XPost: ca.politics, talk.politics.guns, talk.politics.misc   
   XPost: alt.fan.rush-limbaugh, sac.politics   
   From: remailer@domain.invalid   
      
   California Gov. Gavin Newsom signed a law that exempts Panera Bread   
   from a new $20-an-hour minimum wage hike for fast food chains after   
   the billionaire owner of several of the chain’s locations donated to   
   his campaign, according to a report.   
      
   In September, Newsom, a Democrat, signed into law a measure that   
   raises the minimum wage of food fast workers from $16 an hour to $20   
   an hour.   
      
   But the Fast Food Accountability and Standards Recovery Act (FAST   
   Act) includes an unusual carve-out that exempts “chains that bake   
   bread and sell it as a standalone item,” according to Bloomberg   
   News.   
      
   Newsom reportedly sought the exemption, which benefits among others   
   Greg Flynn, the billionaire CEO of Flynn Restaurant Group, the   
   company that owns some two dozen Panera Bread locations in the   
   state.   
      
   Flynn, who attended the same high school as Newsom, has been   
   involved in business dealings with the California governor,   
   according to Bloomberg News.   
      
   He has also contributed to Newsom’s political campaigns.   
      
   In 2014, Flynn, who is the largest franchisee in the US with   
   thousands of brands including Applebee’s, Pizza Hut, Taco Bell, and   
   Wendy’s, acquired a Napa Valley resort that was managed by Newsom’s   
   hospitality firm, according to disclosure forms.   
      
   Flynn has a net worth valued at $1.1 billion, according to the   
   Bloomberg Billionaires Index. He has donated at least $164,800 to   
   Newsom’s campaigns.   
      
   The Post has sought comment from Flynn, Newsom, and Panera Bread.   
      
   Flynn told Bloomberg News that he played no role in crafting the   
   bread exemption.   
      
   Newsom told reporters last month that the exemption was “part of the   
   sausage-making” in politics.   
      
   Michelle Korsmo, head of the National Restaurant Association, told   
   an industry conference last year that “everyone’s scratching their   
   head” about the bread exemption.   
      
   “You may be celebrating or you may be lamenting the bakery   
   exemption,” Korsmo was quoted as saying by Bloomberg. “But remember,   
   all of that comes through relationships.”   
      
   The governor’s office told Bloomberg News that the law was the   
   “result of countless hours of negotiations with dozens of   
   stakeholders over two years.”   
      
   Flynn was publicly critical of the legislation when it was first   
   floated in 2022.   
      
   He said that raising the minimum wage of fast-food employees would   
   have an adverse business effect on franchise owners.   
      
   Flynn quietly lobbied Newsom’s aides to reconsider whether Panera   
   Bread can be considered fast food, according to Bloomberg News.   
      
   The exemption for bread sellers was inserted into the legislation   
   after the union that was pushing for the hike in minimum wage   
   accepted it as a concession aimed at getting the governor’s support,   
   the report stated.   
      
   Earlier this month, Chipotle executives warned that consumers in   
   California should expect to see “significant” price hikes due to the   
   minimum wage hike.   
      
   Jack Hartung, Chipotle’s chief financial and administrative officer,   
   told investors on an earnings call that the price hikes are   
   necessary to keep up with increasing labor costs.   
      
   McDonald’s CEO Chris Kempczinski warned in October that the Big Mac   
   maker would also need to hike the price of its menu items in   
   California.   
      
   The chain has increased prices nationwide amid rampant inflation,   
   including charging $18 for a Big Mac meal.   
      
   Earlier on Wednesday, Panera Bread agreed to pay $2 million to   
   settle a class-action lawsuit that accused the chain of misleading   
   customers about fees and menu prices for delivery orders.   
      
   https://nypost.com/2024/02/28/business/panera-bread-exempt-from-   
   california-wage-law-after-newsom-donation/   
      
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