I met the owner while I was taking the previous shot from the other side of the street. His father used to own this bakery. He is a broker, but not too long ago bought the bakery and sunk a lot of money into it, including the sign (which was refurbished by Pacific Neon).
The restorer called him one day and told him it was a "flasher," that is the "BAKERY" portion flashes on and off. He hadn't remembered that as a kid. Apparently the flashing causes a part to burn out every few months and has to be replaced at considerable expense, so he assumes his father found a way to just have it lit constantly.
He got a call from the city telling him he was in violation of city ordinance with the flashing sign, but of course there are other vintage signs in Sacramento that are animated. I guess everything is cool now.
Check out the bakery. I hope to get a chocolate croissant and a latte for breakfast there as soon as I have the opportunity.