Business
Clifton's is reopening (again), this time in a changed downtown
Andrew Meieran is about to reopen the doors of one of L.A.’s legendary restaurants in a bid to once again make it an offbeat dining and entertainment destination.
Meieran is the proprietor of Clifton’s Republic, the kitschy, forest-themed restaurant on Broadway in downtown’s Historic Core that for nearly a century served up comfort food such as pot roast, mashed potatoes and Jell-O. The five-story restaurant and bar complex has been closed for the last year after a burst water pipe caused a flood that destroyed the kitchen and collapsed the ceilings on three floors.
Clifton’s is scheduled to reopen next month after extensive repairs and renovations. Among the changes patrons will find is a basement venue several years in the making that Meieran said is “dedicated to innovation and the magic of experiences” with “entertainment, cocktails and culinary offerings.”
Meieran is keeping details under wraps for now, but he has demonstrated a knack for creating provocative entertainment and dining venues through an obsessive attention to offbeat details, as well as a willingness to spend more money than most real estate developers to realize his vision and preserve the historic integrity of his projects.
A Bay Area transplant with a background in real estate development and filmmaking, Meieran emerged on the L.A. scene in 2007 when he opened the Edison, a subterranean nightclub he created in a former power plant deep under a century-old building on 2nd Street.
In 2010 he took over Clifton’s from the family that had operated it since the 1930s, when founder Clifford Clinton purchased the lease of the former Boos Bros. cafeteria on Broadway and set out to create a space that would evoke the coastal redwoods of the Santa Cruz Mountains, where Clinton spent summers growing up. After taking over, Meieran closed the restaurant for nearly four years for renovations and upgrades and again during the COVID-19 pandemic.
The Times spoke with Meieran to discuss his plans for reviving Clifton’s after the current shutdown, as well as his thoughts about the evolving nature of the bar and restaurant business during a time of change downtown. The interview has been edited for brevity and clarity.
Since the pandemic began, the restaurant business has been battered and put through changes that have made it hard for owners to operate profitably. How do you intend to make a go of it?
People need, and I emphasize “NEED” in capital letters, to be able to disengage from their devices and balance their life with physical and social interaction with people who are there and present around them. We are catering to people who are looking for a much more interactive lifestyle and are craving physical experiences to balance the ubiquitous online presence.
A view of the interior of Clifton’s Republic.
(Wally Skalij / Los Angeles Times)
Clifton’s exists in L.A.’s collective memory as a vast cafeteria in a whimsical woodland setting, but we don’t see cafeterias much anymore. Why is that? Will we get back Clifton’s as we remember it?
Cafeterias used to be the dominant form of food delivery and food service and now, with very few exceptions, it’s not. There are clear reasons for that that are understandable and reasonable — you need tons of people in a captive audience to make a cafeteria work. You need volume and you need stable, reasonable food prices that you can pass on to your guests. That’s completely absent in this era.
So what will Clifton’s include when it reopens?
It will be fully operating as a restaurant, lounge and nightlife destination that will include the Brookdale historic dining hall people remember as Forest Glen, Walt Disney’s original inspiration for Disneyland. We’ll also reopen the Monarch Bar on the second floor and the Pacific Seas “adventure bar” on the third floor. The basement will open in midsummer.
Obviously downtown has changed a lot from Clifton’s heyday in the 20th century when Broadway was L.A.’s premier shopping and entertainment district. Occupancy in office buildings, which used to provide a steady source of lunchtime customers, has dwindled substantially since the COVID-19 lockdown. What are the prospects for downtown businesses like Clifton’s?
It’s obviously a very different environment from what it was before the pandemic. People have altered their habits and patterns and businesses have responded accordingly, with some closing and others shifting their focuses. It’s a tectonic level shift, something that hasn’t happened in generations, and it’s happening very rapidly now. It was triggered initially by the pandemic but followed up by technological shifts that have altered the dining experience such as app-based ordering, touchscreens and the potentially revolutionary impact of artificial intelligence.
