[♪ THEME MUSIC ♪] >>> COMING UP IN THE NEXT HOUR OF LOCAL NEWS ON ARIZONA PBS, WE'LL HAVE THE DETAILS.

ON CRONKITE NEWS, INCREASING CONCERNS ABOUT THE PANDEMIC'S IMPACT ON THE MENTAL HEALTH OF CHILDREN, AND ON BREAK IT DOWN, HOW TRADITIONAL PARENTING MAY NOT BE THE BEST PARENTING STYLE FOR ALL CHILDREN.

IT'S ALL COMING UP IN THE NEXT HOUR ON ARIZONA PBS.

>>> GOOD EVENING, AND WELCOME TO "ARIZONA HORIZON."

I'M TED SIMONS.

GOVERNOR DUCEY TODAY SIGNED LANDMARK LEGISLATION THAT ALLOWS FOR SPORTS WAGERING IN ARIZONA.

THE BILL ALLOWS FOR TEN SPORTS BETTING LICENSES TO GO TO PROFESSIONAL SPORTS TEAM, ANOTHER TEN LICENSES TO GO TO THE INDIAN TRIBES, WHICH WOULD AMEND THE COMPACT.

AND ALLOWS FOR ADDITIONAL TRIBAL CASINOS ALONG WITH ALLOWS MORE GAMES.

>> I THINK WE CAN CALL THIS A WIN-WIN-WIN FOR THE TRIBES, FOR THE STATE, AND FOR THE TAXPAYERS.

>> HERE WE ALL ARE, UNIFIED, PUTTING TOGETHER THIS PACKAGE OF AMENDED COMPACTS AND THE STATE GAMING LEGISLATION HAS BEEN NOTHING SHORT BUT EXTRAORDINARY.

>> LET'S SIGN THIS BILL, AND SEAL THE DEAL, BY SIGNING THESE COMPACT AMENDMENTS.

>> WE'LL HAVE MUCH MORE ON THE NEW LAW AND CAMING COMPACT IN JUST A MOMENT.

>>> TODAY'S COVID REPORT SHOWS 460 NEW CASES ON RECORD.

THAT PUTS THE STATE'S SEVEN-DAY AVERAGE AT AMONG THE BEST IN THE COUNTRY.

FATALITIES NOT AS STRONG.

IT'S 15TH HIGHEST IN THE NATION.

THE STATE'S HOP METRICS ARE HOLDING STEADY.

SIMILAR NUMBERS ARE REPORTED FOR OVERALL IN-PATIENT BEDS.

>>> SOME POSITIVE ECONOMIC NEWS RELEASED TODAY.

RETAIL SALE SKYROCKETED LAST MONTH.

AS FOR JOBLESS CLAIMS, ECONOMISTS SIGH THE NUMBERS MAY INDEED BE THE LOWEST SINCE THE PANDEMIC BEGAN, BUT STILL MUCH HIGHER THAN BEFORE COVID HIT.

>>> AND ANOTHER THE DEREK CHAUVIN MURDER TRIAL OF GEORGE FLOYD, CHAUVIN TOLD THE COURT HE DID NOT INTEND TO TESTIFY.

>> HAVE YOU MADE A DECISION TODAY WHETHER YOU INTEND TO TESTIFY OR INVOKE YOUR FIFTH AMENDMENT MREF -- PRIVILEGE?

>> I WILL INVOKE MY FIFTH AMEND PRIVILEGE TODAY.

>> AND WITH THAT, BOTH SIDES RESTED THEIR CASES.

AND CLOSING ARGUMENTS WILL HAPPEN ON MONDAY.

>>> AS WE TALKED ABOUT THERE IS A LOT GOING ON HERE WITH THE NEW GAMING WAGERING.

WE SPOKE WITH "THE ARIZONA REPUBLIC'S" RYAN RANDAZZO, WHO IS COVERING THE STORY.

RYAN GOOD TO HAVE YOU HERE.

WHAT EXACTLY DID THE GOVERNOR SIGN TODAY?

>> HE SIGNED TWO THINGS.

HE SIGNED AN UPDATED AGREEMENT WITH THE STATE'S TRIBES TO ALLOW THEM TO EXPAND THEIR CASINOS, TO OFFER NEW TABLE GAMES, TO BUILD NEW CASINOS IN SOME INSTANCES, HAVE MORE SLOTS, AND WE SEPARATELY SIGNED LEGISLATION THAT ALLOWS FOR SPORTS BOOKS IN ARIZONA.

