California’s Latino-owned restaurants are more than just businesses – they are community cornerstones and cultural hubs for neighborhoods.

Traditionally, Latino-owned eateries have relied heavily on takeout containers, critical for serving popular dishes like tacos al pastor, ceviche cups, pupusas and menudo, making these businesses particularly sensitive to packaging regulations. These restaurants are where families gather after church on Sundays, where students stop for affordable meals after class and where local workers can count on a quick bite during their lunch break. They are part of the fabric of neighborhoods across California, from Boyle Heights to the Mission District to Fresno’s Tower District.

As California pursues ambitious environmental goals, the unique needs of our small Latino businesses must be thoughtfully considered. Many of these restaurants are multigenerational, owned by families who immigrated to California with a dream of sharing their food and culture. For them, every decision about operations, from choosing suppliers to setting menu prices, has ripple effects not only on their livelihood but also on their employees, who are often family and community members. This is why California’s Latino restaurants are encouraged by the recent regulations by CalRecycle on how to implement Senate Bill 54 (SB 54).

SB 54, the Plastic Pollution Prevention and Packaging Producer Responsibility Act, provides a practical framework to reduce plastic waste by 2032 significantly. The legislation mandates a 25% reduction in single-use plastics, ensures that 65% of plastics are recycled and guarantees all packaging materials are recyclable or compostable.

Balance needs and stewardship

Latino-owned restaurants understand and share the importance of environmental stewardship. After all, our communities are often on the frontlines of environmental harms, whether it’s air pollution from nearby highways or litter in local parks. Cleaner neighborhoods and healthier environments benefit everyone. Yet, we also know firsthand the practical limitations small businesses face daily, particularly when packaging beloved takeout dishes such as tamales, burritos and aguas frescas.

Small Latino-owned restaurants operate on tight margins and limited resources. Excessively strict regulations could disproportionately impact these businesses, which are still recovering from recent economic hardships. The pandemic hit restaurants especially hard, and many are only now beginning to rebuild customer bases and rehire staff.

For a taquería or pupusería that sells meals for under $10, even a modest increase in packaging costs can mean the difference between breaking even and closing its doors.

A balanced approach to implement SB 54 will enable our restaurants to continue serving authentic dishes, such as chiles rellenos, empanadas and carne asada, without compromising their financial stability or increasing prices beyond our customers’ reach.

The Latino Restaurant Association appreciates Gov. Gavin Newsom’s request to pause and reassess the earlier draft regulations placing affordability as a priority in drafting implementation regulations. This willingness to listen and recalibrate shows respect for the diverse perspectives needed to make policy successful in practice. Latino restaurant owners and industry leaders have actively collaborated to ensure SB 54 does not place excessive burdens on businesses already navigating complex operational challenges. Their voices matter, because they bring lived experience about what it takes to keep a small restaurant thriving in California.

However, we must remain cautious. Recent state analyses may underestimate the true compliance costs small businesses will incur. Latino restaurants often rely on specialized packaging that is essential for the authenticity, affordability and convenience of foods ranging from soups like pozole to desserts like flan. Unlike larger chain restaurants, these small establishments cannot simply absorb higher costs or pass them on to customers without risking a loss of business. We do appreciate the direction CalRecycle is currently taking with the most recent draft regulations as there is serious concern that if the balance is tipped in the wrong way it could significantly escalate these costs, placing undue strain on our businesses.

California’s Latino-owned restaurants are ready and eager to collaborate with state officials to fulfill SB 54’s ambitious environmental targets responsibly. Together, we can ensure California remains a leader in sustainability while preserving the economic health and vibrant cultural traditions our Latino small businesses bring to communities statewide. We look forward to continued work with the governor’s office, CalRecycle, and fellow stakeholders to implement SB 54 effectively, equitably and sustainably.

Lilly Rocha is chief executive of the Latino Restaurant Association, a downtown-based advocacy group for Latino-owned food operations.