Business
Restaurant workers wanted to unionize at this L.A. hotel. Now the restaurants are closing
Eight days after restaurant workers at a hip downtown hotel filed cards to organize a union, the hotel’s food operator declared it would shutter the dining establishments that employed them, the latest in a string of showdowns and confrontations between workers and employers in L.A. area restaurants.
The case is playing out at the Hotel Figueroa in downtown, home of Sparrow Italia, Cafe Fig, Bar Magnolia, the Cafeteria and La Casita at Driftwood. The historic building has for the last two decades built a following for its Mediterranean-inspired space and stylish dining rooms, but behind closed doors, tension has loomed between the third-party management company behind the restaurants, called Noble 33, and the estimated 100 food and beverage workers who run them.
Discontent between Noble 33 and its employees at Hotel Figueroa started soon after the hospitality group took over food and beverage operations for the hotel in 2021, according to workers and union organizers who spoke with The Times.
Workers said they were forced to take on multiple tasks without more pay as their colleagues left and management failed to back-fill positions.
Some food and beverage workers, many who worked alongside the unionized hospitality workers employed by Hotel Figueroa, started to agitate to also form a union and gain similar rights.
On Dec. 8, food and beverage workers who worked for Noble 33 notified their management that they intended to form a union, and submitted cards to do so.
Six days later, Noble 33 emailed its food workers, announcing that it would permanently shutter the restaurants by mid-February and lay off its food and beverage staff before then, according to a letter sent to employees on Dec. 14.
In response, restaurant and bar workers employed by Noble 33 at Hotel Figueroa filed a complaint in January with federal labor regulators, accusing hotel management of trying to suppress labor organizing among its food and beverage staff.
Unite Here Local 11, which represents the hotel workers at Hotel Figueroa, filed the complaint with the National Labor Relations Board on behalf of the food workers at Sparrow Italia, Cafe Fig, Bar Magnolia, the Cafeteria and La Casita at Driftwood.
Management company Noble 33 said it would close all the restaurants adjoining the lobby, seen above, at the Hotel Figueroa.
(Gary Coronado / Los Angeles Times)
The closing of the restaurants would leave large wells of unused space on the hotel’s ground floor.
Restaurants and two bars take up most of Hotel Figueroa’s bottom floor. The hotel’s front patio serves as outdoor dining space for Cafe Fig, a popular all-day Mediterranean restaurant featuring dishes like cauliflower bites, tuna tartar tostadas and truffle fries. Hanging vine chandeliers decorate the indoor dining room, which is attached to Bar Magnolia, a well-stocked watering hole for hotel guests and diners who want to sip on a libation.
Walk a few steps toward the the courtyard, past an arched entryway and there’s Sparrow Italia, which serves coastal Italian dishes and cocktails in an indoor-meets-outdoor dining room and bar that opens up to the hotel’s iconic coffin-shaped pool. La Casita at Driftwood offers food and drink service poolside when open for the summer season.
It’s unclear what operations if any would replace the dining spaces at the Hotel Figueroa, a Spanish Colonial hotel at Figueroa and 9th streets in downtown L.A.
“We are still evaluating all options concerning future food and beverage offerings at Hotel Figueroa,” a spokeswoman said Monday in a prepared statement.
Some of the workers said they were devastated by the move, which came right before the Christmas holiday.
Leobardo Perez, a 45-year-old dishwasher at Cafe Fig, said he decided to organize after two other dishwashers left and management made him take on their work instead of hiring new dishwashers. Perez, who has worked at the restaurant for two years, said he was also forced to do other jobs, such as prep or pastry work without additional pay.
“All we want is for our rights to be respected in the workplace,” Perez said. “It’s unjust for them to close down the restaurants because we just want to organize.”
The towering building of Hotel Figueroa. A spokeswoman for the hotel said that the notice to terminate food staff did not come from hotel management or ownership.
(Ricardo DeAratanha / Los Angeles Times)
Third-party manager disputes hotel’s claim
A spokesperson for Noble 33 said the third-party vendor had no option but to close.
Noble 33 contends that its contract with Hotel Figueroa stipulates that the unionization of food and beverage employees would trigger a kill clause between both parties. “It would be a breach of the hotel’s current unionization agreement with the union,” a Noble 33 spokesperson said in a written statement.
