Surprise: California Fast Food Pay Law Causing Layoffs

I know, I know, you’re shocked

We already know that Pizza Hut and others were planning on laying off drivers and using 3rd party delivery services. Now

(NY Post) California restaurants are reportedly laying off staff and reducing hours for other team members in an effort to cut costs ahead of a California state law taking effect on April 1 that will raise fast-food workers’ hourly wage to $20.

In the months leading up to the wage mandate, California eateries, particularly pizza joints, have established a plan to cut jobs, according to state records obtained by The Wall Street Journal.

Pizza Hut and Round Table Pizza — a Menlo Park, Calif.-founded chain of 400 pizza parlors, mostly on the West Coast — have said they plan to lay off around 1,280 delivery drivers this year, according to records that major employers must submit to the state before large layoffs, The Journal reported.

What’s fun is all these people on social media, including elected officials, who are demonizing these companies yet have no stake in running them. They do not have to deal with the higher costs and look for solutions. They don’t have to deal with payroll and food costs.

In San Jose, Calif., Brian Hom, the owner of two locations of Vitality Bowls, has dealt with impending increased labor costs by running his Açaí bowl joints with two employees instead of his typical four, according to The Journal.

As a result, it takes longer for customers to receive their order, which has also increased in price by around 10% to offset higher wages.

Even little places are feeling the hit.

Other popular chains like McDonald’s and Chipotle have also said that they will be lifting menu prices in California to pay for the minimum wage hikes the Golden State passed in September.

Well, hey, no complaining, Californians, you voted for this.

At some fast-food locations, the April 1 minimum-wage increase for California fast-food workers represents as much as a 25% increase from the state’s broader $16 minimum wage.

Where do they find the offset? It’s either lay people off or raise prices.

(had this set up to post Tuesday, so I thought. Typed wrong date)

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4 Responses to “Surprise: California Fast Food Pay Law Causing Layoffs”

  1. Professor Hale says:

    Sure, they are unemployed, but at least they are now getting paid what they are worth. Take that, Capitalist exploiters of the workers!

    Again, no one could have foreseen this outcome. Just pay more for your burgers and happy meals!

  2. Matthew says:

    “Well, surprise, surprise, surprise!”
    – Gome Pyle

  3. Joe says:

    Pizza Hut was my career for nearly a decade and with little to no notice it was taken away,” said Ojeda. This was from a 29 year old. There is a fine example never wanting to improve ones life. I wonder if his Mother will require him to find a new “career”?

  4. Jl says:

    “Illegal alien who murdered Grand Rapids, Michigan woman was deported under Trump but
    snuck back into the US”. Surprise…

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