Why is The Abbey for sale? WeHo’s new minimum wage law, says journal

ADVERTISEMENT

Though owner David Cooley gave no official reason for putting The Abbey up for sale last week, the L.A. Business Journal says the blame lies directly with West Hollywood’s new minimum wage law.

A new report in the journal claims Cooley met with Mayor Sepi Shyne prior to the law taking effect in order to voice his concerns. The meeting apparently did little to persuade the mayor of the detrimental effects of WeHo’s minimum wage — the highest in the nation — on local businesses.

According to the journal, Cooley told Shyne, “The policy adds another $1 million to the Abbey’s expenses” and that he “had never before thought of closing until now seeing their policy destroying us.”

The minimum wage ordinance was passed in 2021 and went into effect July 1 despite substantial pushback from the business community. The new policy mandates annual wage increases of up to 4%. In addition, businesses are now obligated to provide sick leave and vacation time to their workers, a benefit seldom encountered in service-industry occupations.

While business owners acknowledged their desire to support higher wages for their employees, they expressed apprehension about the potential repercussions of increased costs, such as the potential for layoffs or reduced working hours.

ADVERTISEMENT

Brett Latteri, owner of the Den on Sunset, said when taking into account taxes and the newly implemented paid time off, his employees’ wages now amount to approximately “somewhere between $23 to $25 per hour.”

Latteri expressed concern about the feasibility of sustaining such businesses under these circumstances. He said that the current situation is not sustainable, especially considering that just a short distance away, only 60 feet east, the city of Los Angeles presents labor costs that are 25 to 30% lower.

Dimitri Komarov, owner of Formosa Cafe, Tail o’ The Pup, and Harlowe, said he has been compelled to reduce staff hours as a survival measure since increasing prices significantly is not a viable option due to the already exorbitant costs.

 

5 4 votes
Article Rating
ADVERTISEMENT

Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

73 Comments
Newest
Oldest
Inline Feedbacks
View all comments
Olen
Olen
1 year ago

If this is true, this is disgusting. Cooley is a perfect example of the problem: rich CEO not wanting to share his wealth with the slaves that made him rich

Dr. Peel
Dr. Peel
1 year ago

so let me get this straight… giving a livable wage constitutes and anti-Capitalist, Marxist agenda?

Edie
Edie
1 year ago

Th problem with government is that they don’t look at the big picture. West Hollywood restaurants have already become unaffordable for your average worker. Now only about 10% of the city’s population will be able to afford to dine out. As restaurants will have to raise the prices even more. So it not only hurts businesses. But it hurst consumers… and it will hurt staff. Fewer customers, fewer tops, fewer work hours/shifts.

WehoQueen
WehoQueen
1 year ago

The article failed to mention which Councilmembers voted for this business killing minimum wage, besides Sepi. Can someone refresh our memory? The Marxists and Communists have taken over, they don’t believe in Capitalism, letting the market/demand set the price, which is fair and always works. Sepi needs to move to North Korea.

Randy
Randy
1 year ago
Reply to  WehoQueen

If I’m not mistaken, it was unanimous. And that includes Meister. I could be wrong. I did watch the meeting, but it was about a year ago. Or longer.

WehoQueen
WehoQueen
1 year ago
Reply to  Randy

Not sure why a minimum wage exists. Either we’re for free enterprise or were for North Korea. You can t be both.

Harambe's Vengeful Ghost
Harambe's Vengeful Ghost
1 year ago
Reply to  WehoQueen

Minimum wage is inherently racist. Black kids were willing to work for less than white kids and ended up having higher employment rates than the white kids. So combine that with Jim Crow, and the progressives were able to start putting black people back in the plantation, so to speak.

RoadBully
RoadBully
1 year ago

Money talks: If the WEHO business community finds this minimum wage hike detrimental to their profit line, you will see it by more businesses closing at a rate that would affect the city directly. I hope this does not force closures to the Iconic Rainbow, Roxy, and Whisky on the Sunset strip. A little surprised that David Cooley did not just adjust his menu/drink prices to accommodate this.

Jim Nasium
Jim Nasium
1 year ago
Reply to  RoadBully

Oh yeah, like a $25 martini isn’t expensive enough.

WehoQueen
WehoQueen
1 year ago
Reply to  RoadBully

Yes. I too am scratching my head wondering why David Cooley didn’t simply “adjust his prices” to accommodate the Marxist agenda of taking over and controlling private property and private businesses in the city. You have all the answers, don’t you!

Harambe's Vengeful Ghost
Harambe's Vengeful Ghost
1 year ago
Reply to  WehoQueen

Don’t worry, it’ll force more closures. You will own nothing. Oh, that “be happy part?” That was a lie. Eat your bugs, get in your pod, plug into NeuraLink, put on your VR headset, and take off your pants for the porn machine and bathroom facilitator.

What? Nooooo that’s not the Matrix at all!

Kevin
Kevin
1 year ago

Given the prices and crowds, the margins at the Abbey are some if the highest in the bar/restaurant industry in the entire country. So to sell the business based on a minimum wage law seems unlikely. He also put his long time LA home on the market a few months ago, so either he is downsizing or facing issues where owning a business and large home is not advisable.

Stephen
Stephen
1 year ago
Reply to  Kevin

I was going to say the same thing, saw the realtor’s video he posted to sell his home and now he’s suddenly selling his valuable business, too? Obviously David Cooley needs lots of cash asap. And I think he’s covering that with this b.s. conservative whining about having to pay his workers a 21st century wage.

SeeMe
SeeMe
1 year ago
Reply to  Stephen

Or maybe, after 30 years of building the most successful gay bar in the country – and watching it starting to decline – he is rewarding himself with a much-deserved retirement..as well as an even nicer new home. Stop spreading lies.

