Bloodbath for Carl’s Jr. as nearly 50 California locations face ax over state’s staggering minimum wage
Carl's Jr. is facing significant challenges in California, with nearly 50 locations potentially closing due to a franchisee's bankruptcy filing. The franchisee attributes its financial struggles to the state's high minimum wage of $20 for fast-food workers, which has increased operating costs. This situation reflects broader issues in the fast-food sector, where similar minimum wage hikes have led to job losses and financial distress for other operators.
- ▪Carl's Jr. franchisee Sun Gir Inc. has filed for Chapter 11 bankruptcy protection.
- ▪The franchisee is putting 49 California restaurants up for sale as part of the bankruptcy proceedings.
- ▪California's $20 minimum wage for fast-food workers has contributed to increased operating expenses and financial distress for the chain.
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Metro Bloodbath for Carl’s Jr. as nearly 50 California locations face ax over state’s staggering minimum wage By Ross O'Keefe Published May 29, 2026, 10:41 a.m. ET See more of our coverage in your search results. Add The California Post on Google Carl’s Jr. is staring down the potential loss of dozens of California locations after a franchisee and its affiliates filed for bankruptcy protection — blaming the state’s staggering minimum wage. Franchisee Sun Gir Inc., which is leading the Chapter 11 action, is putting 49 of its California restaurants up for sale as part of the proceedings.
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