Business

Restaurant workers wanted to unionize at this L.A. hotel. Now the restaurants are closing

Published

2 years ago

February 5, 2024

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

Disneyland Resort President Thomas Mazloum named parks chief

Published

5 hours ago

March 11, 2026

Press Room

Disneyland Resort President Thomas Mazloum named parks chief

Disneyland Resort President Thomas Mazloum has been named chairman of Walt Disney Co.’s experiences division, the company said Tuesday.

Mazloum succeeds soon-to-be Disney Chief Executive Josh D’Amaro as the head of the Mouse House’s vital parks portfolio, which has become the economic engine for the Burbank media and entertainment giant. His purview includes Disney’s theme parks, famed Imagineering division, merchandise, cruise line, as well as the Aulani resort and spa in Hawaii.

Jill Estorino will become the head of Disneyland Resort in Anaheim. She previously served as president and managing director of Disney Parks International and oversaw the company’s theme parks and resorts in Europe and Asia.

Estorino and Mazloum will assume their new roles on March 18, the same day as D’Amaro and incoming Disney President and Chief Creative Officer Dana Walden.

“Thomas Mazloum is an exceptional leader with a genuine appreciation for our cast members and a proven track record of delivering growth,” D’Amaro said in a statement. “His focus on service excellence, broad international leadership and strong connection to the creativity that brings our stories to life make him the right leader to guide Disney Experiences into its next chapter.”

Mazloum had been about a year into his tenure at Disneyland. Before that, he was head of Disney Signature Experiences, which includes the cruise line. He was trained in hospitality in Europe.

In his time at Disneyland, Mazloum oversaw the park’s 70th anniversary celebration and recently pledged to eliminate time limitations for park-hopping, which are designed to manage foot traffic at Disneyland and California Adventure.

Mazloum will now oversee a 10-year, $60-billion investment plan for Disney’s overall experiences business, which includes new themed lands in Disneyland Resort and Walt Disney World. At Disneyland, that expansion could result in at least $1.9 billion of development.

The size of that investment indicates how important the parks are to Disney’s bottom line. Last year, the experiences business brought in nearly 57% of the company’s operating income. Maintaining that momentum, as well as fending off competitors such as Universal Studios, is key to Disney’s continued growth.

In his new role, Mazloum will have to keep an eye on “international visitation headwinds” at its U.S.-based parks, which the company has said probably will factor into its earnings for its fiscal second quarter. At Disneyland Resort, that dip was mitigated by the park’s high percentage of California-based visitors.

Times staff writer Todd Martens contributed to this report.

Business

What soaring gas prices mean for California’s EV market

Published

17 hours ago

March 10, 2026

Press Room

What soaring gas prices mean for California’s EV market

It has been a bumpy road for the electric vehicle market as declining federal support and plateauing public interest have eaten away at sales.

But EV sellers could soon receive a boost from an unexpected source: The war in Iran is pushing up gas prices.

As Americans look to save money at the pump, more will consider switching to an electric or hybrid vehicle. Average gas prices in the U.S. have risen nearly 17% since Feb. 28 to reach $3.48 per gallon. In California, the average is $5.20 per gallon.

Electric vehicles are pricier than gasoline-powered cars and charging them isn’t cheap with current electricity prices, but sky-high gas prices can tip the scales for consumers deciding which kind of vehicle to buy next.

“We probably will see an uptick in EV adoption and particularly hybrid adoption” if gas prices stay high, said Sam Abuelsamid, an auto analyst at Telemetry Agency. “The last time we had oil prices top $100 per barrel was early 2022 and that’s when we saw EV sales really start to pick up in the U.S.”

In a 2022 AAA survey, 77% of respondents said saving money on gas was their primary motivator for purchasing an electric vehicle. That year, 25% of survey respondents said they were likely or very likely to purchase an EV.

As oil prices cooled, the number fell to16% in 2025.

