Some fast-food locations in California are preemptively letting go of workers ahead of a new $20 minimum wage law set to take effect in April, with several eateries, particularly pizza chains, already cutting jobs to mitigate potential financial impacts. Pizza Hut driver Michael Ojeda shared his experience of being informed by a franchisee that his last day of work would be in February, abruptly ending his nearly decade-long career with the company. This move comes as multiple Pizza Hut franchises in California have ceased their delivery services, leading to layoffs of around 841 drivers across the state, impacting various counties.
In response to the impending wage increase, Round Table Pizza and other fast-food chains are also planning layoffs of delivery drivers, attributing the need for job transfers to rising operating costs. FAT Brands acknowledged that this shift could result in higher delivery fees and prices for customers. The wage law primarily affects workers in fast-food chains with at least 60 locations nationwide, prompting concerns about job losses and potential price hikes in the industry. California Assembly Republican leader James Gallagher criticized the mandate, stating that it could further exacerbate the state’s already high unemployment rate.
Despite backlash and concerns about job losses, the wage law exempted certain chains that bake and prepare bread on-site, such as Panera Bread. However, allegations of political favoritism arose when it was suggested that California Gov. Gavin Newsom advocated for the exemption to benefit billionaire Greg Flynn, a major donor, who owns multiple Panera locations in the state. Newsom denied the claims, asserting that Panera would ultimately have to comply with the new minimum wage regulation. These developments underscore the complex dynamics and challenges faced by the fast-food industry in balancing labor costs, operational shifts, and regulatory compliance in California.
