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Food Network star refuses to open any more restaurants in California
A celebrity chef has vowed to stop opening restaurants in California until the state 'fixes things' for the industry.
Food Network presenter Andrew Gruel, who is behind a number of successful restaurants in California, has said he will not open another until crime, tax and regulation has been 'sorted.'
Gruel told Fox Business that the restaurant industry is still suffering from the effects of the pandemic but that ongoing issues are continuing to exasperate them.
'I'm going to keep my restaurant in California but I'm going to franchise out of the state moving forward,' Gruel explained.
'I will not open another business in California until they actually fix things on a go-forward basis.'
Food Network presenter 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 after the pandemic Gruel said 'the pandemic, obviously, kicked off this astronomical firestorm of chaos that now we've seen reverberate and grow.'
'There are all these restaurants and retailers and small business owners that haven't recovered.
'Things are constantly getting worse every single day' for the industry, he cautioned.
In September last year California Governor Gavin Newsom introduced a $20 minimum wage for fast-food workers, up from $16 for other sectors.
Gruel said this means restaurants must be more 'efficient' with hiring or raise prices to meet the spiraling cost of labor.
He also argued that California's crime epidemic has 'ripped apart the social fabric,' which is the foundation of business.
Furthermore Gruel argued that increased regulation was holding businesses back just at the time they need help to thrive.
Restaurants across the US 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.
As well as the minimum wage, there are higher taxes.
It has to scores of closures, including Mexican chain Rubio's Coastal Grill which is shuttering 48 restaurants in the state - because of the 'rising cost of doing business in California'.
Blaze Pizza said last month it is relocating 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 across 38 states and six countries, has claimed the relocation will 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 relocating 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 hall
Pezzella's Villa Napoli has been owned and run by three generations of the same family
Family-owned Pezzella's Villa Napoli in Sunnyvale and Santa Clara's Fiorillo's both shut on June 22.
Pezzella's Villa Napoli has been owned and run by three generations of the same family for 67 years, famed for its Italian-American dishes.
Just seven miles or a 20 minute drive away, Fiorillo's also closed after 52 years of family ownership.