THERE WILL BE 20 SPORT BOOKS LOCATIONS.

TEN TO BE CONTROLLED BY PROFESSIONAL SPORTS TEAMS, AND TEN TO BE CONTROLLED BY THE TRIBES.

>> THE EXPANDED CASINOS, WHEN DO THEY TAKE EFFECT, THE GAMING AMEKDMENTES?

>> IT IS GOING TO TAKE A COUPLE OF MONTHS.

THE SECRETARY OF THE INTERIOR HAS TO APPROVE THEM AND POST THEM TO THE REGISTER, BUT DEFINITELY BY THE END OF THE YEAR.

>> WHAT ABOUT BEING ABLE TO BET ON A SPORTING EVENT?

>> ALSO BY THE END OF THE YEAR.

EVERYONE IS PRETTY HOPEFUL THAT BY FOOTBALL SEASON.

THESE TWO THINGS ARE TIED TOGETHER.

IN EXCHANGE FOR THIS, TRIBES GOT TO EXPAND THEIR CASINOS, SO THEY GAVE THEIR ENDOSEMENT TO THE SPORTS BOOK LEGISLATION.

SO THOSE TWO THINGS ARE TIED TOGETHER, AND AGAIN, THAT REQUIRES THE SECRETARY OF INTERIOR'S APPROVAL.

>> WHY THE LIMITED LICENSES, A, AND B, WHY WERE SO MANY LICENSES GIVEN TO PROFESSIONAL SPORTS ENTERPRISES?

>> WELL, THE QUESTION IS HOW DO YOU FAIRLY ALLOCATE THIS NEW ENTERPRISE, AND WHO DO YOU WANT TO HAVE LICENSES?

AND IT DOES -- SOME OF THE LAWMAKERS DID QUESTION -- LIKE, WHY ARE YOU MAKING BIGGER WINNERS OUT OF PEOPLE WHO ALREADY RUN THESE SUCCESSFUL FRANCHISES?

BUT THE THEORY BEHIND LETTING THE SPORTS TEAMS RUN IT, IS THEY HAVE A LOT TO LOSE.

IF THEY WERE TO DO ANYTHING IMPROPER WITH THE GAMBLING LICENSE.

YES, THEY GET TO OFFER SPORTS BETTING, BUT THAT WILL BE A SMALL PART OF THEIR SPORTS ENTERPRISE.

AND THEY ARE NOT GOING TO RISK THIS HUGE FRANCHISE ENTERPRISE FOR -- FOR ANYTHING IMPROPER ON THE SPORTS WAGERING, AND THE TWO ARE OBVIOUSLY RELATED.

PEOPLE WHO LIKE TO WATCH SPORTS ARE THE SAME PEOPLE WHO LIKE TO BET ON SPORTS.

VIRGINIA DID THIS, AND THERE ARE OTHER STATES THAT HAVE SPORTS BETTING LOUNGES IN THEIR PROFESSIONAL ARENAS.

BUT IT DEFINITELY RAISED SOME QUESTIONS HERE BECAUSE WE HAVEN'T SEEN THAT IN THIS STATE.

>> IT DIDN'T TAKE LONG FOR THE SUNS TO ALREADY INK A DEAL, AND THE PHOENIX GOLF TOURNAMENT AS WELL?

>> YES, THOSE ARE THE TWO BIGGEST ACTS FOR SPORTS BETTING.

SO PEOPLE WHO WANT TO GAMBLE WILL NEVER ACTUALLY HAVE TO STEP FOOD IN THE SUNS ARENA, THEY ARE DOWNLOAD THESE APPS AND WAGER FROM HOME.

AND MOST PEOPLE WILL PROBABLY USE ONE OF THOSE TWO APPS TO PLACE A BET IN ARIZONA.

>> IF YOU LIKE WHAT YOU SEE, YOU CAN ALSO JUST WALK OUT TO THE LABBY AND DO IT, HUH?

>> THAT'S RIGHT.

AND THE SPORTS BOOKS THEMSELVES SERVE AS SORT OF A MARKETING TOOL FOR THE COMPANIES, JUST TO REMIND PEOPLE THAT IT IS THERE, TO HELP PEOPLE THAT NEED A HAND.

