Pizza Hut is set to slash over 1,000 delivery driver jobs in California ahead of the state raising the minimum wage to $20 an hour.
On Tuesday, CBS News reported the pizza chain’s plans to cut 1,200 delivery jobs in Los Angeles, Orange, and Riverside counties.
It comes after Assembly Bill 1228 was signed into law by California Gov. Gavin Newsom (D).l
Under the bill, the minimum wage will be raised by $4 to $20 an hour starting in April 2024.
The legislation also gives a council some ability to control wage increases for fast-food workers until 2029.
It applies to brands that have 60 or more units nationwide.
CBS News notes, “Pizza Hut franchises are preparing to pivot toward third-party apps like DoorDash, GrubHub and UberEats for pizza and food deliveries.”
It also pointed out another Pizza Hut franchise, Southern California Pizza Co., is also planning to cut 841 delivery drivers.
Yum! Brands, which owns Pizza Hut, previously told Business Insider “its 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 quality service and food to our customers via carry out and delivery.”
The legislation is expected to affect roughly 550,000 fast-food workers and 30,000 restaurants in California.
Assemblyman Chris Holden (D), who introduced the bill, argued it would help fast-food workers feed their children and improve their quality of life.
