California Pizza Kitchen, known for introducing the state’s dining culture across the U.S., is over 40 years old. One of its co-founders, Rick Rosenfield, recently shared insights on business climates with Fox News Digital.
Rosenfield mentioned that if starting today, Florida might be the better choice over California. “It’s business-friendly,” he said, contrasting with California’s less supportive environment.
Changing Business Climate
Years ago, California was an excellent place for business, according to Rosenfield. It boasted great weather, a solid labor base, and thriving demographics. However, the state’s appeal has waned.
Many companies, including Chevron, Oracle, and Tesla, have moved their headquarters from California. The Texas Comptroller’s Office reported 157 businesses relocating there between 2015 and 2024.
Pandemic Impacts and Costs
Rosenfield highlighted vast changes post-COVID-19. Labor shortages, added regulations, and high costs, including rising minimum wages, create challenges. California implemented a minimum wage increase in April 2024 requiring fast-food workers to earn at least $20 per hour.
“Costs go up when wages increase, affecting every part of the restaurant,” Rosenfield noted.
Data from the National Restaurant Association shows food and labor costs taking 33% of sales. Other expenses add 29% more, leaving a pre-tax margin of 5%. This forces businesses to pass costs to consumers, Rosenfield explained.
Comparing Business Environments
Florida has emerged as a business-friendly state. Rosenfield, not currently involved in business there, admires Florida’s less bureaucratic environment. In 2025, Florida saw 561,143 new LLC filings and consistent growth in new business applications.
“Florida welcomes businesses,” Rosenfield said, indicating its appeal for entrepreneurs.
Gov. Gavin Newsom’s office replied, expressing pride in hosting California Pizza Kitchen’s headquarters and maintaining a significant number of its restaurants.
The Path Forward
Despite acknowledging California’s economic power, Rosenfield pointed out the state’s diminishing friendliness toward businesses. He expressed hope for a return to supportive policies that nurture entrepreneurship. Rosenfield stressed the need for government policy that fosters a conducive business environment.
“Entrepreneurs may be discouraged if the trend continues,” he warned.
Rachel Wolf serves as a media and culture reporter for Fox News Digital.