BUT THE VAST MAJORITY OF GAMBLING IS GOING TO BE DONE MOBLEY.

>> THIS HAS ALWAYS BEEN SOLD AS A WAY IN PART FOR STATE REVENUES, TO GAIN MORE FOR THE GENERAL FUND.

DO WE HAVE AN ESTIMATE HOW MUCH THIS WILL BRING TO THE GENERAL FUND HERE IN ARIZONA?

>> WELL, TWO DIFFERENT ISSUES.

THE FIRST ONE, SPORTS BETTING.

ANALYSTS EXPECT ARIZONANS WILL PLACE SOMETHING LIKE $3 BILLION IN BETS ANNUALLY, ONCE THIS GETS GOING.

MOST OF THAT MONEY DOES COME BACK TO THE GAMBLERS.

BUT THEY THINK IT WILL BE ABOUT $200 MILLION IN REVENUE FOR THE SPORTS BOOKS AFTER THE TAXES TO THE STATE IS DOWN TO THE 10S OF MILLIONS.

SO IT'S NOT HUGE.

BUT THE TRIBAL CASINOS, THEY CONTRIBUTE MORE THAN $100 MILLION A YEAR TO THE STATE, AND THEY ARE GOING TO GET TO EXPAND QUITE A BIT.

SO THAT CONTRIBUTION IS GOING TO GROW.

ALREADY 100 MILLION COULD GROW BY -- YOU KNOW, 20% OR SO.

>> AND LAST QUESTION, RYAN, AND WE HAVE BEEN AROUND THE BLOCK A LITTLE BIT, AND WE HAVE SEEN WHAT GOES ON THERE AT THE LEGISLATURE -- FOR YEARS THE IDEA OF LEGALIZING GAMBLING WAS UNHEARD OF.

WHAT GOT THIS TRAIN ROLLING AND HOW DID WE GET HERE?

>> THE GOVERNOR AND HIS STAFF EXPLAINED HOW THEY SPENT FIVE YEARS WORKING ON THIS, OBVIOUSLY WITH MANY DIFFERENT TRIBAL ENTITIES THAT HAD DIFFERENT WISHES AND WHAT THEY WANTED TO SEE, AND EVEN THE GOVERNOR FROM THE GILA RIVER INDIAN COMMUNITY, SAID THERE WAS QUITE A BIT OF FIGHTING, BUT FINALLY EVERYONE WAS ABLE TO FIND A MIDDLE GROUND WHERE THERE WAS SOMETHING IN IT FOR EVERYBODY, FOR THE URBAN TRIBES, FOR THE RURAL TRIBES, AND FOR THE SPORTS COMMUNITIES.

EVERYONE MENTIONED WHAT A ROUGH AND TUMBLE CONVERSATION THIS TOOK OVER THE LAST FIVE YEARS.

>> "THE ARIZONA REPUBLIC'S" RYAN RANDAZZO, CHECK HIM OUT AT AZCENTRAL.COM.

RYAN, GOOD TO HAVE YOU.

>> THANKS A >>> UP NEXT, WE TALK POLICE REFORM, MASK MANDATES AND THE SUMMER HEAT WITH PHOENIX MAYOR KATE GALLEGO.

>>> PHOENIX MAYOR KATE GALLEGO HAS BEEN A VOCAL CRITIC OF THE GOVERNOR'S RELAXING OF COVID-19 MITIGATION ISSUES, WE SPOKE WITH THE MAYOR ABOUT THAT AND OTHER ISSUES EARLIER TODAY.

MAYOR, THANKS FOR JOINING US.

LET'S START WITH YOU AND THE GOVERNOR GOING BACK AND FORTH.

YOU CALLED IT A SIGNIFICANT GOVERNMENT OVERREACH.

TALK TO US ABOUT THAT.

>> SCIENTISTS AGREE THAT MASKS ARE ONE OF THE MOST IMPORTANT TOOLS WE HAVE TO SLOW THE SPREAD OF COVID-19.

THIS SUMMER WHEN ARIZONA WAS NUMBER ONE GLOBALLY IN COVID-19, CITIES GOT THE CHANCE TO PUT IN PLACE LOCAL MASK REQUIREMENTS.

EVEN THE TRUMP ADMINISTRATION SAID THAT WAS ONE OF THE THINGS THAT GOT ARIZONA OUT OF OUR VERY DIFFICULT SUMMER.

