California has long been a hotbed for innovation and entrepreneurship, but recently, it has also become known for a significant exodus of both citizens and businesses. The latest company to leave the Golden State is Blaze Pizza, which announced last week that it will be relocating its headquarters to Georgia.
Founded in California in 2011, Blaze Pizza is known for its unique fast-casual dining experience, where customers can choose their toppings from an array of fresh ingredients, and their pizza is assembled in front of them. Despite its roots in California and the backing of NBA star LeBron James as an investor, the company has decided to move its corporate headquarters to Atlanta by September. While most of the company’s 60 corporate employees will work remotely, a small percentage will relocate to the new campus.
“California is where this brand was born more than a decade ago, and we have a tremendous heart for communities across the state where so many of our restaurants are,” CEO Beto Guajardo said. “Moving our corporate headquarters to Atlanta will help us drive our next wave of growth.”
As of the end of 2023, Blaze Pizza had 295 restaurants across the United States, with 93 of those located in California. However, Blaze Pizza joins a growing list of over 100 companies that have left California since 2020, as reported by Build Remote. States like Texas, Arizona, Florida, Colorado, North Carolina, and Ohio have become attractive alternatives for these businesses.
📢 Today, we called out @GavinNewsom in a full-page ad in USA Today for the harmful impact of California's recent minimum wage hike on fast-food restaurants. Nearly 10,000 jobs lost since AB 1228 was signed into law. CA deserves better policies that support growth and stability.… pic.twitter.com/CCpAk3L2j0
— @cabia (@cabia_speakup) June 6, 2024
While Blaze Pizza did not specify the reasons for its relocation, the timing coincides with California’s new $20-per-hour minimum wage for fast-food workers, which has been a significant burden on the industry. This legislation, signed into law by Democratic Governor Gavin Newsom, has reportedly led to the loss of approximately 10,000 jobs in the restaurant sector.
The California Business and Industrial Alliance (CABIA) highlighted the impact of these rising costs in a full-page ad, which included an “In Memoriam” list of companies that have had to cut jobs or close operations. The ad mentioned that two Pizza Hut owners eliminated all delivery driver positions, affecting more than 1,200 drivers. Additionally, a Burger King franchise owner plans to reduce worker hours and increase the use of self-service kiosks to offset labor costs.
Scott Roderick, a McDonald’s franchisee with 18 locations in California, stated that he has had to rethink his business strategy due to the new law. “There is more than extraordinary labor costs stressing restaurants’ P&Ls right now,” he said.
Other businesses such as Cinnabon/Auntie Anne’s, El Pollo Loco, Excalibur Pizza, Mod Pizza, Rubio’s, Vitality Bowls, and more have also been adversely affected by the new wage requirements. Rubio’s Coastal Grill recently announced the closure of 48 locations, citing the rising cost of doing business in California as the primary reason.
The Democrat-controlled state Legislature approved the minimum wage increase last year, which went into effect on April 1, forcing most fast-food operations to pay workers $20 an hour. These laws, while intended to help workers, have led to unintended consequences, including job losses and increased business costs, prompting companies to relocate to states with more favorable business climates.
The economic impact of these policies has been profound, with businesses and residents alike fleeing California. The state’s population decline is so significant that it is on track to lose several seats in Congress, reflecting the broader economic and demographic shifts taking place.
SF Source Red Right Daily Jun 2024