Five Guys shutting down several locations in California due to financial troubles

Five Guys Closes Locations in California Amid Financial Struggles

The popular burger chain Five Guys is shutting down several locations in California, a decision driven by ongoing financial challenges. Critics suggest that the high prices on the menu are pushing customers away.

In total, two restaurants in Los Angeles County—specifically in Whittier and City of Industry—are set to close, along with two others in Merced and Hanford. This will result in about 55 job losses, as revealed in state filings.

Although Five Guys has gained a loyal following for its generous portions of fries and customizable burgers, the chain has cited “financial difficulties” and rising operating costs for its decision to close these spots.

On a brighter note, Five Guys recently earned recognition from YouGov’s national survey, ranking as the most popular fast food burger in America, surpassing competitors like In-N-Out and Burger King.

Responses online regarding the closures indicate that many consumers believe the primary issue is straightforward: the price tag. Some feel that the cost has simply become too high.

One user on Reddit lamented, “I used to love that place, but I haven’t been in years. It’s gotten really pricey.” The humor didn’t escape others either; one commenter quipped that dining at Five Guys felt like “paying the price of a steak” for a burger.

Another unhappy diner recalled spending $18 on a burger and a small drink during their last visit, urging others to think twice about going. Typically, a meal at Five Guys—including a burger, fries, and a drink—can run as high as $25, which starkly contrasts with the roughly $10 price for the same order at In-N-Out.

Despite the current backlash, Five Guys continues to operate more than 100 locations in California and around 2,000 globally.

Industry observers, like retail reporter Daniel Klein, noted that while Five Guys offers quality products, the prices are a concern. He warned that certain locations may struggle to remain financially viable, especially with a minimum wage increase to $20 an hour on the horizon in 2024, impacting California’s fast food sector.