MASKS HAVE SAVED LIVES IN ARIZONA, COMPARED TO THE MANY OTHER OPTIONS WE HAVE, THEY ARE A LOWER-IMPACT TOOL.

I'M LOOKING FORWARD TO GETTING RID OF MINE WHEN IT IS SAFE, BUT IT'S A POLICY THAT MAKES SENSE.

AND IT'S NOT JUST ME.

IT IS LOCAL OFFICIALS WHO WANT TO HAVE THOSE MASK PROTECTIONS IN PLACE.

IT'S OUR SMALL BUSINESSES.

THEY WANT THE GOVERNMENT ON THEIR SIDE, WHEN THEY TRY TO PROTECT THEIR EMPLOYEES.

THEY WANT THAT COMMON SENSE MESSAGE THAT WE SHOULD WEAR MASKS UNTIL WE ARE OUT OF COVID-19.

>>> YOU SAID THE GOVERNOR'S AUTHORITY IS NOT WITHOUT LIMITS.

WHAT DO YOU SEE AS -- WHAT ARE YOUR LIMITS AS MAYOR, WHEN IT COMES TO THESE MITIGATION FACTORS?

>> WE HAVE CLEAR REQUIREMENTS IN THE ARIZONA CONSTITUTION, THE CITY OF PHOENIX CHARTERS AND OTHERS.

THE ATTORNEY GENERAL ISSUED AN OPINION THAT WAS RELATED TO A PIMA COUNTY CASE, AND ALSO SUPPORTED PIMA COUNTY, SO ACROSS PARTY LINES, PEOPLE THINK THIS MAKES SENSE.

THE STATE OF ARIZONA IS STILL IN AN EMERGENCY, WE NEED THESE SIMPLE TOOLS TO PROTECT OUR COMMUNITY.

>> DID YOU GO TOO FAR EASTER WEEKEND.

THE GOVERNOR WANTED PARKS OPEN.

WITHOUT THEM OPEN, WE HAD PEOPLE PARKING IN THE PARKING LOTS, NO GRILLING, THESE SORTS OF THINGS.

HE SAID THAT WAS WAY TOO MUCH.

DO YOU THINK YOU MIGHT HAVE GONE TOO FAR?

>> THE GOVERNOR ON THE MORNING OF GOOD FRIDAY PUT OUT THIS RIDICULOUS VIDEO.

AND ONE OF THE PARKS HE SPECIFICALLY MENTIONED WAS NOT OPEN.

OUR PARKS WERE OPEN, BUT WE DID HAVE SOME COMMON SENSE POLICIES IN PLACE SO THAT WE WOULD HAVE LESS-CROWDED FACILITIES.

EASTER WEEKEND IS THE BUSIEST WEEKEND FOR PHOENIX PARKS.

WE WANTED TO FOLLOW CDC GUIDELINES, AND TRY TO REDUCE CROWDS.

GET PEOPLE TO CELEBRATE.

TO HAVE IMPORTANT FAMILY EVENTS, BUT TO DO IT IN A WAY THAT CDC RECOMMENDED.

SO WE DO THINK THERE ARE NO DIFFICULT TIMES, BUT WE TRIED TO KEEP PARKS OPEN BUT MANAGE OUR CROWDS.

>>> TALK ABOUT THE ACCOUNTABILITY IN THE NEW POLICE CONTRACT.

AND WHAT THE NEW ACCOUNTABILITY MEASURES ARE.

OBVIOUSLY THIS COMES WITH A RAISE.

BUT AS FAR AS ACCOUNTABILITY, THOUGH, WHAT CHANGES WITH THIS NEW CONTRACT?

>> ONE PROFESSOR AT ARIZONA STATE UNIVERSITY SAID THIS WAS THE MOST IMPORTANT STEPS WE HAVE MADE IN ACCOUNTABILITY AND TRANSPARENCY.

IT ALSO ALLOWS US TO MOVE DISCIPLINE MORE QUICKLY.

PEOPLE HAVE BEEN FRUSTRATED WHEN SOMETHING HAPPENS, THEY WANT QUICKER REACTIONS FROM THE CITY, SO WE CAN HAVE A PROCESS THAT WILL MOVE MORE QUICKLY.

AND WE'LL KEEP LONGER RECORDS ABOUT PROBLEMS IN THE PAST THAT WILL ALLOW US TO RESPOND, AND MAKE SURE IF WE HAVE A REPEATED ISSUE, WE HAVE THE ABILITY TO ADDRESS IT.

