Restaurant operators say rising costs have been crippling for their businesses. Camilla Rambaldi reports for the NBC4 News at 4 p.m. on Wednesday, March 26, 2025.
More lease signs are appearing on the world-famous Sunset Strip as some restaurants are shuttering their doors after decades in business, citing unbearable costs and a decline in foot traffic.
Since opening doors in 1981, the West Hollywood restaurant will serve up its last dishes at the end of March as operators blamed rising costs, including higher hourly pay for employees.
“”The minimum wage has gone up since 2019 like 40%,” Luc Mena, the restaurant’s general manager, said “In order for us to survive, we would have to sell $80 steaks.”
The state’s minimum wage is one of the highest in the nation as all workers are entitled to at least $16 an hour. For fast-food workers, the minimum wage starts at $20.
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A reduction in a number of visitors to the iconic 1.5 mile stretch of Sunset Boulevard has been devastating and crippling for businesses, Mena said.
“We don’t have enough foot traffic in the winter, and it led to the decision of us closing down,” he explained, saying there weren’t any walk-in customers over the summer. “Usually around summer time when it gets really busy, it gives you a cushion to survive the winter.”
Other popular eateries that are set to close include Hudson House and The Den on Sunset.
West Hollywood officials said they are providing incentives to local businesses so they can stay afloat, including a reduction in business license renewal fees.
“There’s a lot of sadness,” West Hollywood Mayor Chelsea Byers said. “People have come to love these places and see them as part of their memories.”
While the mayor admitted there’s only so much the city can do as commercial rent prices are beyond its control, she said the vacant restaurants won’t stay empty for too long.
“Every business that closes, we have seen more licenses open up,” Byers said, adding there’s a lot of change happening quickly. “We’re not at a low point in terms of new businesses opening.”
