A celebrity chef has vowed not to open any more restaurants in California until the state gets its industry “in order.”
Food Network host Andrew Gruel, who is behind a number of successful restaurants in California, has said he won’t open any more until crime, taxes and regulations are “in order.”
Dad told Fox Business that the restaurant industry is still suffering from the effects of the pandemic, but that the ongoing problems are only making the situation worse.
“I will continue to have my restaurant in California, but I will also be franchised out of state in the future,” Gruel explains.
“I won’t open another business in California until they actually get their act together.”
Food Network host Andrew Gruel has vowed to stop opening restaurants in California
Gruel has opened a number of successful restaurants in California, including Calico Fish House
When asked about the impact of 30 percent of restaurants being forced to close due to the pandemic, Gruel said, “The pandemic has obviously created an astronomical storm of chaos that we now see reverberating and building.”
“There are all those restaurants, retailers and small businesses that haven’t recovered yet.
“The situation for the sector is getting worse every day,” he warned.
Last September, California Governor Gavin Newsom introduced a $20 minimum wage for fast food workers, compared to $16 for other industries.
Gruel said this means restaurants will have to be “more efficient” in hiring or raise their prices to accommodate rising labor costs.
He also argued that California’s crime epidemic has “torn apart the social fabric,” the foundation of business.
Furthermore, Gruel argued that increasing regulations were holding companies back just when they needed help to grow.
Restaurants across the U.S. are struggling, but in California, it’s especially a problem because of the higher costs associated with doing business in the state.
In addition to the minimum wage, there are also higher taxes.
Dozens of restaurants have closed, including Mexican chain Rubio’s Coastal Grill, which has closed 48 restaurants in the state due to the “rising costs of doing business in California.”
Blaze Pizza announced last month that it is moving its headquarters from Pasadena, California to Atlanta, Georgia, in a bid to cut the state’s corporate tax rate by more than a third.
The company, which has 330 restaurants in 38 states and six countries, claims the move will spark the “next wave of growth.”
Meanwhile, two iconic Italian restaurants located near each other closed their doors on the same day after serving the Bay Area for a combined 120 years.
Blaze Pizza is moving its headquarters from Pasadena to Atlanta, cutting the state’s corporate tax rate by more than a third
Fiorillo’s was known for its size, seating up to 350 guests in the banquet-style room
Pezzella’s Villa Napoli has been owned and run by the same family for three generations
Family-owned Pezzella’s Villa Napoli in Sunnyvale and restaurant Fiorillo’s in Santa Clara both closed on June 22.
Pezzella’s Villa Napoli has been owned by three generations of the same family for 67 years and is known for its Italian-American cuisine.
Just eleven kilometers or a twenty minute drive away is Fiorillo’s, which has also closed after 52 years in the family.