>> WHERE IS THE IDEA OF AN OVERSIGHT BOARD, AND ARE WE GOING TO SEE THAT ANY TIME SOON?

>> THIS YEAR'S BUDGET FULLY FUNDED THE CIVILIAN-LEAD OVERSIGHT BOARD FOR THE CITY OF PHOENIX.

WE'RE IN THE PROCESS OF DEVELOPING RULES, AND I WILL GUESS WE WOULD HAVE A VOTE OF THE FULL CITY COUNCIL VERY SHORTLY ON A GET OF RULES TO GOVERN THAT BOARD.

>> WILL IT BECOME A REALITY THIS YEAR?

>> I DO EXPECT IT TO BE A REALITY THIS YEAR.

>>> TALK TO US ABOUT THIS COOL PAVEMENT PROJECT, AND THE TREE AND SHADE ADMINISTRATOR.

WHAT IS THIS ALL ABOUT?

>> ONE THING WE FEEL ACROSS CITY OF PHOENIX POLITICAL BOUNDARIES, AND WE DON'T WANT THE CITY TO GET ANY HOTTER.

WE'RE TAKING COMMON SENSE STEPS INCLUDING THE OFFICE OF HEAT.

THIS WILL HELP US FIND SOLUTIONS TO HELP THE CITY ADDRESS TO HEAT AND ADAPT TO CLIMATE CHANGE.

WE HAVE BEEN ABLE TO FIND A 10 TO 15% DIFFERENCE IN THE AREAS THAT HAVE COOL PAVEMENT.

AT OUR LAST COUNCIL MEETING, WE ANNOUNCED A TREE PORTAL, SO IF YOU HAVE SOMEONE, AND YOU DON'T KNOW WHAT TO GET IN THEIR HONOR, YOU CAN BUY THEM A TREE.

AND WE WANT TO SUPPORT AS WELL, INNOVATIVE COMPANIES HERE THAT HAVE ANSWERS TO CLIMATE CHANGE.

>>> AND YOU CALL FOR TRIPLING DOWN ON CLIMATE ACTION.

ASIDE FROM THOSE MEASURES, WHAT DOES THAT MEAN?

>> WELL, WE ARE ABOUT TO CUT THE RIBBON ON OUR 50TH SOLAR PROJECT.

PHOENIX HAS MORE SOLAR INSTALLED THAN ANY OTHER CITY IN THE UNITED STATES.

WE ARE TRIPLING OUR LIGHT RAIL SYSTEM.

WE'RE GOING TO BE INVESTING IN ELECTRIC VEHICLE INFRASTRUCTURE.

WE WANT TO MAKE IT EASY FOR PEOPLE TO MOVE ABOUT OUR CITY IN A WAY THAT IS COOLER AND MORE RESPONSIBLE FROM A CLIMATE PERSPECTIVE.

>> WE TALKED ABOUT A LOT OF STUFF.

MAYOR GOOD TO SPEAK WITH YOU.

AND THANK YOU FOR JOINING US.

WE APPRECIATE IT.

>> WONDERFUL, THANKS FOR HAVING ME BACK.

♪ >>> THE RESTAURANT INDUSTRY HAS BEEN HIT HARD BY THE PANDEMIC, WITH THE LACK OF EMPLOYEES A MAJOR CONCERN.

WE SPOKE TO FRED MORGAN, OWNER OF FIRED PIE RESTAURANTS ABOUT THE DIFFICULTY IN ATTRACTING AND KEEPING WORKERS.

FRED MORGAN, FIRED PIE, GOOD TO HAVE YOU HERE.

INTERESTING SITUATION NOW WITH THE RESTAURANT BUSINESS HERE IN THE VALLEY, AND I ASSUME IN OTHER PARTS OF THE COUNTRY AS WELL, A SHORTAGE OF WORKERS.

WHAT ARE YOU SEEING AND WHAT ARE YOU HEARING FROM OTHER BUSINESSES?

>> YEAH, IT'S GETTING ALMOST SCARY.

IN MY 30-PLUS YEARS OF BEING IN THIS BUSINESS, I HAVE NEVER SEEN IT.

