Consumer habits are changing across the country, and the fast-food industry is feeling the impact. While quick meals remain popular, many customers are becoming more careful about how much they spend when eating out.
Now, burger chain Five Guys has confirmed that several California locations will permanently close in the coming months. The closures are part of a broader wave of restaurant shutdowns happening across the country as companies face higher operating costs and slowing customer demand, according to The Street.
Which California stores are closing?
The company will close four restaurants between May and July 2026. According to state filings, the shutdowns will affect a total of 55 employees, including crew members, supervisors, and managers. Workers at the impacted locations reportedly will not be transferred to other stores.
The closures include:
- Whittier 13 — employees.
- City of Industry — 15 employees.
- Merced — 13 employees.
- Hanford — 14 employees.
The company described the closures as part of financial difficulties tied to rising business expenses.
Why are Five Guys stores closing?
The company said the closures are linked to financial hardship as operating expenses continue to rise. In California, restaurants have faced higher payroll costs since the state’s fast-food minimum wage increase took effect in 2024, while rent and food supply costs have also remained elevated.
At the same time, many customers are becoming more price-conscious. Because Five Guys is known for premium burgers and fresh ingredients, its meals usually cost more than traditional fast-food options. As inflation continues to affect household budgets, some consumers are shifting toward lower-cost chains and value deals instead.
