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Burger chain Five Guys is shuttering multiple California locations and cutting dozens of jobs as the fast-casual giant buckles under financial pressures — as critics say their high menu prices are pushing consumers away.
The chain is permanently closing two restaurants in Los Angeles County, one in Whittier and another in City of Industry. Another two California stores, in Merced and Hanford, are also closing — resulting in 55 total job losses, according to state filings reported by The Street.
While Five Guys has long been a cult favorite for its massive bags of fries and customizable burgers, the company says “financial hardship” and increasing business expenses have made it impossible to keep the grills fired up at these locations.
But it’s not all bad news for the burger boys — they recently topped a national YouGov survey ranking America’s favorite fast-food burgers, beating out rivals like In-N-Out, Burger King, and Wendy’s.
Online reaction to the closures suggests many customers believe the chain’s biggest problem is simple: sticker shock among increasingly cautious consumers.
“I loved that place but haven’t been there in years,” one Reddit user wrote. “My understanding is that it has become very expensive.”
Another commenter joked that Five Guys is “great if you enjoy paying steak prices for hamburger,” while others blasted the chain as “overpriced.”
“Last time I went it was $18 for a burger and a small drink,” a disgruntled diner wrote. “Never going again.”
A typical Five Guys order of a burger, french fries, and a drink is actually closer to around $25–a far cry from the same order at In-N-Out, which runs at about $10.
“Five Guys has a superior product, but it’s expensive,” longtime retail reporter Daniel Kline told The Street, warning that some locations may no longer make financial sense.
The move comes as California’s fast-food industry grapples with the fallout of the 2024 minimum wage hike, which say pay floors jump to $20 an hour.
Despite the backlash, Five Guys still operates over 100 locations in California, and almost 2,000 worldwide.
The full list of closures and job losses is below:
- Merced — 13 job losses
- Hanford — 14 job losses
- Whittier — 13 job losses
- City of Industry — 15 job losses
