The Brief

Some of Los Angeles’s most iconic eateries — Papa Cristo’s in Pico-Union, Guerrilla Tacos in Downtown and French eatery TAIX in Echo Park — have closed their doors, prompting hand-wringing about the decline of the city’s rich and diverse food scene.

But those closures obscured a more notable achievement; 758 new restaurants opened last year, surpassing the previous record set in 2024, when 729 restaurants opened.

The split-screen view of dining in Los Angeles is part of a broader transformation that is reshaping the industry nationwide.

The explosion of digital-order services has rewritten the business model for restaurants, which are now operating with less space, reduced staff and tighter margins. Many of the new eateries do much of their business from behind a screen—either through self-service tablets or off delivery apps such as DoorDash, GrubHub and Uber Eats.

So-called “limited-service” restaurants now account for nearly a third of all newly opened establishments. The number of traditional, or full-service, restaurants has also been growing, hitting 539 openings in 2025, and a record-high 587 the year before. If you count the number of coffee, smoothie and snack joints, the numbers rise even further.

Pizza to go

Many of Los Angeles’s restaurateurs are adapting to this burgeoning business model. Last year, Liz Gutierrez turned her pop-up restaurant, Fiorelli Pizza, into a small brick-and-mortar location in Beverly Grove with just a couple of stools at a counter for seating. As she saw restaurants closing their doors, the advantages of the new business model quickly dawned on her.

“This was something that could be operated with minimum labor, it could be way more manageable in terms of fixed costs and expenses, and we could still deliver restaurant-quality [food],” Gutierrez said.

The bevy of new food establishments opening their doors is a lone bright spot in an otherwise bleak economic picture: The total number of new businesses opening in the city is nearly half what it was a decade ago. That is driven in part by some of the same forces, such as Amazon.com, Inc. and other online retailers that put pressure on businesses operating out of traditional storefronts.

But the flourishing restaurant industry has been able to buck that trend so far. While Amazon can deliver clothes and even groceries, it still can’t deliver a fresh pizza or poké bowl.

The QR code will take your order

Linchi Kwok, a hospitality management researcher at Collins College of Hospitality Management at California State Polytechnic University, Pomona, said a lack of interest in working in the hospitality industry, paired with rising labor costs, has pushed restaurant owners to find cost-effective workarounds to run their operations with fewer people.

“Limited-service restaurants don’t have to hire many people to do the work. It saves labor costs, saves space, and saves the service turn-around time. They don’t have to worry about it,” Kwok said.

Restaurants must share a portion of their already slim profit margins—usually between 2-4% in L.A.—with an app service and the driver. To offset that, restaurants have cut down on staff, letting go of waiters, hostesses and dishwashers, many of whom are no longer needed when orders are increasingly being delivered in disposable containers.

Despite the record number of openings, running a restaurant in the city has not gotten any easier. Jot Condie, president and chief executive of the California Restaurant Association, noted that in 2024 taxable restaurant revenue hit $11 billion, which, when adjusted for inflation, is on par with 2012 levels.

“The piece of the pie that each restaurant gets is slimmer.”

Condie also said that the hollowing out of entertainment work, increased presence of Immigration and Customs Enforcement and stricter regulations “are conspiring against the L.A. restaurant scene.”

Condie said that regulations from city hall, such as stricter labor oversight and a proposal for a $30 minimum wage for some workers, are making it even tougher.

“The business environment is bad generally in L.A., but the city council and the mayor seem to be throwing salt in the wound.”

As the number of new restaurant openings has spiked, so have the number of closings reported to the city. However, business closure figures are not as reliable as business opening data, as some establishments close without reporting it to the city. Since 2021, 593 full- and limited-service restaurants have reported closing, compared with 3,148 openings.

Jimmy Chu spent several years working in fine dining, which inspired him to start his own restaurant. He knew it would be expensive. Rather than opening another fine-dining establishment, he opted for a limited-service restaurant where customers could order at the counter, no waiters involved.

