NCPA - National Center for Policy Analysis


September 13, 2007

Fast food restaurants may soon be having their Los Angeles privileges revoked, with Councilwoman Jan Perry's proposal to put a two-year moratorium on new fast food restaurants in her district, says ABC News.

But the plan to ban new fast food restaurants in parts of the city is getting mixed reviews.  One of the concerns is the potential negative economic affect.  According to McDonald's franchisee Lindsay Hughes:

  • McDonald's alone creates more than 38,660 jobs and about $752.4 million in spending in Los Angeles County.
  • In addition, the business makes a contribution of $20 million in taxes and licenses.

Others see the move as an intrusive regulatory move without any boundary to the limits of government controls.  "When you start restricting one type of business, what's next?" said Kearsten Shepherd of the California Restaurant Association.  "It can possibly send the wrong message to the business community as a whole and have a negative affect on the economy of those neighborhoods."

Source: Laura Coverson, " The Menu Police of L.A.," ABC News, September 12, 2007.

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