Hotel Figueroa and Unite Here Local 11 deny this claim.
A spokeswoman with Hotel Figueroa said notice to terminate the food staff “was not prompted by hotel management nor hotel ownership.”
She said the layoffs were initiated by Noble 33, which issued the notices without first discussing it with hotel ownership, management or employees.
“It is also important to note that our agreement specifically stipulates that Noble 33 will never be requested or authorized to engage in unfair labor practices,” Hotel Figueroa said in a written statement.
Unite Here Local 11 called Noble 33’s claim “absurd.”
“It is absolutely disgusting that a company would sign a contract promising to kill its operations simply because its employees exercise their federal right to organize a union,” said Kurt Petersen, co-president of Unite Here Local 11.
Food workers across the region have been struggling with owners and employers in an industry shaken last year by brutal financial realities and allegations of mismanagement and abuse. At least 65 notable closures of restaurants affected the dining scene in 2023.
The closures continued into the new year. On Jan 1, Sweet Lady Jane — famous for its triple berry cake — announced it had shuttered all six of its Los Angeles locations.
At the same time, discontent between food and beverage workers and employers continues to grow.
In June, former servers at Jon & Vinny’s, a hip Italian American restaurant, filed a class-action lawsuit in Los Angeles Superior Court against the restaurants’ owners, Jon Shook and Vinny Dotolo. The lawsuit against Joint Venture Restaurant Group Inc., which owns Jon & Vinny’s, claimed that the company denied servers tips, resulting in a reduction of take-home pay due to diner confusion regarding an 18% service fee.
In September, hostesses at Nobu in Malibu filed separate lawsuits against the popular restaurant, alleging sexual assault, sexual harassment and discrimination.
In December, the National Labor Relations Board announced that it was looking to force Starbucks to immediately reopen 23 stores that workers allege were shut two years ago in a move that was allegedly done to suppress union organizing. Six of those locations were closed in the Los Angeles area.
Edith Reyes, a line cook at Cafe Fig, said she felt compelled to organize because of what she described as unfair treatment on the part of managers.
Reyes, a single mom who has worked at the restaurant for about three years, said managers ignored multiple requests for a few weekends off to spend with her daughters.
At the same time, she said newer workers were granted weekends off.
“It’s unfair. I’m the only parent my daughters have,” she said of her teenage daughters. “They depend on me. I need to be there for them and I need to provide for them.”
She was given a few hours short of full-time and didn’t qualify for vacation or sick time off, she said.
On Jan. 20, Hotel Figueroa hotel workers took to the picket line for a few days for the first time this year. The move was the latest in a series of intermittent strikes and a larger summer strike that launched in July when hundreds of hospitality workers at hotels across Southern California took to the streets in protest.
Unite Here Local 11 represents the hospitality workers and reached tentative agreements with about two dozen hotels, out of some 60 properties in Los Angeles and Orange counties initially targeted by strikes that started last summer.
Business
In-N-Out Burger outlets in Southern California hit by counterfeit bill scam
Two people allegedly used $100 counterfeit bills at dozens of In-N-Out Burger restaurants in Southern California in a wide-reaching scam.
Glendale Police officials said in a statement Friday that 26-year-old Tatiyanna Foster of Long Beach was taken into custody last month. Another suspect, 24-year-old Auriona Lewis, also of Long Beach, was arrested in October.
Police released images of $100 bills used to purchase a $2.53 order of fries and a $5.93 order of a Flying Dutchman.
The Los Angeles County District Attorney’s Office charged Lewis with felony counterfeiting and grand theft in November.
Elizabeth Megan Lashley-Haynes, Lewis’s public defender, didn’t immediately respond to a request for comment.
Glendale police said that Lewis was arrested in Palmdale in an operation involving the U.S. Marshals Task Force. Foster is expected in court later this month, officials said.
”Lewis was found to be in possession of counterfeit bills matching those used in the Glendale incident, along with numerous gift cards and transaction receipts believed to be connected to similar fraudulent activity,” according to a police statement.
