LOS ANGELES California Restaurant Association. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
When the state Legislature resumes next week after a summer break, one proposal awaiting lawmakers’ consideration is a bill that would require restaurants to post nutritional information on menus and menu boards. Another pending measure would prohibit restaurants from serving foods containing artificial trans fats. Either of the proposals could significantly impact the bottom lines of the estimated 75,000 restaurants throughout the Golden State. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
Those and other stressors—such as a two-phase increase in the minimum wage this year and next—are expected to be hot topics of conversation during the CRA’s expo event, which will be held Aug. 18-20 at the Los Angeles Convention Center. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
Various regulatory burdens and the otherwise high costs of doing business in California have long been issues here. Still, the state continues to draw operators from around the world who hope to take advantage of California’s highly desirable combination of great weather and a growing, diverse population that loves to eat out. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
Around the state, there are signs of good health in the industry. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
San Diego increasingly is becoming known as a hotbed for such innovative, independent fine-dining restaurants as El Bizcocho with chef Gavin Kaysen, Market with chef Carl Schroeder and Addison with chef William Bradley. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
East Coast-based celebrity chefs are setting up shop in Los Angeles, which in the past year has seen the arrival of New York-based chefs Tom Colicchio, with his restaurant Craft, and Mario Batali, who opened Pizzeria Mozza and the adjacent Osteria Mozza in a partnership with local star chef Nancy Silverton. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
Coming soon are British bad-boy chef-restaurateur Gordon Ramsay; New Yorker Laurent Tourondel with his BLT concepts; and Boston-based Todd English, who is planning a Spanish version of his Olives concept, to be called Beso. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
Chains are finding success in California’s burgeoning secondary markets, such as Bakersfield, Fresno and Sacramento. And hot, young California-born brands are gaining ground, such as the three-unit casual-dining Lazy Dog Cafe, based in Westminster, and the 17-unit Koreanstyle frozen-yogurt shop Pinkberry, based in Los Angeles. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
However, in a state where gas prices often rise above $3.50 per gallon and real estate and construction costs are reaching new heights, operators say they are worried that the proposed legislation will add substantially to the costs of doing business here. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
Efforts to ensure that all Californians have access to health insurance, for example, remain a big question mark as a Democratic-backed bill works its way through the Legislature. As the proposal stands, it would require most employers to spend the equivalent of at least 7.5 percent of their payrolls on health care. Republicans call the employer mandate a “jobs tax.” —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
Earlier this year, however, Gov. Arnold Schwarzenegger outlined a proposal that would require less of a burden on employers—though it was never introduced as legislation. His plan included a 4-percent payroll tax for employers that don’t already offer coverage. Doctors, hospitals, insurers, state and local governments, and individuals also would share in the cost of covering all state residents. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
Jot Condie, president and chief executive of the California Restaurant Association, said he hopes to see changes in the Democrats’ bill that would favor the governor’s idea of “shared responsibility.” —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
“The 7.5-percent payroll tax is a killer, and I suspect that [the sponsors] will move that number southward,” Condie said. “How far, we don’t know. But we think even the 4 percent that the governor proposed is too high.” —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
In 2004, CRA members contributed an estimated $12 million to help defeat a referendum that would have required businesses with 50 or more employees to provide health insurance benefits to workers and pay the majority of premiums. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
This year, however, the association has softened its position on employer mandates—if only to remain part of the debate, which is likely to have a significant impact on the restaurant industry, the state’s largest private employer. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
“We’d like to be at the table,” said CRA chairman Jeff King, who also is chairman and co-founder of multiconcept operator King’s Seafood Co., based in Costa Mesa, Calif. “We think it’s a societal problem, and we need to think of some ways to spread the cost.” —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
Others, however, predicted the health care reform debate would continue into 2008. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
“I’m not optimistic that it will happen this year,” said Steve Fricker, president of the 75-unit Daphne’s Greek Cafe chain, based in San Diego, and second vice-chairman of the CRA’s board. “There’s too much disparity in the different proposals out there.” —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
Another margin-threatening issue is a proposed bill that would require chains with more than 10 units of the same concept to post nutrition information on menus and menu boards. Sponsored by state Sen. Alex Padilla, D-Pacoima, the bill has passed the Senate and is before the Assembly health committee. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
