Pizza Hut to lay off California workers after minimum wage increase

First 2 sentences make the situation far more clear:<p>&gt; 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.<p>&gt; Pizza Hut franchises are preparing to pivot toward third-party apps like DoorDash, GrubHub and UberEats for pizza and food deliveries.<p>And if you know how &quot;minimum wage&quot; works for DoorDash, etc. drivers in CA...

AIUI California minimum wages:<p>A) fast food employee: $20&#x2F;hour<p>B) other employee: $16&#x2F;hour<p>C) delivery gig worker: $19.20&#x2F;hour plus $0.30&#x2F;mile (but only for the time you&#x27;re actively on a job)<p>I guess they did the math and figured out that C is cheaper than A. If the demand for pizza delivery workers is spiky, perhaps it makes more sense to link the costs to the actual output (# deliveries).

I suspect what will happen is the laid off drivers will still be delivering pizzas for Pizza Hut, but will be paid by Doordash et al instead of Pizza Hut, and will ultimately have reduced compensation.

Think of how many employees you could have if you didn&#x27;t have to pay them at all.

I noticed that Steak-n-shake went serverless (lol). I wish more restaurants would do this. I abhor begging for refills and tipping for the pleasure of it. It&#x27;s strange to see so many bottom-tier restaurants have wait-staff and have not already switched over to digital kiosks.

This has nothing with minimum wage which is increasing to $20 for everyone in Seattle on January 1st and isn’t triggering a wave of fast food layoffs. This is just typical corporate cost cutting.

Why does fast food in particular have a higher minimum wage?

The quality of Pizza Hut has been going downhill for years. Support your local pizza joint