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.
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.
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
so let me get this straight… giving a livable wage constitutes and anti-Capitalist, Marxist agenda?
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.
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.
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.
Never mind. I was wrong.
https://wehoonline.com/2022/09/21/op-ed-meister-was-deciding-vote-against-minimum-wage/
Not sure why a minimum wage exists. Either we’re for free enterprise or were for North Korea. You can t be both.
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.
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.
Oh yeah, like a $25 martini isn’t expensive enough.
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!
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!
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.
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.
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.
Kev, have you lived in California or do you just not see *broad sweeping gesture to homelessness, rampant crime, drug epidemic, communism* all this?
He is also selling his ridiculously overbuilt hancock park mansion. Who would do this unless they were in a cash crisis?
someone wanting to move into a new home in an even better neighborhood?
There is NO BETTER NEIGHBORHOOD IT IS HANCOCK PARK!!!!!!!
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 »
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.
^ this
Bullhockey. We should believe the LA Business Journal?
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 »
Sounds like quite the crowd. Future brain surgeons???
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.
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.
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.
He went on record at the public comment podium, you have lots of time, why not go find that and post.
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.
All city council meetings are recorded and stored on the city’s YouTube channel. It’s all there.
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.
Thanks 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.
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?
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.
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.
You believe Donald Trump colluded with Russia to win the 2016 election.