California Pizza Huts lay off all delivery drivers ahead of minimum wage increase
Source: USA Today
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.
Read more: https://www.aol.com/california-pizza-huts-lay-off-234021512.html
No more pan fried goo for me. WTH!!
Don't read the comments. RW Trolls are claiming this is what happens when liberals increase wages for people.
Sneederbunk
(14,314 posts)Bluethroughu
(5,202 posts)There are many underage kids, non drivers and others that order delivery. STUPID CORPORATE DECISION.
Mom and pops will fill the void, and it takes two weeks to create a habit...
See all caps above.
MichMan
(11,999 posts)Bluethroughu
(5,202 posts)From another pizza joint, and just tip.
Bad move on the decision to ditch the drivers.
BigmanPigman
(51,642 posts)I don't get it....
"Pizza Hut offering chance for customers to gift pizza to delivery drivers"
https://www.mlive.com/news/2023/12/pizza-hut-offering-chance-for-customers-to-gift-pizza-to-delivery-drivers.html
VMA131Marine
(4,158 posts)but youll get a DoorDash or UberEats delivery driver.
brush
(53,925 posts)Door Dash expect to a hefty fee. Pizza Hut will regret this move. So chickenshit.
Prairie_Seagull
(3,341 posts)Ordered pizza from PH and was told it would be 45 minutes and it showed up cold and over an hour late. Did not show up until after a second call. They had used a second party delivery driver. All to say if this was an experiment. It failed miserably
Oopsie Daisy
(2,703 posts)* and I believe there could have been alternative approaches that would have benefited both the pizza chain and its customers.
Firstly, it's important to acknowledge the significance of a higher minimum wage. It aims to provide workers with a fairer standard of living and reduce income inequality. It's truly unfortunate that PH opted for terminating its drivers rather than exploring other possibilities.
One possible solution would have been for PH to continue employing its drivers at the new, higher minimum wage. Then, to offset the increased labor costs, they could have considered implementing a modest price increase or introducing a delivery fee specifically designed to cover the higher wages. By doing so, the pizza chain would have demonstrated its commitment to supporting its employees while ensuring the sustainability of its business.
Moreover, by retaining their existing delivery drivers, the pizza chain could have maintained customer loyalty and appreciation. Many customers value the personalized service provided by familiar faces and the sense of community that comes with supporting local franchises. Ordering directly from the local PH restaurant would have allowed customers to avoid the inflated prices, fees, and obligatory tips associated with third-party delivery services like Grubhub or Uber Eats.
In the long run, I believe that customers would have recognized the value in supporting a business that cares for its employees and continues to provide quality service. While a slight increase in prices or the introduction of a delivery fee may have been necessary, it is likely to be far less burdensome than the additional costs incurred when ordering from third-party platforms.
By resorting to terminating their drivers out of anger towards the new minimum wage, Pizza Hut risks harming both their customers and themselves. Exploring alternative approaches that balance fair wages with customer satisfaction could have been a win-win situation, fostering a stronger bond between the pizza chain and its patrons.
I think that ultimately, this will benefit other national chains/franchises... and independent pizza restaurants.
Warpy
(111,383 posts)We'd get it delivered on rough nights when we couldn't sit down for a few minutes to eat anything.
Stargazer99
(2,600 posts)It is the middle class that has to pay for the well to do and rich selfishness...is it about time to tell the rich to stuff it.
AZLD4Candidate
(5,795 posts)That's what the American aristocracy brainwashes us to believe.
Hotler
(11,452 posts)where is the trickle down assholes????
ArkansasDemocrat1
(1,263 posts)Attilatheblond
(2,224 posts)Most fast food delivery drivers I have known basically subsidize the giant corporations & franchisees by providing all the necessities to make deliveries themselves. People are probably pretty desperate if they take jobs that exploit them so much.
MichMan
(11,999 posts)I can see the appeal for a lot of people.
Not stuck inside working while under supervision, but driving around listening to music and working for some decent tips. I bet nearly everyone has some stories to tell about entertaining interactions with customers.
OAITW r.2.0
(24,679 posts)If you live in the cities, you never have to go out? You get everything delivered? And you add another 20% for convenience? Why do that?
femmedem
(8,208 posts)Or they are sick or taking care of children. Or it's after dark and they have night blindness.
There are plenty of reasons someone might want a pizza delivered.
SouthernDem4ever
(6,617 posts)I shouldn't be eating it anyway.
sakabatou
(42,186 posts)I usually get frozen, which is pretty good if you get the right brand. Otherwise, there's a pizza place which makes excellent pizza downtown.
