Rubio’s Bounces Back from Bankruptcy

SAN DIEGO – A year ago, San Diego staple and champion of the fish taco, Rubio’s Coastal Grill, filed for Chapter 11 bankruptcy. Since then, the company was purchased by Jeff Crivello, who is the founder of Ciao Hospitality, President of TREW Capital Management and Rubio’s new CEO.

Crivello has set out on a mission to rebuild, prioritizing technology and value pricing.
“The trouble from bankruptcy didn’t come from the food and it didn’t come from service,” Crivello said. “It came from the amount of debt that the company had taken on. It was just too highly levered. Once that debt was reduced, the company is now restructured and in a very strong position where all the restaurants are profitable and in a geography that makes it easier to market and distribute.”

Rubio’s founder Ralph Rubio was credited with popularizing the fish taco in Southern California when he opened his first location in 1981. At its peak in the 2000s, the chain had about 170 locations in the U.S. Last year, before declaring bankruptcy, the company closed down 48 of its locations, 13 of which were in San Diego County.

Today, the company factors in at 82 locations.

“I’ve never met anybody that’s been to San Diego that doesn’t know Rubio’s,” Crivello said. “Rubio’s fish taco was its claim to fame, and now you can find fish tacos on just about every menu across the country. They’re the first mover in an entirely new category of cuisine for the U.S. San Diego understands that… The fish taco is woven into every family that has ever come through San Diego, which I think that says a lot about a brand.”

Restructuring the Company

Crivello had faith in Rubio’s product and brand. His main priority was to financially restructure the company.

“Bankruptcy is the function of capitalism that allows for a reset,” Crivello said. “That was the option that the board chose, and it went through a 363 sale. It was to simply restructure the leases and the debt that the company had. It emerged virtually debt-free.

The leases were restructured, and it was able to reject leases for the locations that were unprofitable or unproductive.”

Rubio’s has not raised its prices over the last year, but has increased protein portions 25% in its burritos, bowls, salads and shareables. The company has focused heavily on highlighting and expanding its value offerings, which include a $7 Taco Combo, five entrees under $10 and more value items coming this fall.

“Our industry is not rocket science,” VP of Marketing David Betland said. “You have to give people what they want and then give them more. That’s what we’re trying to do. We’re listening to not only our customers, but also our operators, very closely… What we’re hearing within Rubio’s is that the food and the products are great, but we want to continue to focus on value.”

Prior to its restructuring, Rubio’s had about 3,200 employees. Today, it stands at about 2,200 employees.

“Every day you try to take a step forward,” Crivello said. “We don’t do anything too drastic, we do things that are slow and methodical… The largest step was on day one – 48 restaurants closed in one day. I think that was probably the largest and most meaningful material move that happened in the restructuring. Once we were through that, we right-sized the portfolio, right-sized operations and were able to get to work at the brand’s evolution.”

Evolving the Brand

As the company rebuilds, expanding digital channels, adding value and boosting its catering program are priorities in the next three to five years. Its Oceanside location, which was rebuilt in August of 2024 after a fire, has become the prototype for Rubio’s new era, Crivello said.

Before opening any new locations, Rubio’s plans to update its current restaurants to its new standards.

“Anytime you’re a consumer-facing business, you become a technology company also, and there’s far more technology in a restaurant than most people know,” Crivello said. “We need to get the technology to a point where we can expand with a new model, meaning digital menu boards and kiosks.”

As inflation and rising costs continue to be a challenge in hospitality, Crivello said that Rubio’s is prioritizing local sourcing and negotiating lower prices. As the company develops, Betland said that it may consider expanding its use of AI to improve guest experience but wants to maintain human control of the guest experience.

Currently, Rubio’s uses AI in a limited fashion for personalized cart recommendations and preferred communication times.

To evaluate Rubio’s performance, Crivello said that its guest traffic, which is flat year over year, is its main focus. Customer retention is key in San Diego’s saturated market.

“Cutting through the noise in this market is difficult, but we have a plan to get out more organically,” Betland said. “We’re trying to expand our reach with influencers and get back into the local community again. We’re still doing a lot of fundraising events and some smaller LSM initiatives, but we want to focus on doing more community events, like beach cleanups, and hosting them as well.”

Once Rubio’s is ready for expansion, Crivello said its focus will be expanding from San Diego eastward to Arizona and franchise growth.

“Rubio’s is on the right path for the next chapter in its life,” Crivello said. “Between technology [development] and keeping the same great food, great atmosphere and great service, we’re certainly going to make it another 10 years.”

Rubio’s Coastal Grill
FOUNDED: 1983
CEO: Jeff Crivello
HEADQUARTERS: Carlsbad
BUSINESS: Food & Beverage
EMPLOYEES: About 2,200
REVENUE: Average unit volume around $1.7M
WEBSITE: www.rubios.com
CONTACT: https://rubios.com/contact-us/
SOCIAL IMPACT: Sustainable sourcing and eco-friendly practices. Rubio’s also has a fundraising program that is quite generous compared to industry standards, giving 30% back to organizations.
NOTABLE: In 2016, the City of San Diego proclaimed April 5, Ralph Rubio Day to honor The Fish Taco King and thank him for all he does for the city and community.

Born and raised in San Diego, Madison takes great pride in local storytelling. Her coverage at the San Diego Business Journal includes tourism, hospitality, nonprofits, education and retail. An alumna of San Diego State University’s journalism program, she has written for publications including The San Diego Union-Tribune and The San Diego Sun. At the 2024 San Diego Press Club awards, Madison was recognized for her exemplary profile writing. She was also a speaker for the 2023 TEDx Conference at Bonita Vista High School. When she’s not working on her next story, Madison can be found performing music at a local restaurant or on one of San Diego’s many hiking trails.