California Pizza Hut will lay off more than 1,100 delivery workers pending a pay increase

(Reed Saxon/Associated Press)

California Pizza Hut will lay off more than 1,100 delivery workers pending a pay increase

Homepage News, Jobs, Labor and Workplace, California Politics

Grace Toohey

Dec. 27, 2023

Anticipating a rapid statewide minimum wage increase

food workers, hundreds of California Pizza Hut franchises announced cuts to their delivery services, leaving more than 1,


00 drivers, according to federal and state records.

The Pizza Hut locations, run by two different franchise operators, reported the change in their restaurant business models from Orange to Stanislaus counties, according to Worker Adjustment and Retraining Notifications filed with the California Employment Development Department.

The dismissal

more than 1,100 delivery people

are expected to come into effect as early as February, just weeks before the $20 minimum wage for fasting

food workers will come into effect.

The wage increase is the result of Assembly Bill 1228,

this applies to Californian workers employed by a fast food chain with more than 60 locations across the country in the United States.

California’s minimum wage is currently $15.50 for all employees. Statewide, the increase is estimated to impact more than 500,000 workers. The legislation also created a council of employee and employer representatives to work with government agencies to recommend minimum standards for working hours and other working conditions. Restaurant owners opposed the legislation,

argue that claim

they could not bear the higher costs without raising prices for their customers.

US employers add as many as 199,000 jobs and unemployment falls, indicating a still-solid labor market

It wasn’t immediately clear

as if

The new wage requirements played a role in this move, but the reports said the companies had “made a business decision to eliminate frontline delivery services and, as a result, eliminate all delivery driver positions.”

Officials at the two Pizza Hut operators, PacPizza Affiliates and Southern California Pizza Company,


did not immediately respond to questions from The Times. PacPizza operators include Southern PacPizza,


CalPac Pizza II


and Cal Pac Pizza.


Affected restaurants include those in Los Angeles, Riverside, San Bernardino, Sacramento, Tulare and Kern

provinces, among others


However, t T

The parent company of Pizza Hut

said in a statement thatin a statement to Business Insider, said

it was “aware of recent changes to delivery services at certain franchised restaurants in California.”

“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 our customers with high-quality service and food through takeout and delivery,” the statement said.

.to Business Insider.


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