Multiple Pizza Hut franchises in California are planning to lay off delivery drivers as the restaurant chain braces for an increase in the minimum wage for fast food workers next year.
Several Pizza Hut operators filed notices to comply with the Worker Adjustment and Retraining Notification Act, saying they were discontinuing their delivery services.
“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,” a federal WARN Act notice filed by the fast-food operator with the state’s Employment Development Department said, Business Insider reported.
Another operator, Southern California Pizza Co. also announced layoffs of around 841 drivers across the state. The moves impact Pizza Hut locations in Los Angeles, Orange, San Bernardino, Riverside and Ventura counties.
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Many of the franchises will rely on third-party delivery apps like Uber Eats, GrubHub and DoorDash.
The layoff announcements came months before most fast food workers in California will begin earning a minimum wage of $20 per hour, beginning in April. The increase was proposed as a way to offset the increasing cost of living for Californians.
In a statement to FOX Business, a Pizza Hut spokesperson said: “Where select California franchisees have elected to make changes to their staffing approach, access to delivery service will continue to be available via Pizza Hut’s mobile app, website and phone ordering and the customer ordering experience will remain consistent.”
One Pizza Hut delivery driver told Business Insider that he was offered a $400 severance if he stuck around through his Feb. 5 layoff date.
“The money they are giving us as severance pay is a slap on the face,” he told Insider. “It comes to $3 a month for nine-plus years of service.”
FOX Business has reached out to the Pizza Hut operators, but has not yet heard back.
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