LOS ANGELES – Continuing ongoing efforts to make opening and running small businesses in California easier, Governor Gavin Newsom today signed two bills cutting red tape and regulation in the restaurant industry. The bills were developed with considerable input from restaurant owners and the Governor signed the bills in Downtown Los Angeles at the locally owned restaurant, Joyce.
Restaurants like Joyce aren’t just great places to eat — they’re the heartbeat of our neighborhoods and vital to California’s economy. While restaurants owners brace for the ongoing impact the Trump administration’s economic failures, we’re cutting red tape, supporting small businesses, and doing all we can to make sure our local favorites can keep on thriving.
Governor Gavin Newsom
California has more than 4.2 million small businesses – more than any other state. which account for more than 99.9% of the state’s total businesses. These businesses employ more than 7 million people, or nearly half of the state’s private sector workforce. And they are growing. On average, from 2019-2024, California created more than 20,400 businesses per month – more than any other state.
With more than 86,000 locations statewide, most restaurants are also small businesses. The restaurant industry is the state’s largest private employer, creating more than 1.8 million jobs and more than $220 billion in sales.
Today’s bills help continue this entrepreneurial spirit and growth, by providing additional support for restaurant owner by:
Cutting red tape and providing greater flexibility for outdoor dining: AB 592 by Assemblymember Jesse Gabriel (D-Encino) enables open-kitchen restaurants to fully leverage California’s exceptional climate by permitting windows, folding doors, or non-fixed storefronts — giving restaurant owners greater flexibility in providing outside premises. “Neighborhood restaurants are the backbone of communities across California, but too many are barely hanging on by a thread,” said Assemblymember Jesse Gabriel (D-Encino). “This new law will cut red tape and support these cherished small businesses as they navigate inflation and economic headwinds. AB 592 also will allow neighborhood restaurants to leverage California’s exceptional climate and offer more outdoor dining options. I applaud Governor Newsom for signing these bills and I am grateful to restaurant owners and local chambers of commerce from across California who helped fight for these important reforms.”
Helping small restaurants open and grow faster by cutting unnecessary red tape while preserving critical health and safety protections. AB 671 by Assemblymember Buffy Wicks (D-Oakland) creates a voluntary, expedited path for permitting small, independent restaurants seeking to retrofit existing spaces — allowing licensed architects and engineers to self-certify simple plans while maintaining all required inspections and safety checks.“For too long, opening a restaurant in California has meant endless hurdles and frustrating delays,” said Assemblymember Buffy Wicks (D-Oakland). “With Governor Newsom’s signature on AB 671, we’re making it easier for small restaurateurs to turn their ideas into reality — opening their doors faster, hiring workers sooner, and bringing new energy to our main streets, all while maintaining the safety standards our communities rely on.”