It’s hard for people to really recognize what’s coming next and where this is all going. Obviously that makes it difficult for a business to respond and for other people to make investments and to determine where we’re going to be in 18 months, three years or five years down the road, which is what you need in business.
Downtown, because of the level of the impact and its density, is slower to respond to change than some other, more nimble communities. It’s like turning a tanker ship that doesn’t turn on a dime. It’s taking a lot more effort and and concerted focus to shift its direction.
What are the odds that the Historic Core can mount a comeback?
Broadway, in particular, has all of the ingredients that make for extraordinary projects and extraordinary communities sitting here waiting for the right catalyst. It has density, historic infrastructure and buildings that have an intrinsic beauty and an intrinsic connection to guests, residents,and visitors. And it’s got the location in terms of accessibility with plenty of parking and service by transit.
Business
Heidi O’Neill, Formerly of Nike, Will Be New Lululemon’s New CEO
Lululemon, the yoga pants and athletic clothing company, has hired a former executive from a rival, Nike, as its new chief executive.
Heidi O’Neill, who spent more than 25 years at Nike, will take the reins and join Lululemon’s board of directors on Sept. 8, the company announced on Wednesday.
The leadership change is happening during a tumultuous time for Lululemon, which had grown to $11 billion in revenue by persuading shoppers to ditch their jeans and slacks for stretchy leggings. But lately, sales have declined in North America amid intense competition and shifting fashion trends, with consumers favoring looser styles rather than the form-fitting silhouettes for which Lululemon is best known.
“As I step into the C.E.O. role in September, my job will be to build on that foundation — to accelerate product breakthroughs, deepen the brand’s cultural relevance, and unlock growth in markets around the world,” Ms. O’Neill, 61, said in a statement.
Lululemon, based in Vancouver, British Columbia, has also been entangled in a corporate power struggle over the company’s future. Its billionaire founder, Chip Wilson, has feuded with the board, nominated independent directors and criticized executives.
Lululemon’s previous chief executive, Calvin McDonald, stepped down at the end of January as pressure mounted from Mr. Wilson and some investors. One activist investor, Elliott Investment Management, had pushed its own chief executive candidate, who was not selected.
The interim co-chiefs, Meghan Frank and André Maestrini, will lead the company until Ms. O’Neill’s arrival, when they are expected to return to other senior roles. The pair had outlined a plan to revive sales at Lululemon, promising to invest in stores, save more money and speed up product development.
“We start the year with a real plan, with real strategies,” Mr. Maestrini said in an interview this year. “We make sure decisions are made fast.”
Lululemon said last month that it would add Chip Bergh, the former chief executive of Levi Strauss, to its board to replace David Mussafer, the chairman of the private equity firm Advent International, whom Mr. Wilson had sought to remove.
Ms. O’Neill climbed the organizational chart at Nike for decades, working across divisions including consumer sports, product innovation and brand marketing, and was most recently its president of consumer, product and brand. She left Nike last year amid a shake-up of senior management that led to the elimination of her role.
Analysts said Ms. O’Neill would be expected to find ways to energize Lululemon’s business and reset the company’s culture in order to improve performance.
“O’Neill is her own person who will come with an agenda of change,” said Neil Saunders, the managing director of GlobalData, a data analytics and consulting company. “The task ahead is a significant one, but it can be undertaken from a position of relative stability.”
Business
Angry Altadena residents ask officials to halt Edison’s undergrounding work
Eaton wildfire survivors’ anger about Southern California Edison’s burying of electric wires in Altadena boiled over Tuesday with residents calling on government officials to temporarily halt the work.
In a letter to the Los Angeles County Board of Supervisors, more than 120 Altadena residents and the town’s council wrote that they had witnessed “manifest failures” by Edison in recent months as it has been tearing up streets and digging trenches to bury the wires.
The residents cited the unexpected financial cost of the work to homeowners and possible harm to the town’s remaining trees. They also pointed out how the work will leave telecommunication wires above ground on poles.
“The current lack of coordination is compounding the stress of a community still reeling from the Eaton Fire, and risks causing further irreparable harm,” the residents wrote.
The council voted unanimously Tuesday night to send the letter.
