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'A mass exodus': Why so many LA restaurants are closing
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'A mass exodus': Why so many LA restaurants are closing
Running a restaurant in California is no small feat, even when times are good. But with rising food and labor costs, a massive entertainment industry strike, and the long tail of the COVID-19 pandemic, many Los Angeles restaurant owners have begun to feel like operating a restaurant in Southern California is becoming next to impossible. Just this year alone, many of the area’s biggest and most heralded restaurants have closed up shop.
Operators are also feeling a major squeeze due to rising food and labor costs. Industry vet Jeremy Adler, who is a partner in the Santa Monica Southeast Asian restaurant Cobi’s and is in construction on a new restaurant in Mar Vista, points to expensive liquor licenses and new California laws like Assembly Bill 1228 as challenges for owners. AB 1228 is intended to create a liveable wage by raising the minimum wage for fast food workers to $20 in April 2024.
“That law puts pressure on independent restaurants as well,” Adler says. “When the average profit margin at a restaurant is 5-7%, 1% really matters.”
https://www.sfgate.com/la/article/los-angeles-2023-restaurant-closures-wga-strike-18561379.php
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