Impact on Employees
Blaze reassures that its 7,500 restaurant-level employees will largely remain unaffected by the move.
Source: Freepik
The company mentioned that only a small number of non-remote corporate employees are being offered relocation opportunities, ensuring minimal disruption to its workforce.
California’s Economic Challenges
Blaze’s relocation highlights broader economic challenges in California’s fast-food sector. Recently, Rubio’s announced the closure of 48 California stores, resulting in the loss of around 1,250 jobs.
Source: Markus Spiske/Unsplash
These closures follow the implementation of a $20 per hour minimum wage for fast food workers, which has significantly impacted the industry.
Advertising Backlash
The California Business and Industrial Alliance (CABIA) took a bold step by running a full-page advertisement in USA Today, criticizing the new minimum wage law.
The ad, styled as an obituary, pointed out the adverse effects on businesses, including Blaze’s competitors like Mod Pizza and Pizza Hut, both of which are facing significant layoffs and closures.
CABIA President’s Concerns
Tom Manzo, president of CABIA, voiced his concerns: “You can only charge so much for a Big Mac. Business owners are either selling, not expanding in California, or they’re going out of business.”
Source: McDonald’s Wiki
His comments reflect the growing frustration among business owners in the state.
'Limited' Franchise Opportunities in California
Blaze Pizza’s franchise website lists California as having “limited availability” for new franchises.
Source: Blaze
In contrast, other states are marked with “inquire today,” suggesting a strategic shift in expansion plans away from California’s challenging business environment.
Healthcare Minimum Wage Delayed
California’s economic issues are not limited to the fast food sector. Last year, a $25 per hour minimum wage for healthcare workers was approved, set to phase in at $23 per hour on June 1.
Source: nortonrx/Getty Images
However, due to a $7 billion state deficit, Governor Gavin Newsom signed a bill on May 31 to delay this wage increase, citing its $4 billion first-year cost.
Small Businesses Feel the Pressure
While small businesses are not directly subject to the fast food minimum wage law, they face indirect pressure to raise wages to compete for the same labor pool.
Source: Freepik
This competitive wage environment has made it increasingly difficult for many small businesses to sustain operations in California.
Fast Food Industry Exodus
Blaze Pizza’s move to Georgia is part of a larger trend of fast food businesses exiting California.
Source: Alek Leckszas/Wikipedia; Rubio's/Instagram
As economic policies in the state become more challenging, companies are looking for more favorable conditions elsewhere to sustain and grow their operations.
Future of Blaze Pizza in Georgia
With its headquarters now in Georgia, Blaze Pizza aims to capitalize on the state’s strong economic growth and business-friendly environment.
Source: Kyle Sudu/Unsplash
The relocation is expected to support the company’s future expansion plans and operational efficiencies.
Impact on California’s Economy
The departure of companies like Blaze Pizza raises concerns about the long-term economic impact on California.
Source: Wikimedia Commons/Thomas Hawk/Flickr
As more businesses leave, the state may face increasing difficulties in maintaining a robust job market and economic stability.
Looking Ahead
Blaze Pizza’s move to Georgia marks a significant shift in the fast food industry’s landscape.
Source: Chip Somodevilla/Getty Images
As businesses continue to navigate economic challenges, the future will reveal how such relocations will shape the industry and regional economies.