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Jamba Juice will move headquarters from Bay Area to Texas

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  Jamba Juice will move headquarters from Bay Area to Texas "California democrats chase another business to Texas" <worthless@latimes.com> - 2016-08-08 06:49 +0200
    Re: Jamba Juice will move headquarters from Bay Area to Texas Dänk 42Ø <dank@safeword.amsterdam.com> - 2016-08-08 07:32 +0000
      Re: Jamba Juice will move headquarters from Bay Area to Texas Dänk 42Ø <dank@420.org> - 2016-08-10 06:17 +0000

#186 — Jamba Juice will move headquarters from Bay Area to Texas

More than 25 years after the first Jamba Juice shop opened in 
San Luis Obispo, the owner of the smoothie company announced 
plans to move its headquarters from California to Texas within 
eight months.

Jamba Inc. will close its Emeryville, Calif., office and 
establish a new corporate home in Frisco, Texas, about 30 miles 
north of Dallas. In a statement, Chief Executive David Pace said 
Jamba was looking for places that had “competitive operating 
costs,” access to “skilled restaurant talent” and an “attractive 
cost of living,” along with a central location for further 
expansion.

“The state of Texas meets all of these criteria and Frisco is a 
community committed to healthy living that aligns closely with 
our overall mission,” Pace said.

The company's lease in Emeryville is set to expire at the end of 
the year.

The move will affect about 120 employees in Jamba's Emeryville 
location. After the company moves, Jamba said it expects to 
employ about 100 employees in Frisco, a mix of San Francisco Bay 
Area transplants and newly hired Texas workers.

As of December, Jamba had 818 stores across the United States. 
The publicly traded company said it has 1,000 employees in 
California alone. There are more than 5,000 workers at franchise 
locations across the state.

Jamba will follow longtime Southern California burger chain 
Carl's Jr. in moving its corporate home out of the Golden State. 
In March, CKE Restaurants Holdings Inc., which owns Carl's Jr. 
and St. Louis-based Hardee's, said it would move its Carpenteria 
headquarters to Franklin, Tenn., next year. The company said the 
move was intended to consolidate the two chains' headquarters in 
one location.

As a whole, the restaurant sector is struggling to deal with 
higher labor costs. If those chains can't pass those costs on to 
consumers, which many have been unable to do, they have to 
reduce costs in other parts of the business, said Nick Setyan, 
senior vice president of equity research at Wedbush Securities.

One option is re-franchising, a model that Jamba and Carl's Jr. 
have embraced over the last few years. As of March, there were 
68 company-owned and operated Jamba Juices and 752 franchised 
stores in the U.S.

“You're seeing them re-franchise in order to have a lower cost 
and a more predictable operating model,” Setyan said. “If you're 
trying to cut costs, then you have to look at it across the 
entire business and look at your headquarters. If that results 
in lower costs, that's always on the table.”

Thanks in part to the success of the technology industry, labor 
and real estate in the Bay Area come at a high price.

Staying in the Bay Area can be lucrative and valuable for 
companies in the innovation sector since employees in the area 
tend to be more creative and productive, said Enrico Moretti, an 
economics professor at UC Berkeley.

“They cost more, but they generate more,” he said.

But for companies in more traditional industries, such as Jamba, 
Moretti said the Bay Area's benefits may not be worth the 
expense.

Jamba is just the latest California company to announce plans to 
relocate to Texas.

In 2014, Toyota Motor Corp. said it would move its North 
American headquarters to Plano, Texas, from Torrance over the 
next three years.

That same year, longtime Los Angeles-based energy giant 
Occidental Petroleum announced that it was relocating its 
headquarters to Houston and would spin off its California assets 
into a separate company.

And nearly two dozen Bay Area tech companies have made the move 
to Texas since 2014, according to the San Francisco Chronicle.

Former Texas Gov. Rick Perry once touted the Texas Enterprise 
Fund and other cash incentives, along with local property tax 
breaks, as important for enticing companies to move. Toyota was 
offered a $40-million grant when the automaker announced its 
move, though the company said incentives had little, if 
anything, to do with the decision.

