Fast-casual burger chain Five Guys has closed several California locations as the company faces mounting financial pressure and rising operating costs, according to recent state filings and industry reports.
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Per The Street, the company confirmed that four restaurants in California will shut down between May and July 2026. The affected locations include stores in Whittier, City of Industry, Merced, and Hanford. The closures will eliminate 55 jobs, affecting crew members and general managers alike.
The latest filings reviewed by the outlet stated that the company cited “financial hardship” as the reason for the closures. Workers at the affected stores will not receive bumping rights, meaning they cannot automatically transfer to other Five Guys locations to keep their positions.
Dozens Of Employees Hit Hard By Sudden Closures
The Merced restaurant, which opened in 2016, will close on June 26. Local reports said the closure will affect 13 employees. State employment records also showed that the Hanford location will shut down on July 2, while stores in Whittier and City of Industry will close in late May.
Industry analysts say Five Guys faces the same economic pressures affecting many restaurant chains across the United States. Restaurants continue to struggle with higher labor costs, rent increases and declining customer willingness to pay premium menu prices.
Five Guys built its reputation on made-to-order burgers, fresh-cut fries and premium ingredients. However, the chain has also faced criticism over rising prices in recent years. Reports from 2024 showed that some customers paid more than $20 for a burger meal, sparking debate online about whether the brand’s prices had become too expensive for many consumers.
Retail and restaurant closures have accelerated nationwide in 2026 as companies attempt to cut costs and streamline operations. Business Insider recently reported that more than 2,000 retail and restaurant locations across the country are expected to close this year.
Despite the closures, Five Guys continues to operate more than 1,700 locations worldwide, including restaurants throughout North America, Europe and Asia. The company, founded in Virginia in 1986, remains one of the most recognizable premium burger chains in the fast-casual dining sector.