Rick Caruso criticizes Los Angeles business climate, weighs 2026 mayoral run

Real estate developer Rick Caruso warned that Los Angeles has become “unsustainable” for many small businesses due to overregulation and high operating costs, leading to the closure of historic restaurants and local shops.

“Los Angeles should not be a place entrepreneurs want to flee, but one where they can stay and prosper,” he said in a recent interview.

Caruso, who narrowly lost the 2022 mayoral race to Karen Bass after spending more than $100 million of his own fortune, confirmed he is considering another run in 2026.

He shared these remarks during an appearance on L.A. in a Minute, a YouTube program where he discussed the city’s economic challenges, the importance of protecting legacy businesses, and his broader vision for Los Angeles.

He also highlighted the work of his nonprofit, Steadfast LA, which provides free modular homes to low-income families displaced by wildfires and grants of up to $50,000 to small businesses damaged by the fires.

The developer of projects such as The Grove and Americana at Brand added that he is willing to work with the White House or even Donald Trump on initiatives that benefit Los Angeles, but stressed he would oppose any federal action that threatens the city’s quality of life.

He noted that while recent tragedies have united Angelenos, this year has been especially difficult for small businesses. Legacy restaurants, such as The Pantry, which has been operating for more than a century, and Saugus Café, founded in 1888 and considered the oldest in the county, are struggling to survive.

Other landmarks such as Du-Par’s at the Farmers Market and Doolin’s on Crenshaw face similar challenges. Caruso called the situation alarming, emphasizing that “90% of Los Angeles’ economic backbone is made up of small businesses,” and without supportive policies, many risk collapsing—impacting thousands of families who rely on them.

Although the businessman did not want to say whether he would launch his candidacy for any public office, whether governor or mayor, he left the question open, suggesting the possibility of putting his experience and leadership at the service of Los Angeles.