In California, annual sales of new light-duty zero-emission vehicles jumped 43% in 2022, according to the state’s Energy Commission. The market share of zero-emission vehicles among all light-duty vehicles sold rose from 12% in 2021 to 19% in 2022.

“Prior to 2022, we didn’t really have EVs available when we had oil price shocks,” Abuelsamid said. “But every time we did, it coincided with a move toward more fuel-efficient vehicles.”

Dealers are anticipating a windfall.

Brian Maas, president of the California New Car Dealers Assn., predicted enthusiasm for EVs will rebound across California if oil prices don’t come down.

“If prior gasoline price spikes are any indication, you tend to see interest in more fuel-efficient vehicles,” he said.

Rising gas prices could be a lifeline for EV makers at a time when federal support for green cars has been declining.

Under President Trump, a federal $7,500 tax incentive for new electric vehicles was eliminated in September, along with a $4,000 incentive for used electric vehicles.

In California, the zero-emission vehicle share of the total new-vehicle market was 22% through the first 10 months of 2025, then dropped sharply to 12% in the last two months of the year, according to the California Auto Outlook.

Meanwhile Tesla, the most popular EV brand in the country, has grappled with an implosion of its reputation with some consumers after its chief executive, Elon Musk, became one of Trump’s most vocal supporters and helped run the controversial Department of Government Efficiency.

Over the last several months, Ford, General Motors and Stellantis have pared back EV ambitions.

Other automakers, including Nissan, announced plans to stop producing their more affordable electric models.

The Trump administration has moved to roll back federal fuel economy standards and revoked California’s permission to implement a ban on new gas-powered car sales by 2035.

David Reichmuth, a researcher with the Clean Transportation program in the Union of Concerned Scientists, said the shift in production plans will affect EV availability, even if demand surges.

That could keep people from switching to cleaner vehicles regardless of higher gas prices.

“This is a transition that we need to make for both public health and to try to slow the damage from global warming, whether or not the price of gasoline is $3 or $5 or $6 a gallon,” he said.

According to Cox Automotive, new EV sales nationally were down 41% in November from a year earlier. Used EV sales were down 14% year over year that month.

To be sure, oil prices can fluctuate wildly in times of uncertainty. It will take time for consumers to decide on new purchases.

Brian Kim, who manages used car sales at Ford of Downtown LA, said he has yet to see a jump in the number of people interested in EVs, hybrids or more fuel-efficient gas-powered engines.

Still, if the price at the pump stays stuck above its current level, it could happen soon.

“Once the gas prices hit six [dollars per gallon] or more and people feel it in their pocket, maybe things will start to change,” he said.

Business

Nearly 60 gigawatts of U.S. clean power stalled, trade group finds

Published

1 day ago

March 10, 2026

Press Room

Nearly 60 gigawatts of U.S. clean power stalled, trade group finds

A total of 59 gigawatts of U.S. clean energy projects are facing delays at a time when demand for power from AI data centers is surging, according to a trade group study.

Developers are seeing an average delay of 19 months over issues such as long interconnection times, supply constraints and regulatory barriers, the American Clean Power Assn. said in a quarterly market report.

The backlog is happening despite the growing need for power on grids that are being taxed by energy-hungry data centers and increased manufacturing. The Trump administration has implemented a slew of policies to slow the build-out of solar and wind projects, including delaying approvals on federal lands.

The potential energy generation facing delays is the equivalent of 59 traditional nuclear reactors, enough to power more than 44 million homes simultaneously.

“Current policy instability is beginning to impact investor confidence and negatively impact project timelines at a time when demand is surging,” American Clean Power Chief Policy Officer JC Sandberg said in a statement.

Despite the hurdles, developers were able to bring more than 50 gigawatts of wind, solar and batteries online in 2025, accounting for more than 90% of all new power capacity in the U.S., the report found. Clean power purchase agreements declined 36% in 2025 compared with 2024, signaling that the build-out of clean power in the U.S. could be lower in the 2028 to 2030 time period, according to the report.

Chediak writes for Bloomberg.