Los Angeles, California – After 55 years in business, a family-owned Arby’s Roast Beef on Sunset Boulevard in Hollywood has closed its doors, citing California’s recent $20-an-hour minimum wage law as the final straw. The iconic cowboy hat sign, which has been a fixture at the fast food joint, now reads, “Farewell Hollywood. TY for 55 great years.”
The Arby’s location, near Bronson Avenue, ceased operations on Saturday, marking the end of an era for the establishment. General manager Gary Husch, who is the son-in-law of the 91-year-old founder Marilyn Leviton, expressed his disappointment with the closure in light of rising food costs and the impact of the new minimum wage legislation.
Leviton, who opened the Arby’s franchise in 1969 before the moon landing, reflected on the decades of service the restaurant provided to the community. However, recent challenges like the pandemic and reduced foot traffic in the area have taken a toll on the business.
The closure of the Arby’s is part of a larger trend in the state, with other fast food chains like Rubio’s Coastal Grill and Fosters Freeze also facing difficulties due to the higher operating costs. Rubio’s recently closed multiple locations and filed for bankruptcy, while Fosters Freeze had to shutter one of its outlets near Fresno.
Since the implementation of the $20-an-hour minimum wage law, restaurants across California have been forced to raise menu prices in response to the increased labor costs. Chains like McDonald’s, Burger King, Wendy’s, Chipotle, and Starbucks have all felt the impact of the new legislation on their operations.
In-N-Out Burger, a beloved California fast food chain, raised the prices of its menu items, including the popular double-double burger combo. Additionally, the law mandates significant pay raises for managers at fast food restaurants, further adding to the financial burden on businesses in the industry.
Despite the challenges faced by the fast food sector in California, some managers have seen substantial increases in their annual pay as a result of the new law. These changes are reshaping the landscape of the industry, prompting adjustments in pricing and operations to accommodate the higher labor costs.