The Briefing Room
State Chapters => California => Topic started by: mystery-ak on December 26, 2023, 11:06:53 pm
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December 26, 2023 2:56pm EST
California Pizza Hut franchises announce layoffs of delivery drivers before new $20 minimum wage: report
Many of the layoffs will impact delivery operations at Pizza Hut locations in several Southern California counties, according to media reports
By Louis Casiano FOXBusiness
Multiple Pizza Hut franchises in California are planning to lay off delivery drivers as the restaurant chain braces for an increase in the minimum wage for fast food workers next year.
Several Pizza Hut operators filed notices to comply with the Worker Adjustment and Retraining Notification Act saying they were discontinuing their delivery services.
"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, Business Insider reported.
Another operator, Southern California Pizza Co. also announced layoffs of around 841 drivers across the state. The moves impact Pizza Hut locations in Los Angeles, Orange, San Bernardino, Riverside and Ventura counties.
Many of the franchises will rely on third-party delivery apps like Uber Eats, GrubHub and DoorDash.
The layoffs announcements came months before most fast food workers in California will begin earning a minimum wage of $20 per hour, beginning in April. The increase was proposed as a way to offset the increasing cost of living for Californians.
more
https://www.foxbusiness.com/economy/california-pizza-hut-franchises-announce-layoffs-delivery-drivers-before-new-20-minimum-wage
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All I can say is, the first fifteen minutes are the critical span. If that can be in the customer's hands fifteen minutes after going in the box, there will be happy customers. After 1/2 hour the quality degrades considerably. I see why PH there is doing it, ($20 is crazy money for a delivery job), but their product and customer base will suffer.
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Economics is hard, y'all.
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Economics is hard, y'all.
Even harder when you try to explain what a $15.00/hr minimum wage in one state does to the people working for $7.25 an hour in the next state over.
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Gee, who could have predicted it?
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Next up:
A new California state law mandating all pizza businesses to provide delivery-on-request to customers.
If you think this is ridiculous, consider some of the other legislation that has come out of Sacramento in the last 20 years.
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Wait till California mandates all-vegan pizzas. :whistle:
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Why stop at $20? Why not raise it to $100/hr?