Five Guys is continuing to reduce its California footprint, with another restaurant closing this week as the burger chain navigates financial pressures and rising operating costs. The latest closure comes as several Golden State locations have either already shuttered or are scheduled to close, marking one of the chain’s most significant rounds of closures in the state in recent years.
Merced restaurant closes after a decade
The newest casualty is the Five Guys restaurant in Merced, which permanently closed on June 26 after serving customers for about a decade. The closure impacts 13 employees and follows a Worker Adjustment and Retraining Notification (WARN) filing submitted to the state.
The Merced closure follows several others across California. According to WARN filings, the Whittier location closed on May 25, while the City of Industry restaurant shut its doors on May 26. Another location in Hanford is scheduled to close on July 2, bringing the total number of announced WARN-related California closures to four and eliminating 55 jobs. The company cited “financial hardship” in its filings.
Other California locations have also disappeared
Beyond the WARN notices, additional Five Guys restaurants have already closed this year in Tracy, Bakersfield, Rancho Mirage, and Valencia, according to industry reports, signaling a broader pullback in California.
The closures come as many restaurant operators continue grappling with higher labor, food and real estate costs while consumers spend more cautiously on dining out. Five Guys has also faced criticism from customers over menu prices, with some longtime fans saying the chain has become too expensive for regular visits.
Five Guys continues to expand elsewhere
Despite the California closures, Five Guys continues to operate more than 1,900 restaurants worldwide and has announced plans to open several new locations in other states, indicating the company is selectively trimming underperforming restaurants rather than exiting expansion altogether.
While California has proven to be an increasingly challenging market for restaurant operators, the burger chain’s broader expansion plans suggest it remains focused on long-term growth even as it streamlines its footprint in higher-cost regions.
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