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.
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.
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.
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.
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.
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.
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.
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).]
Right, but all of those people will try to get hired at McDonalds first. That was my point.
I get what you are saying, but you're missing the part where McDonald's won't be hiring anyone because they will simply replace the workers with automation.
They won't be people that couldn't cut it for McDonald's, because they just won't hire anyone.
But I do get what you are saying, and as someone who sucks at getting his point across reliably, I can respect what you are trying to say.
Ain't that the truth. We've been trying to fill one position where I work for a year now. Pay is in the 6 figure range, first year with no experience. I talk to people doing similar work for a quarter of the pay, they say it sounds like what they are looking for but never fill out an application.
Most of the drivers at work have been here for over 20 years and there used to be a waiting list to get on. I'm not sure what changed. The average income in the area is below 30k. The driving jobs average 50k (home every day.) We're more than double the average and can't get help.
I get what you are saying, but you're missing the part where McDonald's won't be hiring anyone because they will simply replace the workers with automation.
I am not missing anything, but you and Willie are.
1. Automated orders will take place at Panera as well as McDonalds.
2. Neither place will be able to function with zero employees.
I am not missing anything, but you and Willie are.
1. Automated orders will take place at Panera as well as McDonalds.
2. Neither place will be able to function with zero employees.
Again, myopic... you don't realize the fact that raising the minimum wage is the problem. You can't legislate a living wage... you just cannot. It defies the entire concept of a free market society, or economic theory. It literally causes inflation, and hurts the economy, as well as the government. Intelligent people know this, but Democrat politicians use it as a vote-buying tactic... because it's a feel good thing temporarily. It always leads to disaster beyond a certain point, and creates a barrier of entry to people who are trying to get into the workplace to begin with. It literally creates a wealth gap because you're eliminating entirely a whole income segment that can now never get a job.
Fred's objective is not to discuss, but rather to argue. He has admitted that in the past. Whoever invited him here told him this was a debate forum.
WTF are you talking about. Here is my original comment that has drawn such condemnation from you and the crew.
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 never said anything about the $20 minimum wage being a good idea. I was just talking about the fact that Panera would have a lower quality application pool if they paid lower wages than their competition. The fact is that I AGREE that a $20 an hour minimum wage is not a good idea.
But as soon as the crew sees a post with my name on it they knee-jerk into attack mode. You don't really want to discuss anything. All you want to do is attack, attack, attack.
Doesn't change the fact that you were attacking my post for something I didn't say. And that is evidence that you just want to attack and argue instead of discuss.
So maybe that explains why you had a problem with this Fred guy.
What does it mean to be a better qualified employee ?
That seems kind of strange coming from you. I thought you really believed in free market economics. One of the basic tenants of free market economics is that "labor" is a commodity and therefore its cost is based on its value. More productive employees are more valuable and therefore get paid more.
But as soon as the crew sees a post with my name on it they knee-jerk into attack mode. You don't really want to discuss anything. All you want to do is attack, attack, attack.
The usual suspects here aren't interested in discussion. Their only interest is ferreting out anyone with a different political viewpoint, and then trying to make them feel as unwelcome as possible. If it wasn't for the fact that I enjoy the tech sections of PFF, and occasionally (the now non-political) OT, I would've left this forum in disgust decades ago.
Originally posted by BingB: That seems kind of strange coming from you. I thought you really believed in free market economics. One of the basic tenants of free market economics is that "labor" is a commodity and therefore its cost is based on its value. More productive employees are more valuable and therefore get paid more.
What do you think sets the cost of labor?
The leftoids, all calling for raising the minimum wage, all the time. Also, companies who decide what they will pay for an above minimum wage. Unions demand wage increases.
I usually always joke that I am overpaid and under worked. Everybody which held my position made the same as I did. Even though I was more productive.
The leftoids, all calling for raising the minimum wage, all the time. Also, companies who decide what they will pay for an above minimum wage. Unions demand wage increases.
This is a fascinating theory.
You actually believe that when a company goes to set a wage they just ask the leftoids and the unions? You completely reject the free market theory that says wages and salaries are based on skill and production? You don't believe that people looking for jobs seek out the highest pay that their skill level deserves?
Originally posted by BingB: This is a fascinating theory.
You actually believe that when a company goes to set a wage they just ask the leftoids and the unions? You completely reject the free market theory that says wages and salaries are based on skill and production? You don't believe that people looking for jobs seek out the highest pay that their skill level deserves?
You are an interesting study on bamboozlement.
The leftoids mandate minimum wage.
What kind of skills and production is required for a job entry position ?
I don't believe that people looking for jobs seek out the highest pay that their skill level deserves. That is shallow thinking.
I am not surprised you don't fully understand the theory of free market capitalism.
I am not surprised that you just made another silly claim that will be impossible for you to prove.
Apparently I know much more about free market capitalism than you do if you think salary and wages are set by unions and leftists instead of based on competition for the best employees.
Originally posted by BingB: I am not surprised that you just made another silly claim that will be impossible for you to prove.
Apparently I know much more about free market capitalism than you do if you think salary and wages are set by unions and leftists instead of based on competition for the best employees.
Apparently you are delusional. Again with your shallow thinking, .
Originally posted by cliffw: Apparently you are delusional. Again with your shallow thinking, .
Nothing shallow about my thinking. I am right and you are wrong.
Labor is a commodity/resource. Like all other commodities in a free market economy the higher quality commodity is in demand and will have a higher value.
Originally posted by BingB: Nothing shallow about my thinking. I am right and you are wrong.
You can't be right when you have no clue.
quote
Originally posted by BingB: Labor is a commodity/resource. Like all other commodities in a free market economy the higher quality commodity is in demand and will have a higher value.
I am not going to lead you by your hand so you might understand the genesis if this thread. I urge you to start all over and stay in focus.
Tell you what, let's everyone put up their minimum wage when they were high school aged and we'll see who gets to legitimately complain about minimum wage today.
Unless you're here complaining that you were overpaid or something.
AT 13/14 when joe made his 1.15 I made $3 or 4 minus cheap gas 30 cents a gal or less in1963 by invested capital in a lawn mower and independent effort build a customer base
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