PaneraGate: Gov. Gavin Newsom’s Biggest ‘Blunder’ Since French LaundryGate

We now know that California Governor Gavin Newsom exempted a billionaire buddy from California’s new $20 minimum wage law. Billionaire Greg Flynn owns more than two dozen Panera Bread locations in California, as well as Applebee’s, Pizza Hut, Taco Bell, and Wendy’s, the Globe reported.

And Flynn has contributed at least $164,800 to Newsom’s political campaigns, the New York Post reported.

“In 2014, Flynn, who is the largest franchisee in the US with thousands of brands including Applebee’s, Pizza Hut, Taco Bell, and Wendy’s, acquired a Napa Valley resort that was managed by Newsom’s hospitality firm, according to disclosure forms.” Ahem. Good friend.

And as the Globe noted, “This is what corruption in plain sight looks like.”

KCRA Channel 3 reported Monday that 6 months ago they asked Gov. Newsom about this exemption for Panera Bread in AB 1228 by Assemblyman Chris Holden (D-Los Angeles).

The Globe found the language in the bill, which appears to be the exact business model for Panera Bread:

“Fast food restaurant” shall not include an establishment that on September 15, 2023, operates a bakery that produces for sale on the establishment’s premises bread, as defined under Part 136 of Subchapter B of Chapter I of Title 21 of the Code of Federal Regulations, so long as it continues to operate such a bakery. This exemption applies only where the establishment produces for sale bread as a stand-alone menu item, and does not apply if the bread is available for sale solely as part of another menu item. (emphasis the Globe)

Here is the screen shot we grabbed of that section in AB 1228:

California Republican lawmakers weighed in on Gov. Newsom’s pay-to-play blunder. The Senate heard Assembly Bill 610 (D-Holden, Los Angeles) last week, which will add new exemptions to the state’s highly controversial $20-per-hour minimum wage for major fast food chains law, AB 1228.

“AB 610’s additional exemptions from this wage-hike law come after a carve-out was provided to bakeries like Panera Bread last year. News reports link this special treatment to an individual Panera franchisee’s relationship – and campaign contributions – to Governor Newsom,” Senate Republicans said.

Sen. Kelly Seyarto (Murrieta): “For Pete’s sake, stop making exemptions just for the people who have the connections and the ability to pay, because that’s what this is. … And, that’s bad legislation. And, we should be ashamed of ourselves for passing stuff like this.”

Sen. Brian Dahle (Bieber): “… the governor just stated today that it’s the way sausage is made. Well, there’s a lot of pork in sausage, and a lot of his friends are getting some pork out of it. … At the end of the day we need to pass good laws, and we need to not carve out people who are campaign donors.”

Sen. Scott Wilk (Santa Clarita): “In light of the recent allegations … I’m going to lay off this bill today. I think we really do need to take a serious look at this issue; if what is alleged is true, it’s not acceptable.”

Senate Republican Leader Brian Jones: “I think it’s important for all of us to recognize that a blistering media report published yesterday indicates that exemptions to the original mandate on the minimum wage hike are tied to the governor’s campaign contributions. … That’s crony capitalism. … We need to send a message that this senate, that this house, that these members, that this bipartisan group of legislators that are trying to make California better, will not condone pay-to-play actions.”

California’s Congressional Representative Kevin Kiley (R) had his own comments today on Gov. Newsom’s gifts to friends:

“At the moment, though, Newsom has bigger fish to fry – or bread to bake. His latest corruption scandal, involving Panera Bread, is so bad he’s even lost the Sacramento Bee and the LA Times. The Bee calls it Newsom’s biggest ‘blunder’ since the French Laundry.

Newsom, we’ve learned, gave Panera an exemption from his ‘landmark’ $20/hour fast food worker minimum wage law. It just so happens the main Panera owner in California has given over $160,000 in campaign donations to Newsom. They also went to high school together.

For Newsom, this is nothing new. He also auctioned off exemptions to his COVID vaccine mandates; gave over 100 exemptions to AB 5; and used ’emergency powers’ to give no-bid contracts to his major benefactors. This is why I’ve called him America’s most corrupt governor.”

Ouch. When you’ve lost the Sacramento Bee, it’s a big blunder. While it’s not Gov. Newsom’s only or biggest blunder, at least the Bee acknowledged this one.

The governor’s office continues to attempt damage control for not only imposing the arbitrary $20 per hour minimum wage, harming small business owners and franchisees, but for the gross manipulations in the bill favoring a friend and donor of the Governor. And it’s all over the state and national news now – not a good look for the guy who is the candidate-in-waiting.

If you want to hear me discuss this debacle with the Epoch Times click the big red box below: