California Today

Carl's Jr. to Close 10 LA Restaurants, Blames $20 Minimum Wage

07 June 2026 09:40

A major Carl's Jr. franchisee is closing 10 underperforming Los Angeles-area restaurants and selling its remaining 59 California locations as it navigates bankruptcy, directly blaming the state's $20 fast-food minimum wage for the financial strain.

- At least 10 restaurants in Tarzana, Granada Hills, Reseda, Pasadena, and other LA neighborhoods face lease rejections. - The franchisee is attempting to sell all 59 of its statewide locations to exit bankruptcy.

- The closures threaten local jobs and neighborhood burger spots, highlighting the impact of rising labor costs on the fast-food industry. The situation underscores ongoing tensions between California's minimum wage policies and business profitability, with potential ripple effects for workers and communities.

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