U.S. Health and Human Services Secretary Xavier Becerra has been criticized for encouraging Californians to patronize street taco vendors, with detractors claiming this is a distraction from the state's challenging business environment and his own perceived policy failures. The argument posits that Becerra, by celebrating businesses that often operate with fewer regulations and lower overhead, is implicitly devaluing or ignoring the difficulties faced by licensed brick-and-mortar restaurants.
Street vendors, often found in less affluent areas, typically operate with minimal infrastructure, sometimes lacking permanent hand-washing stations and frequently accepting only cash. This contrasts sharply with licensed restaurants, which must navigate a complex web of expenses and regulations, including high commercial rents, property and payroll taxes, insurance, utilities, health permits, business licenses, and compliance with stringent labor laws. These costs, the critics contend, are necessary to ensure consumer protections such as refrigeration standards, temperature controls, and regular inspections.
The author of the critique, identified as a chef and city council member, suggests that by promoting street vendors, Becerra sends a message that operating outside the established regulatory framework is acceptable, while licensed businesses that adhere to California's costly rules are penalized. This approach, it is argued, overlooks the impact of state policies on the restaurant industry, which has seen numerous closures. Businesses like Cole's French Dip, which operated for 118 years, and Sweet Lady Jane, with six locations, have recently shut down, with owners citing the high cost of doing business in California. The closure of such establishments results in job losses and diminishes local economies.
Critics further assert that Becerra lacks a viable plan to revitalize California's restaurant industry, which was once a significant employer. Instead of proposing solutions, which would imply an acknowledgment of the role of state policies in the industry's struggles, he allegedly opts for distraction by praising unregulated businesses. This strategy, according to the criticism, is an attempt to divert attention from the adverse effects of high taxes, labor costs, and extensive regulations on businesses operating within the state's legal framework.