The woman who ran one of America’s most famous restaurants for 55 years blames the pandemic, corporate overhead costs and California’s minimum wage increase when the restaurant closed its doors for the last time.
Marilyn Leviton, 91, opened Arby’s on Sunset Boulevard in Hollywood in 1969 and the big hat sign became a landmark on the strip, attracting millions of customers wanting a taste of the roast beef sandwich.
But guests were greeted with a sign that read “Farewell Hollywood.” TY for 55 great years,” as they arrived this morning as the iconic restaurant became the latest victim of the scourge plaguing the American restaurant industry.
“I’m very sorry it has come to this,” she said KTL. “I think we’ve done it right for 55 years.”
Marilyn was a 34-year-old elementary school teacher when she and her husband Mike moved from Skokie, Illinois, with their three children to take a chance on the new business.
The restaurant, with its original neon cowboy hat sign, has been a landmark on Hollywood’s Sunset Boulevard since it opened in 1969
Owner Marilyn Leviton, 91, ran it for 55 years but blamed a combination of the pandemic, corporate overhead and California’s minimum wage increase when boards went up Monday.
The franchise had only been around for five years, but the location at 5920 Sunset Blvd was close to several major movie studios and the restaurant was the only one on the street with a view of the iconic Hollywood sign.
It quickly served as a backdrop for movies and TV shows and served as the location for the Emmy-nominated Baskets with Zach Galifianakis.
It celebrated its 50th anniversary in January 2019 and served its signature roast beef sandwich for the original 79 cents, but the sun was about to set on the family-run restaurant.
“The truth is, I think it was the pandemic that hit us,” Marilyn said. “I really feel like if it weren’t for the federal loans, we would have closed during the pandemic.
“Arby’s is asking for more tech equipment that we couldn’t afford, and I don’t think the $20 an hour raise helped either.”
A law signed by California’s Democratic Governor Gavin Newsom last September raised the minimum wage for fast-food workers to $20 an hour at chains with more than 60 locations across the US.
That was a 25 percent increase over California’s standard minimum wage of $16 an hour, which only went into effect in January.
The move has angered restaurant owners and nearly 10,000 jobs at chains from Pizza Hut to Burger King have been cut since the law took effect April 1, according to a report from a state trade group.
The notice of closure that brought the news to diners on Monday morning
Marilyn’s children Judy, Bob and Ruth all worked at the restaurant as teenagers after it opened in 1969, and were reunited for the 50th anniversary in 2019.
California Governor Gavin Newsom signed the fast food bill to increase the minimum wage on September 28, 2023, surrounded by workers at SEIU Local 721 in Los Angeles
To highlight the law’s impact, the trade group California Business and Industrial Alliance posted a fake ad featuring fake “obituaries” of popular brands
In addition, chains have closed restaurants, including beloved Mexican chain Rubio’s Coastal Grill, which filed for Chapter 11 bankruptcy earlier this month and closed 48 locations across the state.
“California businesses have been targeted and attacked for years,” Tom Manzo, president of the California Business and Industrial Alliance, told Fox Business.
“It’s just another law that further puts businesses at risk.”
The Alliance has released a fake obituary-style ad to highlight the damage they say has been done to some of the industry’s favorite brands
But restaurants in the US have struggled to attract former diners since the pandemic as they increasingly succumb to food delivery services.
Red Lobster abruptly closed 93 of its more than 700 restaurants in Chapter 11 bankruptcy on May 13, a few days earlier.
And court documents show there are another 135 Red Lobster stores whose bosses say they will continue to lose money if leases remain as they are.
Applebee’s closed 46 outlets last year and has announced plans for 25 more this year.
And Denny’s expects to follow up the closure of 57 restaurants with an additional 20 restaurants this year.
News of Arby’s departure sparked an outpouring of nostalgia from Californians, including from actor Dean England who worked on Baskets.
“I saw that sign so many times as a child,” he wrote on Facebook. “It was a little surreal at the time to be cast and film in Hollywood playing the head of Arby’s HR. I really hope that sign is saved.”
“One of the first places I ate when I moved here,” added Samantha Lloyd Gordon. ‘Starving actor literally.’
‘Let me guess… instead there will be another high-rise apartment building that remains largely empty?’ David Silver predicted.
“That sign should be donated to the Neon Museum in Las Vegas,” Melissa Jean suggested.
“Glad I saw it in person.”