Wonder Why
(3,276 posts)Bluethroughu
(5,202 posts)sdfernando
(4,947 posts)I haven't had anything from a Pizza Hut in I don' t know how many years....more likely decades.
BaronChocula
(1,611 posts)The wealthy corporate class always passes the cost of responsibility on to anyone and everyone else. I hope nothing but the worst for Pizza Hut and its "bottom line."
LudwigPastorius
(9,195 posts)Just know, when the righteous boycott of this crap company starts, I was already ahead of the curve.
ArkansasDemocrat1
(1,263 posts)A local store closed recently. When Casey's (gas station) makes better pizza than you do...
Ziggysmom
(3,426 posts)All of them stink, IMHO. Unhealthy food.
Bayard
(22,181 posts)When I worked there many years ago in Louisville. Unhealthy all the way around.
**It looks like they were spun off.
oasis
(49,429 posts)Mawspam2
(742 posts)Just about everywhere.
Even gas station pizza is better than Pizza Hut. No loss.
MichMan
(11,999 posts)oldfart73
(52 posts)Allowing 15 minutes per delivery, (optimistic?), how much does Pizza Hut pay the
self-employed UBER driver to allow him to make his wage plus pay his own taxes plus his car and its expenses. What does the driver actually clear on average per delivery?
Plus tips.
Does the Pizza Hut company paid driver use a company provided car?
TexasBushwhacker
(20,222 posts)no matter how many deliveries they make or how much time they spend waiting. UberEats and DoorDash are hired for a particular order.
MichMan
(11,999 posts)The Pizza Hut franchises don't see the value in paying them for an entire shift if there aren't enough deliveries to make it financially feasible to do so.
TexasBushwhacker
(20,222 posts)Not to mention, dealing with tips that are paid via credit card is probably a pain in the butt. But just like tipping in a sit down restaurant, ultimately it would be better to pay workers an adequate wage and CHARGE an adequate price to back it up. It makes more sense to charge an adequate delivery fee (like $8 plus $2 per pizza, rather than $3 flat).
OTOH, if you operate a business that relies on delivery as part of its business model, it probably makes more sense to add the cost of deliveries into the cost of the product and give a discount to customers who pick their orders up. There's no perfect system, but it's up to the EMPLOYERS to pay their workers a living wage.
SunSeeker
(51,746 posts)My favorite pizza joint still employs delivery drivers. Haven't eaten at Pizza Hut in years, maybe decades.
ExWhoDoesntCare
(4,741 posts)To think that everyone has access to a mom and pop pizza joint. I've lived in multiple states. It was only in the larger cities that the 'mom and pop' type pizzerias existed.
Pizza Hut is what those living in smaller towns tend to have.
SunSeeker
(51,746 posts)ArkansasDemocrat1
(1,263 posts)It's at every half assed gas station in the middle of nowhere here.
It makes PH taste good
Aristus
(66,478 posts)They don't deliver, but it's worth going and picking it up.
To Hell with Pizza Hut.
BigmanPigman
(51,642 posts)A win-win for me.
I just read this article...what the hell is this company doing?!? This was 3 weeks ago. WTF is this company doing?
"Pizza Hut offering chance for customers to gift pizza to delivery drivers"
Many of us look to delivery drivers to deliver joy during the holiday season, said Lindsay Morgan, CMO at Pizza Hut. This was our chance to give some cheer back in the form of a delicious meal for delivery drivers to enjoy during their busiest time of the year.
https://www.mlive.com/news/2023/12/pizza-hut-offering-chance-for-customers-to-gift-pizza-to-delivery-drivers.html
cstanleytech
(26,334 posts)chain itself has been struggling to adjust for years from a sit down style pizza chain with delivery to a delivery only chain.
AZLD4Candidate
(5,795 posts)Every once in a while in a pinch is fine, but the flood of advertising making it seem acceptable to eat 3000 calories in a meal has led to so many of our endemic health problems.
As I tell my foreign wife "Americans are so fat because of the shit we eat that we microwave or get in sixty seconds."
Aussie105
(5,444 posts)She knows!
TeamProg
(6,292 posts)that we dont know what to eat.
Aussie105
(5,444 posts)Pizza Hut was big in Australia as a walk in, sit down and fill yourself on a selection of pizzas.
Walk up and help yourself.
I guess the 'eat all you want' thing put them out of business, because they have disappeared.
Local pizza is either cheap and horrible, Dominos, or great and expensive.
Special treat, pizza night! We go for the good stuff, always.
Some thinking out of the box that might scare some Americans - you know who you are, you say 'I am preparing dinner tonight!' as you grab your car keys and head out the door: make your own. It's not rocket surgery!