Scott Johnson, an Edison spokesman, said Wednesday that the company has been working to address the concerns, including by looking for other sources of funds to help pay for the homeowners’ costs.
“We recognize this community has already faced a number of challenges,” he said.
Johnson said the company will allow homeowners to keep existing overhead lines connecting their homes to the grid if they are worried about the cost.
Edison’s crews, Johnson said, have also been trained to use equipment that avoids roots and preserves the health of trees.
The utility has said that burying the wires as the town rebuilds thousands of homes destroyed in the fire will make the electrical grid safer and more reliable.
But anger has grown as work crews have shown up unexpectedly and residents learned they’re on the hook to pay tens of thousands of dollars to connect their homes to the buried lines.
Residents have also found the crews digging under the town’s oak and pine trees that survived last year’s fire. Arborists say the trenches could destroy the roots of some of the last remaining trees and kill them.
Amy Bodek, the county’s regional planning director, recently warned Edison that a government ordinance protects oak trees and that “utility trenching is not exempt from these requirements.”
Residents have also pointed out that in much of Altadena, the telecom companies, including Spectrum and AT&T, have not agreed to bury their wires in Edison’s trenches. That means the telecom wires will remain on poles above ground, which residents say is visually unappealing.
“While our community supports the long-term benefits of moving utilities underground, the current execution by SCE is placing undue financial and planning burdens on homeowners, causing irreparable harm to our heritage tree canopy, and proceeding without adequate local oversight,” the residents wrote.
They want the project halted until the problems are addressed.
Edison announced last year that it would spend as much as $925 million to underground and rebuild its grid in Altadena and Malibu, where the Palisades fire caused devastation.
The work — which costs an estimated $4 million per mile — will earn the utility millions of dollars in profits as its electric customers pay for it over the next decades.
Pedro Pizarro, chief executive of Edison International, told Gov. Gavin Newsom last year that state utility rules would require Altadena and Malibu homeowners to pay to underground the electric wire from their property line to the panel on their house. Pizarro estimated it would cost $8,000 to $10,000 for each home.
But some residents, who need to dig long trenches, say it will cost them much more.
“We are rebuilding and with the insurance shortfall, our finances are stretched already,” Marilyn Chong, an Altadena resident, wrote in a comment attached to the letter. “Incurring the additional burden of financing SCE’s infrastructure is not something we can or should have to do.”
Other fire survivors complained of Edison’s lack of planning and coordination with residents.
“I’ve started rebuilding, and apparently there won’t be underground power lines for me to connect with in time when my house will be done,” wrote Gail Murphy. “So apparently I’m supposed to be using a generator, and for how long!?”
Johnson said the company has set up a phone line for people with concerns or questions. That line — 1-800-250-7339 — is answered Monday through Saturday, he said.
Residents can also go to Edison’s office in Altadena at 2680 Fair Oaks Avenue. The office is open Monday to Friday from 8 to 4:30.
It’s unclear if the Eaton fire would have been less disastrous if Altadena’s neighborhood power lines had been buried.
The blaze ignited under Edison’s towering transmission lines that run through Eaton Canyon. Those lines carry bulk power through the company’s territory. In Altadena, Edison is burying the smaller distribution lines, which carry power to homes.
The government investigation into the cause of the fire has not yet been released. Pizarro has said that a leading theory is that a century-old transmission line, which had not carried power for 50 years, somehow re-energized to spark the blaze.
The fire killed at least 19 people and destroyed more than 9,400 homes and other structures.
Business
Oil Prices Rise as Investors Weigh Cease-Fire Extension
Oil prices rose and stocks moved slightly higher on Wednesday as investors tried to make sense of President Trump’s decision to extend the cease-fire with Iran despite doubts about the status of another round of peace talks.
An adviser to Mohammad Bagher Ghalibaf, the influential speaker of the Iranian Parliament, dismissed the cease-fire announcement, saying that it had “no meaning.” He equated the U.S. naval blockade with bombings, with commercial vessels coming under attack near the Strait of Hormuz, the crucial shipping lane that has been at the center of a growing energy crisis.
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