As the COVID-19 pandemic enters its 18th month, San Fernando Valley area residents and businesses are sure to be discouraged by the fading glimmer of hope that seemed so bright just a month ago.
New indoor mask mandates, vaccination requirements, rising virus medical cases, and increasing hospitalization rates have the San Fernando Valley girding for more uncertainty. From a business standpoint, COVID-19 has perhaps been felt worse by restaurants than any other business segment.
Six months into the pandemic, the National Restaurant Association reported roughly 17 percent of U.S. restaurants permanently shut down — about 110,000 establishments. A report released in May by the state of California said nearly a third of restaurants permanently closed and two-thirds of workers at least temporarily lost their jobs as the pandemic set in. Now, in the face of rising Delta variant cases, some Los Angeles restaurants are going so far as to preemptively close in order to protect workers.
In such trying circumstances, the restaurant community still continues to face a litany of damaging legislation. In the coming months, the California Assembly is almost certain to consider AB 257 (Gonzales), which would enact significant, far reaching, and devastating requirements on the restaurant community. Already facing trying circumstances, the pressure exerted by AB 257 is more than restaurants can bear.The confusing, clumsy, and complicated legislation is rife with problems. First, the legislation establishes and empowers an appointed council to govern restaurant employment standards. The eleven-person council will have carte-blanche authority including setting standards on “wages, working conditions, and training.” These important policy matters will be turned over to an unelected, unaccountable, labor-dominated entity.
Second, the legislation establishes a joint liability for fast food franchisors and franchisees, making the restaurant franchisor automatically, jointly and severally liable for and extensive violations committed by the franchisee. The net result of AB 257 will upend the franchise business model and discourage franchise ownership. This is particularly troubling because 60 percent of restaurants are owned by people of color.Third, the legislation contains provisions that deal with reporting of illnesses by food facilities and owners of food safety certificates including COVID-19. In 2020, restaurants accounted for less than 4 percent of COVID-19 outbreaks in non-residential settings in Los Angeles County. Restaurants statewide continue to rigorously protect and improve the health, safety, and economic well-being of employees. With no evidence, this legislation suggests there is a shortcoming in existing regulations when none exists.AB 257 is a proven failure, and it failed to secure enough votes to move forward in the California legislature in June. Even though it was proposed by the Appropriations Committee chair and sponsored by the Service Employees International Union, California legislators recognized the damage caused by this bill. The Valley Industry and Commerce Association agrees with these brave legislators who did the right thing for California’s restaurants.
San Fernando Valley residents interested in supporting neighborhood restaurants can join the movement at StopTheTakeoutTakeover.com.Stuart Waldman is president of the Valley Industry and Commerce Association, a business advocacy organization based in Van Nuys that represents employers in the San Fernando Valley at the local, state and federal levels of government.
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