Okay, so how would they not be? The provision exempting restaurants that make and sell bread as a standalone item from the rule was included in both the 2022 and 2023 bills. The exemption, as we mentioned above, is real and was achieved by not designating such restaurants as fast food. However, Newsom's office said illegal analysis determined Panera, like other chain bakeries, does not fall under the exemption because it mixes his dough off site instead of fully producing bread on the premises of its retail locations.