Ahead of a CNN-hosted California gubernatorial debate on Wednesday night, the network highlighted the struggles of a Hollywood-area small business that has had to close in part due to some of Democratic-led California economic policies. CNN investigation report Kyung Lah even closed her report by saying California economic issues were “going to chase Governor Newsom as he seeks higher office.”
Paired with a preview of the debate stage, host Dana Bash introduced the story and noted the restaurant owner highlighted, Tom Sopit, and his business “survived the pandemic, but six years later, it could not survive the current economy.”
At the start of the report, Sopit remarked, “It's just becoming increasingly tough to operate in this state and in this city. So we decided to close.”
🧵Ahead of tonight’s CNN’s California Governor’s debate, CNN highlighted the economic challenges in California and the “shrinking of Hollywood” and seemed to place some blame on policies in the Democrat-led state.
Investigative reporter Kyung Lah highlighted the closure of a… pic.twitter.com/lon5RceyuC— Nick (@nspin310) September 30, 2026
Lah then detailed Sopit’s actions with his business during the pandemic, including how he and his “small staff prepped free meals for any worker who lost their job.” She asked Sopit, “How do you survive that, but you have to close now?”
He responded, “Through the years, the economics of the state and the country has really changed. We have tried. It's not like one thing that took us out. It's just, what I like to say, death by 1,000 cuts.”
He then noted a higher cost of labor due to California labor laws, among other issues, like raised insurance premiums:
Affordability has really impacted our state. Cost of goods. The cost of labor is much higher than everyone else in the country. California labor laws are really tough. The insurance is a big part of it, with wildfires controlling the premiums and the increases, all the carriers leaving the state, and that's why it went up so quickly.
After Sopit was asked about the “shrinking of Hollywood” and its impact on the business, he also said, “It's a completely different city now.”
To illustrate the issues for business, he said in West Hollywood, “There's a lot of for-lease signs up, a lot of businesses that are shutting down, many just a few months after they open. It's really sad.”
Later, Lah detailed more of the issues in California, including “fees for business” and “the regulations that restrict you from being able to build stuff.” She added, “All of it is just crushing.”
Lah then continued and said California’s affordability issues might impact… pic.twitter.com/dl3yxR6Dwc— Nick (@nspin310) September 30, 2026
Lah then asked what his advice was to the next governor of California. He pleaded for them to “focus on real challenges” before he noted how high taxes have not helped the state:
I think you can't just keep taxing businesses and people. How are we just keep paying more taxes, but somehow the state just keeps going downhill? That doesn't make sense. There has to be some real change there.
Lah closed her story with Baash, and detailed more of the issues in California, including “fees for business” and “the regulations that restrict you from being able to build stuff.” She added, “All of it is just crushing.”
She closed and said the affordability issues might impact a future run for office for Democratic Governor Gavin Newsom:
These Democrats today are looking at generations where they can't have what their parents have. Sopit’s parents, who were immigrants to this country, had a business in Los Angeles, a restaurant, and their son could not do the same thing. And that is going to chase these candidates. And, frankly, it's going to chase Governor Newsom as he seeks higher office.
The tough talk on California policies and Newsom was much different than the softball, fly-fishing interview with Newsom conducted by CNN’s Jake Tapper earlier this month.
The transcript is below. Click "expand":
CNN’s Inside Politics
September 30, 2026
12:44:35 PM Eastern
DANA BASH: The stage is set right here in Los Angeles for the California governor's debate, which I'll be moderating alongside Jake Tapper.
Among the independent voters listening tonight to Democrat Xavier Becerra and Republican Steve Hilton will be restaurant owner Tom Sopit. His business survived the pandemic, but six years later, it could not survive the current economy. CNN's Kyung Lah has the story.
[Cuts to video]
KYUNG LAH: Tonight is last call. That “Employees Only” restaurant and bar. The final pour for owner Tom Sopit closing after nearly ten years in West Hollywood.
TOM SOPIT: It's just becoming increasingly tough to operate in this state and in this city. So we decided to close.
LAH: A bittersweet end to service after surviving the pandemic.
SOPIT [From March 2020]: I'm concerned.
LAH: This was Sopit in March 2020. COVID-19 gripped the country. Sopit's restaurant shut down with all the others. His rent was $1,000 a day. He was completely underwater.
SOPIT [From March 2020]: All we can do is help each other.
LAH: Help is what he did. Sopit's small staff prepped free meals for any worker who lost their job. For weeks, he donated food to emergency rooms across Los Angeles. He turned his parking lot into an outdoor patio, pivoting with ever-changing protocols.
[To Sopit] How do you survive that, but you have to close now?
SOPIT: Through the years, the economics of the state and the country has really changed. We have tried. It's not like one thing that took us out. It's just, what I like to say, death by 1,000 cuts.
Affordability has really impacted our state. Cost of goods, the cost of labor is much higher than everyone else in the country. California labor laws are really tough. The insurance is a big part of it, with wildfires controlling the premiums and the increases, all the carriers leaving the state, and that's why it went up so quickly.
LAH: How much did the shrinking of Hollywood impact you?
SOPIT: Oh, immensely. It disappeared overnight. We're not really Hollywood anymore. All these people that are -- that used to work here, used to work in the city of Los Angeles are now gone. All the businesses close early because there is no foot traction. It's a completely different city now.
LAH: Tell me about what you see when you drive around West Hollywood.
SOPIT: There's a lot of for-lease signs up, a lot of businesses that are shutting down, many just a few months after they open. It's really sad.
LAH: Sopit voted for Gavin Newsom, but is today a registered independent. He says the political system is failing people like him.
[To Sopit] Your advice to the next governor of California?
SOPIT: Yes. My advice is, focus on the issues. Focus on the real challenges. Drive up and down the street. Get your hands dirty. I think you can't just keep taxing businesses and people. How are we just keep paying more taxes, but somehow the state just keeps going downhill? That doesn't make sense. There has to be some real change there.
[Cuts back to live]
BASH: And Kyung joins us now. I mean, just so heartbreaking. And as you and I were talking about during the break, sadly not uncommon. So, we have Steve Hilton and Xavier Becerra both chasing voters like him in tonight's debate. What do you think just, obviously, being a California voter, but more importantly, talking to so many, what is the issue that you think could have the most impact on Sopit’s vote?
LAH: I mean, very, very simply, it's one word. It's affordability. And here in California we're not just talking about the price of milk or the price of gas, although it is the most expensive in the entire country. We're talking about structural things like being able to pay for your insurance, get daycare so you can get a job and keep that job. Then the fees for businesses, the regulations that restrict you from being able to build stuff. All of it is just crushing.
And we're not talking about Sopit trying to be rich. He was trying to break even for a solid year and could not do it, so he has to pull the eject button.
And one last thing, Dana, and something that these candidates really need to keep an eye on is that these Democrats today are looking at generations where they can't have what their parents have. Sopit’s parents, who were immigrants to this country, had a business in Los Angeles, a restaurant, and their son could not do the same thing. And that is going to chase these candidates. And frankly, it's going to chase Governor Newsom as he seeks higher office.
(...)
