Pizza Hut Layoffs: California Drivers Affected by Minimum Wage Increase

Description: Pizza Hut, a popular fast-food chain, has announced that it will be laying off over 1,200 delivery drivers in California. This decision comes as a response to the upcoming increase in the state’s minimum wage, which is set to rise from $16 to $20 per hour. The company has stated that they have made a business decision to eliminate first-party delivery services and, as a result, all delivery driver positions.

The layoffs will take effect through the end of February and will impact drivers at Pizza Hut locations in various cities across California, including Sacramento, Palm Springs, Los Angeles, and others. In response to this decision, Pizza Hut has cited the Worker Adjustment and Retraining Notification (WARN) Act, which requires employers to give notice of mass layoffs or plant closures.

In addition to Pizza Hut, another franchise, Southern California Pizza Co., is also eliminating its in-house delivery services and laying off 841 drivers. This move is expected to affect drivers at Pizza Hut locations throughout the state.

As a result of these layoffs, customers in California will need to rely on third-party apps such as DoorDash, GrubHub, and Uber Eats to have their Pizza Hut orders delivered. This change may impact the convenience and speed of delivery for customers who previously relied on Pizza Hut’s in-house delivery services.

Pizza Hut, which is owned by the Taco Bell parent company Yum! Brands, has stated that its 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 their customers via carryout and delivery.

The minimum wage increase in California is part of a broader trend in the United States, as nearly one million fast-food and healthcare workers are set to receive a significant raise. Under a bill announced earlier this year, most fast-food workers in California will be paid at least $20 per hour starting next year. Additionally, a separate bill aims to increase healthcare workers’ salaries to at least $25 per hour over the next 10 years.

In conclusion, Pizza Hut’s decision to lay off over 1,200 delivery drivers in California is a direct response to the upcoming increase in the state’s minimum wage. This move will impact drivers at Pizza Hut locations across the state, and customers will need to rely on third-party apps for delivery services. The minimum wage increase is part of a broader trend in the United States, with significant raises expected for fast-food and healthcare workers in the coming years.