WE HAVE HAD POCKETS HERE AND THERE, BUT I'M STILL -- I SAID TWO WEEKS AGO, I'M ABOUT 60 EMPLOYEES DOWN, AND I HAVE MADE A LITTLE IMPACT ON THAT, BUT I'M STILL IN THE 50, 50-PLUS RANGE OF NEEDING TEAM MEMBERS TO WORK.

AND WE'RE DOING EVERYTHING THAT WE CAN TO TRY TO GET TEAM MEMBERS.

WE RAISED OUR SALARY.

WE'RE OFFERING REFERRAL BONUSES.

WE HAVE UPPED THE SALARIES OF OUR EXISTING EMPLOYEES, AND IT'S JUST GETTING -- YOU KNOW, I THINK PEOPLE ARE JUST -- ARE -- ARE VERY HAPPY NOT COMING BACK TO RESTAURANT WORK, AND I DON'T UNDERSTAND WHY THAT IS.

I THINK PARTLY, IT IS BASED ON THE STIMULUS MONEY THAT WENT OUT, AND TO BE HONEST, THE UNEMPLOYMENT.

THE MONEY FOR UNEMPLOYMENT HAS REALLY -- AND WE CONTINUE TO HEAR THAT, THAT THEY CAN MAKE MORE MONEY STAYING AT HOME, SO -- SO THAT'S WHAT THEY ARE OPTING TO DO AT THIS POINT.

>> ARE THERE ALSO CONCERNS TO GO BACK TO WORK BECAUSE OF COVID RISKS, AND BEING AROUND PEOPLE AGAIN?

BECAUSE THAT HAS GOT TO BE A FACTOR TOO I WOULD THINK?

>> THAT WAS A BIG FACTOR, ESPECIALLY EARLY ON.

WE HAVE A LOT OF TEENAGERS WORKING FOR US AT FRIED PIE, AND A LOT OF PARENTS WERE CONCERNED, AND OLDER TEENS WERE CONCERNED ABOUT WORKING IN THE RESTAURANT WITH PEOPLE COMING IN, AND NOW, YOU KNOW, WE HAVE A LOT OF GUESTS THAT ARE NOW COMING IN WITHOUT MASKS, AND THEY ARE CONCERNED WITH THAT, SO, YOU KNOW, PART OF THE NEW PACKAGE, THE RELIEF WITH THE COVID, AND EXTENDED UNEMPLOYMENT, WAS THAT IF THEY DON'T EVEN HAVE TO TAKE A JOB IF THEY ARE OFFERED, AND THEY ARE CONCERNED ABOUT GETTING COVID.

SO A LOT OF OUR EMPLOYEES THAT GOT LAID BACK, HAVEN'T TAKEN A JOB BACK, AND THEY ARE STILL ABLE TO COLLECT UNEMPLOYMENT.

>> AND I IMAGINE SOME OF THEM ARE ALSO FINDING DIFFERENT LINES OF WORK, ESPECIALLY LINES OF WORK THAT ALLOW YOU TO STAY AT HOME.

>> THAT'S ABSOLUTELY CORRECT.

YEAH, WE LOST A LOT TO DIFFERENT INDUSTRIES, RIGHT?

A LOT OF TECH, AS YOU KNOW, MOVING TO ARIZONA, AND THEY ARE HIRING LIKE CRAZY.

WE GOT -- THERE'S -- AMAZING THAT WE EVEN LOST A LOT OF EMPLOYEES TO THE NEW -- SINCE THE LAW PASSED FOR MARIJUANA, YOU KNOW?

THERE'S -- THEY NEED EMPLOYEES IN THE BACK.

THEY NEED PACKAGING.

THEY DON'T HAVE TO BE IN FRONT OF THE GUESTS, SO -- AND THEN YOU HAVE GOT THE BIG GUY IN TOWN, AMAZON IS JUST CONTINUING TO HIRE.

SO THERE IS A LOT OF FACTORS PLAYING IN THIS ROLE, AND, YOU KNOW, AS I HAVE TALKED AND TALKED TO MY PEERS, I BLAME SOME PEOPLE IN OUR INDUSTRY ALSO.

YOU KNOW, WHEN TIMES GOT TOUGH AND THEY JUST STARTED FIRING OR LAYING OFF, AND CLOSING RESTAURANTS, AND REALLY LEFT A LOT OF OUR EMPLOYEES OUT TO DRY.

WE WERE LUCKY ENOUGH TO KEEP ALMOST ALL OF OUR RESTAURANTS OPEN, YOU KNOW?

