Panera Bread Franchise Owner Raises Wages

Greg Flynn, the billionaire franchise owner of 24 Panera Bread locations in California, has announced a wage increase for his workers. This decision comes after concerns were raised regarding Panera Bread’s potential exemption from a new state law raising the minimum wage.

Context: Newsom’s Connection and Wage Controversy

Flynn, a known donor to California Governor Gavin Newsom’s campaign, has decided to raise the minimum wage at his Panera Bread stores from $16 to $20 per hour. Newsom’s association with Flynn drew criticism last week when it was speculated that Panera Bread might be exempt from the new minimum wage law.

Understanding the Exemption

The new law mandates fast-food chains with 60 or more locations to increase the minimum wage for their employees. However, an exemption was included for restaurants primarily focused on baking and selling bread as a standalone product. Notably, items like bagels or croissants are not considered “bread” under this law.

Clarifications and Responses

A spokesperson for the governor clarified that Panera might not be exempt from the law due to the chain’s practice of preparing dough off-site before baking it in stores. Despite initial discussions about excluding fast-casual restaurants from the bill, Flynn stated that he did not seek special treatment and did not directly discuss the matter with Newsom.

Commitment to Compliance

In response to the backlash, Flynn announced that his Panera Bread locations would comply with the law, regardless of potential exemptions. He emphasized that all hourly pre-tip wages at his California stores would be raised to $20 per hour or higher starting April 1.

Impact and Pending Confirmation

While Flynn’s decision affects workers at his 24 locations, it remains uncertain how it will impact the remaining 164 Panera Bread locations in California not owned by his group. This decision is contingent upon confirmation from the governor’s office regarding the exemption status of Panera Bread locations.

Conclusion

Greg Flynn’s pledge to raise wages reflects a commitment to fair labor practices, aligning with the spirit of the new minimum wage law in California. As discussions continue regarding the exemption status of Panera Bread, Flynn’s proactive approach sets an example for other franchise owners to prioritize the well-being of their workers.