Chu quit his job by the end of 2024, and in May 2025, he opened Bomb Hot Dog in Downtown Los Angeles. He estimates that his eatery gets roughly a third of its customers through mobile delivery orders.

Ghost kitchens

Ghost kitchens, or private kitchens used exclusively for delivery and takeout, have become a business model of their own. At Beverly Bites, 56 restaurants operate out of one facility serving the densely populated Beverly Hills and Beverlywood neighborhoods, though not all of them are open simultaneously. At Echo Park Eats, 40 restaurants are now within a five minute walk of Dodger Stadium. The Los Angeles Dodgers schedule was hung on the wall inside the facility, so owners can anticipate heavy foot traffic and delivery orders during home games.  

Last December, Ali Elreda rented out a space for his Mediterranean-Mexican fusion restaurant, Fatima’s Grill, at Echo Park Eats. 

Elreda operates four brick-and-mortar Fatima’s Grill locations, and this is his first time renting a ghost kitchen. He said the decision to start a delivery and takeout location was both a matter of savings and efficiency.  

“A lot of people are going the ghost-kitchen route because it’s quicker, it’s faster,” Elreda said. “You avoid a lot of overhead and foot traffic and having to find staff these days with the expensive economy out there is kind of tough.” 

With ghost kitchen facilities, business owners also no longer have to compete with each other to find prime real estate in Los Angeles.  

“You don’t have to do that research where you’ve got to find the right location. It’s just right there waiting for you,” Elreda said. 

How we did it: We examined more than 15 years of business license data reported to the Los Angeles Office of Finance.  Have questions about our data or want to ask us something? Write to use at askus@xtown.la 
Hyperlocal News

As federal officials suspend funding to L.A.’s main homelessness agency — citing mismanagement — a recent audit found the agency did not spend tens of millions of dollars allocated to it.

The audit found the L.A. Homeless Services Authority (LAHSA) underspent its overall budget by $108 million in the last fiscal year ending in June 2025, mainly because of “program delays.” The year before, the underspend was nearly $150 million. Some of it was carried forward to future years, auditors wrote.

Specifically to federal dollars, the audit shows LAHSA spent at least $7 million less than it had budgeted last fiscal year. LAHSA had budgeted $61.5 million in such dollars. It spent only about $49 million to $54.4 million, per the audit.

Underspending at LAHSA was called out more than four years ago, in a January 2022 audit that found the agency left $3.5 million in federal grants on the table by not using them.

A spokesperson for LAHSA has not responded to a request for comment.

LAHSA is governed by a 10-member commission that is half appointed by L.A. Mayor Karen Bass, and half appointed by each of the five county supervisors. Bass has served on the commission since she appointed herself to it in fall 2023.

Bass’ office said in a statement that the mayor “has grave concerns about LAHSA and zero tolerance for mismanagement and negligence.” The federal money suspension puts lives and progress on homelessness at risk, the statement added.

The mayor’s office statement says the mayor “previously directed the city to evaluate how to move away from the agency.”

When the City Council considered in March whether to withdraw the city’s funds from LAHSA and instead have the city directly oversee the dollars, Bass cautioned that the city first would need “a serious, thoughtful transition plan,” adding that “the last thing we need is a new department and more bureaucracy.”

Spokespeople for the county supervisors have not returned messages for comment on the underspending.

City of L.A. also underspends

The city of L.A. also has been underspending its homelessness budget — to the tune of $513 million in Bass’ first full fiscal year as mayor that ended June 2024, according to an analysis later that year by City Controller Kenneth Mejia’s office.

Federal officials cited that in their letter Thursday as one of many reasons for their suspension of funds to LAHSA. The letter incorrectly attributed the full underspend to LAHSA. The findings were instead about the city’s overall homelessness spending, a portion of which goes to LAHSA.

Spokespeople for HUD have not responded to an emailed request about the inaccuracy.

A controller’s analysis for the following fiscal year, ending June 2025, found the city again underspent its homelessness budget, by at least $473 million.

