https://www.cbsnews.com/losangeles/news/pizza-hut-to-lay-off-thousands-of-california-workers/

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Local News

Pizza Hut to lay off thousands of California workers

losangeles

By Danielle Radin

December 26, 2023 / 6:11 PM PST / KCAL News

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Pizza Hut to lay off thousands of California workers
Pizza Hut to lay off thousands of California workers 02:57

Pizza Hut is set to lay off more than 1,200 delivery drivers in Los
Angeles, Orange and Riverside counties in the coming year, ahead of a
new state law that boosts the fast-food minimum wage by $4 to $20 per
hour.

The law, known as Assembly Bill 1228, was introduced by Assemblyman
Chris Holden, D-Pasadena, and signed into law in September by Gov.
Gavin Newsom.

Pizza Hut franchises are preparing to pivot toward third-party apps
like DoorDash, GrubHub and UberEats for pizza and food deliveries.

A second Pizza Hut franchise, Southern California Pizza Co., is also
planning to lay off 841 drivers. The layoffs will impact drivers in
Pizza Hut locations in Sacramento, Palm Springs, Los Angeles, Central
California, Southern Oregon, the Reno-Tahoe area, among others.

Yum! Brands, which owns Pizza Hut and other fast food companies such
as Taco Bell and KFC, did not immediately respond to a request for
comment.

Yum! Brands previously told Business Insider that "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."

It was previously reported that other food chains such as Chipotle
and McDonald's said they planned to raise menu prices as a way to
offset the costs of higher wages in California.

Following the law's passing, Holden in a statement said the pay
increase will help workers feed their children, keep gas in their
vehicles, and improve the quality of life of many.

In addition to raising the minimum wage for fast food workers to $20
an hour -- it will also establish a Fast Food Council, representing a
path forward to resolve employer community concerns while preserving
fast food workers by securing a seat at the table to raise standards,
according to Holden's office.

The council will consist of nine voting members, consisting of
representatives of the fast food industry, franchisees, employees,
advocates, one unaffiliated member of the public and two non-voting
members, who will provide direction and coordinate with state powers
to ensure the healthy, safety and employment of fast food workers.

Responsibilities of the council will also include development of fast
food worker standards, covering wages, working conditions and
training.

AB 1228 will impact more than 550,000 fast food workers and about
30,000 restaurants in the state.

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Danielle Radin

Danielle Radin is a journalist for CBS Los Angeles and has authored 9
books. She is originally from Hermosa Beach. Danielle covers breaking
news, crime, tech and politics.

First published on December 26, 2023 / 6:11 PM PST

(c) 2023 CBS Broadcasting Inc. All Rights Reserved.

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As base pay rises, some companies are fighting back with fees,
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(c)2023 CBS Broadcasting Inc. All Rights Reserved.

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