Two Pizza Hut operators in California are set to fire all of their delivery drivers in response to the state’s $20/hour minimum wage hike. This decision will affect hundreds of Pizza Hut locations including Los Angeles, Orange, Riverside, Ventura, and San Bernardino counties and Sacramento. This decision may cause over 1,200 people to lose their jobs. The wage hike takes place in April and the layoffs will continue until February.
Pizza Hut filed a federal WARN ACT notice that states the following: “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.” Referencing to the drivers as “first party” may signal the takeover of third-party applications such as DoorDash and Uber Eats who will be called upon to pick up the slack. In California’s effort to raise the wages of people struggling to make a living, all they are doing is simply converting wage employees to 1099 contractors working gigs.
Fast food chains such as Chipotle and McDonald’s have already announced menu price hikes to counteract California’s minimum wage increase.
SOURCES:
Pizza Hut cutting delivery driver positions in California due to $20 minimum wage – YouTube
California Pizza Hut operators laying off all delivery drivers
Pizza Hut franchises in California lay off all delivery drivers
California Pizza Hut Lays Off Every Delivery Driver as Wages Rise to $20
