California Pizza Hut Franchises Lay Off Over 1,200 Delivery Drivers Due to State Raising the Minimum Wage
A new law raises the minimum wage from $4 to $20 per hour.
Pizza Hut franchises across California slashed 1,200 pizza delivery jobs because a new law raises the minimum wage from $4 to $20 per hour.
The law, AB 1228, goes into effect in April 2024.
Customers will now have to use third-party apps like DoorDash to deliver their pizza.
From Business Insider:
“PacPizza, LLC, operating as Pizza Hut, has made a business decision to eliminate first-party delivery services and, as a result, the elimination of all delivery driver positions,” a federal WARN Act notice filed by the fast-food operator with the state’s Employment Development Department said.
The Worker Adjustment and Retraining Notification Act requires employers to give notice of plant closures or mass layoffs.
Other PacPizza affiliates filing notices included Southern PacPizza LLC, CalPac Pizza LLC, and Pac Partners LLC.
A second Pizza Hut franchisee, Southern California Pizza Co., and its affiliates are also discontinuing its in-house delivery services and laying off about 841 drivers, according to a WARN Act notice from December 1.
The company operates dozens of stores in Orange, Los Angeles, Riverside, Ventura, and San Bernardino counties.
Pizza Hut, owned by Taco Bell’s parent company Yum!, told Business Insider: “Our franchisees independently own and operate their restaurants in accordance with local market dynamics and comply with all federal, state, and local regulations while continuing to provide quality service and food to our customers via carryout and delivery.”
Chipotle and McDonald’s already said they will raise prices due to the minimum wage increase.
I’m tired of people trying to complicate economics. It’s simple. A business needs to make money in order to operate.
I do not blame Chipotle and McDonald’s for raising prices.
Also, these jobs are meant for teenagers or starter jobs to move up the ladder. You also start off at the bottom and work hard to obtain a raise.
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Well commiefornia, you asked for it, you got it. Enjoy
Now for the shocked Pikachu faces of employees who thought they were going to make bank.
The minimum wage is always zero.
Indeed — as astutely observed by the sage Dr. Thomas Sowell.
Liberals are delusional enough to think they can just wave away reality.
In general, restaurants have some of the smallest profit margins in existence, and fast food is actually one of the worst.
If a fast food joint pays 4 people $15 an hour, and the state demands you pay them $20, AT BEST what happens is the least productive one gets fired, the other 3 get paid $20 an hour and now they’re expected to do all the work that the 4th guy was doing. What’s more likely is all 4 of them get fired, and 3 new people get hired for $20 that will actually be able to do the work.
That’s how labor WORKS.
If they were worth $20 an hour, they’d be getting paid $20 an hour.
Automate everything. Fast food restaurants in CA going to resemble large scale vending machine. Your position was just eliminated. Thank newsom and lefties.
A Carvana for hamburgers and tacos.
The Horne & Hardluck CA-feteria.
The food at H&H was actually pretty good when I ate there in 1964.
That’s just about when I ate there. At the time, the entire concept was heralded as a Jetson-ish preview of our future America. Now it’s back, as a Brave New World-ish preview of America’s future.
Like more automated papa johns.
I’d invest in that.
They will be called “Automats”, as in NY City starting in 1902.
We are seeing this step towards automation where I live. Most of the fast food restaurants have ordering kiosks and fewer registers mostly 1 in operation. The stores like WalMart and grocery stores have many more self checkouts. It looks like the stores have fired low wage workers and the ones kept are doing checkout security to make sure people aren’t stealing items.
Never use kiosks. Do not play their game
Not sure what you mean by this. Should I pay higher prices the wizards of the left are foisting on us? I decline to play outside the true market.
People who voted for a ridiculous minimum wage that is not market-driven probably never balanced their own budget, ever.
Describes a sizable percentage of financially inept and undisciplined Dhimmi-crat apparatchiks. You can’t pass through the news without a story about one of them owing back taxes, being deeply in debt, engaged in some municipal embezzlement scheme or re-directing money from their campaign coffers into the pocket of a relatives or relatives.
Or (drumroll) calculating “fair” reparations as more than a hardworking person makes in a lifetime.
And NEVER having to pay the taxes, debts, of being punished for criminal conduct.
Subotai Bahadur
Duh!
A lot of delivery drivers and waitstaff will make less at $20 an hour than they did at $4 if you include tips. Because hardly anyone is going to tip them if they’re making $20
Good point. If I were to order takeout from someone making $5 I would tip them. If they are making $20 I’ll never tip them.
Newsom and the Dems will pass a law mandating that pizza stores offer delivery service.
My stepson told me Geico has laid off about 2000 people. The senior people with high salaries. He was a manager there but left to start a business. Hard times.
Minimum wage isn’t supposed to be a living wage. It is for workers without any skill, education or training. It is a first job, an in between job or an extra job, it is not supposed to be the pinnacle of your working career. Moreover it is amazing how many people fall for the stupidity of this. Every economic input from a ‘minimum wage of $20 an hour’ will raise the costs of everything else downstream. All prices will rise which will negate the impact of the wage increase.
I will not go to burger joints anymore. I will go to the Bar and Grill and pay a bit more for service and a better experience. I listen to the Clay and Buck show and Clay was bitching that it costs $50 to feed a family of four from Burger King.
When I was a teenager I made $3.50/hr at Baskin Robbins and was happy.
Let the burger joints go out of business.
Erronius