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

Opinions expressed by Entrepreneur contributors are their own.

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

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.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

'No One Is Paying What They Used to': Job Hopping Isn't As Lucrative As It Used to Be, According to New Data

The data shows that switching jobs yields only slightly more salary growth than staying put.

Growing a Business

How to Build an Advisory Board That Drives Startup Success

Here's what startup founders must consider when crafting an advisory board.

Business News

Are You Leaving Work Before 5 P.M.? You're Not Alone, the Workday Is Actually Getting Shorter, According to a New Report.

ActivTrak's newly released 2025 "State of the Workplace" report found that the average American workday is ending at around 4:39 p.m.

Business News

PepsiCo Agrees to Buy Poppi Prebiotic Soda For Over $1.6 Billion: 'Growing Interest in Health and Wellness'

Poppi soda can be found in 120 major retailers across the U.S., including Target, Costco, and Whole Foods.

Science & Technology

The AI 'Black Book' for Entrepreneurs: 7 Tools to Automate and Dominate

Most entrepreneurs barely tap into AI's true power. In this video, discover seven secret AI tools that go beyond basics — boost sales, automate work, and outsmart competitors. Watch now and get a free AI Success Kit!