Five Guys Is Shuttering Doors In These California Cities

If you're in California and Five Guys is your go-to burger spot, you may have to start driving further to get your fix (or be forced to switch to In-N-Out). Between May and July 2026, the company plans to permanently shut down four restaurants across four California cities: Whittier, Merced, Hanford, and City of Industry. Five Guys cited financial struggles and rising business expenses as the main reasons behind the closures, echoing greater trends across the U.S. fast food industry.

As of this writing, reported closing dates for the affected Five Guys stores are as follows: May 25 for the Whittier location; May 26 for City of Industry; June 26 for Merced; and July 2 for Hanford. An estimated 55 workers will be laid off as a result of the closures; their jobs will not be transferred to other Five Guys locations.

Though it has long maintained a cult following, this burger-slinger is likely suffering due to rising costs of living and widespread financial strain among American consumers, which has led many to cut back on dining out and seek out bargains at the drive-thru. While value meals are making a comeback at many chains, Five Guys has always had a reputation for higher-quality food with elevated prices to match. It has yet to compromise its main selling point, but customers may no longer be biting — leading the company to cut off locations that are more costly to maintain.

In 2024, California passed a state law that set the minimum wage for fast food workers at $20 per hour, the highest in America. While potentially good for employees, this standard has spiked operational costs for franchises already struggling with rent, food expenses, and low sales volumes. These factors could have played into Five Guys' decision to axe these four stores in the Golden State. However, the struggle stretches far beyond California.

Five Guys remains more expensive than other burger chains due to its fresh, high-quality ingredients and bigger portions but food quality hasn't been enough to carry "middle-of-the-road" fast food spots for a while now. A tasty $20 burger-and-fry combo once seemed like the perfect bridge between a lower-quality drive-thru meal and an upscale craft burger, but in today's economy, customers have deemed Five Guys an overpriced burger chain that isn't worth it. Americans may be more likely to either spare their wallet and choose a cheap option or use their precious money on a truly upscale meal.

That said, changing what makes Five Guys special could make things worse. Regulars will likely feel betrayed if the portions shrink and the fresh beef goes frozen, even if it shaves a buck off the prices. Five Guys is clearly in a precarious situation that has led it to shutter locations rather than change its business model. Time will tell if more stores in California (or elsewhere) will fall to the wayside.