California Pizza Kitchen founder says California has become too difficult for entrepreneurs
California Pizza Kitchen For decades, he has brought the Golden State’s food culture to Americans across the country. More than 40 years later, one of the chain’s co-founders says he wouldn’t necessarily choose California if he had to start over.
“If it were me today, I would do it” open in florida “Before we opened in California,” California Pizza Kitchen co-founder Rick Rosenfield told Fox News Digital. “I think there’s a lot to that. The difference is this: [it’s] “It’s extremely business-friendly, and California is less business-friendly today, and they’re making that clear.”
Rosenfield said the business climate in California was “really good” when he and California Pizza Kitchen co-founder Larry Flax started the restaurant chain. In fact, Rosenfield told Fox News Digital decades ago that he would say “California is the best place to do business.”
“We have great weather 365 days a year. We have a great workforce base, a great demographic, great densities. And people ask, ‘What keeps you up at night?’ they will ask. I would say ‘weekend winter snowstorm for shopping malls’, right? “This is not true today,” he said.
California Pizza Kitchen co-founder says the Golden State has become hostile to businesses.
Many major companies, including Chevron, Oracle and Tesla, have moved their headquarters out of California in recent years. Texas Comptroller’s Office It was recorded that 157 California companies moved their headquarters to the USA Lone Star State Between 2015 and 2024.
Rosenfield said California’s business environment has changed dramatically in the wake of the Covid-19 pandemic due to labor shortages, increased regulation and rising costs, including the minimum wage. under one minimum wage law All laws that go into effect in California on April 1, 2024, fast food restaurant employees had to be paid at least $20.00 per hour.
The California Pizza Kitchen co-founder argued that the restaurant often pays employees more than minimum wage, but increases to the wage base still create a ripple effect throughout the restaurant, as employees earning above minimum wage often expect raises.
Rosenfield noted: restaurants operate frequently something backed by data, in thin margins National Restaurant Association (NRA). According to the NRA, food and labor costs account for about 33 cents of every dollar in restaurant sales. At the same time, other expenses such as utilities, supplies, repairs and credit card processing fees, among other expenses, represented approximately 29% of total sales. The NRA notes that the average restaurant typically ends up with a pre-tax margin around 5%.
California Pizza Kitchen introduced its new dill pickle pizza.
Businesses just don’t eat the costs and often have to. raise pricesTherefore, the cost is passed on to customers, Rosenfield warned.
“The mantra is: ‘We’re going to tax businesses.’ ‘We will make businesses pay more.’ But it’s not just businesses that pay more, it’s a customer who pays more. “Because no matter what, you’re increasing costs, you’re increasing the minimum wage, businesses have to respond to that,” he said.
Rosenfield said California’s high labor costs make affordability difficult, and businesses have little choice but to offset those costs through higher prices.
“From what I understand, it was very detrimental to the restaurant business in California,” he said.
The challenges faced by entrepreneurs in California have made states like Florida more attractive to those looking to start a business, according to Rosenfield. Two years ago, the co-founder of California Pizza Kitchen moved to the Sunshine State. Even though he doesn’t do business there, he says he follows what’s going on in Florida closely and that Florida is “a very business-friendly state.”
“Florida is pretty friendly. There’s less red tape and more red tape in Florida [in] “It’s California and that’s my experience,” Rosenfield told Fox News Digital.
Florida has put up strong numbers in recent years when it comes to business in the Sunshine State. Florida Department of State’s Office The Division of Corporations reported that entrepreneurs filed 561,143 new domestic limited liability company (LLC) applications in 2025, marking the fifth consecutive year the state recorded more than 500,000 new LLC applications. This trend has been maintained for several years. In 2023, Florida had the third-highest rate of new job applicants per 1,000 people, at 29.4. According to Axios.
When asked about Rosenfield’s comments about the business environments in Florida and California, Gov. Gavin Newsom’s office told Fox News Digital: “Florida Pizza Kitchen doesn’t have the same vibe for it. We’re proud that their headquarters are here and nearly half of their restaurants nationwide are in California.”
Despite his praise for Florida and his assessment that certain parts of the Sunshine State are hot for business, Rosenfield concedes that California is still an “economic powerhouse.”
“[It] “There’s still great weather, there’s still a great workforce base, but it’s not as friendly for the restaurant business and other businesses,” he said. “Of course you can start a business in California, but people are leaving.”
Finally, Rosenfield said he hopes California will become more welcoming to businesses again, citing government policy as playing an important role in creating a business environment that encourages entrepreneurship.
“There is a majority in California that is passing legislation that is not business friendly, and that is troubling,” Rosenfield said. “I didn’t operate in that environment. I was in a much more friendly environment.”
