California’s restaurant industry has continued to evolve in 2026, with several well-known chains closing locations as companies respond to rising operating costs, changing consumer habits and broader financial challenges.
While most of these brands continue to operate elsewhere in the state, their shrinking footprints highlight the pressures facing the restaurant industry.
Five Guys trims its California footprint
One of the most visible downsizing efforts has come from Five Guys. The burger chain has closed or announced closures for multiple California restaurants this year, including locations in Tracy, Bakersfield, Rancho Mirage, Valencia, Whittier, City of Industry and Merced. Another restaurant in Hanford is scheduled to close on July 2.
The closures are tied to financial hardship, according to state WARN filings, although Five Guys continues to expand in other markets and still operates hundreds of restaurants nationwide.
On the Border shutters company-owned restaurants
On the Border Mexican Grill & Cantina also significantly reduced its California presence after closing all of its company-owned restaurants nationwide in June following its 2025 bankruptcy and subsequent sale.
The chain has not disappeared from California entirely, however. Two independently owned franchise locations in Mira Mesa and Escondido remain open, while the company evaluates the brand’s future.
Regional chains also disappear
California has also lost several regional restaurant brands. Vine Hospitality, a Bay Area restaurant group, recently announced the closure of all seven of its restaurants, including Left Bank Brasserie, LB Steak, Meso Modern Mediterranean and Petite Left Bank. The company cited financial strain and an inability to secure additional funding after more than three decades in business.
Although new restaurants continue to open across the state, 2026 has already brought a wave of closures that reflects the ongoing challenges of operating in California’s competitive dining market.
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