Posts Tagged ‘CKE’

Proof That Republican Economic Policies Work Just FINE: Conservative-Friendly Texas Created 38% Of ALL U.S. Jobs In 2010

June 10, 2011

How’s THIS for a record to run for president on?

CNBC EXCERPTS: RICHARD FISHER, FEDERAL RESERVE BANK OF DALLAS PRESIDENT AND CEO ON CNBC’S “SQUAWK BOX” TODAY
Published: Tuesday, 7 Jun 2011 | 10:51 AM ET Text Size By: Jennifer Dauble

[….]

FISHER ON CREATING RULES:

“WE’VE GOT TO CREATE RULES AND REGULATIONS HERE THAT ATTRACT CAPITAL AS WELL AS DEAL WITH OUR UNFUNDED LIABILITIES OUR DEFICIT PROBLEMS AND SO ON, JUST AS TEXAS HAS MANAGED TO DO SO RELATIVE TO OTHER STATES IN THE UNITED STATES.”

[…]

FISHER ON TEXAS JOBS:

“SINCE THE RECOVERY BEGAN, 38 PERCENT OF ALL JOBS CREATED IN AMERICA HAVE BEEN CREATED IN TEXAS, AND TEXAS IS BACK UP, IN FACT MY 11TH FEDERAL RESERVE DISTRICT OF TEXAS, PARTS OF LOUISIANA, PARTS OF NEW MEXICO; OBVIOUSLY 96 PERCENT OF THAT PRODUCTION AND THE NUMBER OF PEOPLE ARE IN TEXAS OF MY DISTRICT- HAS MORE EMPLOYMENT NOW THAN IT HAD WHEN THE CRISIS BEGAN.”

Obama and the Democrats have relied on a demagogic narrative that Republican policies failed and Democrats offer “hopey changey” for the last three years of what is now an increasingly obviously failed presidency.  The fact that it couldn’t be more false doesn’t stop them from telling and retelling the liberal fairy tale over and over and over again to a wide-eyed mainstream media and anyone else fool enough to believe them.

The difference between California (liberal Democrat) and Texas (conservative Republican) are the difference between long dark hopeless night and bright sunny optimistic morning.  Take for example restaurant chain Carl’s Junior:

Carl’s Jr. chief downplays Texas talk
Written by Henry Dubroff
Wednesday, 02 February 2011

CKE Restaurants CEO Andy Puzder sees advantages in moving the company’s headquarters from Carpinteria to Texas, but a move is not imminent, he told The Business Times.

In a Feb. 2 telephone interview from Houston, where he is looking at the  company’s fast-growing Carl’s Jr. operation, Puzder said he paid a  visit to Texas Gov. Rick Perry earlier in the week and discussed the  company’s growth in the Lone Star State.

But he said that CKE, the parent company of Carl’s Jr. and Hardees,  won’t break its lease in Carpinteria or abandon the headquarters in the  near term. “We love California and we’d love to stay,” said Puzder. “Our  heart and soul is in California.”

But Puzder said that long delays in opening stores, California’s  byzantine rules on overtime pay and high personal income taxes could  make a move inevitable. “We feel more like we’re being pushed out,” he  said, adding that “economics may compel us to do so.”

CKE has been growing rapidly in Texas, where it now has 40 restaurants  and expects to have 300 by the end of the decade; in comparison, it has  700 stores in California. “The growth of this company is in Texas, and  the real big question for this company is, where are your restaurants  and where is the growth?” Puzder said.

Puzder also said that Californians leaving the state for jobs and  entrepreneurial opportunities in Texas are part of the reason for its  fast growth in that state. Carl’s Jr.’s brand familiarity is so high in  Texas that the two most recent store openings in the state, including a  unit in Houston, set records for revenue. “Jobs and consumers are in  Texas,” Puzder said. “Our customers beat us here.”

And, yes, CKE moved its operations to Texas.

And yes, a LOT of Californians have beaten them to the Lone Star State.  I showed previously the difference in cost between renting a truck to move from California to Texas versus moving from Texas to California.  At that time, it cost $900 to move from Texas to California, versus $3,000 to go the other way, because all the moving trucks were already in Texas.  That’s a 233 percent difference.

