Hundreds of Pizza Hut franchises in California have announced significant cuts to their delivery services, leading to the layoff of more than 1,100 drivers. The decision, as reported in federal and state filings, is said to be in response to upcoming statewide minimum wage increases for fast-food workers.

According to Worker Adjustment and Retraining Notifications filed to the California Employment Development Department, two different franchise operators running Pizza Hut locations from Orange to Stanislaus counties have reported the change in their business models for restaurants.

The layoffs of over 1,100 delivery drivers are expected to be effective as early as February, just prior to the implementation of California's $20 minimum wage for fast-food workers. This wage increase is the direct result of Assembly Bill 1228, which applies to all California workers employed by fast-food chains with more than 60 locations across the United States.

Currently, the minimum wage in California stands at $15.50 for all workers. The statewide increase is predicted to impact approximately 500,000 workers in total. The legislation not only raises minimum wages but also establishes a council comprising representatives from both workers and employers. This council will collaborate with state agencies to recommend minimum standards for work hours and other working conditions. However, restaurant owners have expressed opposition to the legislation, claiming that the increased costs would require them to raise prices for customers.

While it is unclear if the new wage requirements directly influenced the decision to cut delivery services, the notifications state that the companies have made a business decision to eliminate first-party delivery services, thus resulting in the elimination of all delivery driver positions.

The two Pizza Hut operators involved, PacPizza affiliates and Southern California Pizza Company, have not yet responded to inquiries from The Times. The PacPizza operators include Southern PacPizza, CalPac Pizza II, and Cal PacPizza.

The impact of these changes extends to Pizza Hut restaurants in several counties, including Los Angeles, Riverside, San Bernardino, Sacramento, Tulare, and Kern, among others.

The parent company of Pizza Hut has acknowledged being aware of the recent changes in delivery services at certain franchise restaurants in California. In a statement, they emphasized that franchisees operate independently and comply with all applicable regulations while continuing to provide quality service and food to customers through carryout and delivery.

As the state prepares for the implementation of higher minimum wages for fast-food workers, the repercussions of these changes in the Pizza Hut delivery services will undoubtedly raise concerns about employment security and economic implications in the region.