donor restaurant-industry labor-opponent CRA fast-food minimum-wage FAST-act AB1228 follow-the-money california lobbying
related: _Gavin Newsom Master Profile | FAST Act and the AB 1228 Deal | Labor - Donors and Backers
Who They Are
The California Restaurant Association (CRA) is the primary lobbying and trade organization for the restaurant industry in California, representing over 30,000 restaurant locations. It is the state affiliate of the National Restaurant Association. The CRA lobbies aggressively against minimum wage increases, labor protections, and regulations affecting restaurant operations. It maintains a political action committee (CRA-PAC) that contributes to California legislative and statewide races.
What They Want
— No mandatory minimum wage increases above the state floor for specific industries — Removal of joint liability provisions that hold parent companies responsible for franchisee labor violations — No fast food worker organizing rights or sector-wide bargaining — Defeat or rollback of the FAST Act / Fast Food Council — Regulatory exemptions from labor code protections for tipped workers
Who They Fund
CRA operates five PACs: Candidate PAC, Issues PAC, San Diego Restaurant + Beverage PAC, Los Angeles Food + Beverage PAC, and Greater Sacramento Restaurant PAC. 6.5% of CRA membership dues are contributed to PACs; contributions are voluntary.
CRA Issues PAC — 2024 cycle: $167,285 in contributions, $75,273 in expenditures. [Source: Transparency USA — Tier 1]
CRA-PAC contributes to California legislators on both sides, with focus on labor and business committee members.
Gavin Newsom — No large direct CRA-PAC contributions to Newsom documented in available public records. The CRA’s primary leverage was not direct contributions but the referendum threat — spending $71.7 million through the “Save Local Restaurants” coalition to qualify a referendum to repeal AB 257 as a bargaining chip. That threat produced the AB 1228 deal that removed joint liability. [See: FAST Act and the AB 1228 Deal]
Money
The Referendum War Chest — $71.7 million: The “Save Local Restaurants” committee raised $71.7 million as of October 2023 to repeal AB 257. Top donors: Chipotle ($12.8M), In-N-Out ($12.8M), Chick-fil-A ($11.5M), McDonald’s ($10M). The referendum was withdrawn on December 29, 2023 after the AB 1228 deal — $71.7 million spent not to win a vote but to negotiate from a position of strength. The $20/hr minimum wage was the concession; the removal of joint liability was the prize. [Source: Ballotpedia / CalMatters — Tier 1/2]
National Restaurant Association (federal counterpart): $2.95 million in federal lobbying (2021). Coordinated with CRA on referendum campaign.
Research partially complete. CRA Issues PAC spending documented ($167K 2024). Referendum spending documented ($71.7M). Remaining: CRA-PAC direct contributions to Newsom (Cal-Access pull), lobbyist registration/spending, individual chain PAC contributions at state level.
What They’ve Gotten
— AB 257 replaced by AB 1228 (September 2023): minimum wage reduced from $22 to $20/hr, and the joint liability provision removed entirely. The referendum was dropped in exchange. This is their biggest California win in recent years. — No enforcement mechanism holding franchisors liable for franchisee labor violations — the precise outcome the CRA spent millions to achieve.
The Referendum Tactic
The CRA’s referendum campaign against AB 257 is a template worth understanding. The tactic: pass a law → spend to qualify a referendum to repeal it → use the referendum as leverage to strip the most threatening provision → drop the referendum once the provision is gone. You get most of what you wanted without ever having to win a public vote.
This tactic works because California’s initiative/referendum system allows well-funded interests to use the ballot as a negotiating tool rather than a democratic one.
Key Allies
— McDonald’s Corporation — Yum Brands (Taco Bell, Pizza Hut, KFC) — Jack in the Box — National Restaurant Association (federal counterpart) — International Franchise Association
Enemies / Opposition
— SEIU — primary champion of the FAST Act — Fight for $15 — California Labor Federation
Connected Policy Areas
Labor — FAST Act, AB 1228, fast food minimum wage, joint liability
Sources
- CalMatters: California fast food deal — wage hike, no referendum (Tier 2)
- Ballotpedia: Fast food minimum wage referendum (Tier 1)
- Transparency USA: CRA Issues PAC (Tier 1)
- FollowTheMoney.org: CRA contributions (Tier 1)
- Governing: Fast food spent $4M to stop accountability bill (Tier 2)
- OpenSecrets: National Restaurant Association (Tier 1)
- FPPC: CRA-PAC contribution records (Tier 1)
research-status:: ready — $71.7M referendum war chest, CRA Issues PAC $167K, AB 1228 deal mechanism, joint liability removal, referendum tactic template. 7 sources, Tier 1-2. All headers. Promoted Session 38m. content-readiness:: ready