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Islands closes unit; reorganizes internally

CARLSBAD Calif. The 57-unit Islands Restaurants chain on Tuesday confirmed the planned closure this week of a unit in Orange County, Calif.

Cara Sprague, senior marketing manager, said the 20-year lease for the location had expired and the chain decided not to renew it because of saturation for the brand in that market. No other store closures are planned currently, she said.

The 60 to 80 employees at the Laguna Hills, Calif., location destined to close Wednesday night will be offered positions elsewhere within the all-corporate-owned system, she said.

Known for its burgers-and-surfing theme, the casual-dining Islands chain opened one new unit in 2008, but no new openings are planned for this year. Sprague said the chain is undergoing an internal reorganization, though no layoffs are planned.

The casual-dining segment has been among the hardest hit in the industry as cash-strapped consumers trade down to lower-priced alternatives.

Carlsbad, Calif.-based Islands, which celebrated its 25th anniversary last year, has been focusing on marketing efforts to better convey the brand’s image as a “beach-inspired” escape. The restaurants are located in California, Arizona, Colorado, Hawaii and Nevada.

Contact Lisa Jennings at [email protected].

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