Can Business Recovery Be Legislated?

Katy Grimes: It’s so exciting that fast food giant Carl’s Jr. plans on opening 300 new fast food restaurants! Wow. That’s such good news for the economy.

Unfortunately for California, the restaurants will be opening in Texas. Carl’s Jr. CEO Andy Pudzner explained the economics of CKE Restaurants (Carl’s Jr.’s parent company) recently at an Economic Recovery Group monthly meeting, while delivering the bad news.

Carl’s Jr. has 700 restaurants in California, one-half of which are owned by CKE Restaurants, and the other one-half are franchises. The company has more than 72,000 employees total, 18,500 of which are in California.

And while Puzder made very clear that Carl’s Jr. would be “maintaining” status of their California restaurants, the company plans on opening 300 new restaurants in Texas.

Describing CKE Restaurants as a ” job creation machine,” Puzder said that the company had more than $4 billion last year in revenues, and paid $60 million in California taxes,” I wrote in “A Texas-sized Move For Carl’s Jr.?

At a Sacramento Carl’s Jr. restaurant on Thursday, Assemblyman Dan Logue, R-Linda, the Economic Recovery Group creator, held a press conference with the other Assembly members who went on a recent trip to Texas with him, introducing a package of 30 bills designed to greatly improve the nasty business climate in California.

Bills dealing with regulatory relief,  lawsuit abuse, taxing, and job creation were presented in the setting where low-paid hourly workers served fast food, and in a restaurant where no employees are getting rich off the sales. Carl’s Jr. managers aren’t even allowed to work the hours needed to address production needs, because of California regulations and labor laws.

Designed to help bring back jobs and make the state a more attractive place for job creation and retention, Logue explained, “The message we got from California business owners who relocated to Texas was clear – the Legislature has made it too expensive and too burdensome to create and retain jobs in the Golden State. As we learned in Texas, there is no one silver bullet to fixing the job climate, but together, all these measures will do their part in making our state more business friendly and allow the private companies to create jobs. ”

From targeted tax credits and economic incentives designed to create jobs, as well as measures making it more convenient for businesses to set up operations in California, regulatory relief and junk lawsuit reforms, these bills have been created to help get the state back on track to being like today’s Texas when it comes to jobs – and like the California many knew decades ago.

“The Legislature will make very little progress in helping California recover without a renewed focus on jobs,” said Assembly Republican Leader Connie Conway, of Tulare.

Asked if he is positive about the possibility of the passage of the bills, Logue said, “We are carrying the ball, but are not making touchdowns right now.” But Logue explained that Democrats Lt. Gov. Gavin Newsom and Assemblywoman Cathleen Galgiani were along on the trip and were moved by the amazing changes implemented by Republican Texas Gov. Rick Perry upon being elected to office. Perry even moved the Economic Development Department right into his office. Logue said he believes that Republicans are making headway and influencing legislation in the areas of economic recovery – and many Democratic legislators are in agreement with the desperate need California faces.

But the question remains – can Republicans pass these much-needed bills? They are clearly applying pressure and gaining the support of the public. But as the minority party in the state, there’s only so much that can be done when Democrats are already showing solidarity and voting down really good economic recovery bills in committee hearings.

Read more about the 30 job recovery bill HERE

APRIL 28, 2011

8 comments

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  1. Bruce Ross
    Bruce Ross 29 April, 2011, 09:57

    Honestly, bless Carl’s Jr. They started in California, right? And they’ve pretty well saturated the state. Maybe they’re looking to Texas because it’s a new market.

    Reply this comment
  2. Bruce Ross
    Bruce Ross 29 April, 2011, 10:07

    Not that the state couldn’t go a long way toward easing the path for new businesses. It could and it should.

    Reply this comment
  3. CalWatchdog
    CalWatchdog Author 29 April, 2011, 10:36

    More than half of the 700 California Carl’s Jr. restaurants are franchises, whose owners have to make it or close without an umbrella from the parent company. If the state is saturated, then it is because there is/was a market.

    -Katy

    Reply this comment
  4. Tylerle13
    Tylerle13 29 April, 2011, 11:59

    The only way these bills will help improve the business climate is if they eliminate corrupt agencies like CARB and they prevent scumbags like Steinberg & simitian from looking at California businesses as ATM’s for their pork projects. Businesses in this state are villified for “wanting to make a PROFIT” so legislators can get support from the public when they extort more money from the “Evil” Corporations. Until they start treating businesses like a vital component of society instead of a parasite, the economy in California will continue to under preform.

    Reply this comment
  5. Curtis Walker
    Curtis Walker 30 April, 2011, 09:23

    The Sacramento Bee recently referred to Logue’s little “All the biz be leaving CA” group and findings as A DOG AND PONY SHOW. Like elsewhere the entire premise of Dan’s little show fully discredited. Facts be famed, apparently, when it comes to Dan’s pet project. “All Hail Texas” when he started this BS yet now Texas is in the toilet, too.

    Give it up, Dan. Nothing but noise. Always has been and facts are too be used in analysis of issues and OUTLIERS clearly identified so you don’t reach the wrong conclusion. Tell it to your Tea Party buddies but CA ain’t buying what you are peddling. Facts, Dan, FACTS.

    Reply this comment
  6. Starbuck
    Starbuck 30 April, 2011, 13:48

    @Curtis Walker… you obviously are ignorant of the facts Curtis. The “pony” show was to publicize the excesses of the liberal party here in California and what they are doing to destroy California business, business that pays lots of taxes so the liberals can spend it on their pet projects that have no benefits. Curtis, only the private sector creates wealth; it is what we call capitalism, the envy of the world. Where did you go to school?

    Reply this comment
  7. Noblesse Oblige
    Noblesse Oblige 30 April, 2011, 14:25

    Sacramento Bee gives us a small example of the blinders afflicting most Californians, certainly all of what passes for news media. Continue to wear them and you find out where this road to serfdom leads… the hard way.

    Reply this comment
  8. Bruce Ross
    Bruce Ross 2 May, 2011, 17:06

    Katy,

    Yes, of course there is a market. My point is that there’s not great room for Carl’s to continue expanding in California. Expanding businesses need to find new markets.

    Reply this comment

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