Chalk another loss for the Golden State. California keeps losing big brand, cash cow businesses to other states that better people run.
Gordon Ramsay, the telechef with a fleet of high-class restaurants, moves his restaurant operations from Los Angeles to the Dallas-Ft. Worth area.
That’s a big fish for California Governor Gavin Newsom to scare off California’s in-hospital sick environment for businesses and rent or mortgage note payers.
“The move comes as Gordon Ramsay North America is planning a massive expansion and investment in the United States that includes opening 75 company-owned restaurants over the next five years, the Dallas Morning News reported.”
The Ramsay company’s CEO, Norman Abdallah, said the “tax policy difference after the move makes the financial benefits of doing business in Texas attractive enough to go ahead and make a move to Texas.” There’s also the lower cost of living:
“The price of living adjustment from California to Texas is rather significant. If you can do it in Dallas, you can do it elsewhere.” Abdallah elaborated.
Because of the lockdowns and mass media panic over the potential threat posed by the coronavirus, the restaurateur’s companies have been destroyed.
He told The Sun in February that the overnight collapse in reservations at his establishments in the UK alone (brought on by the 2020 fear and hysteria regime in journalism and government) lost Ramsay’s restaurant businesses $80 million in a shockingly brief period.
“Lockdowns have caused utter devastation,” he said.
All the business owners picking up their company headquarters and operations and leaving California for states with more laid-back governments would agree.
Podcast kingpin Joe Rogan up and left, taking a big piece of Spotify with him, for Austin, Texas. Elon Musk moved Tesla to Texas. Charles Schwab, Oracle, and Hewlett-Packard have fled California too.
California’s population expanded by over 10% every decade from 1850 to 2010, the last frontier of the continental USA and burgeoning with opportunity and growth. Last year was the first in the state’s history that its population ever declined.
A Hoover Institution at Stanford University study out earlier this year found that along with its residents, California’s businesses are making a seachange exodus back east. Notes the Forbes article by Adam Millsap linked in the preceding paragraph above:
“From January 2018 to June 2021, Spectrum Location Solutions collected data on the relocation of California business headquarters. They documented 265 headquarter relocations over a three-and-a-half-year period, or an average of six relocations per month, as indicated in the chart below.”
Here’s wishing Gordon Ramsay and the restaurant industry better luck in the future.