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California Governor Gavin Newsom is currently furious over revelations of his affair with billionaire restaurant owner Greg Flynn, who happens to be a campaign donor.
Flynn is the founder and CEO of the Flynn Group, which operates more than 2,600 U.S. stores including Applebee’s, Taco Bell, Panera, Arby’s, Pizza Hut and Wendy’s.
He owns 12 Panera stores in California. According to , there are 188 locations in the state. panera website.
The Flynn Group also owns Applebee’s stores in California, but the law does not apply to full-service restaurants.
The news, first reported by Bloomberg on Wednesday, has already prompted calls for an investigation from Republican leaders in the state, the newspaper reported. san francisco chroniclesocial media is full of angry posts.
The two had known each other for many years and apparently attended the same high school. bloomberg report.
Mr. Flynn has donated to Mr. Newsom’s campaign since 2014, and Flynn Properties has donated approximately $164,800 to Newsom’s causes in 2021 and 2022. newsome, campaign finance records show. This includes $64,000 for his re-election bid and $100,000 for his campaign to stop Republicans from recalling Governor Newsom.
Flynn’s Panera stores were narrowly exempted from California’s September wage increase due to a provision that exempts establishments that sell bread as a standalone item, as defined by the U.S. Food and Drug Administration, rather than bagels or croissants. There is.
Also, exemption Applies if the bread is sold as part of another menu item, such as a Feetlong Subway sandwich.
It also prohibits sub shops from selling bread to cut labor costs, and burger shops from baking their own buns on-site. The rule only applies to restaurants that had done so as of September 15 last year.
When asked about the bread exemption that baffled many last year, Newsom said, “That’s part of sausage making,” declining to elaborate further.
Newsom’s office said in a response to Bloomberg that the legislation was “the result of countless hours of negotiations with dozens of stakeholders over two years.”
In a conversation with Bloomberg, Flynn denied any involvement in the bread exemption.
Newsom’s office, Flynn Group and Panera did not immediately respond to requests for comment from Business Insider.
That means most major fast food chains other than Panera are essentially excluded. Several smaller brands appear to have benefited from the carve-out, including Paris Baguette and Great Harvest Bread Company, Bloomberg reports.
new Minimum wage to be raised to $20 per hour In April, it targeted fast food workers in California. Restaurants with more than 60 locations will have to implement new wage rates, and chains like McDonald’s, Chipotle and Jack in the Box are already planning an additional $250,000 per year to pay more in California. The company says it will raise menu prices at stores in the state.