Pizza Hut to Lay Off Over 1,200 Delivery Drivers in California Ahead of Minimum Wage Hike

Fast food chains turn to third-party delivery apps and price increases to offset costs as state's minimum wage for fast food workers set to rise to $20 per hour in April 2024.

Pizza Hut franchises in California are laying off over 1,200 delivery drivers ahead of the state's new minimum wage law, which raises wages to $20 per hour for fast food workers, effective from April 2024.
The layoffs, which are set to begin in February 2024, will impact Pizza Hut locations in Los Angeles, Orange, San Bernardino, Riverside and Ventura counties.
Franchises will rely on third-party delivery apps like Uber Eats, GrubHub and DoorDash for deliveries, following the discontinuation of their in-house delivery services.
Other fast food chains, such as McDonald's and Chipotle, have announced they will increase menu prices to offset the costs of higher wages in California.
The new minimum wage law, known as Assembly Bill 1228, is expected to impact over 500,000 fast food workers and about 30,000 restaurants in the state.

One America News Network