In response to the upcoming increase in the minimum wage for fast food workers in California, major Pizza Hut franchisees in the state are making preparations to eliminate jobs and delivery options for customers. The wage legislation, known as AB 1228, was signed into law by Governor Gavin Newsom and will raise the minimum wage to $20 per hour for fast food workers by 2024.

According to reports from ABC News Los Angeles station KABC, two prominent Pizza Hut franchisees operating in Orange, Los Angeles, Riverside, San Bernardino, Ventura counties, as well as Sacramento, Central California, Southern Oregon, and the Reno-Tahoe area, are planning to lay off approximately 1,200 workers. In addition to the job cuts, these franchisees will also end their delivery services in these areas, affecting another 800 workers.

The franchisees cite the wage legislation as the catalyst behind their decision to downsize and modify their operations. They assert that complying with the new law would lead to increased operating costs, necessitating cuts in staff and delivery services. Customers in the affected regions will now have to rely on alternative delivery platforms such as Uber Eats or DoorDash.

Responding to the developments, Pizza Hut issued a statement acknowledging the changes. They highlighted that their franchisees operate independently, taking into account local market dynamics and legal obligations while maintaining quality service and food for customers. Pizza Hut assured customers that they will still have access to delivery through the Pizza Hut mobile app, website, and phone ordering.

Yum! Brands, the multinational company that owns Pizza Hut, expressed awareness of the situation but did not offer further comment at this time. Other fast food chains such as KFC and Taco Bell, which are also owned by Yum! Brands, did not respond immediately to ABC News' request for comment.

The wage increase, set to take effect in April, will gradually raise the minimum wage for fast food workers to $20 per hour by 2024. This change represents a significant increase of $4 more than the state minimum wage of $16, which will be implemented starting January 1.

The impact of the new legislation on the fast food industry has been a topic of discussion for other chains as well. McDonald's and Chipotle have previously stated that the wage increase would affect their operating costs and potentially lead to changes in menu pricing for customers. Chipotle CEO Jack Hartung highlighted the need for price adjustments to accommodate the additional labor costs during a November earnings call.

While Pizza Hut franchisees in California are making necessary preparations to adapt to the new wage legislation, the potential consequences of this decision are still uncertain. As the fast food industry navigates these changes, both franchise owners and customers will be closely observing the impact on job availability and the future of delivery services.