How Panera Bread Ducked California’s New $20 Minimum Wage Law

The governor pushed for a carve-out that’s perplexed industry observers and benefited a donor.

A Panera Bread restaurant, owned by Flynn Group, in Novato, California.

Photographer: Michaela Vatcheva/Bloomberg

Billionaire Greg Flynn, who made his fortune running one of the world’s largest restaurant franchise operations, is getting a new boost from sourdough loaves and brioche buns.

That's because a California law that’s about to raise the state minimum wage at fast-food spots to $20 an hour from $16 offers an unusual exemption for chains that bake bread and sell it as a standalone item.