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Mike Rowe details ‘unintended consequences’ from CA’s $20 minimum wage: ‘Bad look for the governor, Panera’

“How America Works” host Mike Rowe addressed the Panera minimum wage controversy and criticized both California’s governor and franchisees for not preparing for “unintended consequences.”

“The market is a powerful thing,” Lowe said Wednesday on “The Big Money Show.” “And if you were suddenly the only guy not paying $20 an hour, who among the limited number of people who wanted to work in the fast food industry would apply for a job with that company? You?”

A major donor to Democratic California Gov. Gavin Newsom hoped to exploit a loophole to avoid implementing the state’s new $20 minimum wage regulation for the fast food industry, according to the Associated Press. However, they have reportedly changed their policy.

said Greg Flynn, a billionaire who reportedly owns 24 Panera Bread restaurants in California. He plans to pay his employees $20 an hour. The Associated Press reported on April 1st. A Bloomberg investigation found that Flynn hoped to save thousands of dollars by taking advantage of a legal classification that allows restaurants that bake and sell bread individually to continue paying their current $16 an hour wage. was discovered, and a controversy erupted.

Leaving “Hotel California”: Managers torn apart by the exodus talk about “how bad” the situation really is

On Tuesday, Flynn said in a statement: “At Flynn Group, we are in the people business and believe our people are our most valuable asset…Our goal is to attract the best team members to deliver the restaurant experience our guests know and love. It’s about maintaining love. “

“How America Works” host Mike Rowe said California’s Panera Bread minimum wage controversy is a “bad look” for the governor and the food brand. (Fox News)

But Lowe argued that economic and social pressures “forced” Flynn to implement the wage increase.

“It was a bad look for the governor. I think it was a bad look for Panera,” Lowe said. “But most of the time, we end up back again with unexpected results.”

“We have a problem with unions, we have a problem with the minimum wage, we have rent control, we do short-term things that look good, feel good, and feel good to do and say. There’s always a price to pay,” the former “Dirty Jobs” star added.

Bloomberg reports that Flynn is the nation’s largest franchisee, owning thousands of Taco Bell, Pizza Hut, Wendy’s, Panera Bread and Applebee’s stores, while also being a major donor to Newsom’s campaign. he pointed out.

He donated $8,400 to Mr. Newsom’s candidacy in 2018 and later helped him during his campaign, state records show. 2021 Recall Election Along with other notable contributors.

Asked for comment, a spokesperson for Newsom told Fox News Digital: “This bill is the result of two years and countless hours of negotiations with dozens of stakeholders. “We have met with unions, business leaders and dozens of franchise owners through Congress.” During the negotiation process, no individual or company had any influence over the final outcome. ”

Fox News Digital also previously reached out to Flynn’s holding company and Panera Bread for comment. Flynn told Bloomberg he had no role in developing the exemption.

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The end result of the wage debate, Lowe argued, would be a move toward not hiring any workers at all.

“Kiosks will be replaced by low-wage workers. AI will have a say in this,” Lowe said. “And a Quarter Pounder with cheese is going to be very expensive. That’s a lesson we’re determined to learn over and over again.”

Read more on FOX Business

FOX Business’ Brandon Gillespie and Joe Schoffstall contributed to this report.

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