AZLD4Candidate
(5,795 posts)J_William_Ryan
(1,760 posts)And the laid-off drivers will work as Door Dash delivery drivers making more money with more flexible hour.
This is a non-issue.
Novara
(5,857 posts)lonely bird
(1,689 posts)Imo, they had already decided to do this. Their announcement used the legal requirement to provide cover for them. It is an exercise in agitprop, pure and simple. Anytime a corporation can cut labor it will do so. I would be willing to wager that the decision to cut employee drivers was made a while ago and that even if wages werent set to rise they would have done it anyway.
HAB911
(8,922 posts)the customer will refuse to pay for services rendered?
"I refuse to pay what it costs for you to prepare and deliver the food I desire"
former9thward
(32,097 posts)If something costs more than you feel it's worth or you're comfortable with you don't get the product. You either start doing without or you find some substitute for it. That is universal.
HAB911
(8,922 posts)that industry survives on the backs of their employees like no other
former9thward
(32,097 posts)When restaurants raise prices, they lose customers. Look how many moderately prices restaurants go out of business. The exceptions are very high-end places, and their customer base is wealthy and doesn't really care about the prices.
HAB911
(8,922 posts)it falls back on customers who refuse to pay for food and services rendered, so the employees are forced to bear the burden
MichMan
(11,999 posts)No customers = no restaurant= no employees.
vanlassie
(5,693 posts)MichMan
(11,999 posts)Joinfortmill
(14,481 posts)Freethinker65
(10,070 posts)Sounds like they were probably already operating at a loss, or near loss for that service. I am assuming they had to pay drivers whether or not there were pizzas to be delivered and who is going to agree to work for only sporadic two to three hour shifts when orders are plentiful.
Now Pizza Hut will see how much overall business they lose, if any. Will customers use other 3rd party services, or will they just forgo Pizza Hut?
1200 drivers will be looking for work elsewhere. Some will find employment in jobs that involve driving, others will find something new. All will be getting get a raise!
Javaman
(62,534 posts)when you base your business model on paying your workings the very least amount, then suddenly reality hits, this is the result. right wing fucks try to take their ball and go home. fuck them. there will be another company that will more than willingly fill the void and treat their workers with respect and a living wage.
fuck pizza hut.
William Seger
(10,779 posts)... is that all wage earners are also consumers, and for minimum wage earners especially, virtually everything they make goes right back into the economy. Those Pizza Hut drivers would have more money to spend at Walmart, and Walmart minimum wage earners will have more money to buy pizzas.
MichMan
(11,999 posts)Economy would take off when everyone people started spending
ArkansasDemocrat1
(1,263 posts)My SSDI 2024 COLA will be less than the amount my rent went up in 2023.
MichMan
(11,999 posts)ArkansasDemocrat1
(1,263 posts)MichMan
(11,999 posts)Last edited Thu Dec 28, 2023, 11:42 AM - Edit history (1)
Not sure what kind of answer you were expecting.
ArkansasDemocrat1
(1,263 posts)Darwins_Retriever
(856 posts)and Pizza Hut will be able to pay them the same thing and don't take taxes, that is the independent contractor's responsibility.
Attilatheblond
(2,224 posts)But I know some also break the rules re actual conditions of the contractor agreement. When the corporations sets the rules, the contractor is really still an employee. Social Security sometimes catches those abusive companies.
If all the 'contract' drivers in an area decided to stick together, and learn the laws, they could probably make life a bit more of a hassle for the companies who exploit drivers.
MarineCombatEngineer
(12,449 posts)I've never liked that franchise, their pizza's suck big time, I prefer the mom and pop pizza shops I also like Little Ceaser Pizza which are plentiful here in AZ.
ExWhoDoesntCare
(4,741 posts)Where I am, Pizza Hut is far better than Domino's or Little Caesar's. Little Caesar's isn't even as good as what we can get in the grocer's frozen aisle.
But I've lived in other places where the ranking was completely different. So it may be a regional thing, or a local franchise owner thing.
MarineCombatEngineer
(12,449 posts)I really like DiGiorno's Pizza I can buy in the store, especially the stuffed crust Pizza, I'm a huge fan of Mozzarella Cheese.
ArkansasDemocrat1
(1,263 posts)It's been better elsewhere, but I stopped visiting their store during Covid. I'd rather eat a $4 Great Value than theirs
ExWhoDoesntCare
(4,741 posts)Or at least that's how it was before my allergist figured out that I have a non-lactose dairy allergy. Now we don't order anything from them at all. In fact, we avoid most restaurants, because navigating my dietary needs is just too much of a pain for it.
