Shake Shack will close nine restaurants in the United States next month, more than half of them in California.
The New York City-based chain has announced that six underperforming locations in the Golden State, including its only Oakland restaurant, will close.
The chain will also close two other restaurants in Texas and one in Ohio by September 25.
It is the first time the chain has closed restaurants for reasons not related to construction, according to Restaurant Business.
The chain still has about 330 locations nationwide and more than 20 in California, where it competes with major chains and local favorite In-N-Out.
Shake Shack to close nine US restaurants next month, more than half of them in California
Shake Shack, known for its burgers, crinkle-cut fries and milkshakes, is closing five locations in the Los Angeles area, including in Koreatown and Silverlake.
In Texas, the Houston Galleria and Montrose locations will close, and a Polaris restaurant in Ohio will close, the company said.
The burger chain, which opened its first location in 2004 in New York City’s Madison Square Park, insisted in a statement that it has no plans to close any more locations in the foreseeable future.
“After careful consideration, we have made the difficult decision to close a small group of Shacks due to several factors, including poor performance,” Shake Shack CEO Rob Lynch said in a statement obtained by USA today.
‘We remain focused on supporting our team members through this transition and look forward to continuing our growth, opening many more locations across the country.’
It comes amid Widespread restaurant closures and bankruptcies across the United States In recent months, as food prices have soared inflation And high operating costs continue to weigh on businesses.
Burger chain BurgerFi confirmed earlier this month which is on the verge of bankruptcy.
BurgerFi, which also owns Anthony’s Coal Fired Pizza, said it expects to report a staggering $18.4 million loss for the second quarter of this year.
The losses leave the company with just $4.4 million available as of August 14.
BurgerFi told the SEC in its most recent filing that it would need further relief from its creditors if it wanted to remain solvent.
If it fails to do so and is unable to raise enough cash from other lenders or by selling its assets, it “may seek protection under applicable bankruptcy laws.”
Shake Shack, known for its burgers, crinkle-cut fries and milkshakes, will close five locations in the Los Angeles area, including Koreatown and Silverlake.
The chain still has about 330 locations nationwide and more than 20 in California, where it competes with major chains and local favorite In-N-Out.
Mediterranean fast-casual chain Roti filed for Chapter 11 bankruptcy on Aug. 23, becoming the latest in a series of restaurants to do so this year.
Roti currently has 19 locations in Illinois, Maryland, Minnesota and Washington DC, serving Eastern Mediterranean-inspired bowls, salads and pitas.
Chief Executive Justin Seamonds said in the bankruptcy filing that it was the best way for the company to address its challenges, which include higher costs and tough market conditions.
Seafood chain Red Lobster also filed for Chapter 11 bankruptcy in May, citing an unfortunate $20 all-you-can-eat shrimp promotion as one of the reasons.
The chain closed more than 100 locations following the announcement and plans to close 23 more locations in 15 states by Aug. 31.
Mexican chain Rubio’s Coastal Grill also entered bankruptcy proceedings, as did pPopular Italian restaurant Buca di Beppo, after abruptly closing 13 underperforming branches across the country earlier this month.