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Hollywood’s filming decline hits local small businesses in L.A.

Major studios are filming more and more outside Los Angeles in states like Georgia and New York.

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Steve Hager, owner of Chili John’s, ladles out chili for customers.
Steve Hager, owner of Chili John’s, ladles out chili for customers.
Megan Jamerson/KCRW

Juli Popp is sitting elbow to elbow with other diners at the counter inside Chili John’s in Burbank, California. And she’s about to dig into a bowl of spicy hot, stick-to-your-ribs chili. It’s made from a 130-year-old recipe.

“You know how people play with chili recipes and you get pumpkin chili, and lots of weird stuff,” said Popp. “This chili is just real beef chili. It’s so good.”

Unfortunately, even the best chili isn’t filling seats here. On this Wednesday, only a dozen customers are here for lunch. A few years ago, it wasn’t uncommon for there to be a line out the door, said owner Steve Hager.

“Burbank runs off the entertainment industry,” he said. “So as long as the entertainment industry is slow, all the services are going to be slow.”

This restaurant was founded in 1946. When Hager and his wife took over the business 10 years ago, they knew the success of the place was tied to its location. It’s only a few miles from the big Hollywood studios like Warner Bros and Disney — even Mr. Walt Disney himself used to eat lunch here.

So did all kinds of entertainment workers, but they aren’t eating out these days because often they don’t know when their next paycheck will come. A report by Otis College of Art and Design found that in 2024, Hollywood jobs were 25% below their 2022 peak. 

“Even my friend that has a salon a couple doors down, she's slow,” said Hager.

Hager is getting doubly hit by the slowdown. He also rents out the restaurant for filming. He used to book about 10 TV shows or films a year. But on-location shoots are down by 22% in the Greater LA area compared to 2024. And so far this year, Hager has only booked three productions. 

“We knew we needed to reinvent ourselves, because the restaurant was basically just dying a slow, painful death,” he said.

California lawmakers approved a plan in June to beef up the state’s film incentive program, but Hager isn’t waiting around for that. He’s trying new things, like a taproom with cheap beer to keep customers coming back. 

Hager’s also hoping that regulars like Billy Swanson Jr. will help the restaurant stay in business for decades to come. Swanson was 13 when he first ate at this restaurant. Now, he’s a retired teacher and 74.

“I'm pretty old, but you never get too old for Chili John's chili,” he said with a smile as he dug into his lunch.

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