[dropcap size=big]T[/dropcap]he California legislature cranked out a raft of new bills last year that outgoing Gov. Jerry Brown signed into law and are now affecting L.A.’s favorite restaurants, bars, food trucks, street vendors, and home kitchen businesses. As of Jan. 1 — two days ago — there are also a number of city ordinances that went into effect that will impact the way food and beverages are sold and consumed in Los Angeles.
$12 Minimum Is Here, and Going Up
Sure, the minimum wage increase implemented Jan. 1 is good news for restaurant workers, but it could also forces Los Angeles restaurateurs to consider new ways to offset costs. It’s the third consecutive year of increasing wages, and it will continue until it is $15 an hour in 2022. The minimum wage is lower for businesses that have 25 employees or less, but eventually it will be $15 across the board.
Restaurants could adapt by offering costlier menu items that yield better margins thereby offsetting the increasingly higher labor costs. Another strategy could be to squeeze more productivity from each employee to provide the same level of customer service with fewer people in the restaurant, analysts say.