Five Guys closing multiple California stores amid – Business News
Burger chain Five Guys is shuttering multiple California areas and chopping dozens of jobs because the fast-casual giant buckles beneath financial pressures — as critics say their high menu costs are pushing customers away.
The chain is completely closing two eating places in Los Angeles County, one in Whittier and one other in City of Industry. Another two California stores, in Merced and Hanford, are additionally closing — leading to 55 whole job losses, based on state filings reported by The Street.
While Five Guys has long been a cult favourite for its huge baggage of fries and customizable burgers, the company says “financial hardship” and growing business bills have made it not possible to keep the grills fired up at these areas.
But it’s not all unhealthy information for the burger boys — they just lately topped a national YouGov survey rating America’s favourite fast-food burgers, beating out rivals like In-N-Out, Burger King, and Wendy’s.
Online response to the closures suggests many shoppers imagine the chain’s greatest downside is easy: sticker shock amongst more and more cautious customers.
Five Guys is completely closing two eating places in Los Angeles County, one in Whittier and one other in City of Industry. Irati – stock.adobe.com
An online commenter joked that Five Guys is “great if you enjoy paying steak prices for hamburger.” ikuday – stock.adobe.com
“I loved that place but haven’t been there in years,” one Reddit person wrote. “My understanding is that it has become very expensive.”
Another commenter joked that Five Guys is “great if you enjoy paying steak prices for hamburger,” whereas others blasted the chain as “overpriced.”
“Last time I went it was $18 for a burger and a small drink,” a disgruntled diner wrote. “Never going again.”
A typical Five Guys order of a burger, french fries, and a drink is definitely nearer to round $25–a far cry from the identical order at In-N-Out, which runs at about $10.
Despite the backlash, Five Guys nonetheless operates over 100 areas in California, and nearly 2,000 worldwide. Christian Johnston
“Five Guys has a superior product, but it’s expensive,” longtime retail reporter Daniel Kline advised The Street, warning that some areas might no longer make financial sense.
The transfer comes as California’s fast-food industry grapples with the fallout of the 2024 minimal wage hike, which say pay flooring soar to $20 an hour.
Despite the backlash, Five Guys nonetheless operates over 100 areas in California, and nearly 2,000 worldwide.
The full listing of closures and job losses is beneath:
Merced — 13 job losses
Hanford — 14 job losses
Whittier — 13 job losses
City of Industry — 15 job losses
