point for many small restaurant businesses.'
Bidenomics is bad, but Newsomnomics is even worse.
You want a successful business?
Get outta California!
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