The closure
Arby's iconic Hollywood location, in business for over five decades, recently closed its doors on Sunset Boulevard. The restaurant's closure was marked by a farewell message on its familiar cowboy hat sign expressing gratitude for 55 years of operation.
Owned by 91-year-old Marilyn Leviton since its establishment in 1969, the closure signifies the end of an era for this longstanding franchise.
The pandemic
"Truth is, I think it was the pandemic that did us in. I really feel we would have closed during the pandemic [if it weren’t] for the federal loans," she said. "I’m awfully sorry that it came to this."
Inflation
Gary Husch, the general manager of Arby's Hollywood location and son-in-law of the owner, Marilyn Leviton, said, "With inflation, food costs have gone way up and the $20-an-hour minimum wage has been the nail in the coffin."
Minimum wage increase
Husch cited various reasons for the closure, including the impact of the pandemic, decreased foot traffic, increased food costs, and California's minimum wage increase.
Over 3,600 establishments
Arby's, a division of Inspire Brands, has gained recognition for its signature roast beef sandwiches. According to the fact sheet of Inspire Brands, a global multi-brand restaurant corporation, Arby's is celebrated as the "largest sandwich drive-thru chain in the U.S.," boasting over 3,600 establishments across nine international markets.
Menu price increases
According to a study by Placer.ai, the law that came into effect on April 1 has particularly affected restaurant chains with over 60 locations, leading to menu price increases ranging from single digits to mid-teens percentage-wise in most quick-service chains in California.
A negative impact
This surge in prices has had a negative impact on the restaurant industry, as evidenced by reports of closures, such as Rubio's Coastal Grill shutting down 48 locations in the state.
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