California Insider18 Feb 2024

Famous Chef Explains Why It Is Hard to Operate A Restaurant in California | Andrew Gruel

“Opening a restaurant seems simple, right? You never anticipated that you would expect ... Every single restaurant owner I talked to, is in a PAGA lawsuit. None of them are less than six figures.”

California is the hardest state to open a restaurant, according to a new study by Restaurant Furniture. Siyamak sits down with celebrity chef Andrew Gruel, who has started and operated multiple restaurants in California, to discuss the reasons that make running a restaurant difficult in the state. We also spoke with state Sen. Shannon Grove, who sponsored legislation to amend PAGA (the Private Attorneys General Act).

“We are no longer allowed to use plastic gift cards in California that was recently signed into law. If you offer a straw to a customer, you as the server and the restaurant will get penalized. It’s a civil violation,” Mr. Gruel said. “We are creating a lot of regulations. But we’re unmooring people from a value system. Do we want every restaurant to be run like the DMV?”

Mr. Gruel shares his experiences of starting as a food truck operator and evolving into a restaurateur with multiple locations across California. He discusses the impact of labor laws, environmental policies, and the recent PAGA lawsuits on small businesses and argues that excessive regulation not only burdens businesses but also detracts from the values and community connections upon which small businesses thrive. He calls for a reevaluation of these regulations and advocates for a more balanced approach that recognizes the importance of small businesses in California’s economy and culture.

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