San Diego City Wire

Restaurants and bars in the San Diego area unable to provide any service beyond takeout are struggling during COVID-19 and some have defied county orders to close.

One well-known restaurant chain this week announced it will lay off 600 staff and temporarily close its doors entirely. Peusto, which has three outlets in San Diego County and others elsewhere in California, said its sales have dropped to less than 5% from pre-pandemic times.

"We still tried to do some takeout and delivery because our goal is to maintain our staff employed as much as possible," managing partner Eric Adler told ABC 10 News. "We tried that for about a month more but at this point in time there was really no business."

Local restaurant owners have also joined a statewide class action to stop city and counties from collecting various fees from businesses.

"We’ve sustained a huge blow to our bottom line and are just struggling to keep the doors open,” Jon Weber, a lead plaintiff and owner of the Cowboy Star Restaurant and Butcher Shop, told KUSI News. “We usually pay these fees in full at the beginning of the year so we can sell liquor and serve food."

“The defendants are collecting these fees while at the same time ordering the business to shut down or drastically limit operations,” plaintiff attorney Brian Kabateck told KUSI News. “We are encouraged, however, that some governmental entities have reached out to say they are willing to do the right thing and return these fees. We’re hopeful others will soon follow suit."

Meanwhile, across the county, cease and desist orders have been issued against restaurants for allegedly continuing service beyond take away, mainly outdoor seating. Close to 350 have been issued to businesses, including gyms and restaurants. Some restaurants have described their opening as a peaceful protest. 

The orders follow thousands of complaints made about non-compliance with the strict regulations in place, which county officials say are needed to curb the spread of the virus.

Under the most recent regulations, outdoor and indoor dining is banned, other businesses such as hair salons are closed, while gyms cannot operate indoors.

According to the county, 90% of businesses targeted by complaints ultimately do comply.

Of the 335 delivered cease and desist letters, two-thirds agree to make changes that put them in compliance, the county said.