The CRA has strongly opposed the bill, saying it would do nothing to reduce obesity levels and could cost restaurants thousands of dollars to conduct nutritional analyses of every recipe, in addition to the redesign of menus and menu boards. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
Even more frightening, said Condie, is the fear that restaurants could be sued if their posted nutrition information isn’t 100-percent accurate. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
Steve Carley, president and chief executive of the 370-unit El Pollo Loco chain, based in Irvine, Calif., said that if the menu-labeling bill succeeds, he would like to see a legal challenge mounted that would be similar to the lawsuit filed by restaurant operators in New York City to block similar legislation there. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
Companies like El Pollo Loco already post nutritional information in all restaurants—though not on the menu boards. In addition, El Pollo Loco offers a nutrition data calculator on its website that allows guests to assess customized dishes, with or without guacamole, for example. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
“How would you get all that on a menu board so it’s legible?” Carley said. “I would be an advocate of what the restaurateurs in New York have done. They said, ‘No, we’re not going to do it.’” —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
Also following on the heels of recent legislation in New York City, several California lawmakers have proposed varying kinds of bans on trans fats in restaurants and schools. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
A leading bill is being piloted by Democratic Assemblyman Tony Mendoza, who has proposed a phaseout of trans fats beginning next year, with a full ban going into effect in 2010. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
A trans-fat ban took effect in New York City in July, and similar legislation has been adopted in Philadelphia and the Washington, D.C., suburb of Montgomery County, Md. Bans are also under consideration in Massachusetts, New Jersey, New York, Tennessee and Vermont. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
Many California-based chain operators, however, have already eliminated trans fats from their menus, including El Pollo Loco, Daphne’s Greek Cafe, The Cheesecake Factory, Rubio’s Fresh Mexican Grill, Sizzler, Pat & Oscar’s, Coco’s Bakery & Restaurants and Carrows Restaurants. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
“That’s Exhibit A right there,” Condie said, pointing to the voluntary movement away from trans fats. “We don’t need the Legislature writing bills about this. Consumers vote with their feet, and restaurant operators have already responded.” —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
This year, California operators are feeling the pain of legislation adopted in 2006. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
In January the state’s minimum wage increased from $6.75 to $7.50 per hour in the first phase of a two-year wage hike. Next Jan. 1, the minimum wage will go up to $8. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
Operators such as Chris Simms, co-founder of the casual-dining Lazy Dog Cafe chain, say the wage increase primarily benefits front-of-the-house employees who generally receive tips and are already among the highest-paid hourly workers. California is one of seven Western states that do not allow a tip credit. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
Simms said his labor costs for hourly workers went up about 11 percent this year after the first increase. Suppliers also raised prices because their labor costs went up—a margin pincher that coincided with higher food costs in general. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
To deal with such pressures, according to El Pollo Loco chief Carley, most operators have been forced to raise prices—a risky move at a time when consumers are feeling stressed financially. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
“This year feels a lot like 2002 in the sense of consumers being much more price-sensitive and shopping for bargains,” he said. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
In San Francisco, where the citywide minimum wage is $9.14 and increases with inflation, operators have been hit particularly hard. The city mandates paid sick leave for all employees, for example. In addition, a proposal is pending that could require employers that have more than 40 staff members and do not already offer health benefits to pay a minimum of $1.11 to $1.65 per hour per employee into a fund that would help provide coverage to the uninsured. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
The Golden Gate Restaurant Association has challenged the latter proposal in court, arguing that the employer mandate illegally conflicts with federal law governing health care benefits. A summary judgment in the case is possible this week, said Kevin Westlye, the GGRA’s executive director. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
Real estate and construction costs are also frighteningly high in California, said Simms, whose father Thomas Simms founded the 115-unit Mimi’s Cafe chain, which now is owned by Columbus, Ohio-based Bob Evans Farms Inc. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
“We’re seeing numbers in Southern California that my dad has never seen before or even thought of,” said Chris Simms, who is planning a fourth Lazy Dog Cafe unit in Southern California before taking the concept to the Sacramento market in 2009 for the opening of the chain’s fifth and possibly sixth branches. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
After that—largely because of the cost of real estate in California—Simms plans to take Lazy Dog Cafe out of state, perhaps to Las Vegas. —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
“It’s harder in California to make a dollar,” Simms said. “But there’s no doubt California is a great market to be in.” —Proposals to overhaul California’s health care system are among several swords of Damocles hanging over the heads of restaurant operators as they gather here this week for the annual Western Foodservice & Hospitality Expo, sponsored by the
