Pizza Hut Operators in California Lay Off Delivery Drivers After Minimum Wage Hike – IOTW Report

Pizza Hut Operators in California Lay Off Delivery Drivers After Minimum Wage Hike

Thank a Democrat.

Two major Pizza Hut operators in California will be laying off all of their delivery drivers thanks to a new law that raises the minimum wage to $20 per hour for fast food employees.

In September California Governor Gavin Newsom (D) signed a law raising the minimum wage for fast-food workers to $20 per hour.

“Eighty percent of the workforce, these fast food places – 80 percent of people of color, two thirds…are women, the majority are breadwinners and we have the opportunity to reward that contribution, reward that sacrifice and stabilize an industry in turn. What a remarkable moment,” Newsom said in September during the bill signing. more here

19 Comments on Pizza Hut Operators in California Lay Off Delivery Drivers After Minimum Wage Hike

  1. The leftist way. Everything free to you, someone else pays for it all. Works great until there aren’t any new someone else’s to pay for it all. Then there’s nothing, and nothing from nothing leaves nothing so there you go. You get twenty dollars per hour and zero hours per day and you get exactly what the communists think you really are worth. Nothing. Now, since you’re so poor, how’s about you take this little pill, you’ll go to sleep and have eternal sweet dreams… it’s really better than starving in the street. Go on, take the pill. Don’t make this harder than it has to be. Take it.

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  2. No more delivered pizza for you. And now a pizza will cost an arm and a leg. And what are all the stoners gonna do since they won’t be able to get a pizza delivered. At $20 an hr. it will make Taco Hell, Jack in the box, Mickey D’s etc. unaffordable. But I’m sure that they still take EBT.

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  3. We have a pizza chain here in NorCal that’s offering a discount on your pizza if you come get it. I think it’s Round Table.
    Minimum wage should be $0.00/hour. I’ll pay you what you’re worth.

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  4. Round table has good but expensive pizzas. Godfather’s Pizza used to be the best, but they’ve gone out of business. And Papa John’s pizzas are overpriced, and they suck. We have Papa Murphy’s take and bake pizza around here and they’re reasonably priced and make a decent pizza.

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  5. From the quote –

    “…WE have the opportunity to reward …” Yep. It’s Newsom and the legislators who are “rewarding” people through this legislation. As I have stated many times in the past – Liberals are very generous with things that are not theirs to dispense: Morality and other people’s money.

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  6. ” Yep. It’s Newsom and the legislators who are “rewarding” people through this legislation.”

    It looked so good on paper, until the fast food stores started closing up and all the pizza places fired most of their staff and that damn McDonalds started using machines to assemble their food.
    Libtards are in capable of understanding free market principles. And when they fail they all try and run towards socialism as the only fix.
    I got an idea, stop screwing with the market.

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  7. The true minimum wage is always $0 per hour. Government can mandate all it wants but, as in this case, some employers decide not to pay it to some people. The new minimum wage for those folks is now zero.

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  8. And every time min. wage is on the state or local ballot people ‘think’ with their emotions and pass it. Worse is when they build in automatic inflation adjusted increases. Dumb public policy

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  9. According to the article, most of the affected Pizza Huts are in Southern California. At $20 dollars per hour – assuming a 40 hour work week, a fast food worker is making $41,600 (assuming a paid vacation). However, the average rent in Los Angeles is $2,800, which is approximately $33,000 per year. But let’s assume that the average rent all over SoCal is $2,000, or $24,000 per year. That fast food worker, who is supposedly the head of his or her household, is paying about 58% in housing costs – which probably doesn’t include utilities or internet.

    This leaves $17,600 annually for food and transportation, or $1,500 per month less if you live in Los Angeles or Orange counties). My fast food worker probably cannot afford to buy a car (gasoline is about $4.70 per gallon), so having his or her own transportation is probably out of the question. If you eat frugally, you can probably get by on $400 per month. Clothing is an additional cost, and any entertainment would be severely curtailed if not eliminated. Add in any taxes and required withholdings, and that $20 an hour fast food employee probably can’t afford any of these pizzas he or she used to deliver.

    I suspect that Pizza Hut’s delivery service was, before Newsome signed this bill, operating on a razor thin profit margin if not at a loss. Increasing the costs – and keep in mind that the true cost to the employer is more than $20 per hour – and now Pizza Hut is operating at a loss for its delivery service. Raising prices to the customer is probably not an option because home delivery pizza is an elastic product (demand is more influenced by price), so a price increased will likely lead to decreased demand, which lowers profits even more. Contrary to Democratic rhetoric, companies do not like to eliminate things that make them some sort of profit, and if Pizza Hut is eliminating deliveries in high cost areas, this means that the company sees no profit in offering this service.

    Congratulations California – you passed a bill which benefits no one and actually harms the people you are purporting to “help.”

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  10. – you passed a bill which benefits no one and actually harms the people you are purporting to “help.”

    Isn’t that the point?
    I mean after a while it becomes obvious that it’s all intentional!

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  11. Noisesome had to kill pizza delivery before the delivery businesses could spill the beans on robbery loss leading to tje end of convenience services.

    Similarly, “convenience store” robberies, retail store smash-and-grabs, etc., can’t allow success, have to drive everyone to the Soviet “bare shelves” model.

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