Crony Capitalist Panera Bread (Page 1/6)
Doug85GT FEB 29, 06:35 PM
Panera Bread bought and paid for an exception to the state's minimum wage law. The Billionaire who owns two dozen of the franchises in the state has know the governor since they were in high school and they share business dealings.

https://ktla.com/news/calif...with-newsom-reports/


quote
Panera Bread is exempt from following one of California’s newest laws, according to multiple reports. The new law will raise fast-food workers’ minimum wage to $20 per hour and will take effect beginning April 1.

The new law doesn’t recognize places that operate “a bakery that produces for sale on the establishment’s premises bread” as fast food, according to the law’s text.

Why the line was drawn at bread remains unclear.

“That’s part of the sausage-making,” Gov. Gavin Newsom said during a news conference when asked about the exemption, Insider reported.

However, Newsom pushed for the exemption, people familiar with the matter told Bloomberg. One of the primary beneficiaries of the exemption is Greg Flynn, a billionaire and longtime Newsom donor who has two dozen Panera Bread locations in California.

Flynn has also been involved in Newsom’s campaigns, donating $100,000 in 2021 to help Newsom fight against a recall and $64,800 in 2022, which went to the governor’s reelection campaign, according to The Sun.

Flynn denies that he played a role in crafting the bread exemption, Bloomberg reported.

However, people who spoke to Bloomberg under the condition of anonymity said “he urged the governor’s top aides to reconsider whether fast-casual chains such as Panera should be classified as fast food.”

While the fast-casual exemption wasn’t adopted, the bread-making exemption was. The rationale for adopting the exemption was due to “the governor’s longstanding relationship with a Panera franchisee,” one person said.
williegoat MAR 01, 03:19 PM
While some are arguing whether we live in a democracy or a republic, most are oblivious to the reality that we now live in a plutocracy which is quickly spiraling towards fiefdom.
BingB MAR 01, 04:02 PM
Panera might have won the law, but I wonder if it is a good business practice to depend on a workforce that was rejected by McDonalds?

Service at Panera is going to suck in Cali.
82-T/A [At Work] MAR 01, 05:23 PM

quote
Originally posted by BingB:

Panera might have won the law, but I wonder if it is a good business practice to depend on a workforce that was rejected by McDonalds?

Service at Panera is going to suck in Cali.




I think you're making a broad and erroneous assumption. You're assuming that businesses everywhere are hiring for these jobs, and that the only people applying for them, will be rejects from other higher-paid jobs. A $20 an hour job is not low income. That's a $40k a year job, and while that maybe doesn't mean as much in the Biden economy... that is "loaded cash" for a high school-aged person, or someone looking for a part time job. A higher minimum wage can effectively create what's called a barrier to entry. It essentially limits the number of people a business can effectively even hire.

When I was applying for minimum wage jobs, it was hard to get a job because no one was willing to hire you unless you had a ton of experience. This had less to do with the economy, and more to do with the fact that companies couldn't afford to hire multiple people, as I said... so they were super selective. A person without a lot of experience doesn't mean they "suck," it just means they haven't been given the opportunity yet.

When you raise the minimum wage in such a way, it effectively creates micro-inflation where the wage has increased. The cost of everything goes up. This means of course that Panera bread can also raise their rates (and may even have to if the goods they need to provide their services goes up as well).


More than likely though, two things will happen:
- They maintain their prices and people start shopping there.
- Other restaurants go out of business cause they cannot afford the labor
- all of which leads to Panera making more money ... and then being able to hire additional people which leads to improved service.
cliffw MAR 01, 06:37 PM

quote
Originally posted by BingB:
Panera might have won the law, but I wonder if it is a good business practice to depend on a workforce that was rejected by McDonalds?

Service at Panera is going to suck in Cali.



What is wrong with your thought process ?

Why do you claim McDonalds rejected a "workforce".

I wonder if it is a good business practice to depend on a workforce that now makes inferior "minimum wage.

You right. Service at Panera is going to suck in California. As well as their product.
BingB MAR 02, 09:35 AM

quote
Originally posted by cliffw:


What is wrong with your thought process ?

Why do you claim McDonalds rejected a "workforce".




I assume that potential employees will first seek the higher paying jobs at McDonalds before trying to get hired at Panera.

Therefore Panera will only get to chose from among the people who were not good enough for the higher paying jobs at McDonalds.

[This message has been edited by BingB (edited 03-02-2024).]

williegoat MAR 02, 11:56 AM
Panera will get the people who were replaced by AI kiosks and the people who must take a second job because inflation has made it impossible to feed their families on one minimum wage job.
BingB MAR 02, 12:00 PM

quote
Originally posted by williegoat:

Panera will get the people who were replaced by AI kiosks and the people who must take a second job because inflation has made it impossible to feed their families on one minimum wage job.


Right, but all of those people will try to get hired at McDonalds first. That was my point.
williegoat MAR 02, 12:16 PM

quote
Originally posted by BingB:

Right, but all of those people will try to get hired at McDonalds first. That was my point.
cliffw MAR 03, 11:47 AM

quote
Originally posted by BingB:
I assume that potential employees will first seek the higher paying jobs at McDonalds before trying to get hired at Panera.



Yeah, sure.

For one, the pay at both places has been the same, until now.

Trying to get hired at McDonalds ? Everybody is hiring anybody who shows up.

[This message has been edited by cliffw (edited 03-03-2024).]