Retail Watchers

jamcool wrote: ↑January 13th, 2020, 9:34 am Carl’s Jr isn’t HQ in Anaheim anymore...they moved HQ to Tennessee (along with Hardee’s). And they have previously stated that they would be doing less development in California because of the anti- business climate there

Anti business climate? The 6th largest economy in the world!

LOL

Not surprised they would use that excuse.

The only parts of CA that are doing well are the Bay Area/Silicon Valley and Los Angeles.... the Central Valley has been in an economic downturn for a long time. Also see how much it costs to rent a U-Haul from CA to AZ or TX versus the other way.

Florida has the same issue with U-Haul.

You can barely find one to move south to florida from the N.E.

But there are a plethora of units to rent to leave Florida.

jamcool wrote: ↑January 13th, 2020, 2:49 pm The only parts of CA that are doing well are the Bay Area/Silicon Valley and Los Angeles.... the Central Valley has been in an economic downturn for a long time. Also see how much it costs to rent a U-Haul from CA to AZ or TX versus the other way.

I don't want to continue to go off-topic, so let's continue our discussion in a new thread here:

viewtopic.php?f=22&t=2344

veteran+ wrote: ↑January 13th, 2020, 11:23 am Anti business climate? The 6th largest economy in the world!

LOL

Not surprised they would use that excuse.

Actually California passed Great Britain a couple years ago and is now the 5th largest economy in the world FWIW.

klkla wrote: ↑January 13th, 2020, 5:35 pm

veteran+ wrote: ↑January 13th, 2020, 11:23 am Anti business climate? The 6th largest economy in the world!

LOL

Not surprised they would use that excuse.

Actually California passed Great Britain a couple years ago and is now the 5th largest economy in the world FWIW.

It is a cost cutting move to get HQ out of California. It saves money. Plain and simple. Same reason Toyota, Charles Schwab, and numerous other companies have left. Some companies can afford to HQ in CA and others opt to HQ elsewhere instead. I can see how a fast food company with declining unit count may need to re-evaluate its cost structure. If you can't afford Boardwalk you have to settle for Baltic.

Moving an HQ and nickel & dime economies are usually signs of a company in decline. They once had a lot of social capital in California, an enormous market, and they squandered it. It's pretty much what Hardee's has done in the East, as well. They're owned by vulture capital which will keep them going as long as their enough cashflow to pay the owner's management fees and whatnot. It's basically the story of a lot of retail and restaurant chains.

storewanderer wrote: ↑January 13th, 2020, 10:56 pm

klkla wrote: ↑January 13th, 2020, 5:35 pm

veteran+ wrote: ↑January 13th, 2020, 11:23 am Anti business climate? The 6th largest economy in the world!

LOL

Not surprised they would use that excuse.

Actually California passed Great Britain a couple years ago and is now the 5th largest economy in the world FWIW.

It is a cost cutting move to get HQ out of California. It saves money. Plain and simple. Same reason Toyota, Charles Schwab, and numerous other companies have left. Some companies can afford to HQ in CA and others opt to HQ elsewhere instead. I can see how a fast food company with declining unit count may need to re-evaluate its cost structure. If you can't afford Boardwalk you have to settle for Baltic.

Very true.

Cost cutting to increase employee wages and benefits and improve customer service, product quality and lower prices.........ummmmmmmm, not.

storewanderer wrote: ↑January 13th, 2020, 10:56 pm It is a cost cutting move to get HQ out of California. It saves money. Plain and simple. Same reason Toyota, Charles Schwab, and numerous other companies have left. Some companies can afford to HQ in CA and others opt to HQ elsewhere instead. I can see how a fast food company with declining unit count may need to re-evaluate its cost structure. If you can't afford Boardwalk you have to settle for Baltic.

In fairness, Toyota was reluctant to move its primary HQ from California. Its assets were spread throughout SoCal, and growth potential was limited, which fueled the Manufacturing Headquarters in Kentucky. In the late 2000s, reports surfaced that Toyota was seeking to consolidate these facilities into a single campus. Reports suggested that Toyota had met with The Irvine Company (likely the only place in SoCal capable of providing Toyota the space they needed) but ultimately decided that Irvine was too difficult for most of its incumbent employees and relocation was expensive. Reports also suggested that should Chrysler had failed, Toyota would've bid on some of its assets. including its Auburn Hills, MI headquarters - which was expected to sell for pennies on the dollar. Eventually, they decided to cash in on Texas' offer.

- - -

Denny's moved its headquarters from Irvine to Spartanburg, SC and didn't miss a beat. I do ponder if Yum Brands will eventually try to locate Habit Burger's HQ elsewhere, but for now, the chain seems to have struggled with restaurants not in the Golden State.

All,

Good discussion, but this isn't the place for discussing the business climate in the state of California (definitely not this thread, anyways).