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More lease signs are appearing on the world-famous Sunset Strip as some restaurants close their doors decades later in business.
Since opening in 1981, West Hollywood Restaurant will be offering its final dishes at the end of March. Operators denounced rising costs, including an increase in employee hourly wages.
“The minimum wage has risen, like 40% since 2019,” said Luc Mena, the restaurant’s general manager, “We need to sell $80 steaks to survive.”
The state’s minimum wage is one of the highest wages in the country as all workers are entitled to at least $16 per hour. For fast food workers, the minimum wage starts at $20.
The decline in many visitors to the iconic 1.5 mile Sunset Boulevard has been devastating and lame for businesses, Mena said.
“We didn’t have enough pedestrians in the winter, and that led to our decision to close,” he explained, saying there were no walk-in customers in the summer. “Usually, in the summer when it’s really busy, it gives you a cushion to survive the winter.”
Other popular eateries set to close include Hudson House and Sunset Nest.
West Hollywood officials said they are offering incentives to local businesses, such as reducing business license renewal fees.
“There’s a lot of sadness,” said West Hollywood Mayor Chelsea Beers. “People love these places and now see them as part of their memories.”
The mayor admitted that there’s not much the city can do because commercial rent prices exceed that control, but said vacant restaurants won’t be empty for too long.
“We saw more licenses open in every business that closed,” Byers said, adding that a lot of changes were happening soon. “We’re not at a low point in terms of new businesses opening up.”
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