There are plenty of ideas that sound wonderful until somebody actually has to figure out how to pay for them. Unfortunately, California seems determined to keep learning that lesson the painfully expensive way.
Another business has run into serious financial trouble, and this time, one of America’s familiar restaurant brands is caught in the middle.
According to the Los Angeles Times, Cerca Trova Restaurant Group, a major Outback Steakhouse franchisee operating 61 locations, filed for Chapter 11 bankruptcy protection Monday.
The company cited mounting food and labor costs, declining customer traffic, and hundreds of millions of dollars in debt.
While the franchisee operates restaurants in several states, California’s increasingly expensive labor requirements have made matters particularly difficult.
More than half of Cerca Trova’s employees work in California, where the general minimum wage increased to $16.90 an hour at the beginning of 2026.
Fast food employers are expected to receive an even higher $20 hourly minimum, although Outback is not classified as a fast food establishment under the law, per the New York Post.
