Popular fast-casual chain cuts jobs amid store closures
Five Guys is closing stores in California and laying off dozens of workers. Experts explain why its prices are not ensuring economic success.
www.thestreet.comHere’s what’s currently notable about Five Guys closures in 2026.
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Several California locations have permanently closed in the first half of 2026, with reports citing financial hardship and rising operating costs as the primary drivers. The closures affect a total of about 55 employees across the Whittier, City of Industry, Merced, and Hanford stores, with dates ranging from May to July 2026.[1][3][4]
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Coverage from TheStreet and related outlets notes that this pattern is part of broader restaurant industry pressures in 2026, including higher wages, rent, and shifting consumer demand, contributing to multiple chains announcing store closures or layoffs. Five Guys is not alone in this trend, as various chains plan reductions in footprint this year.[2][5]
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Local and regional outlets in California highlighted that the closures are at the store level due to lease and operating economics, rather than a company-wide shutdown of the brand. Some articles emphasize that employees at closed locations don’t have automatic bumping rights to transfer to other stores.[4][1]
If you’d like, I can compile a quick, up-to-date list of the affected locations with closing dates and create a short summary you can share with colleagues. I can also provide a map-style breakdown or a timeline of the reported closures. Citations after each claim are included above.