During the pandemic, many restaurants lost workers, faced intermittent shutdowns, got slapped with fines, reduced hours, and scrambled to survive with skeleton crews, delivery services, smaller menus, and smaller portions – yet often paired with higher prices for customers.

Just as the industry appeared to be catching its breath, a new wave of Democratic policy “solutions” arrived, including higher minimum wage mandates and additional labor rules. Critics say those policies are piling costs onto businesses already operating on razor-thin margins.

Nowhere is the situation more illustrative than in Los Angeles. The state of California already requires fast-food workers to earn at least $20 an hour. But a report from the Daily Mail shows that under a mandate called the “The Hotel Worker Minimum Wage Ordinance” backed by Democratic Mayor Karen Bass, hotel and tourism workers – including those in hotel restaurants – will see wages gradually rise to $30 an hour by 2028. Why? Are the workers drafting legal briefs or designing skyscrapers on their lunch break? Are they offering some kind of service to restaurants to justify that kind of money? Not likely.

According to reports, hotels have already cut roughly 6% of jobs since the policy began taking effect, with some planning to reduce hours or close on-site restaurants to offset costs. Guess the hotel guests will be eating Cheetos and Hershey bars for dinner.

And as far as the fast-food market goes…customers don’t really want to pay $18 for a “value” meal or $80 for a Taco Bell dinner for a family of four. That keeps them at home and making their own meals.

The squeeze is already showing up in the real world. Several major franchise chains are shrinking their footprints in 2026 as rising costs continue to squeeze the industry. Wendy’s plans to close about 298 to 358 U.S. locations this year, while Pizza Hut’s parent company says about 250 underperforming restaurants will shut down. Papa John’s is also trimming its footprint, planning to close around 200 restaurants in 2026 as part of a broader effort to eliminate about 300 locations by 2027.

In other words, while politicians promise policies meant to “help workers,” the real results – combined with the ever-rising cost of doing business – are producing fewer jobs, fewer restaurants, and continued higher prices for everyone.