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How in-house delivery is changing ahead of California's $20 minimum wage

 

Two major California Pizza Hut franchisees — PacPizza and Southern California Pizza Company — are laying off more than 1,200 delivery workers ahead of the new statewide minimum wage hike for fast food workers, from $16 an hour to $20 an hour, starting April 1.

The two companies — which together own hundreds of Pizza Hut restaurants in Orange, Los Angeles, Riverside, San Bernardino and Ventura counties — are eliminating the delivery driver position as the layoffs become official in February, according to federal WARN Act notices filed last month with the Employment Development Department.

 

"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," the WARN Act notice stated, implying that these stores would instead be relying on third-party delivery services.

PacPizza and Southern California Pizza Company did not respond to request for comment, and neither did other California-based Pizza Hut franchisees, including American West Restaurant Group.

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