Entrepreneur Marcus Lemonis addressed voters’ concerns about personal finances and the taxation of millionaires during a segment on Fox & Friends after the midterm elections.
Businesses operating in California and nationwide are under increasing pressure to adapt to elevated overhead costs rather than attribute their financial challenges to local economic conditions, experts assert.
“Many businesses are looking for excuses now,” FOX Business contributor and entrepreneur Marcus Lemonis said on “Fox & Friends” during a Friday appearance.
He advised business owners of all sizes that “these are the cards we are dealt and difficult decisions lie ahead.”
Lemonis noted that despite high costs and stringent oversight, many companies continue to thrive in California.
“For the nation to thrive and prosper, we must operate sound businesses, irrespective of the state in which we are located,” he added.
MCDONALD’S DEALT LEGAL SETBACK AS JUDGE ALLOWS MCRIB MEAT LAWSUIT TO PROCEED
An Outback Steakhouse franchisee with 61 restaurants is filing for Chapter 11 bankruptcy amid piling debt, citing soaring labor costs and inflation in California. (Joshua Lott/Bloomberg via Getty Images, File / Getty Images)
Lemonis’ remarks were in response to a question about San Diego–based Out West Restaurant Group, an Outback Steakhouse franchisee that filed for Chapter 11 bankruptcy protection, while pointing to California’s labor expenses and inflation as the primary catalyst for its distress.
Out West, officially known as Cerca Trova Restaurant Group, is seeking relief from a massive $449 million debt load. The company currently operates 61 Outback Steakhouse locations across California, Arizona, Colorado, Nevada, and New Mexico, a decline from the 99 restaurants it managed at its peak in 2018.
In court filings, CEO David Goronkin blamed a shrinking customer base and high operational overhead. California’s minimum wage hit $19.60 per hour in January. The filing also cited beef price increases of up to 5% annually since 2022.
“By 2026, the pressures on the business had converged,” Goronkin stated in court documents. “Guest traffic and earnings continued to decline, while food, labor, and other production costs continued to rise.”
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Out West, officially known as Cerca Trova Restaurant Group, is seeking relief from a massive $449 million debt load. (Victor J. Blue/Bloomberg via Getty Images, File / Getty Images)
While sit-down restaurant chains were exempt from California’s $20-per-hour fast-food minimum wage law passed in 2024, full-service restaurants have faced higher labor costs statewide.
To navigate its Chapter 11 restructuring, Out West is seeking court authorization to sell its assets.
“There’s a cause and effect for everything,” Lemonis said. “Either I’m going to raise the prices, I’m to cut my staff, I’m gonna have to close — there’s always a cause and effect, and I think what these DSA candidates are gonna realize quickly is the effect is going to actually impact the people that voted for them.”
FOX Business’ Bradford Betz contributed to this report.
Parent company Bloomin’ Brands, which owns several restaurant chains, has agreed to purchase the remaining 61 Outback locations for $26.3 million.
The Florida-based parent company is also providing up to $5.5 million in interest-free debtor-in-possession (DIP) financing.