Harambe's Vengeful Ghost
Harambe's Vengeful Ghost
1 year ago
Reply to  Kevin

Kev, have you lived in California or do you just not see *broad sweeping gesture to homelessness, rampant crime, drug epidemic, communism* all this?

angry gay pope
1 year ago

He is also selling his ridiculously overbuilt hancock park mansion. Who would do this unless they were in a cash crisis?

SeeMe
SeeMe
1 year ago
Reply to  angry gay pope

someone wanting to move into a new home in an even better neighborhood?

angry gay pope
1 year ago
Reply to  SeeMe

There is NO BETTER NEIGHBORHOOD IT IS HANCOCK PARK!!!!!!!

WeHo Proud
WeHo Proud
1 year ago

Before attempting to write this comment I read every comment that has been posted so far. Many I agree with based how this city has structured it’s employment laws. I think it is ok for the city to enact a few guidelines to protect employees.However in this case I feel that the city government has way overstepped the new employer requirements that were enacted last year. I think that the minimum wage is a little too high and is not in balance with today’s economy. Wait,don’t jump all over me before you read further. Minimum wage is just that, a… Read more »

Gimmeabreak
Gimmeabreak
1 year ago
Reply to  WeHo Proud

Look at who is filling these jobs now. It once was young people just starting out who lived in the area with their parents or maybe with roommates in a cheap apartment. Now it is poor adult immigrants who are raising families and live quite a distance away. Students can’t get jobs now because adults have taken them, and those adults are demanding wages that the employer can’t pay.

Harambe's Vengeful Ghost
Harambe's Vengeful Ghost
1 year ago
Reply to  Gimmeabreak

^ this

Jja
Jja
1 year ago

Bullhockey. We should believe the LA Business Journal?

Kiss it
Kiss it
1 year ago

1. $22 for apple martinis before the wage went up. They were making plenty of money. 2. Same drink in Palm Springs is $3.50 3. We need to bring minimum wage back down to $4.25 an hour as the servers get tips anyways so it’s not such a burden on business owners 4. Apple martinis need to go back down to $4.5 as they were before 5. A grilled cheese at the Abbey was $17 last June 1 and on this June 1 this I bought another Grilled cheese and it was $23.. also the Abbey salad went from $17,… Read more »

Melrose
Melrose
1 year ago
Reply to  Kiss it

Sounds like quite the crowd. Future brain surgeons???

Intervention
Intervention
1 year ago

Don’t know if this is a comedy or a tragedy. Mayor Shyne’s misguided thought process will lead to a city with the highest minimum wage mandates for non-existent businesses.

We need an intervention in addition to a recall.

Edie
Edie
1 year ago
Reply to  Intervention

Yep…. But let’s face it…she’s trying to get elected on the national stage. She doesn’t care how many people she destroys on the way up.

greeneyedguy
greeneyedguy
1 year ago

https://labusinessjournal.com/featured/business-owners-flee-wage-hike/

I find it very strange that this “source” is coming out with unverified information.

Cooley declined to comment on the situation.

Why won’t David Cooley go on record? He is a major player in this city and has considerable influence and respect.

Larry Block
Admin
1 year ago
Reply to  greeneyedguy

He went on record at the public comment podium, you have lots of time, why not go find that and post.

greeneyedguy
greeneyedguy
1 year ago
Reply to  Larry Block

Wehoville covered the minimum wage discussions extensively and I don’t see any record of him speaking.

Not sure why you had to be snarky.

QuestionableEyedGuy
QuestionableEyedGuy
1 year ago
Reply to  greeneyedguy

All city council meetings are recorded and stored on the city’s YouTube channel. It’s all there.

Randy
Randy
1 year ago
Reply to  greeneyedguy

I saw him speak. But good luck finding the council meeting. It’s not easy to search for that kind of specific thing. Not on YouTube. You’d have to look for a news article on this site, that covered that meeting, and then go onto YouTube and try to find a council meeting that is close to that date. Check out my link above, it was around that time.

Last edited 1 year ago by Randy
greeneyedguy
greeneyedguy
1 year ago
Reply to  Randy

Thanks Randy!

QuestionableEyedGuy
QuestionableEyedGuy
1 year ago
Reply to  Randy

It is not WEHOville’s job to be the municipal archives. The meeting videos are all archived on YouTube. The agendas are all archived on weho.org. The minutes of the meetings are all archived on weho.org.

greeneyedguy
greeneyedguy
1 year ago

I never said it was Wehoville’s job.

And to my ORIGINAL POINT:

Why wouldn’t Cooley go on record regarding the reason he is selling The Abbey?

Larry Block
Admin
1 year ago
Reply to  greeneyedguy

The same reason why your attorney tells you to shut your mouth during a legal proceeding. He was on record prior to the sale about what the future may look like, and how it affects their biz. This past Sunday at 8:45 am, Abbey was closed. Last week went to breakfast at 8:30 am to k24 and it was closed. We got to Hugo’s by 8:40 it was closed. We are all watching hours.

QuestionableEyedGuy
QuestionableEyedGuy
1 year ago
Reply to  greeneyedguy

The questions are why would he, and why should he? He has ZERO obligation to explain his personal financial considerations or business decisions to anyone. I hope he gets top dollar and finds joy in his next phase in life, like the joy he has brought to many through creating a fun space for over 30 years.

Harambe's Vengeful Ghost
Harambe's Vengeful Ghost
1 year ago
Reply to  greeneyedguy

You believe Donald Trump colluded with Russia to win the 2016 election.