“Breaking City Hall from its decades old dysfunctional system is how we finally brought homelessness down by 17%,” Bass said in a statement at the time. “I’m glad to support the controller’s recommendations to further reform the status quo.”

Other problems found in audit

The federally required audit, known as a single audit, must be done each year by an accounting firm hired by LAHSA.

The latest one, finalized last month and covering the fiscal year that ended last June, found failures surrounding poor bookkeeping and accounting of taxpayer money at the agency — which spent over $800 million in public funds last fiscal year.

The agency’s financial statements initially included “significant” inaccurate amounts that needed to be adjusted late in the audit process, the auditors found.

It found the inaccuracies stemmed from a "significant deficiency” in LAHSA’s “internal controls,” which are supposed to safeguard against financial inaccuracies and fraud.

Vacant tax-funded apartments

LAist reported Thursday that LAHSA has been using tax dollars to pay for more than 250 empty apartments as part of an initiative Mayor Karen Bass introduced years ago to make housing readily available to unhoused people. That’s just over a third of the units in the strategy, known as master leasing, according to an LAist review of official data.

The vacancies have been tying up tax dollars — largely overseen by the county — that could house hundreds of people in other approaches, according to official financial data.

Other funds leaving LAHSA

In response to previous audits that found major problems with LAHSA’s oversight of tax dollars, county supervisors decided last spring to withdraw all of the county’s $300 million-plus in annual funding of services through LAHSA and instead have the county directly manage it starting July 1.

Problems identified in the latest audit reiterate why the county pulled its funding, Supervisor Kathryn Barger said in a statement Monday.

The city is considering moving in a similar direction as the county. A key City Council panel — its homelessness committee — recently recommended the full council start shifting city homelessness funding out of LAHSA over the course of the next fiscal year. Bass urged caution, saying moving too quickly to shift funding could disrupt services for unhoused people.

LAHSA has long functioned as the L.A.’s homeless services department, with over $300 million in city money expected to flow through LAHSA this fiscal year.

A cookie business with well over a dozen flavors ranging from Mexican hot chocolate to mango sticky rice? How very L.A.! Lei’d Cookies started as a pandemic pop-up. Nowadays, you'll find them in the Culver City Arts District.

About the owner

Baker and owner Leilani Terris posing, holding two cookies from Lei’d Cookies.

(

Courtesy Leilani Terris

)

Co-owner Leilani Terris originally thought she'd become a physical therapist. After applying to school, she took a gap year, taught herself to bake and connected with co-owner James Lewis to start their cookie business.

Terris sat down with Austin Cross, who hosts AirTalk every Friday, to explain how their cookies take customers on a bite-sized journey to other countries.

What's the best way to experience Lei'd Cookies?

Add ice cream to a warm cookie at their Culver City shop. If you want a more communal experience, take a trip with a group of friends to Smorgasburg L.A., which takes place every Sunday in downtown L.A.

Known for international flavors

Terris wants customers to get a taste of other cultures. Lei'd Cookies has put a spin on ghriba, a type of shortbread cookie from Morocco, and spicy Mexican hot chocolate.

Bakery details

• Although Terris didn't start with professional culinary experience, her co-owner, James Lewis, worked in restaurant management for years prior to opening.
• They joined Smorgasburg L.A.'s list of vendors in 2021.
• Lei'd Cookies opened its brick-and-mortar in Culver City in 2023.

Cookies we tried

• Orange Date Blossom Cookie (Ghriba inspired and includes apricot jam and walnuts)
• Mayan (cinnamon, cayenne, and chocolate from Tabasco, Mexico)
• Mango Sticky Rice
• Guava and Goat Cheese (their best-seller)

What should we try next?

Southern Californians could face floods and fires this year.

A hot, dry winter has led to fires already, and experts said Friday at a news conference in Los Angeles that that is projected to continue.

