If the popular California Pizza Kitchen chain were to be founded today, it would likely be named "Florida Pizza Kitchen," according to co-founder Rick Rosenfield. Rosenfield, who established the restaurant in Beverly Hills in 1985 with Larry Flax, stated that California has become a difficult and less business-friendly environment.
Rosenfield pointed to increasing taxes, regulations, union disputes, and a rise in lawsuits as factors making California inhospitable to businesses, particularly small ones. He noted that conditions have worsened since the coronavirus pandemic, citing California Governor Gavin Newsom's early and stringent shutdown orders, which heavily impacted restaurants that rely on in-person customers.
Even after the pandemic, Rosenfield argued, California has not eased burdens on businesses. He specifically mentioned the state's new $20-per-hour fast-food minimum wage, which he believes has already harmed restaurants in certain areas.
According to Rosenfield, California legislators continue to impose new burdens on businesses for several reasons. He cited ongoing government spending leading to tax increases, an idealistic approach by some legislators who believe new laws will solve global issues like climate change or inequality, and the influence of lawyers who draft legislation creating opportunities for lawsuits by employees and customers.
In contrast, Rosenfield described Florida as having a business-friendly climate, citing its lack of state income tax, tort reform, and a governor who does not focus on criticizing capitalism. He suggested that businesses currently being started in Florida could have originated in California if its leadership were more supportive of commercial enterprises.