California-based companies are fleeing the state at an alarming rate, and CKE Restaurants – the parent company of Carl’s Jr. — could be next.Until California fixes the problems mentioned in this article this kind of business exodus won't stop.
Company executives are touring Texas this week, including Chief executive Andrew Puzder. On Monday, the Dallas Morning News reported that Puzder was meeting with Gov. Rick Perry to discuss whether to move the Carpinteria-based chain to the business-friendly state. CKE’s flagship chain, Carl’s Jr., was founded in Orange County, and continues to operate offices in Anaheim.
“Complaining that it’s easier to open a restaurant in Shanghai than in California,” Puzder told the Dallas newspaper “that he is drawn to Texas’ business-friendly atmosphere and the prospect of a 10 percent pay raise, thanks to the state’s no-income-tax policy.”
When asked how serious a Texas move might be, Carl’s Jr. spokeswoman Beth Mansfield told the Register Tuesday morning:
“There would need to be significant business benefits and cost savings for CKE to consider a move from California, but as part of our media tour in Texas this week, Andy Puzder and CKE president Mike Murphy will be meeting with Gov. Perry today in Austin,” said Mansfield, just before boarding a plane to join Puzder in Texas.
Mansfield said a move to Texas has always been a discussion point for the chain as it plans major growth in the Lone Star State. “Andy’s been talking about it for two years,” she said.
Tuesday, February 01, 2011
Is the Famous Star Headed for the Lone Star?
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Sounds about right. Dallas Morning News had an article a couple of years ago about how CKE was opening 72 restaurants in Dallas and Houston. We have a couple in far, out-of-the-way places.
I am not surprised to see them considering a move here. Texas is as business-friendly as it gets. The economy has weathered the last few years pretty well with unemployment holding at 8% and as low as 4% in 2008.
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