Fast-food chains across the U.S. are still adjusting to higher operating costs and uneven customer spending. In California, Five Guys is shrinking its footprint with another confirmed closure and several more either already completed or scheduled. The pullback stands out because Five Guys remains one of the country’s biggest burger brands, with more than 1,900 restaurants worldwide.
Five Guys adds another confirmed California closure
Five Guys permanently closed its Merced restaurant on June 26 after about 10 years in business, according to a Worker Adjustment and Retraining Notification filing submitted to the state. The closure affected 13 employees. The company cited financial hardship in the filing.
That Merced shutdown followed other WARN-related California closures already on the record. The Whittier location closed on May 25, and the City of Industry restaurant closed on May 26, according to state filings. A Hanford location is also scheduled to close on July 2.
Taken together, those four WARN-related California closures account for 55 eliminated jobs. That makes this one of the more notable rounds of Five Guys closures in the state in recent years. The company has continued operating elsewhere even as these restaurants shut down.
What the California pullback looks like so far
The confirmed impact in California stretches beyond the four locations named in WARN filings. Other Five Guys restaurants in Tracy, Bakersfield, Rancho Mirage, and Valencia have also closed this year, according to industry reports cited in coverage of the shutdowns. That points to a broader reduction in the chain’s state footprint.
What is not yet clear is the full statewide count of affected restaurants. Five Guys has not released a comprehensive list of all California closures tied to this pullback. It also has not publicly outlined whether additional California locations are under review.
For customers, the result is straightforward in the cities already affected. Merced, Whittier, City of Industry, Hanford, Tracy, Bakersfield, Rancho Mirage, and Valencia have all been part of the recent contraction. In areas where stores remain open, Five Guys continues to operate as usual.
Why the chain is cutting back in California
The stated reason in the WARN filings was financial hardship. More broadly, restaurant operators in California have been dealing with higher labor, food, and real estate costs, according to reporting on the closures. Those pressures have made the state a harder place for some chains to keep weaker stores open.
Customer spending trends are also part of the context. Diners have been more cautious about eating out, and Five Guys has faced criticism over menu prices from some longtime customers. The coverage around the closures linked those concerns to the chain’s challenges in California.
Even so, Five Guys is not pulling back everywhere. The company still operates more than 1,900 restaurants worldwide and has announced plans to open new locations in other states. That suggests the company is trimming selected California stores while continuing broader growth elsewhere.
