Pizza Hut franchises have “made a business decision to eliminate first-party delivery services and, as a result, the elimination of all delivery driver positions.”
California Pizza Hut franchises will be laying off 1200 delivery drivers due to an increase in the minimum wage for fast food employees coming in 2024. This move to increase the minimum wage to $20 was an initiative of Governo Gavin Newsom.
Business Insider reported that Pizza Hut operators have filed notices saying they were discontinuing their delivery services in order to comply with the federal Worker Adjustment and Retraining Notification Act (WARN).
According to a WARN Act notice filed by PacPizza LLC with the state's Employment Development Department, the company, 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."
Southern California Pizza Co. similarly announced that 841 drivers at locations in Los Angeles, Orange, San Bernardino, Riverside, and Ventura counties will be laid off.
The franchises will use third-party delivery apps such as DoorDash as alternatives.
The layoffs were reported in advance of April 2024, when fast-food workers in the Golden State will begin earning a minimum wage of $20 per hour.
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