Pizza Hut Franchisees Lay Off More Than 1,200 Delivery Drivers in California as Restaurants Brace for $20 Fast-Food Wages

MSN ^ | Nancy Luna

[nickcarraway]

Story by nluna@insider.com (Nancy Luna) • 5h

Two Pizza Hut operators in California are eliminating their in-house delivery services at hundreds of stores, resulting in more than 1,200 driver layoffs, according to federal employment notices reviewed by Business Insider.

The layoffs, effective throughout February, affect Pizza Hut delivery drivers across California, including at Sacramento, Palm Springs, and Los Angeles locations. The Pizza Hut franchisees are reducing staff as fast-food chains in the state brace for a new law that increases worker pay to $20 an hour in April.

"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.

[brownsfan]

No one ever mentions what the increased minimum wage is doing to inflation, and first tier employment.

[SpaceBar]

Collapsefornia.

[Jonty30]

It makes more sense for them to use Uber.

[CatOwner]

In today’s America, I refuse to order a pizza that is out-of-sight between the time it is handed to a delivery person and the actual delivery at my front door.

[nickcarraway]

You want it n a camera you can watch the whole time?

[curious7]

Nor have I seen anyone explain how and when government, at any level, acquired the authority to interfere in public or private business to this degree.

[momincombatboots]

TN is paying absurd entry level also. Of course red states are all in for the digital currency they helped pass.

[CatOwner]

In short, I don’t trust delivery people. If I can’t pickup the pizza myself or dine-in, I’m not ordering a pizza.

[who knows what evil?]

Our pizzas are prepped and cooked at home.

[Ge0ffrey]

The voters voted for this. It’s called Democracy, and that’s why our Founding Fathers were against it. The majority can outvote the minority.

[CatOwner]

Our pizzas are prepped and cooked at home.

That works too.

[butlerweave]

Pizza Hut vending machines

[nickcarraway]

A Representative Republic is a form of democracy.

[econjack]

Gees...they never learn. According to politicians, the minimum wage is designed to help low-wage, often minority, workers. When the wage goes up, employers look for ways to cut costs, and that often means firing the newest, least productive, often minority, workers. End result: unemployment goes up for the very workers they thought they were helping. About all they can say is that, if they still had a job, their wages would be higher. But: higher wages * zero hours worked = no income.

[antidemoncrat]

Surprised this happens in CaliFUBAR?

[wally_bert]

The main pizza place for me is about a 1/2 mile away and am glad of it.

Mom and pop chain.

[FLNittany]

Why would you trust the delivery person any less than the people preparing your pizza - you know, the ones that actually touch it?

[sevlex]

I’m sure all those drivers were excited about the higher minimum wage.

No they know the true min wage is $0.

[CatOwner]

Why would you trust the delivery person any less than the people preparing your pizza - you know, the ones that actually touch it?

At least with the cook staff, there are other people in the vicinity. It might even be under camera surveillance. With a delivery person, no one else is around.