Challenges in The restaurant business in California

I manage a small business of 26 fast food restaurants in California.  With Health Care Reform, minimum wage and mandated sick pay, our margins are shrinking, yet, the rumor mail says there are about 2000 more restaurants to open in California over the next 5-10 years.  Right now, we are having a really hard time finding employees, let alone "good" employees.  While other operators are worried about margins and challenges with finding people and Guests.  My team and I have taken a different approached.  We have put on our creative and thinking hats on how we can make our small business, the employer and diner of choice.