re: California Pizza Huts lay off all delivery drivers ahead of minimum wage increase

No one could have predicted this.

NO ONE!!!!

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Uhhhhh, you may want to google "how to calculate percentage increase" and come back to your post.

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please tell us more about your alternative to math

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If the Pizza Hut CEO can get paid 16 million dollars, then surely it can’t be that difficult to pay workers $20/hour.

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Yep good thinking we can divvy up that money and pay them all a higher wage.

$16m/year is a $43,000/day pot to split up.

Then you have 18,000 locations so that's $2.43 per location to bump their driver pay.

Each location probably has 2-3 drivers working 4-6 hours per night.

CONGRATULATIONS Each driver now gets thirty cents more per hour!!!! Way to stick it to the man!!!

What you really need to do is add $5 to the cost of each pizza to make a difference, of course then people like me will just go down to Rouse's and buy a Digiorno for $7 instead of Pizza Hut for $30+

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This is sarcasm, right?

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Yes.

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Do the math. Go on, do it. Lets see your work. For once in your life, back it up.

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I’ll do it. Average Pizza Hut franchise costs 950k to start up.
On average they profit 92,000 a year
On average one franchise has a manager (salary) and 4 hourly employees (2 cooks, waitress, driver).

Most are open 10:30am to 11 pm. But you have prep and then cleaning after close. Let’s say 16 hours a day total, 7 days a week. 448 total work hours a week by 4 hourly employees. Assume all make MW at 16 dollars in California.

An increase of 93,000 dollars a year in labor costs. The owner just went from making an ok living to losing money. Cut out the driver position (16 hours a day, 7 days a week. 112 hours at 16 dollars an hour prior to MW hike). Saves 93,000 dollars a year not paying for that full time position

In Louisiana, where minimum wage is significantly less, the delivery charges for pizza delivery have basically turned me into a carryout-only customer.

I can get to any of the pizza chains within 10 minutes one way, often less. Combine that with the carryout specials, and I wonder how many people are actually still using delivery.

Maybe in dense urban areas, where it can take a while to get to your car in the parking garage / parking lot and out of it, delivery is more practical and worth the added fee.

I'll be curious to see how this impacts their sales. Will sales go down? Will third party apps fill in the gaps?

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If the Pizza Hut CEO can get paid 16 million dollars, then surely it can’t be that difficult to pay workers $20/hour.

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A company is only going to pay rank and file employees the lowest it can to get the job done.

This is the part of basic economics that so many liberals just don't want to accept.

Is it "right"? I don't know... but it is accurate.

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Pizza Hut is laying off more than 1,200 delivery drivers in California.

The layoffs, which will take place through the end of February, come as California's minimum wage is about to go up by $4. Fast-food workers in the state are set to get a pay bump of close to 30% in April as the minimum wages rises from $16 to $20 an hour.

PacPizza, LLC, operating as Pizza Hut, said in a Worker Adjustment and Retraining Notification (WARN) Act notice that the company made a business decision to eliminate first-party delivery services and, as a result, the elimination of all delivery driver positions, according to Business Insider. The notice was filed with the state's Employment Development Department.

The Worker Adjustment and Retraining Notification Act requires employers to give notice of mass layoffs or plant closures.

Southern California Pizza Co., a second Pizza Hut franchise, is also eliminating its in-house delivery services and laying off 841 drivers, according to a WARN Act notice from Dec 1.

The layoffs impact drivers at Pizza Hut locations in Sacramento, Palm Springs, Los Angeles and other cities throughout the state.


LINK

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The problem with these stories are folks are basing their happiness at the thought of "market forces" playing out as expected when what has actually happened is that an employer, who relied on taxpayers at the state and local level to subsidize the production costs of their employees, has shifted those expenses onto other low wage employers. If Pizza Hut delivering pizzas was a viable business model that was self sufficient, in other words if the people doing the work were ineligible for any sort of taxpayer subsidy in order to do the work, there would be no increase in wages at Pizza Hut because Pizza Hut would already be paying that wage. At $20 an hour in Los Angeles a single wage earner with no dependents is 10% below the HUD Very Low Income Level for 2023. That means that individual is eligible for subsidized housing at taxpayer expense in Los Angeles County. At $16 an hour they were a little over 20% under that level. This year. Those numbers will be worse next year. That means that every pizza driver delivering Pizza Hut pizzas is eligible for you and I to help pay for their housing expenses....meanwhile Pizza Hunt made nearly $6 Billion in profit in 2022....because they, like all low wage employers, are not expected to pay the entirety of their production costs out of their revenue but instead rely on everybody else to pay a portion of those costs whether they buy a pizza or not. But we are all fine with that subsidy...just don't do anything that would place the burden on the business because that is un-american....

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He’s not smart enough to understand that concept. You might as well be talking to a wall.

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Literally the PERFECT Democrat voter.

In California, more people unemployed is a huge victory. More people for Daddy Government to take care of, thus more votes for Democrats.