Different from previous wildfire seasons, though, experts are also closely watching El Niño, a powerful weather pattern that causes changes in winds and ocean temperatures.

“California is faced with multiple disasters, whether it be fires, floods, hazardous material incidents,” said Brian Marshall, fire and rescue chief with the California Office of Emergency Services. Marshall said the El Niño “could impact fires and could impact flooding across the state.”

The National Weather Service is predicting a 63% chance of a “very strong” El Niño from November to January. It could be one of the most powerful since 1950, according to the weather service’s Climate Prediction Center.

Heavy El Niño storms could trigger flash flooding and debris flows in wildfire burn scar areas.

The effects of the rapidly developing El Niño on this year’s wildfire season remain uncertain, and experts urged residents to stay vigilant.

“Even very strong El Niño events do not lead to the expected impact everywhere,” according to the Climate Prediction Center.

William Deverell, director of the Huntington-USC Institute on California and the West, said more rain can also increase plant growth, which can eventually dry out and create more fuel for fires.

Robert Garcia, fire chief in the Angeles National Forest, said the recent Burro Fire provided “some indicators of what may be ahead” as vegetation starts to dry. The Burro Fire charred 30 acres and burned for about a week in May in the San Gabriel Mountains north of Glendora.

What you can do to stay safe

Fire officials advised people to create defensible space around their homes by clearing it of dry vegetation and other flammable materials.

Pre-fire conditions, including the abundance of dry vegetation, were “dominant drivers” of burn severity in the Eaton, Palisades and Hughes fires in January 2025, according to a new study led by San Diego State University in collaboration with NASA Jet Propulsion Laboratory researchers.

“Regions like Los Angeles … have a lot of human populations who are living closer to these environments that are susceptible to wildfires,” said Madeleine Pascolini-Campbell, a scientist at JPL and a co-author of the study.

Beyond fire prevention, defensible space also helps firefighters enter properties to extinguish flames.

“Wind-driven, ember-casting wildfires moving through a community without defensible space makes it very difficult for us to be able to combat those fires,” Los Angeles Fire Chief Jaime E. Moore said at the news conference. “It makes it unsafe for our firefighters and those that are working hard to protect your home.”

Los Angeles Unified has renamed two campuses previously named for Cesar Chavez. The move follows a New York Times investigation that found the famed labor leader sexually abused girls and women.

The board voted to rename the schools Friday following town hall meetings and a vote among staff, students and parents at each campus.

Cesar Chavez Learning Academies in San Fernando is now Arroyo High School, and Cesar Chavez Elementary School is now Oakland Street Elementary School.

How did the change come together?

A March New York Times investigation found survivors of Chavez’s abuse included United Farm Workers co-founder Dolores Huerta. The LAUSD Board voted unanimously a week later to begin a renaming process for the two campuses after a consultation with the schools’ communities.

With one exception, none of the other prospective names were associated with specific people.

Arroyo High School

Previously called: Cesar E. Chavez Learning Academy

Other names considered:

• Valley High School
• Rudy Acuña High School (Rodolfo "Rudy" Acuña is a Chicano studies scholar who died earlier this year at age 93.)

The vote: Arroyo High earned 557 of 1,063 votes, and was the most popular choice among each of students, parents and staff. It’s based on the street where the school is located. (“Arroyo” is Spanish for “creek.”)

Oakland Street Elementary School

Previously called: Cesar Chavez Elementary School

Other names considered: 

• Eagles Elementary
• Arroyo Elementary

The vote: Oakland Street Elementary received 211 out of 314 votes, and was the favorite among each of students, parents and staff.

What's next?

The district has designated $209,000 for renovations associated with the name changes, including changing signs and marquees.

The single largest cost is refurbishing the high school’s hardwood gym floor, which will cost an estimated $120,000. Other significant costs include removing and replacing metal lettering on the front of the high school for $25,000, as well as removing and replacing crash pads and banners in the gym for $30,000.

Have other thoughts on school names?

Senior editor Ross Brenneman contributed to this story.