Which matches a national trend, as people are forced to move out of failed blue states to successful red states.

Thanks to the failure of liberalism.

Here’s some of the specific reasons why liberalism fails at job creation from another article:

Carl’s Jr. chewed up by California, Moving Corp HQ to Texas

[…]

Indeed, CKE Restaurants, parent of Carl’s Jr., is likely to move its headquarters from Carpinteria, near Ventura, to Texas and is undergoing a rapid expansion of restaurants in the Lone Star State. Right before the budget circus got going Wednesday, CKE CEO Andrew Puzder spoke at the California Chamber of Commerce, blocks from the Capitol dome. Like most of us, Puzder loves California and has no interest in leaving it, but he told harrowing tales about doing business in a state that has gone from an entrepreneurial heaven to a bureaucratic nightmare.

“It costs us $250,000 more to build one California restaurant than in Texas,” he said. “And once it is opened, we’re not allowed to run it.” This explains why Carl’s is opening 300 restaurants in Texas and only maintaining its presence in California. Texas has lower taxes than California, but the reason for the shift has more to do with regulation and with the attitude of the respective governments.

Puzder complained about the permitting process here, where it takes eight months to two years to open a new restaurant compared to an average of 1 1/2 months in Texas. In California, restaurants have to provide new curb cuts, new traffic lights, you name it. The company must endure so many requirements and must submit to so many inspections that it becomes excessively costly – and the bureaucrats are in charge of the project.

Once the restaurant is open, Puzder said, the store’s general managers are not allowed to run the business as if they own it. That’s the key to the company’s customer service approach – allowing general managers to do whatever it takes to make customers happy. But California’s inflexible, union-designed work rules, for instance, classify general managers as regular employees. They must be paid overtime for any work beyond an eight-hour day. They must take mandated breaks at specified times.

If a busload of customers comes to a store, these general managers must sit back and do nothing if they are on a break period. Most states have 40-hour workweek rules, meaning employees are paid overtime after exceeding 40 hours of work in a single week. In California it is based on the day, which limits the ability of managers to work, say, six hours one day and 10 hours the next day. Puzder complains about these industrial-era requirements that impede flexibility and harm customer service.

And California law encourages “private attorney general” lawsuits against private businesses over overtime and other regulatory rules, which has created a huge financial incentive for attorneys to file questionable legal actions against restaurants.

“It’s not like we have kids working in coal mines or women working in sweatshops,” Puzder said. It’s not as if his workers in other states, where these regulatory rules don’t exist, are oppressed, he added. “How does this help us instill entrepreneurial values?” He wonders how all these nonsensical rules teach people about being independent from the government rather than dependent on it.

I’d argue that the rules are designed specifically to impede private enterprise and to hobble entrepreneurship. After all, the unions, trial attorneys and liberal legislators writing these rules believe that government is the answer to most problems and that private industry is a cancer.

“People are just dying to get out there and make money,” Puzder said. “But California is setting a bar here. You can’t work smarter, harder, longer or better.” His company has had to fire hardworking store managers who insist on working longer hours than the state allows. He wants to tell these people, “Come to Texas, and we will hire you.”

The big debate at the Capitol has been whether to pass a budget with tax extensions. Gov. Jerry Brown and Democratic legislators believe the only thing wrong with California is that people here don’t give the state enough of their paychecks. They believe this state has too-few government workers and too little oversight of business.

Democrats offer us a government of the Weiners, by the Weiners and for the Weiners.  They want the Anthony Weiners of the world to have control over your health care, over your pension, over your life.  They want government’s finger in every pie.  They want more taxes, taking a bigger and bigger share of earnings, savings and profits.  They want more regulations.  They want to be able to say who receives and who pays, who wins and who loses, even who lives and who dies.

The Democrat Party and Barack Obama are failing America – to the extent they even want “America” at all.

When you think Democrat policies versus Republican policies, don’t consider Obama’s way overused and frankly demagogic “Republicans drove us into a ditch” analogy; just consider Republican states like Texas and Democrat states like California.  The conclusion couldn’t be more clear.

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