California Governor Gavin Newsom is facing allegations of favoritism towards a campaign donor who owns Panera Bread franchises, sparking controversy and calls for investigation. The governor signed legislation increasing the minimum wage for fast-food workers, including a specific exemption for restaurants with on-site bakeries, which benefited Panera Bread.
The report by Bloomberg highlighted the connection between the governor and Greg Flynn, the billionaire owner of two dozen Panera franchises in California and a longtime campaign donor to Newsom. Republican leaders have criticized the alleged favoritism, with some even starting a recall drive against the governor.
In response, Newsom’s office vehemently denied any wrongdoing, stating that Panera is not exempt from the law and that the exemption was meant to clarify what constitutes a fast-food establishment. Other industry leaders also defended the legislation, emphasizing the benefits it brings to half a million fast-food workers in the state.
Despite the swift and forceful response from Newsom’s office, questions remain about the unusual exemption and the governor’s ties to the campaign donor. As the controversy unfolds, stakeholders in the restaurant industry are raising concerns about the impact of the new law on franchise owners and workers alike.
