The Hollywood Arby’s, a beloved institution for over 50 years, has closed down to the shock and sorrow of its loyal customers. With a legacy marked by its iconic Hat-Shaped sign, fond memories of this unique fast-food joint persist in the community.
The Arby’s franchise since 1969, was managed by Marilyn Leviton, who connects the closure predominately to the effects of the global health crisis. The pandemic’s imposed restrictions have put a strain on businesses worldwide, and Leviton’s franchise was no exception.
However, despite these challenges, Leviton and her business adapted, strengthening their online presence and enforcing new social distancing measures. Yet, even as these steps alleviated some burden, they failed to entirely overcome the financial impact of the pandemic.
For Leviton, the biggest concern following the closure was the potential layoffs of her dedicated staff.
Hollywood Arby’s shutdown: Impact and implications
She views the true cost of this setback not in lost profits but the personal loss suffered by her devoted team members.
Leviton plans to use this closure as a springboard to re-strategize and regroup in hopes of reopening the franchise stronger and more resilient. While both staff and customers mourn the closure, they also await a hopeful future.
According to Gary Husch, the Arby’s general manager, rising food costs, reduced foot traffic, and California’s minimum wage increase were other key pressures leading to this decision. Husch emphasized that the pandemic, along with these other factors, resulted in a difficult business environment and ultimately, closure.
The closure comes in the wake of California’s new wage legislation, affecting both customers and restaurant owners. Customers face rising food prices while restaurant owners wrestle with higher labor costs, even mulling over downsizing or closure to counteract skyrocketing operational expenses.
An analysis by Placer.ai pointed out that these wage increases have been affecting several businesses leading to closures of major restaurants across California.
The future of fast-food services is uncertain, with companies including Inspire Brands managing Arby’s and its 3,600 franchises worldwide, grappling with challenges presented by the wage increase. The implementation of strategic and adaptable approaches will be crucial in navigating through these unsettling conditions.
