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California Unveils New Measures to Aid Struggling Restaurant Industry

Outdoor dining setup at a California restaurant with open windows and doors.

Los Angeles, October 16, 2025

News Summary

In response to declining dining traffic and economic challenges, California has introduced two legislative measures to support its restaurant sector. The first measure allows for enhanced outdoor dining spaces utilizing windows and doors, while the second establishes a fast-track permitting process for retrofitting restaurants. These efforts aim to alleviate regulatory burdens on small businesses and bolster the local economy, as the restaurant industry is a significant employer in California.

California has introduced two new measures to support its struggling restaurant industry, which has been adversely affected by a decline in dining traffic and economic challenges. The announcement was made at Joyce restaurant in downtown Los Angeles. The measures aim to reduce regulatory burdens on small businesses that are currently facing rising costs and shifting federal policies.

California is home to over 4.2 million small businesses, accounting for 99.9% of total enterprises in the state. These small businesses employ nearly half of the private sector workforce, approximately 7 million people. The restaurant sector alone, which includes over 86,000 locations, is the largest private employer in California, supporting approximately 1.8 million jobs and generating $220 billion in sales annually.

The first of the two new measures, designated as AB 592, allows restaurants with open kitchens to utilize windows, folding doors, or non-fixed storefronts for outdoor dining. This provision aims to take advantage of the state’s mild climate and enhance the dining experience for customers while helping restaurants increase their capacity.

The second measure, known as AB 671, establishes a voluntary fast-track permitting process for small, independent restaurants that are retrofitting existing spaces. Under this new structure, licensed architects and engineers will be allowed to self-certify basic plans, simplifying the implementation process for restaurant owners who wish to make changes to their spaces.

According to data from OpenTable, Los Angeles is facing a 5% drop in dining traffic through August 2025. This decrease further underscores the necessity of the newly implemented measures to assist restaurants in overcoming operational challenges. Assemblymember Jesse Gabriel indicated that the law addresses the “endless hurdles” faced by neighborhood restaurants, acknowledging their struggles amidst the current economic climate. Additionally, Assemblymember Buffy Wicks highlighted the significance of providing support to restaurateurs in helping them turn their ideas into reality while maintaining essential safety standards.

The new measures are part of California’s broader effort to support local economies and preserve the livelihood of small businesses that are crucial to the state’s economic ecosystem. The restaurant industry, being a significant player in California’s economy, relies heavily on regulatory frameworks conducive to growth and adaptability.

As restaurants continue to navigate the challenging landscape, these state initiatives represent crucial steps toward fostering a more supportive environment for local dining establishments and preserving jobs in this critical sector of the economy.

FAQ

What did California introduce to support the restaurant industry?

California has introduced two new measures to support its struggling restaurant industry.

Where was the announcement made?

The announcement was made at Joyce restaurant in downtown Los Angeles.

What are the economic challenges faced by the restaurant industry?

The challenges include rising costs and shifting federal policies.

How many small businesses are there in California?

California is home to over 4.2 million small businesses, accounting for 99.9% of total enterprises in the state.

How many people do small businesses employ in California?

Small businesses in California employ nearly half of the private sector workforce, approximately 7 million people.

What is the size of the restaurant sector in California?

The restaurant sector, which includes over 86,000 locations, is the largest private employer in California, supporting 1.8 million jobs.

How much does the restaurant sector generate in annual sales?

The restaurant sector generates $220 billion in sales annually.

What is AB 592?

The first measure, AB 592, allows restaurants with open kitchens to utilize windows, folding doors, or non-fixed storefronts for outdoor dining, capitalizing on the state’s mild climate.

What is AB 671?

The second measure, AB 671, establishes a voluntary fast-track permitting process for small, independent restaurants retrofitting existing spaces.

How can architects and engineers assist restaurants under the new measures?

Licensed architects and engineers can self-certify basic plans under the new permitting process.

What does data from OpenTable indicate?

Data from OpenTable indicates a 5% drop in dining traffic in Los Angeles through August 2025.

Deeper Dive: News & Info About This Topic

California Unveils New Measures to Aid Struggling Restaurant Industry

STAFF HERE CORONADO
Author: STAFF HERE CORONADO

The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.

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