Rubio's Coastal Grill, a well-known restaurant chain, has again filed for Chapter 11 bankruptcy. This marks the second time the company has sought bankruptcy protection since 2020.
Alongside this filing, Rubio's has also announced the closure of 48 of its locations.
Rubio's Faces Bankruptcy Amid Rising Costs
Rubio's Coastal Grill, a California restaurant chain famed for its fish tacos, filed for bankruptcy protection again, this time in Delaware, on Wednesday. Reuters reported that earlier in June, Rubio's announced plans to shut down 48 locations but will keep 86 outlets open across California, Arizona, and Nevada.
The company cited escalating business costs in California for these closures. Rubio's is currently grappling with over $100 million in debt, as stated in a bankruptcy petition filed on Wednesday.
This follows a previous bankruptcy filing in 2020, during which Rubio's closed 26 underperforming restaurants and withdrew from the Colorado and Florida markets due to the impact of the coronavirus pandemic.
According to The U.S. Sun, a spokesperson for Rubio's Coastal Grill attributed the closures of its California locations to the rising operational costs and the challenging business environment in the state. The 48 locations set to close include 24 in the Los Angeles area, 13 in San Diego, and 11 in Northern California.
While Rubio's has not directly blamed the new legislation, the recent implementation of a $20 minimum wage for fast food workers in California on April 1 has been a concern among many in the restaurant industry.
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Jot Condie, President and CEO of the California Restaurant Association, noted that the wage increase has led to job losses, reduced hours, restaurant closures, and higher prices-all of which affect consumers already dealing with inflation.
Condie mentioned that feedback from association members indicates that this wage hike has been a critical strain for many small restaurant businesses.
Rubio's Journey: From Fish Taco to Fame
According to the restaurant's website, Ralph Rubio's culinary journey began with a spring break trip to San Felipe, Mexico, where he first tasted a fish taco. This simple dish inspired him so much that he returned to San Diego not just with memories but with a business idea.
In 1983, he opened a small walk-up taco stand in Mission Bay, specializing in fish tacos.
This modest beginning marked the start of Rubio's Coastal Grill, which has grown significantly. Over the years, Rubio's has served over 270 million fish tacos, maintaining a commitment to fresh, Baja-inspired flavors that honor its Mexican, coastal roots.
Today, Rubio's continues to celebrate the rich culinary traditions of Mexico's coast, proving that great business ideas often come from unexpected places and simple experiences.
Despite closing 48 locations, Rubio's Coastal Grill is revitalizing its menu with fresh and innovative offerings. The popular chain announced on Instagram that its culinary team has developed a new menu, inviting customers to experience the exciting changes.
The revamped lineup includes five new tacos: a Quesa Shrimp Taco, a Seaside Mahi Taco, an Enhanced Original Fish Taco, a Grilled Chipotle-Lime Chicken Taco, and a Roasted Sweet Potato Taco.
These additions showcase Rubio's commitment to variety and flavor, aiming to attract diners with a blend of traditional and new, enticing tastes.
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