San Jose City Councilmembers Domingo Candelas and David Cohen have advanced a union-backed initiative to impose staffing requirements and other regulations on grocery store self-checkout areas. This effort, which went before San Jose's Rules and Open Government Committee on October 7, faces considerable pushback from local retailers who contend the proposed rules could lead to increased operating costs and force stores to abandon self-checkout services.
Labor groups, including United Food and Commercial Workers, are spearheading this campaign. They argue that the spread of self-checkout kiosks has contributed to job losses and diminished the overall in-store experience for customers. These groups also highlight concerns about retail theft, suggesting that understaffed self-checkout areas create opportunities for shoplifters. Yvonne Saavedra, an employee at a Lucky’s grocery store in San Jose, stated in a recent committee meeting that the issue "hurts businesses, puts workers in difficult situations, contributes to merchandise being locked behind cases and can ultimately make shopping a more frustrating experience for customers."
The memo from Councilmembers Candelas and Cohen outlines potential regulations, taking inspiration from measures adopted in Southern California cities like Costa Mesa, Long Beach, and Santa Ana. Proposed rules include requiring stores to maintain at least one employee for every three self-checkout stations, implementing a 15-item limit in self-checkout lines, and prohibiting the use of self-checkout machines for items stored behind locked cabinets.
Grocery industry executives and representatives from local business groups, however, have voiced strong opposition. They warned councilmembers that such regulations could severely impact their business model. Kent Streeb, a director for Safeway’s Northern California Division, explained during the meeting that grocery stores typically operate on narrow profit margins, around 1.7%. He cautioned that an ordinance could "at least double operating costs for self-checkout" at Safeway's 12 San Jose locations, potentially forcing businesses to make difficult decisions, including discontinuing self-checkout entirely or increasing food prices for consumers.
While grocers acknowledge retail theft as a serious issue, they dispute that self-checkout stands are the primary cause, suggesting that most shoplifting incidents involve individuals simply taking goods and leaving the store. They also point to negative outcomes in other cities that have implemented similar regulations. Nate Rose, spokesperson for the California Grocers Association, cited a report from Long Beach where, after a minimum staffing policy took effect, 10 out of 13 impacted retail businesses either reduced self-checkout services or eliminated them completely. Rose noted that many grocers have "just thrown their hands up in the air and said, ‘Well, we’re just going to close self-checkout altogether because we can’t get this to work.'"
Conversely, labor advocates dismiss the industry's financial concerns. Jim Araby, a campaigner for United Food & Commercial Workers Union Local 5, suggested that industry groups aim to "distract from what’s actually going on, which is they want to reduce the labor costs." He added that they want consumers to shoulder more of the work, leading to higher prices that benefit shareholders. While some shoppers find self-checkout machines frustrating, industry representatives indicate that many others value their convenience. They warn that eliminating self-service options could lead these convenience-oriented shoppers to abandon physical retail locations altogether.
The push for these regulations follows failed attempts to pass similar legislation at the state level in 2024 and 2025, leading labor groups to shift their focus to city governments, including San Francisco. The memo supporting the San Jose proposals also cited a Public Policy Institute of California study indicating a 48% increase in shoplifting between 2019 and 2024, an uptick that persisted even as California's overall crime rate began to decline. Backers of the regulations also reference industry research suggesting higher rates of theft in self-checkout areas compared to traditional checkout lanes.
Despite the pushback from grocers, Councilmember Candelas, who represents District 8, has committed to continuing to gather feedback from the retail industry and other stakeholders as the reform proposals develop. He stated that the goal is not to eliminate self-checkout, but to ensure any standards considered are "practical, balanced and responsive to the needs of workers, customers and businesses."