A representative for In-N-Out Burger told KTLA-TV that restaurants in Riverside, San Bernardino and San Diego counties were also targeted by the alleged scam.
“Their dedication and expertise resulted in the identification and apprehension of the suspects, helping to protect our business and our communities,” In-N-Out’s Chief Operations Officer Denny Warnick said. “We greatly value the support of law enforcement and appreciate the vital role they play in making our communities stronger and safer places to live.”
The company, opened in 1948 in Baldwin Park, has restaurants in nine states.
An Oakland location closed in 2024, with the owner blaming crime and slow police response times.
Company chief executive Lynsi Snyder announced last year that she planned to relocate her family to Tennessee, although the burger chain’s headquarters will remain in California.
Business
Newsom’s budget includes $200 million to make up for Trump’s canceled EV rebates, among other climate items
Gov. Gavin Newsom on Friday doubled down on California’s commitment to electric vehicles with proposed rebates intended to backfill federal tax credits canceled by the Trump administration.
The plan would allocate $200 million in one-time special funds for a new point-of-sale incentive program for light-duty zero-emissions vehicles. It was part of a sweeping $348.9-billion state budget proposal released Friday, which also included items to address air pollution and worsening wildfires, amid a projected $3-billion state deficit.
EVs have become a flashpoint in California’s battle against the Trump administration, which moved last year to repeal the state’s long-held authority to set strict tailpipe emission standards and eventually ban the sale of new gas powered cars.
Last year, Trump ended federal tax credits of up to $7,500 for EV customers that were part of President Biden’s 2022 Inflation Reduction Act. In September, his administration also let lapse federal authorization for California’s Clean Air Vehicle decal program, which allowed solo EV drivers to use carpool lanes.
“Despite federal interference, the governor maintains his commitment to protecting public health and achieving California’s world leading climate agenda,” Lindsay Buckley, spokesperson for the California Air Resources Board, said in an email. “This incentive program will help continue the state’s ZEV momentum, especially with the federal administration eliminating the federal EV tax credit and carpool lane access.”
Newsom had previously flip-flopped on this idea, first vowing to restore a state program that provided up to $7,500 to buy clean cars and then walking it back in September. That same month, a group of five automakers including Honda, Rivian, Hyundai, Volkswagen and Audi wrote a letter urging Newsom and state legislators to establish a $5,000 EV tax rebate to replace the lost federal incentives, Politico reported.
During his State of the State speech Thursday — one year after the devastating Palisades and Eaton fires in Los Angeles — Newsom said California “refuse[s] to be bystanders” while China and other nations take the lead on electric vehicles and the clean energy transition. He touted the state’s investments in solar, hydrogen, wind and nuclear power, as well as its recent move away from the use of any coal-fired power.
“We must continue our prudent fiscal management, funding our reserves, and continuing the investments Californians rely on, from education to public safety, all while preparing for Trump’s volatility outside our control,” the governor said in a statement. “This is what responsible governance looks like.”
Several environmental groups had been urging Newsom to invest more in clean air and clean vehicle programs, which they say are critical to the state’s ambitious goals for human health and the environment. Transportation is the largest source of climate and air pollution in California and is responsible for more than a third of global warming emissions, said Daniel Barad, Western states policy manager with the nonprofit Union of Concerned Scientists.
“As federal attacks threaten California’s authority to protect public health, incentives are more essential than ever to scale up clean cars and trucks,” Barad said. “The governor and legislative leaders must act now to fully fund zero-emission transportation and pursue new revenue to grow and sustain climate investments.”
Katelyn Roedner Sutter, California senior director with the nonprofit Environmental Defense Fund, called it “an essential step to save money for Californians, cut harmful pollution, spur innovation, and support the global competitiveness of our auto industry.”
While the budget proposal does not include significant new spending proposals, it contains other line items relating to climate and the environment. Among them are plans to continue implementing Proposition 4, the $10-billion climate bond approved by voters in 2024 for programs geared toward wildfire resilience, safe drinking water, flood management, extreme heat mitigation and other similar efforts.
Among $2.1 billion in climate bond investments proposed this year are $58 million for wildfire prevention and hazardous fuels reduction projects in vulnerable communities, and nearly $20 million to assist homeowners with defensible space to prevent fire. Water-related investments include $232 million for flood control projects and nearly $70 million to support repairs to existing or new water conveyance projects.
