On July 18, 2025, In-N-Out Burger, a California icon since 1948, announced the closure of its only store in Oakland, the first in its 77-year history, citing unsustainable business conditions. Critics point to Governor Gavin Newsom’s leadership as a driving force behind the exodus of businesses, with the beloved chain’s departure fueling claims of his failure to address California’s economic and social challenges. The closure follows a pattern, with 97,966 businesses shuttering by August 2020 due to stringent lockdown measures, per Yelp data.
Newsom’s policies, including a $20 minimum wage for fast-food workers and high taxes, have been blamed for escalating operating costs. California’s gas tax, set to hit $2 per gallon by 2026, and a 13% crime rate spike in 2022, per FBI reports, exacerbate the state’s hostile business climate. In-N-Out cited crime concerns in Oakland, where Proposition 47, backed by Newsom, reduced penalties for theft, emboldening repeat offenders. The state’s homelessness crisis, up 31.6% from 2007 to 2022 despite $24 billion spent, further deters customers and investors.
Supporters of Newsom argue he’s tackling systemic issues, pointing to his 52% approval rating in a February 2025 PPIC survey and his wildfire response alongside President Trump. They claim business closures reflect broader economic trends, not just state policies. However, critics counter that Newsom’s sanctuary state laws and failure to deliver on housing promises—only 13% of his 3.5 million unit goal met—have made California unlivable for businesses and residents alike.
In-N-Out’s exit symbolizes a broader discontent, with companies like Tesla also relocating. As California loses its shine, Newsom’s critics argue his governance has turned the Golden State into a cautionary tale.
