
Five Guys is shrinking its footprint in California, with several restaurants closing this year as the burger chain faces rising operating costs and changing consumer spending habits. While the company continues to expand in some markets, the California closures highlight the growing pressures even well-known fast-food brands are experiencing.
Four California locations affected
Five Guys announced plans to permanently close four California restaurants between late May and early July. The affected locations were in Whittier, City of Industry, Merced and Hanford. State filings indicate the closures impacted dozens of employees, with the company citing financial hardship as the primary reason for the decision.
Earlier reports also identified closures in Tracy, Bakersfield, Rancho Mirage and Valencia as part of the company’s broader downsizing efforts, although reports vary on which locations were included in the initial announcements.
Part of a nationwide trend
California isn’t the only state seeing Five Guys restaurants disappear. The company has closed at least 14 locations nationwide in 2026, including restaurants in Florida, Georgia, Illinois, Iowa, Louisiana and Nebraska.
At the same time, Five Guys is planning to open new restaurants in several states, suggesting the closures are part of a strategy to eliminate underperforming locations rather than a retreat from expansion altogether.
Rising costs continue to challenge restaurants
Like many restaurant chains, Five Guys has been navigating higher labor, food and operating costs while customers become more selective about dining out. The brand has also drawn attention in recent years for menu prices that many customers view as expensive compared with traditional fast-food competitors.ย
Industry analysts say these pressures have forced many chains to reevaluate their restaurant portfolios.
Although the closures may disappoint loyal customers in affected communities, Five Guys still operates more than 1,500 U.S. restaurants and continues pursuing growth in other markets. The California closures serve as another reminder that even popular restaurant brands aren’t immune to today’s challenging economic environment.
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