Several Pizza Hut franchises in California are gearing up to implement layoffs for delivery drivers, foreseeing an impending increase in the minimum wage for fast food workers next year.
Multiple operators of Pizza Hut submitted notifications in adherence to the Worker Adjustment and Retraining Notification Act, indicating they were discontinuing their delivery services.
“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, Business Insider reported.
Another operator, Southern California Pizza Co., has also announced layoffs affecting approximately 841 drivers statewide. This decision impacts Pizza Hut establishments in Los Angeles, Orange, San Bernardino, Riverside, and Ventura counties.
Many of the franchises will depend on third-party delivery apps like Uber Eats, GrubHub, and DoorDash.
The announcements of layoffs arrived several months ahead of the commencement of most fast food workers in California earning a minimum wage of $20 per hour, set to take effect in April. The proposed increase aims to counterbalance the rising cost of living for Californians.
A Pizza Hut delivery driver revealed that he was offered a severance of £400 if he remained on board until his layoff date on February 5.
“The money they are giving us as severance pay is a slap on the face,” he told Insider. “It comes to $3 a month for nine-plus years of service.”