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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