April 7, 2025

Local Restaurant Owners and Small Business Advocates Oppose Santa Clara County Proposal that Unfairly Singles Out Local Restaurants Already Struggling

Santa Clara County, CA – The Protect Santa Clara County Restaurants coalition—made up of local restaurant owners, small business advocates and quick-service restaurant brands—urges the Santa Clara County Board of Supervisors to oppose an unnecessary and unfair restaurant proposal that would further single out local restaurants—yet again—with unnecessary and duplicative regulations. 

Introduced by Supervisors Betty Duong and Susan Ellenberg, the proposal is slated for consideration by the Santa Clara County Board of Supervisors on Tuesday, April 8. The proposal would initiate the development of a new duplicative training program that specifically targets local restaurants—despite the fact that extensive employee notice and training requirements are already enforced under California state law. 

“This proposal unfairly singles out local restaurant owners like me—yet again—when we’re already struggling to survive last year’s $20/hour minimum wage hike,” said Sarah Hom, who owns and operates one Vitality Bowls restaurant in Morgan Hill. “As a minority and woman-owned business, I’ve worked hard to keep my doors open, but I’ve already been forced to raise menu prices and stop hiring because of rising costs. As the Board of Supervisors looks at this issue, I hope they take into consideration how hard it is for small businesses like ours in today’s climate.”

Last Spring, the San Jose City Council declined to pursue a city-wide training mandate citing budget constraints and the statewide Fast Food Council—established under AB 1228—is already tasked with recommending minimum standards for training, workplace protections, health and safety standards, and wages for fast food workers. The Board of Supervisors should take the same responsible path and reject this unnecessary, unfair and premature proposal. 

Santa Clara County is home to more than 1,600 quick service restaurants. The overwhelming majority of these local restaurants are independent small businesses—locally owned by people of color, immigrants and women. In fact, nearly 60% of California’s restaurants are owned by people of color and 50% are owned by women. Further, 70% of franchisees only own one restaurant.

Local restaurants are still reeling from the effects of last year’s 25% wage hike, and recent data confirms what these small businesses are grappling with:

  • 22,717 Jobs Lost: New seasonally-adjusted data from the U.S. Bureau of Labor Statistics’ Current Employment Statistics (CES), released March 28, 2025, shows California lost 22,717 fast food jobs since AB 1228 was signed into law in September 2023.
  • 14.5% Increase in Food Prices: A recent report by the Berkeley Research Group found food prices at California’s fast food restaurants have surged by 14.5% since September 2023—nearly double the national average of 8.2%.
  • Nearly 90% of Impacted Restaurants Cut Employee Hours to Offset Costs: A survey of local restaurant owners impacted by the $20/hour minimum wage law revealed that 89% reduced employee hours to offset rising costs, with 87% planning additional cuts over the next year. 

“I became a restaurant owner to build a better life for my family and show my four young kids what’s possible with hard work,” said Alex Wong Lau, who owns and operates three L&L Hawaiian BBQ restaurants in Santa Clara County. “After last year’s 25% wage hike, I’ve had to cut staff hours, delay hiring and work around the clock just to survive. Family-owned restaurants like mine can’t keep absorbing added costs. We don’t have deep pockets—we’re parents and neighbors fighting to stay afloat.”

“My son and I operate two family-owned restaurants that have become part of our community,” said Stephen Weir, owner and operator of two Mountain Mike’s Pizza restaurants in San Jose.  “Our employees are like family—but if additional mandates are put into place that result in added costs for small businesses like ours, I’ll have no choice but to raise prices, cut jobs, or worse—shut down.”

TheProtect Santa Clara County Restaurants coalition urges the Board of Supervisors to support small businesses, avoid unfairly singling out local restaurants even further and reject this unnecessary training proposal.