The only time we ordered from Pizza Hut was when were too knackered to cook (maybe 2X a year), or we'd forgotten a key ingredient for a recipe and the weather was too frightful to venture out. Let their drivers brave the elements, LOL. We're outside the delivery zone for the only good mom and pop where we live. Pizza Hut was less than a mile away, and it was better than any of the other franchises in our area, to boot. This isn't New York or Chicago where great pizza is five minutes away. You make do with what you have, sometimes.
Karma13612
(4,555 posts)We live in the country.
Our pizza choices are:
1. Crap waaay overpriced pie from a gas station convenience store 2 miles away. And the owner operator is a moody guy who I hate to deal with. I feel like I need to apologize for inconveniencing him! But his gas is the cheapest in the area.
2. Drive to a convenience store 4 miles away where the frozen pizza selection is pathetic. And overpriced.
3. Drive 20 miles to get a fresh or frozen pizza at a high priced grocery store. Then drive it home and reheat and eat. Thats 40 miles in total and probably 90 minutes from craving to chewing.
4. Drive 22 miles to WalMart to get a chilled or frozen pizza. Then drive it home and heat it and eat. Same 40-some miles and 90 minutes.
5. During your next scheduled food shop, pick up a ready made lump of pizza dough at the grocery store (after extensive testing, it was determined that Walmarts was best). Store in freezer until the day you want a pizza.
Pizza craving day arrives: Roll it out, Add your favorite toppings and 15 mins later, fresh hot delicious yummy scrummy pizza. And its a HELLOFALOT cheaper and better tasting than any of the frozen box stuff and many deli fresh made pies.
I used to love Pizza Hut pizza until it wasnt convenient because we werent near one. Our pizza dough option #5 is so delicious. And we can make it to precise specifications.
AZLD4Candidate
(5,795 posts)neighbor. Spoiled me on great pizza. NO ONE has ever gotten even close to theirs EVER.
ArkansasDemocrat1
(1,263 posts)Get the big one, roll the dough so it fits the COOL skillet first. Preheat the oven & skillet for 10 minutes at 500 while constructing the pizza - and then bake the pizza at the recipe temp on the upturned bottom or turn it over and make a pan pizza. The skillet handle makes it easy to take out the pizza and skillet when finished, wear an oven mitt.
I devised this when I didn't have a pizza stone. Still don't. I don't have many unitaskers in my kitchen.
John Shaft
(281 posts)From their website:
"PAC stores start in middle California and go up through Southern Oregon and the Reno-Tahoe Area."
David__77
(23,558 posts)Sure, jobs will be lost. This is a continuous process and results in increased labor productivity.
RubyRose
(144 posts)David__77
(23,558 posts)While I could be wrong, I think people will always be needed to configure and operate the technology. That is how we get more results with less effort.
Theres the real issue of how to ensure peoples wellbeing during these changes.
Bristlecone
(10,135 posts)They save tons in liability insurance alone.
jmowreader
(50,567 posts)
and the increase in the state minimum wage gives them a convenient excuse for slamming the Democratic state government in the process.
Sad to say, from a business perspective this makes a lot of sense - not the beating-up-Democrats part, but the outsourcing this function to third-party delivery services part. So long as the third-party provider is providing living wages it is better for one cohort of drivers to haul food for multiple restaurants than it is to have a restaurant maintain a staff of menial work doers who might haul food if someone wants pizza that night. In my area the only edible pizza comes from Dominos or my oven. If I want pizza and dont feel like making one, Ill drive over there - its only two blocks from my house - and wait for it. The drivers are ALWAYS washing the floor or cleaning the shelves until they get an order to deliver. Id surely prefer to drive for Grubhub if I was in that business.
FakeNoose
(32,823 posts)I don't know the answer to that question. But I have to say the restaurants of Pittsburgh have been going big on the "drive through pick-up windows" in the last couple of years. Even restaurants that are traditionally sit-down-and-get-served type places are quick to encourage customers to use their new, convenient drive-through pick-up windows.
You need to order online, either on their website or with the "app" they frequently provide. Some of them insist that you must use their app, because there's no employee in charge of taking the orders online. It's all digital now, including collecting your money before you've picked up your order.
The restaurants try to market this as a "customer convenience." But really it's not a convenience - it's a way for restaurants to keep your business without the cost of hiring employees to deliver your food to your home.
