According to an article from the Pacific Coast Business Times, CKE Restaurants, the parent company of Carl’s Jr., is consider moving its headquarters out of the Golden State and to a more business friendly environment in Texas. Currently the headquarters is based in the small ocean town of Carpenteria, which is just 20 minutes south of Santa Barbara.
The CEO Andrew Puzder is meeting with Texas Gov. Rick Perry to talk about a possible move to the Lone Star State. Puzder told the Morning News that it is “easier to open a restaurant in Shanghai than in California” and that he was looking forward to a 10 percent pay raise because Texas has no income tax.
It’s sad when California’s stifling business regulations and taxes are forcing companies to flee the state, and it looks like CKE might be another casualty. Obviously there are a myriad of reasons why companies come and go, but the fact that CKE had chosen Carpenteria as its headquarters so long is surprising. The closest airport is probably 30 minutes away and the price of real estate in the area is astronomical. However, the headquarters was right on the beach and close to a lot of surf, which might have been why it stayed around as long as it did. But surfing and pretty ocean views can only go so far in retaining a business. When it comes down to the bottom line, CKE wanted to grow by adding more restaurant locations and it saw that the potential in Texas was a lot greater than in California. Also, if you’re making millions of dollars, a 10 percent pay increase is a big deal as it can translate to more business capital and new jobs.