Staff Reports
The California Minimum Wage Controversy: Panera Bread Franchise Owner Plans Wage Increase Despite Exemption
In a twist hotter than the garlic butter spread on a fresh-baked Panera baguette, a Panera Bread franchise owner in California, Greg Flynn, has grabbed headlines for planning to raise the minimum wage for his employees despite the state’s new minimum wage law. This law, signed by the liberal governor, Gavin Newsom, would require fast-food workers’ minimum wage to increase from $16 to $20 an hour, but an exemption spared some fast-food chains, including Panera franchises, that have on-site bakeries and sell bread as a standalone menu item.
Panera Bread locations in California owned by billionaire Greg Flynn will raise base pay to $20 hour, regardless of whether he's covered by the new fast-food wage law https://t.co/mipDYmXOfO
— Bloomberg (@business) March 6, 2024
Flynn, who is as generous with his dough as he is with his bread, has poured over $200,000 into Gov. Newsom’s campaign coffers, raising eyebrows and stirring up a storm of criticism. However, in a move that even the most skeptical sourdough wouldn’t rise against, Flynn announced that he plans to increase his employees’ minimum wage to $20 per hour, regardless of the exemption. He’s making dough rain on his workers, and they’ll be rolling in the Benjamins faster than a rolling pin flattens dough.
Newsom’s office has contended that Panera is not exempt from the wage increase because their dough is mixed off-site and then shipped to franchise locations for baking. Flynn, in a bold move that would make a garlic chicken and fontina Panini blush, denied asking for the exemption and criticized the narrow nature of the measure, claiming it has “very little practical value” and should have been amended to exclude fast-casual restaurants like Panera. Flynn’s denial packed quite the punch, like a hearty bite into a frontega chicken panini.
The controversy doesn’t stop there. Flynn revealed that he never met with Gov. Newsom about the bill, called “AB1228,” although he did have a meeting with the governor’s staff and, in a plot twist worthy of a Hollywood blockbuster, he and Gov. Newsom actually attended the same high school. But the real meatball in this spaghetti is that Flynn claims he never crossed paths with Newsom until many decades later, making their high school ties about as relevant as an empty breadbasket.
At the end of the day, Flynn’s decision to raise his employees’ wages, despite the exemption, should be celebrated like a fresh batch of cinnamon crunch bagels coming out of the oven. This move showcases his commitment to his workers and their livelihoods, and it’s a refreshing change from the usual political dough-throwing. Whether Newsom and Flynn will break bread and come to a resolution remains to be seen, but for now, one thing is clear: Panera is cooking up more than just tasty treats in California. They’re serving up a hot plate of controversy that’s got the whole state talking.
