Rick Rosenfield, co-founder of California Pizza Kitchen, has voiced criticism of California's current business environment, suggesting that if the restaurant were launched today, it might have to be based in Florida instead. Rosenfield, who launched the iconic Beverly Hills-based eatery with Larry Flax in 1985, cited increasing challenges for businesses in California, particularly in the aftermath of the COVID-19 pandemic.
In an interview, Rosenfield described California as less hospitable to entrepreneurs compared to previous decades. He highlighted factors such as unexpected taxes, expansive regulations, and a litigious legal climate that have made operating a business increasingly difficult. According to Rosenfield, the pandemic exacerbated these issues as the state implemented stringent shutdown measures that severely impacted restaurants, forcing many to lay off employees or shift to delivery-only models to survive.
Rosenfield underscored three main reasons for the state's business difficulties: continuous government spending leading to higher taxes, legislation driven by environmental priorities, and laws written with the involvement of legal professionals that create numerous avenues for lawsuits against businesses. He argued that these combined factors have stifled growth and innovation.
In contrast, Florida is presented as offering a more business-friendly environment, characterized by the absence of a state income tax, tort reform to limit lawsuits, and policies aimed at attracting and supporting entrepreneurs. Rosenfield noted that many new businesses are choosing to start in Florida rather than California, a shift that reflects broader trends of population and investment moving away from California.
While California Governor Gavin Newsom has pointed to the state’s large economy and pushed back against comparisons favoring Florida, business owners like Rosenfield say the realities for companies on the ground tell a different story. The ongoing debate highlights the tensions between economic growth, regulatory policies, and political priorities in both states as they compete for businesses and residents.
