Gavin Newsom Minimum Wage Panera Bread : Newsom’s Favortism To Franchisee End Presidential Hopes
No more are Democratic pundits mentioning California Governor Gavin Newsom as a presidential hopeful. The scandal of exempting a donor’s Panera franchise just stinks of everything Americans hate. Corruption, cronyism, favortism. And as a result you do not hear his name mentioned as “the future of the Democratic party”. However, in America things do change rather quickly. We shall see.
In California, a Panera Bread franchise operator announced a wage increase for his employees amid claims that he utilized his connection with the governor to sidestep a pay increment mandate.
Greg Flynn, the billionaire proprietor of several Panera franchises who shares an alma mater with Governor Gavin Newsom and has previously contributed to his political campaigns, was at the center of this contention. Critics alleged that the newly enacted state wage legislation, which exempts certain bakery-centric businesses, was disproportionately favorable to Flynn.
Set to be implemented on April 1, the legislation boosts the minimum wage for fast food workers from $16 to $20 per hour, with an exception for employees at establishments primarily engaged in making and selling bread.
This exemption sparked allegations of political favoritism, given Flynn’s ties to Governor Newsom. Both have refuted the idea that Flynn had any undue influence on the legislative process. Flynn, in a recent statement to CNN, asserted his decision to elevate wages to $20 hourly at his Panera outlets in California, irrespective of the law’s stipulations.
Flynn emphasized his commitment to his workforce, stating:
“At Flynn Group, we view our personnel as our greatest asset and strive to attract and retain top talent to provide the exceptional dining experience our customers expect.”
While Flynn’s company, The Flynn Group, operates 24 Panera outlets in California and his donations to Newsom’s 2022 re-election campaign are documented. Flynn insists he did not engage directly with the governor regarding the wage bill. He did, however, participate in a meeting with Newsom’s staff and other restaurant proprietors to discuss the legislation, where he proposed amendments to the definition of ‘fast food restaurant’ to differentiate it from ‘fast casual’ establishments like his own.
Flynn expressed his surprise upon discovering the bakery carveout in the final version of the law and noted that he and Newsom did not cross paths until long after their high school years.
A representative for Governor Newsom has outright rejected the narrative of Flynn influencing the wage legislation, labeling such claims as “absurd.”
Moreover, despite Flynn’s voluntary wage increase, a representative for Governor Newsom had previously indicated that Panera might still need to comply with the new wage laws. Lastly, the reasoning was that many chain bakeries, including Panera, prepare their dough off-site and merely bake it at their stores, which could mean they are not technically “producing” bread on the premises as the law defines.
