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A Panera Bread franchise owner in California has announced plans to increase the minimum wage for his workers. This decision comes after people accused him of using his connections with the governor to avoid paying higher wages.
A recent law in California sets a higher minimum wage but does not apply to some businesses, including those that bake and sell bread. Critics argue this exception unfairly helps Greg Flynn, a wealthy owner of Panera Bread franchises.
Flynn and Governor Gavin Newsom, a Democrat, went to the same high school, and Flynn has previously donated money to Newsom's political campaigns.
Panera Bread Owner Raises Wages Amid Controversy
Starting April 1, California is set to increase the minimum wage for fast food workers from $16 to $20 per hour. However, there's a catch: this pay rise doesn't apply to employees at places that mainly make and sell bread. This loophole has sparked some heated discussions.
Critics have pointed fingers at this specific exemption, suggesting it might have been influenced by Greg Flynn, a billionaire and owner of several Panera Bread franchises. Flynn is known to have connections with California Governor Gavin Newsom, leading to speculation that he had a hand in shaping the law to benefit his businesses.
Despite the controversy, both Flynn and Newsom have refuted claims that Flynn's relationship with the governor influenced the legislation. To address the growing criticism, Flynn announced on Tuesday to CNN that he plans to increase the minimum wage to $20 an hour at all of his Panera Bread locations, even though his businesses could have been excluded from the new wage requirements.
Flynn emphasized his commitment to his employees: "At Flynn Group, we are in the people business and believe our people are our most valuable assets." He hopes that by offering better wages, he can attract and keep the best staff, ensuring customers continue to enjoy the high-quality restaurant experience they expect from Panera Bread.
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Panera Owner's Donation Amid Wage Law Debate
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California public records reveal that Greg Flynn, owner of The Flynn Group, which operates 24 Panera Bread stores in California, has been a notable donor to Governor Gavin Newsom's 2022 re-election campaign. In 2021, during a conservative attempt to recall the governor, Flynn gave $100,000.
Despite these donations, Flynn said he never discussed the minimum wage legislation with Newsom. He did, however, have meetings with Newsom's staff and other restaurant owners about the bill. Flynn suggested amendments to the bill's language to differentiate 'fast food restaurants' from 'fast-casual restaurants,' aiming to protect businesses like his from being unfairly targeted.
Flynn was taken aback when the bill's final version included an exemption for bakeries, a change he claims to have never explicitly requested. He also clarified that although he and Newsom attended the same high school, they didn't meet until many years later.
Newsom's office has outright denied any influence from Flynn on the fast food minimum wage bill, labeling such claims as "absurd." Moreover, despite Flynn's proactive step to increase wages at his Panera locations to $20 per hour, a spokesperson for Newsom suggested that Panera Bread might have been required to raise wages under the law anyway.
The law targets chain bakeries that prepare dough off-site and then bake it in their stores, which does not align with the definition of "producing" bread on-site, according to Alex Stack, a spokesperson for Newsom.
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