Pizza Hut in California is backtracking because they've already hired delivery employees, now they need to get rid of them. I predict this will happen everywhere in the next few years. Customers who want to pay for the service will use Door Dash-type deliveries, however most of us will hop in our cars and pick up our own orders.
jmowreader
(50,567 posts)If you want home delivery you'll have to go through one of the third-party providers - GrubHub, DoorDash, Uber Eats, etc. - to get it.
I also suspect dining rooms are going to go away at "popular-priced" restaurants. Fine dining will still have them, but the pandemic trained us to have food delivered and we liked it. I mean, go to a McDonalds at dinnertime. Pre-pandemic, people went to McDonalds to eat. Now? If you eat dinner at McDonalds you're gonna be REAL lonely. I expect new McDonalds to look like the original ones in a few years - remember in The Founder that Ray Kroc was mystified that there was no dining room at the McDonald Brothers' restaurant. It'll go back to that - you either pick the food up and take it home to eat it, or someone brings it to you. By getting rid of the dining room you need less land, less building and less staff.
XanaDUer2
(10,774 posts)Used to call the store a block away and have a store employee deliver. Store now closed. Ordered a horrible expensive Dominos pizza bc we had no food. Had to enter cc info, talk to someone in another country. Pizza was awful. So, frozen pizza fromnow on
mike_c
(36,281 posts)I haven't eaten at a Pizza Hut in 30 years. Don't intend to start again. Now I won't eat there because the food sucks AND their employee treatment sucks too!
brush
(53,925 posts)JT45242
(2,304 posts)The entire unregulated set of similar companies...
The scab cabs of Uber and Lyft.
The exploited drivers of door dash, grub hub, etc...
The unregulated hotels of AirBnb and similar...
Just ways for vulture (aka venture) capitalist to steal from workers and consumers and consolidate wealth at the top in the hands of a small group who own politicians and judges.
Plus, the fees that those companies charge small mom and pop restaurants put many out of business at the beginning of COVID tested including one of our favorite local.chinese places. I do self pickup since I learned how evil those external delivery companies are to small businesses.
moose65
(3,169 posts)Pizza restaurants literally invented delivery, didnt they? Back not too many years ago, pizza places were the only restaurants that delivered, and they proudly proclaimed Free delivery or Delivery in 30 minutes in their advertising.
I guess this is something else the internet has ruined. 🙄
BumRushDaShow
(129,662 posts)as that was the other big "take out" type restaurant (non-European food where cheesesteaks and hoagies are a biggy, along with pizza, strombolis, and calzones for deliveries here in Philly coming from Italian and Greek-style restaurants).
I think because the pizza chains would highly advertise on TV, the other take-out/delivery types of restaurants were never well known, although were most likely advertising in various regions. It's only recently where you might see a chain like "Panda Express" becoming more prominent nationally. I expect that Mexican/Tex-Mex chains have also done similar - again as a regional thing.
moose65
(3,169 posts)I should have said, when I was in high school and college, pizza was about the only thing you could get delivered around here (small towns in NW NC).
About 25 or so years ago, when the internet was just becoming a well known thing, a local company started delivering food from local restaurants. This is in a college town with a local population of around 20,000 people, but also quite a few tourists. In fact, ordering from that business might have been the first transaction I ever did online (really can't remember). It was a novelty back then.
That company is still in business today, but has to now face competition from DoorDash, GrubHub, and UberEats, among others. Seems like this reminds me of the early days of the internet - the so-called Dotcom boom, when there were suddenly SO many websites around, before Amazon swallowed them all up. The same thing is happening to streaming services. Pretty soon they will all start to consolidate, and we'll have the Amazon of the food delivery world and the Amazon of the streaming world.
BumRushDaShow
(129,662 posts)It's been 40 years since I was in college but I know at least when I was in high school in the '70s, we had a bunch of small delis and cheesesteak/hoagie shops, along with the Chinese food places (I'm in Philly), that did deliveries. But I also know the pizza sellers like Dominos were big because they were national chains, so had that higher level of advertising!
I do agree that we're rapidly heading for "The Delivery Company©".
moose65
(3,169 posts)The CEO of YUM brands, which owns Pizza Hut, made over 27 million dollars in 2021.
HAB911
(8,922 posts)ProfessorGAC
(65,248 posts)My guess is these layoffs were already planned & PR folks thought it a good idea to blame it on the min wage increase.
It would have been just as easy to cut hours (not that I would approve) to save the increase.
Now, they're saving it all.
I don't buy the wage increase as a reason. A public excuse? Yes. The actual reason? No.
SouthernDem4ever
(6,617 posts)making pizza dough is easy - just chop up the toppings you want, and add mozarella.
sakabatou
(42,186 posts)I usually just make it from frozen.