California restaurants are reportedly laying off staff and reducing hours for other team members in an effort to cut costs ahead of a California state law taking effect on April 1 that will raise fast-food workers’ hourly wage to $20.
In the months leading up to the wage mandate, California eateries, particularly pizza joints, have established a plan to cut jobs, according to state records obtained by The Wall Street Journal.
Pizza Hut and Round Table Pizza — a Menlo Park, Calif.-founded chain of 400 pizza parlors, mostly on the West Coast — have said they plan to lay off around 1,280 delivery drivers this year, according to records that major employers must submit to the state before large layoffs, The Journal reported.
Pizza Hut already sent notices to employees informing them of their last day.
Michael Ojeda, a Pizza Hut driver for eight years in Ontario, Calif., received one of the notes from Pizza Hut franchisee Southern California Pizza in December telling him that his last day of work would be in February.
Hey Ma! Hey Dad! No retirement 4 U!
“Johnson, 2nd-gen owner of 10 California Auntie Anne’s & Cinnabons said higher wages would >labor costs by ~$470k annually. He’s reduced staff by 10 & his 73-year-old parents returned to working business to shave costs” https://t.co/sWT49rmHG2
— Danielle DiMartino Booth (@DiMartinoBooth) March 25, 2024