Shake Shack Shuttering Six California Locations After $20 Fast Food Minimum Wage

Shake Shack announced the pending closure of nine locations nationwide, six of which are in California, writing, “These Shacks are not projected to provide acceptable returns in the foreseeable future,” in a SEC filing. While Shake Shack did not respond to requests for comment regarding the impact of California’s $20 per hour fast food minimum wage that took effect earlier this year, high commercial rents combined now with even higher labor costs have driven other fast food chains, including Rubio’s and Blaze Pizza to shutter stores.