The proposal also lays out how to spend money from California’s signature cap-and-trade program, which sets limits on greenhouse gas emissions and allows large polluters to buy and sell unused emission allowances at quarterly auctions. State lawmakers last year voted to extend the program through 2045 and rename it cap-and-invest.
The spending plan includes a new tiered structure for cap-and-invest that first funds statutory obligations such as manufacturing tax exemptions, followed by $1 billion for the high speed rail project, $750 million to support the California Department of Forestry and Fire Protection, and finally secondary program funding such as affordable housing and low-carbon transit options.
But while some groups applauded the budget’s broad handling of climate issues, others criticized it for leaning too heavily on volatile funding sources for environmental priorities, such as special funds and one-time allocations.
The Sierra Club called the EV incentive program a crucial investment but said too many other items were left with “patchwork strategies that make long-term planning harder.”
“Just yesterday, the Governor acknowledged in his State of the State address that the climate risk is a financial risk. That is exactly why California needs climate investments that are stable and ongoing,” said Sierra Club director Miguel Miguel.
California Environmental Voters, meanwhile, stressed that the state should continue to work toward legislation that would hold oil and gas companies liable for damages caused by their emissions — a plan known as “Make Polluters Pay” that stalled last year amid fierce lobbying and industry pressure.
“Instead of asking families to absorb the costs, the Legislature must look seriously at holding polluters accountable for the harm they’ve caused,” said Shannon Olivieri Hovis, California Environmental Voters’ chief strategy officer.
Sarah Swig, Newsom’s senior advisor for climate, noted that the state’s budget plan came just days after Trump withdrew the United States from the United Nations Framework Convention on Climate Change, a major global treaty signed by nearly 200 countries with the aim of addressing global warming through coordinated international action.
“California is not slowing down on climate at a time when we continue to see attack after attack from the federal government, including as recently as this week with the Trump administration’s withdrawal from the UNFCCC,” Swig told reporters Friday. “California’s leadership has never mattered more.”
Business
Abandoned shops and missing customers: Fire-scarred businesses are still stuck in the aftermath
The charred remains of the historic Pacific Palisades Business Block cast a shadow over a once-bustling shopping district along West Sunset Boulevard.
Empty lots littered with debris and ash line the street where houses and small businesses once stood. A year since the Palisades fire roared through the neighborhood, only a handful of businesses have reopened.
The Starbucks, Bank of America, and other businesses that used to operate in the century-old Business Block are gone. All that remains of the Spanish Colonial Revival building are some arches surrounding what used to be a busy retail space. The burned-out, rusty remnants of a walk-in vault squat in the center of the structure.
Nearby, the Shade Store, the Free-est clothing store, Skin Local spa, a Hastens mattress store, Sweet Laurel Bakery and the Hydration Room are among the many stores still shuttered. Local barbershop Gornik & Drucker doesn’t know if it can reopen.
“We have been going back and forth on what it would take to survive,” co-owner Leslie Gornik said. “If we open, we have to start over from scratch.”
Hundreds gathered around Business Block on the anniversary of he fire on Wednesday to witness a military-style white-glove ceremony to pay respects to the families who lost loved ones. Photos of those killed from the neighborhood were placed at the Palisades Village Green next door.
The Palisades fire burned for 24 days, destroying more than 6,800 structures, damaging countless others and forcing most of the neighborhood’s residents to move elsewhere. About 30 miles northeast, the Eaton fire burned more than 9,400 structures. Combined, the fires killed 31 people.
Remnants of the the Pacific Palisades Business Block, which was completed in 1924 and burned in the Palisades fire.
The few businesses that are back in Palisades serve as a beacon of hope for the community, but owners and managers say business is down and customers haven’t returned.
Ruby Nails & Spa, located near the Business Block, was closed for eight months before reopening in September. Now business is only half of what it was before the fires, owner Ruby Hong-Tran said.
“People come back to support but they live far away now,” she said. “All my clients, their houses burned.”
