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Restaurant Owners Say New Laws Kill The Romance


Just in time for Valentine's Day, a story about how unenchanted restaurant owners in California are with some new laws. 

Last Monday San Fransisco became the first city in the country to require all businesses to provide paid sick leave to their employees.

Then in July another shoe drops - businesses must start paying for health insurance for uninsured workers. The Golden Gate Restaurant Association recently filed a lawsuit to fight the ordinance.

Restaurant owners are warning that prices could go up, and they may have to cut worker's hours. They are also concerned about how it could impact the city's reputation for fine dining and hospitality.

"The restaurant business is tough already, and when the state wants to make you take care of people, it becomes too burdensome," says Carl Chapman, a restaurant recruiter with over 20 years of experience in the restaurant industry. He notes that a lot of even the bigger restaurant chains steer clear of certain states like California because of the business climate.

Some restaurant owners say it will end up costing them the equivalent to what they make in a year. They worry about diners cutting back on eating out and the demise of smaller, more unique restaurants.

Others are saying the ordinance would actually help restaurants by attracting quality workers and fostering loyalty. Here is the story in the front page of The San Francisco Chronicle

Obviously it's a thorny issue, and for restauranters, it's not coming up roses. Thoughts?


Categories: Buying A Business, Selling A Business


Comments Regarding This Blog Post


In California, there is a minimum wage increase that is heading towards $15.00, and so many restaurant owners are looking to cut costs. I recommend looking to upgrade equipment where there are opportunities for automation, because in fast-food, studies have shown that when a customer orders from a kiosk, they end up ordering more, than if they ordered from an employee. I also recommend an owner invests in accounting software, so they can analyze very accurately all their expenses, to see where cuts can be made.


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