This is what happens when the Virtue Signalers and SJWs in the People’s Republik Of California pass laws/rules without considering the actual economic consequences
Multiple Pizza Hut franchises in California are planning to lay off delivery drivers as the restaurant chain braces for an increase in the minimum wage for fast food workers next year.
Several Pizza Hut operators filed notices to comply with the Worker Adjustment and Retraining Notification Act saying they were discontinuing their delivery services.
“PacPizza, LLC, operating as Pizza Hut, has made a business decision to eliminate first-party delivery services and, as a result, the elimination of all delivery driver positions,” a federal WARN Act notice filed by the fast-food operator with the state’s Employment Development Department said, Business Insider reported.
Another operator, Southern California Pizza Co. also announced layoffs of around 841 drivers across the state. The moves impact Pizza Hut locations in Los Angeles, Orange, San Bernardino, Riverside and Ventura counties.
By “lay off” they mean “end the positions”, and, they will rely on 3rd party delivery services, which will mean, you guessed it, increased costs to the consumers. But, not as much as if they were paying drivers at least $20 an hour
The layoffs announcements came months before most fast food workers in California will begin earning a minimum wage of $20 per hour, beginning in April. The increase was proposed as a way to offset the increasing cost of living for Californians.
So, because the government of the PRC has done all they can to increase the cost of living in the PRC via bad economic policies (there are obviously other factors, let’s be fair, but, a huge one is Government) they compound that by raising the minimum wage for unskilled labor, which will increase the cost of living further. Great job!
One Pizza Hut delivery driver told Business Insider that he was offered a $400 severance if he stuck around through his February 5 layoff date.
“The money they are giving us as severance pay is a slap on the face,” he told Insider. “It comes to $3 a month for nine-plus years of service.”
Hey, they didn’t have to give you anything. Not a dime. And I truly hope it was a side gig, not your actual job. But, if he wants to complain, he should look towards Gavin Newsom and the California general assembly. The question now is, do others like Papa Johns, Dominos, etc follow and ditch the delivery drivers?
Our distinguished host asked:
Pizza Slut’s business model is different: they primarily have eat-in restaurants, and expanded to compete with Dominos and the like. Dominos can’t eliminate their delivery drivers, because delivery is their primary business model.
The problem is that the left are just plain ignorant when it comes to economics. They think that hey, ain’t it great that the pizza delivery guys are going to get a raise, without ever considering that hey, their pizzas will cost more money. The left keep pushing this stuff through, and then wonder why the price of everything is going through the roof.
The free market determines the value of everything, and, in the end, the raises given to the minimum wage workers will settle out to what their contribution to the economy is worth; they’ll make more dollars, but their dollars will be worth less, and in real terms, they’ll settle back down to about what they were previously.
What the left don’t realize is that minimum wage raises eventually hurt the people who were earning more than the minimum previously. If the government forces businesses to pay $15.00 an hour workers $20.00 an hour, will the guys who were making $20,00 an hour previously get raises to $25.00, or will their raises be just to $23.50?
Even if they get raises to $25.00 an hour, that’s a 25% increase, but the guys who were making $15.00 and were raised to $20,00 got a 33.33% raise. To keep their ‘place’ in the economy, the people who were already earning $20.00 per hour would need raises to $26.67 per hour.
It’s simple: artificial raises due to government action mean that the working class get concentrated closer to the minimum wage! But liberals don’t understand economics; if they did, they wouldn’t be liberals anymore.
The reason they get away with it is because the objective of the average Democrat — over and above all other considerations — is increasing power and staying in office. Like so many other low-IQ fools, their time horizon is no further off than the next election.
There are currently about 385000 fast food workers in Cali due to get a raise to 20$ per hour
That raise will give them about an extra 360 dollars in their pocket every month
Holy Crapola Teachman!! that is increase in pay alone will be enough for them to buy a new Honda!! Would that be possible in NC?
Dana the mean income ( more accurate than average )in Cali is 80,000 dollars. Fast food workers will be only making 50% of that
Dana the mean income in Cali is almost 80,000
you’ve never owned a business have you? First thing the owners are gonna do is fire excess staff, the second thing they’re gonna do is lower the hours of the remaining staff. Which means there will be no more 385,000 workers and they will not all be getting $360 a month extra because their hours will be cut. You really are a moron. You can’t demand through rules and regulations how much business a person’s gonna be able to do.
you live in a cut and taste world and you believe whatever you cut and paste you’re an idiot.
since the average income in California is $33,000 we would figure that you’d think the mean is the figure just wanna use. The average allows for all those multi billionaire and millionaire Democrat donors that live out there by lumping everybody together and picking the middle number. But it doesn’t matter if you use the average or the mean, fact is when you change the amount that you’re going to force employers to pay employees the employers will find a way to save that money through some other method. They’ll cut hours they’ll cut employees they’ll raise prices and they’ll do combinations of all of those and other things but they will make their money or else they will go out of business. I know you think that business people don’t deserve to earn a living but they do so poo poo on you.
Another fact is when they raise the salaries the average guy ends up paying more in taxes. Also California hasn’t decided yet to do what New York is doing and that is charging people to come into the city to go to work. It’s on its way though. Democrats do anything in their power to raise the cost of living on the little guy. That’s why there’s such an income gap. Democrat policies.
With the increase in the cost of EV’s when they become mandatory, the increase in taxes to pay for the infrastructure for the EV’s and for electricity in general, the increase of electricity at home because of the demand, the increase of insurance and taxes that cover all of this, that $360 this H is talking about will disappear before it’s paid to the employee. In fact I’d be willing to bet that that $360 is gonna be a negative $500 by the time this whole cluster puck ends. Leftists are so economically naive it’s hard to have a reasonable conversation with.
Here in rural Virginia, I am seeing fast food places already closing their doors and not reopening. There seems to be a limit as to how much you can just pass along to customers. The only chain that employs teens and college students is Chick Filet. The McDs, BKs, and Wendy’s employ recent emigrants who cannot speak English, old people who had to go back to work because high Biden inflation wiped out their savings, and meth addicts just looking for one more paycheck. Not the sort of society that was built back better in any measurable way. Not sustainable. I enjoyed having such places to eat for my entire life. Too bad that grandkids will grow up thinking fast food is what comes from vending machines.
Some folks, usually lefties, don’t seem to comprehend that one’s labor is a commodity and is valued by the benefit one can add to the ‘transaction’. If a job/position barely supports the $15/hour minimum wage imposed by government, then raising the minimum to $20/hour will have the effect of rendering the job/position unprofitable since there is a net loss of $5/hour. The position will have to be eliminated. This is management 101 or econ 101 level stuff.
Besides, there are alternatives for pizza delivery. The customer gets to pay directly for the delivery they want using an available independent contractor and Pizza Hut is only responsible for making the pizza.
Personally, if we want pizza, we go to a neighborhood joint, order our pie, and usually eat it there. We deal with almost no home food deliveries, at home we cook our own food.
Mean and average refer to the same value. The median is a more useful measure . Mean is biased by high income individuals. If 10 individuals make 100,000 each, the mean is 100,000 as is the median. If 9 make 100,000 and one makes 10,000,000, the median is still 100,000 but the mean jumps to over 1,000,000.
The rubes discover the real minimum wage is $0.00 per hour despite any legislation.