Operations

As fires rage on, the long-term impact to Los Angeles restaurants could be devastating

It's still too early to get a sense of properties and jobs lost. But industry advisors recommend taking steps now to prepare for a difficult recovery ahead.
A screenshot of a viral video showing a McDonald's on fire in Alta Dena on TikTok. The origin of the video is not clear.

Dog Haus co-founder André Vener’s home in Pasadena is still standing—sadly, unlike many whose homes were reduced to little more than ashes after fires whipped through the region this week.

So his home is filled with friends and family that have been forced to evacuate from other parts of the community. The fast-casual chain’s Pasadena headquarters (ironically adjacent to a fire station) is closed to allow staff members to deal with the crisis, as firefighters continued to battle the ongoing Eaton fire, one of several across Los Angeles’ sprawling metropolitan area.

Two Dog Haus units are closed to the public after suffering damage—not from fire, Vener said, but from the hurricane-force winds that have fueled the infernos across Los Angeles this week. 

Yet despite the damage, power and internet outages, and a boil-water order, crew members are cooking at those restaurants to feed anyone in the neighborhood in need, he said.

In addition, Dog Haus crew members from the 19 franchise and company owned units across the LA region were feeding first responders and evacuees at temporary shelters in the Pasadena convention center and the Rose Bowl.

“Everyone has family members who have lost things or homes,” he said. “We’re just trying to be there for our staff. We’re not really worried about us and our corporate stores. Our number one thing is caring about our community and our friends.”

Calmer winds on Thursday allowed firefighters to make some headway battling the blazes across Los Angeles. But the growing loss of homes, businesses and jobs is expected to have a long-term impact on the restaurant industry in the nation’s second-largest city.

“Across our city, restaurants are feeling the pain, reservations are being cancelled, especially for outdoor-dining destinations, and because so many residents and staff have been impacted by this apocalyptic event, restaurants and businesses are being forced to close, having a huge economic impact on everyone,” said Tricia LaBelle, president of the Greater Los Angeles Hospitality Association, and owner of Bon Vivant Market & Café, Boardner’s of Hollywood, and the bar Dave’s on Broadway.

Fire crept into the restaurant-rich Hollywood area of Los Angeles last Wednesday, forcing evacuations and threatening treasured venues, like the more than 100-year-old Musso & Frank. But firefighters were able to contain the fire quickly, allowing residents back to their homes and businesses early Thursday. Many Hollywood restaurants remained closed, however, out of an abundance of caution.

For Josh Stone, CEO of the local deli chain Fat Sal’s, it was a nightmare revisited.

Fat Sal’s lost a location in Hollywood to a (relatively more routine) fire in November, after an adjacent auto repair shop exploded. At the time, and somewhat miraculously, Fat Sal’s was able to re-open in a new location around the block, just two days later, saving many jobs.

But then came the alert on Wednesday about a new wildfire bearing down on the Hollywood neighborhood. Stone wondered if he would be forced to watch that location go up in flames too.

“I was standing in the new version of Fat Sal’s when the fire (in Hollywood) broke out, and I was watching it from the front door. I was like, oh my God, this is crazy,” he said. 

“It never ceases to amaze me,” he added. “You see everyone running away from a fire, and then you see the firemen running towards it. It’s an incredible act of bravery and service.”

Because the fires across Los Angeles were still active, and in some cases zero-percent contained, city and county officials have not given a count of structures burned, other than an estimate of “in the thousands.” In a press conference Thursday, officials said it wasn’t clear yet how many structures were homes or businesses or other buildings.

Among the restaurants that have been confirmed to be demolished is the iconic Reel Inn in Malibu, a casual seafood favorite that was a popular spot for both locals and tourists. 

Owner Teddy Leonard told ABC News on Thursday that fans have been posting their family photos at the restaurant on social media in an emotional outpouring.

“The fact that we got to be a part of everyone’s lives is so moving,” she said. “I’m glad we created a place for family memories.”

Leonard, who had evacuated, said she still didn’t know whether her home survived the fire. Her son and sister both lost their homes.

For the restaurant’s crew, who are now out of work, she and her husband started a GoFundMe, which by Thursday had raised nearly $50,000. They hope to offer staff members three months of wages, benefits and support until they know whether they can rebuild.

The couple owned the building, but the restaurant was on state-owned land, and it isn’t yet clear whether state officials would want the restaurant to come back. Fans of the restaurant certainly appear to want Reel Inn to rebuild.

“For me, the overwhelming theme is just the love and kindness and support we’re seeing from the community, that is getting us all through,” said Leonard. “That means more than anything.”

The nearby Cholada Thai was also burned to the ground, and several reports indicated Moonshadows in Malibu was also destroyed. 

Eater is keeping a running count as news comes in

LaBelle of the GLAHA recommended that impacted business owners apply quickly for FEMA Fire Management Assistance Grants by reaching out to the Small Business Administration.

She recommended recording the damage. Be prepared to produce losses with point-of-sale reports, tax returns and equipment purchases. 

Los Angeles restaurant consultant Jerry Prendergast recommended that operators first contact their attorney and insurance agent.

But then he urged operators to think quickly about engaging a contractor. When the crisis is over, the demand for demolition work, and later for repair and rebuilding, will be huge, he said. 

“You will be in line for it if you do not get on it early,” said Prendergast.

For many operators, there will likely be challenges with permitting for any attempt to rebuild. Restaurants will need to be brought up to the newest codes, and that could cause issues with things like parking or waste hookups, as well as getting approvals through building departments, said Prendergast.

“There is already a shortage of equipment supplies,” he said. “And if tariffs are put on China, the cost of construction materials will go up substantially.”

Stone, of Fat Sal’s, said he hopes city and county officials will ease the aftermath by expediting the red tape that has long slowed business investment in the city. 

In the same way city officials made it easier to open outdoor patios during Covid, there will be an opportunity to help restaurant operators get back to business as soon as possible, to recover jobs and meet community needs.

The California Restaurant Association said Thursday it is offering relief grants ranging from $350 to $1,500 to food-and-beverage workers affected by the fires. The disaster grant application will go live on Jan. 14, with updates on the association’s Instagram (@restaurantscare).

Jot Condie, the CRA’s president & CEO, said, “These fires have taken an incredible toll on our members—operations have been disrupted, employees displaced, and already challenging financial burdens intensified.”

Another program will allow people to order pizza delivery to shelters through Slice Out Hunger, a network of pizza concepts across the country that mobilizes to feed people at times of crisis.

Vener at Dog Haus, meanwhile, said he hasn’t really thought yet about fundraising efforts. 

When fire tore through Maui in Hawaii, he wrote a check to support people there—not because there was a Dog Haus impacted, but just because that community was like a second home, he said.

And now in a tragic turnaround this week, he said, people from Maui were calling to ask how they could help Los Angeles.

“But we’re not there yet,” he said. We’re still in the thick of it.

“I hate even talking about this as if we’re moving on, this is current,” said Vener. “Fundraising isn’t the first priority. Right now, it’s taking care of our first responders and our people.”

 

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