California’s economy faces challenges from changing consumer preferences post-pandemic, inflation, and policy errors such as the $20 minimum wage mandate impacting the restaurant sector negatively.
Kevin O’Leary criticized Governor Newsom for policies resembling Venezuela’s impact on businesses and capital flight to more competitive states like Tennessee, Florida, and Texas.
“It’s a triple whammy. You have people’s preferences and how they dine after the pandemic has changed dramatically. They don’t go out as much… Then you have inflation itself,” O’Leary said.
“But also you’ve got policy mistakes. I’m here in California shooting season 16 of ‘Shark Tank.’ The casual dining sector in this state has been decimated by a policy mistake on minimum wage. They’re shutting down left and right,” he added.
Despite differing views, Newsom’s office has pointed to job growth in the fast-food industry post-wage increase.
O’Leary emphasized the detrimental effects of policy decisions on California’s economic landscape, particularly in the dining sector.
“Gavin Newsom made a huge mistake. I think he knows that now, he’s turning this state into a sort of version of Venezuela,” O’Leary said. “And it’s just killing business, not only in restaurants, but in everything. There’s all kinds of capital leaving here for more competitive states.”
“Listen, I’ve met him. He’s a nice guy, but I can’t be more critical of his policies,” O’Leary said. “He’s a bad manager. He’s decimated this place. I’ve been coming here for 15 years, this is a shell of what it used to be.”
