Latino Civil Rights, Restaurant and Small Business Leaders Join in Strong Opposition to the LA Costly Restaurant Ordinance

For Immediate Release: August 14, 2024

Contact: Kathy Fairbanks, (916) 813-1010

Ordinance Would Further Drive-Up Food Costs and Impose Significant New Cost Burdens on Local Restaurant Owners, Many of Whom are Latino and People of Color

LOS ANGELES, CA – Today, the California League of United Latin American Citizens (LULAC),  the largest and oldest Hispanic and Latin-American civil rights organization in the U.S., along with the Latino Restaurant Association, Latino Food Industry Association, California Hispanic Chambers of Commerce and local Latino chambers of commerce, announced their strong opposition to the Costly Restaurant Ordinance before the Los Angeles City Council. The groups joined the Protect LA Restaurants coalition, stressing their concerns that the ordinance would threaten the viability of Latino-owned restaurants, further drive-up food costs for families and lead to more employee layoffs and reduced hours.

“In the highly competitive and challenging world of small business ownership, the deck is especially stacked against Latinos,” said Jacob Sandoval, State Director, California LULAC. “This far-reaching ordinance would unfairly single out an industry that has served as a proven pathway to business ownership for Latinos and undermine much of the progress we’ve made building generational opportunity for our families. The LA City Council should know that this ordinance would make it more difficult to do business in LA – hurting Latino small business owners the most.”

“In April, the statewide minimum wage for fast food workers increased by $4 overnight – leaving many Latino restaurant owners barely hanging on,” said Lilly Rocha, CEO of the Latino Restaurant Association. “To offset costs, local restaurants have been forced to increase food costs, lay off employees and cut employee hours just to stay afloat. Now is not the time to pile additional unnecessary and costly burdens on these minority-owned small businesses. The LA City Council should oppose this ordinance.”

This week, the Protect LA Restaurants coalition launched a citywide digital advertising campaign opposing the ordinance, expressing local restaurant owners’ concerns that it unfairly targets and threatens their small businesses – yet again.

The Costly Restaurant Ordinance would unfairly single out LA restaurant owners who are already struggling to cope with California’s new $20/hour minimum wage law that went into effect April 1. In a July 2024 survey of local restaurant owners covered by the $20/hour minimum wage law:

• 98% reported already raising food prices;
• 89% reported reducing employee hours;
• 73% reported limiting employee shift pick-up or overtime opportunities; and
• 70% reported reducing staff or consolidating positions due to the significant wage hike.

Media reports confirm the survey results. In June, Rubio’s Coastal Grill closed 48 restaurants in California. Thousands of Rubio’s workers lost their jobs. Pizza Hut laid off more than 1,100 of its delivery drivers in December due to the minimum wage hike. Workers who still have jobs are working fewer hours.

Los Angeles is home to more than 1,500 quick-service restaurants. The overwhelming majority of these local restaurants are independent small businesses, locally owned by people of color, immigrants, women and veterans. In fact, nearly 60% of California restaurants are owned by people of color, and  approximately 70% of franchisees only own one restaurant. The ordinance would significantly hurt the very community it purports to help.

“Operating a local restaurant is already tough – especially in LA,” added Rocha. “Many in our community start as crew members and work their way up to owning a local restaurant of their own. This ordinance would diminish those opportunities and could be the final straw that forces many Latino-owned restaurants to close their doors for good.”

The ordinance is also unnecessary. The newly established statewide Fast Food Council is charged with developing recommended workplace protections, health and safety standards and training for fast food workers. The ordinance would impose duplicative and even potentially conflicting requirements on local restaurants. 

Sandoval added, “Local restaurant owners need breathing room to adjust to the new $20 minimum wage. We should let the Fast Food Council do its job before imposing additional burdens on these small businesses that are critical job creators and community partners. I urge the LA City Council to REJECT this unnecessary and destructive ordinance.”

The Costly Restaurant Ordinance was referred to the Travel, Travel and Tourism Committee, but has not yet been set for a hearing.

Latino Advocates Against the Costly Restaurant Ordinance:

• California League of United Latin American Citizens (LULAC)
• Latino Restaurant Association
• California Hispanic Chambers of Commerce
• Latino Food Industry Association
• Los Angeles Latino Chamber of Commerce
• Latin American & Caribbean Business Chambers of Commerce
• Guatemalan American Chamber of Commerce

A full list of organizations opposed to the LA Costly Restaurant Ordinance can be found here.