BUT A LOT OF PEOPLE SHUT DOWN AND JUST WAITED IT OUT, SO, YOU KNOW, I THINK A LOT ARE SCARED TO COME BACK.

THEY DON'T WANT THAT TO HAPPEN AGAIN, THINKING THEY ARE MAKING GREAT MONEY, AND ALL OF A SUDDEN THEY ARE WITHOUT WORK AND WORRIED ABOUT PAYING THEIR BILLS.

>> INTERESTING.

I HEARD PEOPLE SAY THEY WOULD RETURN IF THE WAGES WERE HIGHER.

YOU SAID YOU HAVE INCREASED WAGES.

IS THE BUSINESS NOW HAVING TO LOOK TO REEXAMINE HOW IT DOES BUSINESS?

>> YEAH.

AND WE'RE -- I WAS JUST IN A CONFERENCE CALL WITH THE NATIONAL RESTAURANT ASSOCIATION TODAY, AND IT IS SOMETHING WE'RE DEFINITELY TAKING A HARD LOOK AT.

WE'RE HIGHER THAN A LOT OF STATES.

AND FIRED PIES, OUR AVERAGE PLEASE ARE MAKING 14, OVER 15, AND OUR SUPERVISORS AND OUR PREP PEOPLE ARE MAKING WELL OVER THAT, SO, YOU KNOW, WE -- WE HAVE INCREASED OUR STARTING SALARY.

WE HAVE GIVEN OUT RAISES THAT WE NORMALLY WOULDN'T GIVE OUT THOSE LARGE OF WAGES, BUT WE HAVE TO KEEP OUR RESTAURANTS OPEN AND STAFFED, BUT, YOU KNOW, AGAIN, IT -- THE PROBLEM BECOMES HOW DO WE -- HOW DO WE MANAGE THAT COST, RIGHT?

BECAUSE I CAN'T SELL A $9 PIZZA, AND PAY ALL EMPLOYEES ALL $20 AN HOUR.

THE NUMBERS DON'T WORK, RIGHT?

THEY ARE ALREADY TIGHT.

SO SOMEHOW THAT HAS TO GET PASSED ON SOMEWHERE, YOU KNOW?

IT IS GOING TO BE INTERESTED TO SEE.

WE'RE ALL TRYING TO KEEP THAT VALUE AND THE PRICE POINT AT -- AT -- YOU KNOW, AT A FAIR PRICE, BUT AT SOME POINT, IT'S GOING TO HAVE TO YOU KNOW -- THERE'S GOING TO HAVE TO BE INCREASING SOMEWHERE.

>> YEAH, LAST QUESTION.

ARE YOU OPTIMISTIC THAT THINGS WILL CHANGE?

>> YEAH, I DO THINK SO.

THIS BUSINESS HAS ALWAYS BEEN RESILIENT, AND, YOU KNOW, IT'S A FUN -- FUN BUSINESS.

IT GIVES A LOT OF PEOPLE OPPORTUNITY TO WORK DIFFERENT HOURS THAT FITS AROUND THEIR SCHEDULE.

IT'S VERY FLEXIBLE.

AND THERE ARE A LOT OF PEOPLE, YOU KNOW, THAT LOVE TO BE IN THIS INDUSTRY AND GET OUT THERE AND TALK TO PEOPLE, SO I'M CONFIDENT THAT ONCE THINGS GET A LITTLE BETTER, I THINK PEOPLE WILL COME -- COME BACK TO THE RESTAURANT INDUSTRY, AND I THINK WE HAVE GOT TO DO A BETTER JB JOB?

WE HAVE TO FIND WAY TO INCENTIVIZE AND KEEP OUR PEOPLE HAPPY.

>> FRED MORGAN, THANK YOU SO MUCH.

WE APPRECIATE IT.

>> I APPRECIATE IT.

>>> WHILE RESTAURANTS ARE STRUGGLING THROUGH THE PANDEMIC.

THEY ARE FINDING WAYS TO KEEP THEIR BUSINESSES ALIVE.

I'LL TELL YOU ABOUT GHOST KITCHENS, AND HOW THEY ARE TRANSITIONING SOME RESTAURANTS.

>>> AND THAT IS IT FOR NOW.

I'M TED SIMONS.

THANK YOU SO MUCH FOR JOINING US.

YOU HAVE A GREAT EVENING.

♪