Fast-food pizza chain Blaze Pizza is relocating its headquarters from California to Atlanta, a strategic move expected to considerably reduce its state corporate tax rate. This decision marks a considerable progression in the company’s growth and aims to leverage the vibrant Atlanta market while preserving potential tax benefits.
Even though Blaze Pizza originated in Southern California, with just over a third of its eateries located there, the state is now registered as having “limited availability” for new franchises. This could be due to the existing saturation of outlets, limiting the number of prospective franchise markets.
The brand reaffirms its mission to consistently deliver great customer service and fresh pizza options to its customers nationwide. It emphasizes that the relocation does not imply significant changes or layoffs for its 7,500 restaurant employees. Some of the non-remote corporate staff have been given a chance to move with the company.
Blaze Pizza’s move indicates struggling times for California’s restaurant chains, particularly within the fast-food and takeaway sector, which has been hit by the tremendous impact of the COVID-19 pandemic. A consequent increase in competition from delivery-centric companies such as DoorDash and Uber Eats left many traditional food chains grappling with challenges, pushing them to downsize or cease operations.
Critics attribute this to California’s raised minimum wage, which led to a drop in employment in the state’s fast-food industry.
Blaze Pizza shifts headquarters for tax advantage.
The Hoover Institution contends that while the increased wage could lead to job stagnation and strain businesses, it has the potential to provide a living wage to employees and could address income inequality issues while stimulating consumer spending.
In light of California’s new $25 minimum hourly wage for healthcare, Tom Manzo, president of CABIA, has shown concern for potential financial strains on businesses. These wage hikes have been paused by the state legislature due to worries about deepening the state’s $7 billion deficit. However, this delay has indirectly pressured small businesses, exempted from the fast-food minimum wage, to raise their wages to compete for workers. As the state, its businesses, and its workers grapple with these issues, it remains crucial to consider the potential impacts on industries mostly reliant on low-wage labor.
Arguments that the $25 minimum wage could boost the living standard for healthcare workers, particularly amidst a pandemic, are countered by medium-sized enterprises’ claims of inability to handle the additional costs. Officials continue to debate the effects of this policy and have proposed a phase-in period to strike a balance.
