Posts tagged Fast Food
Why Is Panera Exempted From California’s New Minimum Wage Law?
March 4, 2024 // That exemption stands to benefit Greg Flynn, owner and CEO of the Flynn Restaurant Group, a conglomerate that operates more than 2,300 restaurants nationally and is the second-largest Panera franchisee in the world, according to the company's website. Flynn and Newsom go way back: Bloomberg reports that the two attended the same high school at the same time—Flynn was student body president during Newsom's freshman year—and the restaurateur has donated to Newsom's gubernatorial campaigns and bragged to colleagues about his close relationship with the governor.
Panera Bread exempt from California’s $20 minimum wage law after owner donated to Gov. Newsom: report
February 28, 2024 // 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.
OPINION: The SEIU’s fake fast food union
February 12, 2024 // Struggling at the national level, the union turned to its legislative allies in California. It worked for several years to enact the so-called “Fast Recovery Act,” a scheme to create a new council that would regulate wages and working conditions for fast-food workers. The idea: Save the union the unproductive hassle of signing up new workers, and instead make all of them subject to a union-controlled government board. Though it took the union two legislative sessions to pass it, over fierce resistance from restaurants, it eventually got to the Governor’s desk in 2022. He signed it on Labor Day that year.
California fast food workers form statewide union
February 11, 2024 // The union comes at a time when fast food wages and pricing are top of mind in California. A $20-dollar minimum wage takes effect in April. And a backlash to meal price increases has caused viral anger online.
How McDonald’s, Chipotle, Starbucks are preparing for the fast-food worker battles to come in 2024
January 4, 2024 // “Anyone looking at this in the industry, now that emotion has been removed from the negotiation, sees this as the least bad option or worst good option, depending on which side you’re on,” said Matt Haller, president and CEO of the International Franchise Association, a trade group that represents franchisors, franchisees and franchise suppliers. In exchange for concessions, and staring down a very uncertain outcome on the referendum, “We have this very predictable business environment for our members moving forward,” he said.
Fast-food prices hiked after California ups minimum wage
November 13, 2023 // In that January article, I called this “the iron law of California progressivism: Claim that new laws will help the poor. When the actual effect turns out to be catastrophic for the poor, blame capitalism/markets/billionaires/racism, and expand government control of the business. Rinse, repeat, and promote as a national — even global — model for equity. And if Californians have anything to say about it, AB 257 will be coming to you, no matter where you live in the United States.” Indeed, Biden’s forever-acting Secretary of Labor Julie Su has already expressed her unbridled enthusiasm for California’s policy. That’s no surprise, either: Su was California’s secretary of labor, and is closely tied to the union leadership behind a number of execrable labor policies. Among the most notorious is AB 5, the law that banned independent contracting in key industries, including Uber drivers and trucking companies. When AB 257 emerged from the same fetid philosophical swamp, there was Su, now part of the Biden administration, telling the bill’s supporters, “The Department of Labor stands with you. The Biden-Harris Administration stands with you.”
This New Labor Rule Could Be Trouble for McDonald’s
October 5, 2023 // McDonald’s and other franchise companies have made it clear they believe the stakes are high. The “reality is that our business model is under attack,” CEO Chris Kempczinski said of possible joint-employer regulations in a speech at a franchising industry conference in Las Vegas earlier this year, in remarks he also published on LinkedIn. Changes by the NLRB, he said, would transform franchisees “from independent small-business owners to employees of the parent brands.” Heightened joint-employer liability could hurt the franchise model in two main ways, according to the International Franchise Association. One possibility, along the lines of what Kempczinski described, is that a franchisor would exert more control over the franchisees. That undercuts one of franchisors’ big selling points to potential franchisees—that they’re offering a path to running their own business, with all of the freedoms that provides. It could also add compliance costs, and potentially, legal and liability expenses. Those increased costs are also a frequent worry for franchisees, says restaurant consultant John Gordon, principal at Pacific Management Consulting Group. Franchisees typically pay franchisors a percentage of their sales, and their profit comes after those fees and their operating expenses. Franchisees are “justifiably afraid of the franchisor passing costs onto them that weren’t part of the franchise agreement,” he says, and wary of joint-employer liability for that reason.
Opinion: Few Californians Belong, But Unions Scored Big in Legislature this Year
September 26, 2023 // The state’s Unemployment Insurance Fund, or UIF, which is supported by payroll taxes on employers, has about a $15 billion deficit because the state borrowed heavily from the federal government to keep benefit checks flowing during the downturn sparked by Newsom’s orders shutting down much of the state’s economy to battle COVID-19. If the state doesn’t repay the loans, which is likely, the federal government imposes higher payroll taxes on employers to settle the debt. Employers want a veto. Citing the UIF’s crushing debt, Newsom indicated that he’s skeptical.
Commentary: Few California workers belong to unions, but they scored big in Legislature this year
September 20, 2023 // Previously, the Legislature had helped unions gain members by declaring home care and child care workers to be public employees and thus capable of being unionized. In fact, as the Legislature’s session was winding down, it approved a new contract for the latter that included hefty raises. Extending similar status to other service sectors is one possibility. Meanwhile, the bills setting new minimum wages for fast food and health care workers would seem to open the door for similar efforts in other segments of the economy that have large numbers of employees with relatively low salaries.
A FIRST-OF-ITS-KIND UNION RAMPS UP EFFORTS TO SWEEP THE SOUTH
August 30, 2023 // The Union of Southern Service Workers began making headlines last fall after formally christening themselves during a rally in Columbia, South Carolina. This union holds some familiar attributes, given that it began as an offshoot of Raise Up, the Southern leg of the SEIU’s Fight for $15 initiative. Yet this is no ordinary effort by the SEIU, for the USSW purports to not only be “built by and for low-wage workers” but also stretches across many industries. A key distinction: The union frames itself as a cross-sector organization, designed to retain members even if they job-hop between industries, i.e., fast food, retail, hotel, nursing home, warehouses, etc.