Ruby Hong-Tran, owner of Ruby Nails & Spa in Pacific Palisades, says her business is half of what it was since reopening.
It took months to clean all the smoke damage from her shop. The front is still being fixed to cover up burn damage.
The firestorms destroyed swaths of other neighborhoods, including Malibu, Topanga, Sierra Madre and Altadena, where businesses and homeowners also are struggling to build back.
Some are figuring out whether it is worth rebuilding. Some have given up.
The Los Angeles Economic Development Corporation estimated last year that more than 1,800 small businesses were in the burn zones in Pacific Palisades, Malibu and Altadena, impacting more than 11,000 jobs.
Businesses say they often have been on their own. The Federal Emergency Management Agency tasked the U.S. Army Corps of Engineers to clean up debris at private residences, some public buildings and places of worship — but not commercial properties.
Business owners had to clean up the charred debris and toxic waste on their properties. Many had to navigate complicated insurance claims and apply for emergency loans to stay afloat.
Rosie Maravilla, general manager of Anawalt’s Palisades Hardware, said damage to her store was limited, and insurance covered the cleaning, so she was able to open quickly. The store reopened just one month after the fire.
Rosie Maravilla, general manager of Anawalt Palisades Hardware, in front of of the store in Pacific Palisades.
Still, sales are 35% lower than what they used to be.
“In the early days, it was bad. We weren’t making anything,” Maravilla said. “We’re lucky the company kept us employed.”
The customer base has changed. Instead of homeowners working on personal projects, the store is serving contractors working on rebuilding in the area.
An archival image of the area in Pacific Palisades hangs over the aisles in Anawalt Palisades Hardware, where business is down despite a customer base of contractors who are rebuilding.
Across the street from the Business Block, the Palisades Village mall was spared the flames and looks pristine, but is still closed. Shop windows are covered with tarps. Low metal gates block entry to the high-end outlets. The mall is still replacing its drywall to eliminate airborne contaminants that the fire could have spread.
All of its posh shops still are shut: Erewhon, Lululemon ,Bay Theater, Blue Ribbon Sushi, athletic apparel store Alo, Buck Mason men’s and Veronica Beard women’s boutiques.
Mall owner and developer Rick Caruso said he is spending $60 million to reopen in August.
The need to bring back businesses impacted by the fires is urgent, Caruso said, and not just to support returning residents.
“It’s critical to bring jobs back and also for the city to start creating some tax revenue to support city services,” he said. ”Leaders need to do more to speed up the rebuilding process, such as speeding up the approval of building permits and stationing building inspectors closer to burn areas.”
Pedestrians walk past the Erewhon market in Palisades Village that plans to reopen this year.
(Genaro Molina/Los Angeles Times)
Wednesday, on the anniversary of the fire, Caruso sent three light beams into the sky over the mall, which met in one stream to honor the impacted communities of Pacific Palisades, Altadena and Malibu.
The nighttime display will continue through Jan. 31.
Business Block’s history dates to 1924, when it served as a home for the community’s first ventures. In the 1980s, plans to tear it down and build a mall sparked a local uprising to save the historic symbol of the neighborhood’s vibrancy. It was designated a Los Angeles Historic-Cultural Monument in 1984.
Tiana Noble, a Starbucks spokesperson, said the landlord terminated the company’s lease when the building burned down. Bank of America said it secured a new lease to rebuild nearby.
Business Block’s fate is still unclear. Some people want to preserve its shell and turn it into a memorial.
This week, it was ringed by a fence emblazoned with the words “Empowering fresh starts together.”
Caruso said the ruins should be torn down.
“It needs to be demolished and cleaned up,” he said. “It’s an eyesore right now and a hazard. I would put grass on it and make it attractive to the community.”
Twisted and scorched remnants of the the Pacific Palisades Business Block still are there a year after the fire.
A short walk from the Business Block and near a burned-down Ralphs grocery store is the Palisades Garden Cafe, one of the few places in the neighborhood to get food and drink. The small, vibrant cafe was closed for two months after the fire, during which the employees went without pay.
Manager Lita Rodriguez said business is improving, but misses the regulars.
“We used to get tons of students and teachers who live and work here,” she said. “Our customers are mostly contractors now.”
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