ELK GROVE, Calif. — More than one thousand California delivery drivers are set to get laid off next year.
ABC10 obtained Worker Adjustment and Retraining Notification (WARN) Notices indicating certain Pizza Hut franchises, including CalPac Pizza, Southern PacPizza and Southern California Pizza Company, plan to let their delivery drivers go in February 2024.
CalPac Pizza’s notice said they “made a business decision to eliminate first party delivery services.” As a result, their company and Southern California pizza company are laying off delivery drivers at hundreds of locations across the state, including one in Elk Grove and one in Modesto.
This comes ahead of big changes for the fast food industry as workers are set to get a $20 minimum wage next year.
Many customers we spoke with were sad to hear news of the layoffs, including one who blames California’s upcoming minimum wage increase for the change.
“We’re going to have a major trickle down effect. It’s going to hurt a lot of people,” said Tracy Gilkerson from Sacramento. ”With the minimum wage going up and then laying off the drivers, it’s going to cut their hours further.”
The minimum wage for fast food workers will go up to $20 per hour in California in April 2024. The increase applies to workers at fast food chains with more than 60 locations nationally. Workers at big chains, including McDonald’s, Wendy’s and Burger King, are eligible for the raise. Both corporately owned stores and franchisee stores of big chains must abide by the rule.
At certain Pizza Hut locations, customers will now have to go through third-party delivery services, like DoorDash or Grubhub, if they want pizza brought to their door.
“It is basic economics. This response to the unprecedented Fast Food law was entirely predictable," California Restaurant Association President & CEO Jot Condie said in a statement to ABC10. "Restaurants operate under already thin margins and are struggling to keep their doors open in this difficult environment of rising costs. Third-party delivery platforms should add proponents of the Fast Food law to their holiday card list."
We reached out to CalPac Pizza and Southern California Pizza Company for comment, along with Pizza Hut and their parent company, but they did not respond to our request.
The layoffs in our region are set to begin Feb. 12, 2024.
