California Democrats are pushing policies that are making the state unlivable.
One of the state’s newer laws will force fast-food chains to start paying workers a $20 per hour minimum wage.
Instead of helping workers, this new California law has pizza chains scrambling to lay off workers as quickly as possible.
Pizza restaurants are laying off employees
Several California fast-food restaurants are starting to lay off workers in advance of the state’s new $20 minimum wage law that takes effect in April.
The companies say the new law will hurt their bottom lines, and pizza chains seem to be the most impacted, particularly those who deliver their products to customers.
One Pizza Hut driver in Ontario, California said he already received a notice from the Pizza Hut franchisee Southern California Pizza in December telling him his last day of work would be in February.
Michael Ojeda said, “Pizza Hut was my career for nearly a decade and with little to no notice it was taken away.”
Several Pizza Hut franchises in California have already filed notices saying that they plan to stop offering delivery services, which means that delivery drivers will be out of work.
Southern California Pizza Co. announced the layoff of around 841 delivery drivers in the state back in December 2023.
The decision will affect Pizza Hut locations in Los Angeles, Orange, San Bernardino, Riverside, and Ventura counties.
A Pizza Hut spokesperson told FOX Business that “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” in places “where select California franchisees have elected to make changes to their staffing approach.”
Another company founded in Menlo Park, California, named Round Table Pizza, is planning to lay off approximately 1,280 delivery drivers this year.
The company said the workers who will be laid off are delivery drivers, according to a statement from Round Table parent company FAT Brands.
The statement said, “The franchisee is transferring their delivery services to third-party. While it is unfortunate, we look at this as a transfer of jobs. As you know, many California restaurant operators are following the same approach due to rising operating costs. We anticipate third-party delivery providers in turn will see a boost in their businesses, which will require additional staff on their end.”
A higher minimum wage means more customer frustration
The higher minimum wage will harm more than just employees – it will also affect customers too.
FAT Brands said that its delivery fees will likely increase, and customers would likely see higher prices as well.
Brian Horn owns two Vitality Bowls restaurants in San Jose and said he runs his store with just two workers instead of four, which means longer wait times for customers and higher prices to help cover the additional labor costs.
“I’m definitely not going to hire anymore,” Horn said.
California Assembly Republican leader James Gallagher, an opponent of the new law, said, “Restaurants are struggling to stay above water, and Democrats just threw them an anvil. We warned Democrats this new mandate would cost jobs. They ignored us, and here we are with the highest unemployment rate in the country poised to get even worse.”
Informed American will keep you up-to-date on any developments to this ongoing story.
