It’s a cutthroat business that fells even the most promising and acclaimed restaurants. Now, restaurant owners say an already tough business is starting to feel prohibitively expensive.
Chef Shirley Chung hasn’t given herself a paycheck in more than a year. After she and her husband, Jimmy, spent more than $200,000 out of pocket to open Ms. Chi in Culver City in September they realized they needed to funnel any money the restaurant was pulling in to keep up with payroll, equipment and rent.
The financial challenges that Chung faces are common in the restaurant world, which has long contended with notoriously slim margins, fickle diners and fluctuating ingredient costs. It’s a cutthroat business that fells even the most promising and acclaimed restaurants — this year alone, Fiona on Fairfax, Native in Santa Monica, Spring and B.S. Taqueria downtown and Simone in the Arts District have all closed.
Part of the problem: The two biggest expenses for restaurants owners — rent and payroll — have risen steeply in recent years. “The dishwasher is one of our most valued employees and someone we cannot pay what they deserve because we have other employees making $500 a day,” she said, “and not to mention the taxes that we have to pay on their tips.”
At the same time, restaurant rents are also on the rise. In Santa Monica, commercial real estate is leasing for $7.50 per square foot , up from $4.50 in 2010, according to real estate firm CBRE. In Koreatown, during that same period, prices doubled to $6 per square foot ; in downtown Los Angeles, they rose to $2.95 from $2.19 per square foot .“It’s different, depending on the area, but we’re definitely seeing a lot more turnover these days,” said Johnny Choi, a senior associate at CBRE.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Guelaguetza's horchata de Oaxaca, the most famous agua fresca in Los AngelesGuelaguetza's top-selling item is its rice-based agua fresca, crowned with chopped melon, pecans and a spike of hot pink prickly pear syrup.
Leer más »
Maxine Waters holds hearing on 'homelessness crisis' in Los AngelesThe House Financial Services Committee chairwoman noted a 12-16 percent rise in homelessness in Los Angeles in 2018.
Leer más »
Central Perk 'Friends' Pop-Up Coming to Los Angeles Coffee BeansFans can sip drinks inspired by the 'Friends' characters while posing on the Central Perk orange couch, because a Central Perk pop-up is coming to two Los Angeles Coffee Bean & Tea Leaf stores.
Leer más »
How Queer Artists Are Championing a New Generation of Musicians at the Los Angeles LGBT CenterFounded by gay rights activist Morris Kight in 1969, the Los Angeles LGBT Center has served as a safe haven and inclusive hub for the last 50 years. The center provides diverse programs and services aimed at enriching the lives of people in the global LGBTQ+ community, including some of its youngest local members.
Leer más »
Los Angeles Opera Investigating ‘Concerning Allegations’ Against Placido DomingoIn response to the sexual harassment allegations leveled by nine women against opera singer Placido Domingo, the Los Angeles Opera, where the singer has been General Director since 2003, offered a …
Leer más »