Over 1,100 Pizza Hut Delivery Drivers Set to Get Axe Ahead of California Minimum Wage Hike

California’s new minimum wage hike has not even gone into effect and it is already costing the jobs of the very people it was supposed to help.

The Democrat-dominated state Legislature passed Assembly Bill 1228 in September and Gov. Gavin Newsom quickly signed it into law. The law raises the minimum wage for fast food workers from $15.50 to $20 an hour and is scheduled to take effect in April.

As the bill was being debated, then pushed through into law, many restaurant owners warned that the wage hike would result in higher prices for customers.

Now, those warnings have come to pass.

Hundreds of Pizza Hut locations in California have announced that they will be phasing out their delivery services and more than 1,100 workers will lose their jobs, the Los Angeles Times reported.

Trending:

Biden Admin Puts Largest Christian University in US In Its Crosshairs After Already Massive Fine

Federal and state filings from the two franchise owners who run the locations said they “made a business decision to eliminate first party delivery services and as a result [eliminate] all delivery driver positions.”

The restaurants will now rely on third-party delivery services such as Grubhub and DoorDash. This will necessarily mean higher prices for consumers.

Pizza Hut franchise owners are not the only ones reacting to the new law.

“Chains such as Chipotle and McDonald’s said they planned to pass the costs of higher wages in California to customers by raising menu prices,” Business Insider reported.

Do you support California’s minimum wage hike?

According to the outlet, restaurant industry analyst Mark Kalinowski said he expects “more harm to come” as fast food restaurants “take action in an attempt to blunt the impact of higher labor costs.”

Californians can’t say they weren’t warned.

After AB 1228 was passed in Sacramento, the National Owners Association, which represents some 1,000 McDonald’s franchisees, sounded the alarm.

“The new ‘AB 1228’ legislation … will result in a devastating financial blow to California McDonald’s franchisees at a projected annual cost of $250,000 per McDonald’s restaurant,” the organization said.

“These costs simply cannot be absorbed by the current business model.”

Related:

Watch: Rogue Wave Slams US Beach – Don’t Do What These People Did

According to the New York Post, the wage hike was sold as a way to offset California’s soaring cost of living. Instead, it will cost people their jobs and make it even harder for many Californians to afford eating out.

Laws like these may sound nice to voters who want to be compassionate. And they are often used by politicians to pander to the middle and lower classes.

But they always have the unintended effect of eliminating jobs, making goods and services more expensive, and even driving businesses into bankruptcy and closure.


An Urgent Note from Our Staff:

 

The Western Journal has been labeled “dangerous” simply because we have a biblical worldview and speak the truth about what is happening in America.

 

We refuse to let Big Tech and woke advertisers dictate the content we share with our community. We stand for truth. We stand for freedom. We stand with our readers.

 

We’re asking you to help us in this fight. We can’t do this without you.

 

Your donation directly helps fund our editorial team of writers and editors. If you would rather become a WJ member outright, you can do that today as well. Your support means we can continue to expose false narratives and defend traditional American values.

 

Please stand with us by donating today.

 

Thank you for your support!

Source link