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Hundreds of California Pizza Hut restaurants to lay off delivery drivers

More than 1,200 Pizza Hut delivery drivers in California are expected to be laid off in February.

More than 1,200 Pizza Hut delivery drivers in California are expected to be laid off in February.

Brandon Bell/Getty Images

Pizza Hut operators will lay off more than 1,200 delivery drivers at hundreds of franchises across California in February, the company confirmed.

San Ramon-based PacPizza and Southern California Pizza Co., which operate Pizza Hut restaurants across the state, announced in WARN Act notices filed with the California Employment Development Department that they would eliminate in-house delivery services in hundreds of locations, Business Insider first reported.

As a result, more than 1,200 in-house delivery driver positions would be eliminated, including 841 positions in Southern California alone.

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“Pizza Hut is aware of recent changes to delivery services at certain franchised restaurants in California,” a company spokesperson told SFGATE. “Our franchisees independently own and operate their restaurants in accordance with local market dynamics and comply with all federal, state and local regulations, while continuing to provide quality service and food to our customers through transportation and the delivery.”

The decision comes in anticipation of California Assembly Bill 1228, which will require fast food restaurants to pay workers a minimum wage of at least $20 an hour starting in April. The bill will affect more than 500,000 fast food workers across the state, according to Gov. Gavin Newsom’s office.

Affected Pizza Hut stores will have to outsource their delivery services to food delivery apps such as Grubhub, DoorDash and Uber Eats, Business Insider reported.

“The money they’re giving us as severance is a slap in the face,” a longtime Pizza Hut driver told Business Insider on condition of anonymity, referring to the $400 he was offered in severance. departure. “That works out to $3 a month for over nine years of service.”

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It is unclear whether other Pizza Hut operators in California will make similar layoffs.

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