Get All Access for $5/mo

Beloved Hollywood Arby's Shutters After 55 Years Due to New Minimum Wage Laws The restaurant said goodbye to Sunset Boulevard over the weekend but the iconic neon sign may be spared — for now.

By Emily Rella Edited by Melissa Malamut

It's the end of an era for a beloved fast-food spot in California.

After 55 years, the famed Arby's on Sunset Boulevard in Hollywood, California, shut its doors due to new minimum wage law requirements in the state. According to KTLA, the restaurant was boarded up by workers on Saturday.

A sign outside the drive-thru window reads "Farewell Hollywood. TY for 55 great years."

Related: A Popular Burger Chain Has Been Quietly Raising Menu Prices 'Incrementally' Amid Minimum Wage Hike

"The customer count has gone down over the last few years. A lot of the offices around this area are empty now, and we're just not getting the same foot traffic we did before," Gary Husch, general manager of the Arby's location, told the Los Angeles Times. "With inflation, food costs have gone way up and the $20-an-hour minimum wage has been the nail in the coffin."

The restaurant is currently owned by Husch's mother-in-law, Marilyn Leviton, who is 91 years old and the only person to ever have owned the Arby's location.

Arby's on Sunset has captured the attention and adoration of tourists and locals for decades, thanks to the giant, neon derby hat outside the front door. The sign will remain intact (for now), per KTLA.

The outlet reports that the City of Los Angeles has listed the Arby's sign as potentially historic and eligible to become a local landmark.

On April 1, California enacted a new minimum wage law for fast-food workers that mandates that all employees in the industry must be paid at least $20 per hour.

For a fast food joint to be considered covered by the new law, there must be 60 or more restaurants (all of which are without table servers) in the chain and customers must pay for their food in advance while dining at the chain.

Earlier this month, West Coast burger chain In-N-Out revealed that it has been quietly raising menu prices since April to keep up with the wage bumps.

Related: A Major Burger King Franchisee in California Says He Can't Roll Out Order Kiosks Fast Enough Due to the State's New $20 Fast-Food Minimum Wage

"On April 1st, we raised our prices incrementally to accompany a pay raise for all of the Associates working in our California restaurants. The price increase was also necessary to maintain our quality standards," a spokesperson for the chain told local outlet KTVU.

Arby's did not immediately respond to Entrepreneur's request for comment.

Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

How to Be a Billionaire By 25, According to a College Dropout Turned CEO Worth $1.6 Billion

Austin Russell became the world's youngest self-made billionaire in 2020 at age 25.

Living

Taylor Swift Has a Lucky Number. And She's Not the Only High Performer Who Leans Into Superstitions to Boost Confidence.

Even megastars like Swift need a little extra something to get them in the right mindset when it is game time.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Marketing

SEO Trends You Need to Be Aware of Right Now, According to a Seasoned Pro

Navigate the future of search engine optimization to elevate your online presence and drive meaningful engagement.