The real question is: will this trend of closures continue, or will businesses find a way to adapt to government mandated higher costs?
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| Big Lots will lose many locations too |
"Shake Shack is shutting down nine locations across the U.S., with six of those closures happening in California.
"The burger chain announced this move in a recent SEC filing, stating these spots weren’t expected to turn a profit anytime soon.
"This decision comes as California’s fast-food scene faces big changes.
"The state recently bumped up the minimum wage for fast-food workers to $20 an hour.
"While Shake Shack didn’t directly point to this wage hike as the reason for the closures, it’s worth noting that other chains like Rubio’s and Blaze Pizza have also closed up shop in the Golden State lately.
"Running a fast-food joint in California isn’t easy. Rent has always been high, and now labor costs are through the roof. It’s a tough mix that’s putting the squeeze on many businesses.
"But not everyone sees doom and gloom." . . .
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