Local Restaurant Owners, Social Justice Leaders and Small Businesses Advocates Warn Costly Restaurant Ordinance Would Devastate LA Restaurants and Further Harm Local Economy

For Immediate Release: April 2, 2025

Contact: Molly Weedn, molly@weednpa.com

Los Angeles City Council advances proposal to “report back” on Costly Restaurant Ordinance targeting local restaurants already struggling to survive

Los Angeles, CA – Today, the Protect LA Restaurant Coalition issued the following statement following the Los Angeles City Council’s vote to advance “report backs” on an unnecessary, Costly Restaurant Ordinance that unfairly singles out Los Angeles restaurants—yet again. 

This Ordinance comes at a time when local restaurant owners and the LA families they serve are already facing unprecedented financial strain.

The following statement can be attributed to Nareh Shanazarian, who owns and operates one L&L Hawaiian Barbecue restaurant in the City of Los Angeles:

“Local restaurants like mine are barely hanging on. Every month, we’re fighting to keep our prices affordable for our customers. More costly mandates could be the final blow—forcing closures, eliminating jobs, and driving food prices even higher for Angelenos.

We urge the City Council to carefully study the real-world impact this ordinance would have on an already struggling industry, small business owners like me, our employees, our customers, and on food prices. Last month, dozens of local restaurant owners testified before the Council’s Economic Development & Jobs Committee, warning that this costly ordinance would make it even harder for small businesses to survive.

The facts speak for themselves: piling on new costly mandates will devastate LA’s already struggling restaurant community, do real harm to small business owners, hurt workers and make food even less affordable for local families.”

The Council’s action comes just one year after the state implemented AB 1228—a 25% hourly wage hike for fast food workers—that has already delivered severe economic consequences in Los Angeles and across California:

• 4,477 Fast Food Jobs Lost in LA County, 22,717 Jobs Lost Statewide: According to the U.S. Bureau of Labor Statistics, Los Angeles County has lost 4,477 fast food jobs since AB 1228 was signed into law in September 2023. Across California, the fast food industry has lost a total of 22,717 fast food jobs over the same period.
• 14.5% Increase in Food Prices: A recent report by the Berkeley Research Group found food prices at California’s fast food restaurants have surged by 14.5% since September 2023—nearly double the national average of 8.2%.
• 100+ Restaurant Closures in LA: In 2024 alone, more than 100 LA restaurants shut down, with owners citing the $20/hr minimum wage and unsustainable operating costs as key reasons for closing.
• Nearly 90% of Impacted Restaurants Cut Employee Hours to Offset Costs: A survey of local restaurant owners impacted by the $20/hour minimum wage law revealed that 89% reduced employee hours to offset rising costs, with 87% planning additional cuts over the next year. 

Los Angeles is home to more than 1,500 quick-service restaurants. Nearly 60% of California’s local restaurants are owned by people of color and 50% are owned by women. Owning a local franchised restaurant has long helped immigrants, people of color and women beat the odds and achieve small business ownership. The Costly Restaurant Ordinance would not only jeopardize those opportunities but also impose significant harm on the very communities it purports to help. 

Civil Rights Leaders, Minority Business Leaders and Small Business Advocates Opposed to the Costly Restaurant Ordinance include:

• California League of United Latin American Citizens (CA LULAC)
• Los Angeles Urban League
• Brotherhood Crusade
• National Action Network – Western Region
• National Action Network – Los Angeles
• NAACP Southwest Area
• NAACP Los Angeles Branch
• NAACP San Fernando Valley Branch
• NAACP San Pedro-Wilmington-Palos Verdes Branch
• NAACP Santa Monica-Venice Branch
• NAACP Watts Branch
• NAACP Beverly Hills- Hollywood Branch
• Community RePower Movement
• Latino Restaurant Association
• Black Small Business Association of California
• California Hispanic Chambers of Commerce
• California Asian Pacific Chamber of Commerce
• California Restaurant Association
• Latino Food Industry Association
• Multicultural Business Alliance 
• National Restaurant Association
• International Franchise Association
• National Diversity Coalition
• Greater Los Angeles African American Chamber of Commerce (GLAAACC)
• Los Angeles Latino Chamber of Commerce
• Asian Business Association of Los Angeles
• Greater Los Angeles Hospitality Association
• Los Angeles Area Chamber of Commerce
• Los Angeles County Business Federation (LA BizFed)
• Valley Industry & Commerce Association
• United Chambers of Commerce of the San Fernando Valley

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

For more information, visit https://protectlarestaurants.com/