Local Restaurants Echo Calls on Los Angeles City Council to Protect Jobs and Reject Costly, Industry-Targeted Mandates

April 29, 2025

Press Release

Local Restaurants Echo Calls on Los Angeles City Council to Protect Jobs and Reject Costly, Industry-Targeted Mandates

For Immediate Release: April 29, 2025

Los Angeles, CA — As the City of Los Angeles faces a historic $1 billion budget deficit and proposes laying off more than 1,600 city workers, local restaurant owners echo calls urging the City Council to prioritize protecting jobs and stabilizing the economy—not advancing costly, industry-targeted mandates that will worsen the crisis.

Since AB 1228—the 25% hourly wage hike for fast food workers—went into effect last year, the fast food industry has seen thousands of jobs lost, significant cuts to employee hours and sharp increases in food prices that have pushed menu prices higher for consumers. Now, despite these severe impacts, the Los Angeles City Council is doubling down, considering a Costly Restaurant Ordinance that would further threaten local restaurant owners and small businesses across the city and worsen Los Angeles’ growing jobs crisis.

Similarly, Los Angeles’ tourism industry is under attack, with proposed policies targeting airlines, hotels and lodging businesses. These measures would lead to additional job losses and drive up consumer prices at a time when the city can least afford it.

“Being a small business owner has always been tough, but today it’s almost impossible,” said Nareh Shanazarian, owner of an L&L Hawaiian BBQ restaurant in Los Angeles. “Every month, we’re fighting to keep our prices affordable for our customers. But instead of supporting the businesses that are the backbone of our economy, the City Council is targeting us with more over-the-top mandates that could be the final blow—forcing closures, eliminating jobs and making food even less affordable for Angelenos. City leaders should focus on closing the $1 billion budget shortfall and helping our city recover, not piling on duplicative and unnecessary mandates that would strain the city’s limited resources and make it even harder for small businesses and working families to survive.”

The City Council’s action on the Costly Restaurant Ordinance comes just one year after the state’s 25% wage hike which 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.

Meanwhile, Los Angeles is already proposing 1,647 layoffs and eliminating more than 1,000 vacant positions to help close its budget gap. City departments responsible for enforcing labor ordinances are warning they cannot absorb additional mandates without causing significant service delays—putting essential worker protections and basic city services at risk.

The City Council should focus on stabilizing the budget, protecting jobs, and maintaining critical services—not adopting costly new programs that would deepen the economic crisis and force even more Angelenos out of work.

Los Angeles is home to more than 1,500 quick-service restaurants, with nearly 60% of California’s local restaurants owned by people of color and 50% 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 lead to further job loss across the city.

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

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