When Roozbeh Farahanipour learned that Starbucks in Pomona and In-N-Out Burger in Oakland were closing due to crime, he wasn’t surprised.

Farahanipour owns two restaurants in Los Angeles and chairs the West Los Angeles Chamber of Commerce.

“This is the future of the state of California,” he said.

The Associated Press recently reported that In-N-Out burger on Oakport Street in Oakland is the first store to shutter in the fast food restaurant’s 75-year history.

It will close after March 24, 2024 due to auto break-ins, property damage, theft and robberies impacting customers and employees.

Meanwhile, the Starbucks in Pomona at Mission Boulevard and Garey Avenue, closed on Feb. 15 after being overrun by the unhoused who stole merchandise, broke the front door and even spit on an employee.

“Small business owners are feeling so vulnerable and helpless and sadly, it’s our policy makers at the local and state level that are putting them in that terribly fearful and unfortunate box,” said National Federation of Independent Business (NFIB) state director John Kabateck.

The California state Senate approved State Sen. Dave Cortese’s legislation last year that ties the hands of employees when faced with a potential suspect.

Senate Bill 553 creates new prevention standards of workplace violence impeding employers from requiring their workers to confront shooters or shoplifters.

“That may very well have been intended with the best intentions of protecting them but you’re now putting the small business owner in the position of walking on eggshells to try and prevent, or at least avert, a retail theft of crime,” Kabateck told OrangeCountyLawyers.com.

Employers are expected to implement a Workplace Violence Prevention Plan by July 1 and Cal/OSHA will finalize the standard by the end of 2025.

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Cities and Counties Not Staffing Enough Law Enforcement

“We are finding city councils and county board of supervisors do next to nothing to protect them and sufficiently supply the streets with the number of law enforcement personnel that people deserve,” Kabateck said in an interview.

In addition, many insurance companies are rejecting claims of liability filed by business owner, according to Farahanipour.

“If your store is a victim of terrorism and you want the insurance company to cover the damages to employees or customers for that, you need to already be opted in and have paid an extra premium,” he said in an interview.

Complicating matters for food businesses is a government category change.

Creation of California Fast Food Counsel

Fast food franchises are no longer considered to be restaurants but rather are overseen by an unelected board of appointees called the Fast Food Council.

“It makes it more difficult for them to continue doing business,” Farahanipour told OrangeCountyLawyers.com.

The Fast-Food Accountability and Standards Recovery Act, also known as AB 1228, empowers the Council to increase minimum wages and to decide the benefits, and circumstances for employees of the fast food franchise industry.

“Business owners are either going to increase product prices or more likely will scale back shifts, hours or entire positions,” Kabateck added. “That is what I think we’ll likely see. We’ve seen that with previous minimum wage increases.”

On April 1, minimum wage for fast food employees will increase to $20 per hour. Currently, minimum wage is $16 an hour

“You’re going to see more closures,” Farahanipour added. “Right now, it’s only crime but after the minimum wage increase hike that’s happening in April, we are facing way more chaos.”