Several Pizza Hut franchises in California have announced significant layoffs of their delivery drivers in anticipation of the state’s new minimum wage law for fast food workers, set to increase to $20 per hour next year. This decision, affecting multiple locations across Southern California counties, including Los Angeles, Orange, San Bernardino, Riverside, and Ventura, was revealed in notices filed under the Worker Adjustment and Retraining Notification Act.
PacPizza, LLC, operating as Pizza Hut, stated in a federal WARN Act notice that it had decided to eliminate first-party delivery services, leading to the termination of all delivery driver positions. Similarly, Southern California Pizza Co. announced the layoff of approximately 841 drivers across the state. The notices were filed with California’s Employment Development Department, as reported by Business Insider.
In response to these changes, many of the affected Pizza Hut franchises plan to rely on third-party delivery apps such as Uber Eats, GrubHub, and DoorDash to handle their delivery needs. This shift comes as the fast-food industry in California braces for the upcoming minimum wage increase, which aims to help workers cope with the rising cost of living in the state.
One Pizza Hut delivery driver, who spoke to Business Insider, expressed disappointment over the severance package offered. The driver, facing a layoff date of February 5, was reportedly offered a $400 severance, which he described as inadequate compensation for his years of service.
As of now, FOX Business has reached out to the Pizza Hut operators for comments but has not received a response. The layoffs and the transition to third-party delivery services mark a significant change in the operational strategies of these franchises, reflecting the broader impact of wage increases on the fast-food industry in California.