A celebrity chef has vowed to stop opening restaurants in California until the state “fixes things” for the industry.
Food Network host Andrew Gruel, who is behind several successful restaurants in California, has said he will not open another one until the issues of crime, taxes and regulations have been “resolved.”
Paste he told Fox Business that the restaurant industry is still suffering the effects of the pandemic but that current problems continue to exasperate them.
“I’m going to keep my restaurant in California, but in the future I’m going to franchise it out of state,” Gruel explained.
“I will not open another business in California until things are resolved once and for all.”
Food Network host Andrew Gruel has vowed to stop opening restaurants in California
Gruel has opened several successful restaurants in California, including Calico Fish House.
Asked about the impact of the 30 percent of restaurants forced to close following the pandemic, Gruel said, “The pandemic obviously triggered this astronomical storm of chaos that we’ve now seen reverberate and grow.”
‘There are all these restaurants, retailers and small business owners who haven’t recovered.
“Things are getting worse every day” for the industry, he warned.
In September last year, California Governor Gavin Newsom introduced a $20 minimum wage for fast-food workers, compared with $16 for other sectors.
Gruel said this means restaurants must either become more “efficient” with hiring or raise prices to cover the rising cost of labor.
He also argued that California’s crime epidemic has “torn apart the social fabric” that underpins business.
Gruel also argued that increased regulation was holding back businesses just when they needed help to thrive.
Restaurants across the United States have been struggling, but it has been a particular problem for those in California, due to the higher costs of doing business in the state.
In addition to the minimum wage, there are higher taxes.
It has had to close dozens of restaurants, including Mexican chain Rubio’s Coastal Grill, which is closing 48 restaurants in the state, due to the “rising cost of doing business in California.”
Blaze Pizza said last month it will move its headquarters from Pasadena in the Golden State to Atlanta, Georgia, to reduce its state corporate tax rate by more than a third.
The company, which has 330 restaurants in 38 states and six countries, said the relocation would spark the “next wave of growth.”
Meanwhile, two iconic Italian restaurants located near each other closed on the same day, after serving the Bay Area for a combined 120 years.
Blaze Pizza is moving its headquarters from Pasadena to Atlanta, which will reduce its state corporate tax rate by more than a third
Fiorillo’s was known for its size, hosting up to 350 diners in its banquet-style room.
Pezzella’s Villa Napoli has been owned and run by three generations of the same family.
Pezzella’s Villa Napoli family restaurant in Sunnyvale and Fiorillo’s in Santa Clara closed June 22.
Pezzella’s Villa Napoli has been owned by three generations of the same family for 67 years and is famous for its Italian-American dishes.
Just seven miles or 20 minutes away by car, Fiorillo’s also closed after 52 years of family ownership.