Jamba was also offered a Texas Enterprise Fund grant of 
$800,000. The company said incentives were not a driver in the 
move to Texas.

Other factors, such as the low corporate tax rate and no 
personal income tax, could also be advantages for companies 
looking to move to the Lone Star State.

Lower corporate taxes mean higher company profits, but possibly 
more important is the income tax aspect, Moretti said. Without 
raising wages, employees can see an increase in their pay, he 
said.

samantha.masunaga@latimes.com

http://www.latimes.com/business/la-fi-jamba-juice-20160506-snap-
story.html
  

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#187

On 08/08/2016 04:49 AM, California democrats chase another business to 
Texas wrote:
> More than 25 years after the first Jamba Juice shop opened in
> San Luis Obispo, the owner of the smoothie company announced
> plans to move its headquarters from California to Texas within
> eight months.
>
> Jamba Inc. will close its Emeryville, Calif., office and
> establish a new corporate home in Frisco, Texas, about 30 miles
> north of Dallas. In a statement, Chief Executive David Pace said
> Jamba was looking for places that had �competitive operating
> costs,� access to �skilled restaurant talent� and an �attractive
> cost of living,� along with a central location for further
> expansion.

What about the executives and other employees who don't want to relocate
from the fabulous Bay Area to some hicktown in Texas?  It's cheaper
because unlike San Francisco, nobody wants to live there.

Dallas is a cultural wasteland, and I envision the suburb of Frisco as
a giant strip mall of Vietnamese nail polish shops, cellphone stores,
the usual fast-food chains, on and on and on for thirty miles to Dallas,
with the traffic probably takes about two hours.

I used to live in Texas and it sucks.  There is little public land,
everything is surrounded by barbed wire fences, which means no hiking
trails or camping or other outdoor recreational activities.  Most of
the state is flat, and the scenery consists of cactus and tumbleweeds.
If you live along the Gulf Coast, it is hot and humid.  Further north
it is just hot.  If you live along the border it a virtual police state
with Border Patrol checkpoints along every road.  (They're only supposed
to ask you your citizenship, but they often demand to search you car,
which they are not legally allowed to do without a warrant.)

Jamba Juice will save a little money on its headquarters rent, as well
as on wages for basic staff (secretaries, etc), due to Texas' lower
minimum wage.  The outsourced janitorial company will pay their
undocumented workers less, so they save money there.  Then they will
have to pay for a headhunter to replace everyone who refuses to move
to some shithole in Texas.

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#188

On 2016-08-08 07:32, Dänk 42Ø wrote:
> On 08/08/2016 04:49 AM, California democrats chase another business to
> Texas wrote:
>> More than 25 years after the first Jamba Juice shop opened in
>> San Luis Obispo, the owner of the smoothie company announced
>> plans to move its headquarters from California to Texas within
>> eight months.
>>
>> Jamba Inc. will close its Emeryville, Calif., office and
>> establish a new corporate home in Frisco, Texas, about 30 miles
>> north of Dallas. In a statement, Chief Executive David Pace said
>> Jamba was looking for places that had �competitive operating
>> costs,� access to �skilled restaurant talent� and an �attractive
>> cost of living,� along with a central location for further
>> expansion.
>
> What about the executives and other employees who don't want to relocate
> from the fabulous Bay Area to some hicktown in Texas?  It's cheaper
> because unlike San Francisco, nobody wants to live there.

Just to follow-up: Jamba Juice will have to replace most of its
executive staff because nobody who lives in the Bay Area would want
to move to Buttfuck, Texas.

Good luck finding replacements, as Texas' educational system ranks
among the worst in the United States.  I know, I went through it
myself (fortunately, both my parents were educators).

Jamba Juice, sans its former executives, can expect to recruit a
team of suits and ties who will reorganize the company over and
over until it goes bankrupt.  The California execs were able to
handle that listeria or E. Coli or Hepatitis A outbreak a few
years ago.

Relocating their headquarters to Texas won't save them as much money
as they think, since they are a national company and other states
don't look the other way at the hiring of undocumented aliens.  So
they will have hire legal residents and pay them the legal minimum
wage they are required to in whatever state they operate in.

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