The shocking state of the restaurant industry: ‘We can’t afford to be open. We can’t afford to be closed.’
LA TimesIn October, Lauren and Peter Lemos locked the doors of their Chinatown sandwich shop for what they thought would be the last time. Gavin Newsom signed AB 1228, the new California law that increased minimum wage for fast-food chain workers by nearly 25%, bumping hourly pay to $20 for restaurant locations with more than 60 outposts in the U.S. “Gas isn’t going down, rent isn’t going down,” Mysheka Ronquillo, a cashier/cook at a Carl’s Jr. in Long Beach and a leader with the Fight for $15 and a Union in California, told The Times in February. “I think that’s really important.” But multiple West Hollywood restaurateurs said the minimum-wage increase and paid-time-off requirements forced them to limit hours, raise prices or cut staff entirely. Many restaurateurs heralded the provision when indoor dining bans heavily affected business; Casa Vega owner Christy Vega told The Times that the L.A. Al Fresco program saved her family’s Sherman Oaks restaurant, calling it “wildly vital to our survival.” According to a survey by the city, more than 81% of business owners interviewed said they would have permanently closed had it not been for the program. “Maybe have an exit plan that’s a little bit less like yanking the Band-Aid off and more like, all right, let’s use a smaller and smaller Band-Aid over time so you can adapt,” LeFevre said, “versus, ‘We’re going to do everything and then we’re going to take it all away.’ People don’t come to California or to the beach communities to dine inside.” More than a year later, Manhattan Beach’s Outdoor Dining Task Force is still weighing proposals and business plans to integrate al fresco dining back into its restaurants and bars.