Shake Shack Shutting Down Half a Dozen Locations in This State Due to ‘Minimum Wage Hike’

Shake Shack is the latest fast food chain to be shutting down locations, with more than a half a dozen of them in one particular state.

According to The New York Post, Shake Shack said that it will close nine locations overall due to a part of a regular review of its portfolio of company-operated locations. The company filed with the Securities and Exchange Commission on Aug. 27 over the matter.

"These Shacks are not projected to provide acceptable returns in the foreseeable future," the filing said.

Five of the nine locations closing are locations based in Los Angeles, with another location closing in Oakland. As a result, six of the nine closing are to be from California. The total now in the state sits at 37.

The other closures include two in Texas and one in Ohio

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The company claimed that its decision to close these locations was “in part due to changes in the trade area," according to the filing. The changes in the area are that California passed a law that hiked its minimum wage to $20 an hour. That was passed back on April 1.

The New York Post reports that this is the first time that the fast for chain will close locations for a reason other than construction.

The employees that will be losing their jobs as a result of the closings have the ability to transfer to other Shake Shack locations, or they will be eligible for 60 days of pay.

This is not the first time that a chain has been affected by the hike in minimum wage as The New York Post reports that McDonald's and Burger King have also raised prices to compensate.