Delivery drivers face layoffs as California minimum wage for fast food workers is set to increase
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- Опубликовано: 22 май 2024
- More than one thousand California delivery drivers are set to get laid off next year.
ABC10 obtained Worker Adjustment and Retraining Notification (WARN) Notices indicating certain Pizza Hut franchises, including CalPac Pizza, Southern PacPizza and Southern California Pizza Company, plan to let their delivery drivers go in February 2024.
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Read more: www.abc10.com/article/money/business/pizza-hut-delivery-drivers-face-layoffs/103-22643228-f14c-4ae1-9d76-61d28528ecfc
If they deliver a pizza every hour for 20 dollars an hour and the pizza cost 20 dollars,how is the company making money.
By raising the cost of the pizza to $30
Do you really think it costs 20 dollars to make a pizza? Big companies get huge discounts on supplies, which they jack up the prices on and undercut low wage workers
@@cyanidenightshade and where do you think that "huge" profit goes lol? Lights, health and benefits for every employee, all the other overhead costs. Since they are franchises the owner is responsible for all the small costs.
@cyanidenightshade, you can't be that dense? Do you not get what this person wrote? If you pay a person $20 an Hour to deliver and you sell a delivered $20 pizza every hour, you make nothing. That is what this person basically said. How hard is that for you to understand.
@@cyberfoxx2000 that's literally assuming that it takes an hour to make a pizza. Where I work, it only takes a few minutes, which is literally just a few dollars lol?
You get what you vote for.
The joke is that dd/grubhub will use their contractor loophole to avoid paying drivers this minimum.
Exactly
Everyone else in commiefornia is a billionaire because they voted yes on prop 22
I think the joke is the government coming in in the first place and saying “vote for us, we’re ‘helping’”
This is just pathetic
They won't have to pay that rate, duh. They are not fast food business owners.
This is INSANE! if Rasing minimum wage can resolve poverty, why not increase it to $2000 per hour so everyone can be a millionaire?
Of course anyone with common sense knows it would not work. Insane high minimum wage would not make a society better, only increasing the productivity will. By destroying the people's ability to enter into a service contracts by the free will of two parties, it will only lower the productivity of a society and make everyone more poor in return.
Fast food job is not meant to be a career job; it meant to be part time or entry level job for people with low job skill.
If thats how u feel then dont eat out
Yeah might as well put all fast food franchises out of business. I’m sure that’s the sign of a strong economy 👌
Yeah might as well put all fast food franchises out of business. I’m sure that’s the sign of a strong economy 👌
If it keeps up, we'll be rolling a wheelbarrow full of worthless cash to the store for a loaf of bread.
@@dr.burtgummerfan439 the cash is already worthless with rents and home prices being so high
California still voting Democrat 🤬
Right,they could be in southern state where min wage is still 7.25 a hour after 15 years!
@@evileyez504 Where the cost of living is MUCH cheaper And still be employed!
@@dongarrett7595
Rent is not controlled
Utilities are monopolizes, as are car dealerships, and land
The cost of living may be a bit cheaper but it is not because the economic dynamics are less expensive
@@BUILDanAMERICAthatputPEOPLE1st
Actually Rent is controlled as the Rent Rule you pay 30% of your Income.
Instead of encouraging people to better themselves we just increase their wages which increases costs so that we all suffer. SMH
Theroretically, the democrats want everyone to be on welfare, it's just that those who don't have the education will be the first to experience these effects.
Absolutely @@joeyGalileoHotto
Problem is there is no safety net in society when unemployed and there is no universal base income so people must take any job they can get, even if it's fast food.
Why fastfood? Why not tradesman? Won't this stea entry level l employees from other sectors? Why be a plumbers assistant for $16 when i can work at McDonald's for $20? Makes no sense why the state incetivises deadend jobs
Because illegals work there have to keep them in CA
It makes sense to work in the plumbing assistant job because you are gaining experience. And, you will get paid alot more once you gain more plumbing experience. You are building skills, and you will be able to make more or even go on your own and charge customers more for your skills.
The same is not true for the McDonalds job. Even if you make $20/hr at McDonalds you won't make more because you aren't gaining experience in the McDonalds job.
You should be asking yourself why you aren’t already making $20 hour as tradesman
@@evileyez504 I think you missed the point. This comment is asking if we are dissuading entry level applications from going into the trades by artificial inflating other entry level positions.
Young people typically don't make the best long-term choices.
Minimal wage should not exist. If no employer is willing to pay you X$ for your job, even after thorough negotiation, it means that your work is simply not worth more to them. Majority of employers are not going to submit because it could even mean that the service they are providing that utilizes your work stops being profitable. They will either fire you, reduce your work hours, change the business model by looking for alternatives like automation or have to shut down themselves altogether.
Exactly! It is the freedom of negotiation of two party that will maximize the productivity of our society. Government interference would only make our society less productive and destroy our economy eventually as the result.
Historically, the effect of raising minimum will result in tye elimination of entry level jobs, increased teen unemployment and an overall increase in unemployment, especially amongst African Americans. Mc Donald's will now pay $20 per hour which is good for those witu jobs in the fsst food chain, but it will reduce the number of jobs as tye food chain will redice the number of employees per franchise which it has already done in anticipation of this increase. Have you noticed all the self serve kiosks in Taco bell, Mc D's? AI will replace humans as with the Waymo self driving cars which taxi around people in SF. I was driving my bus and I pulled up next to one while a passenger was boarding the vehicle. This states political representation is on the verge of Tyanny.
True statement politicians only care about their political career 🧐
Government interference of the job market would only make thing worst for everyone. If two party are willingly entering into a service contract for a price, the government should not be able to Mandate how much the contract should be against people's free will.
This is only going to make it harder for teenagers to get work experience.
Minimum wage is one of the causes of inflation
Because everyone goes through Uber eats or Door Dash now.
Most don’t even know they are using a third party now.
I don't. I go pick it up myself. It's quicker.Bill
Workmans comp insurance is wages based. They will end up cutting hours or working less people harder to keep prices manageable.
There are still delivery drivers? I thought doordash got rid of that
With so many third-party delivery companies why does anybody bother hiring in-house delivery at any cost as someone who owned a pizzeria for many years I think it's a great way to save on labor and keep prices down
👏 good job Newsom 😂
If HUD says the poverty line in SF for a family of four is $117k, what should a pizza man make in SF? And how much should a pizza cost in SF?
Minimum wage job was never intended to be a career.
Well, $99.99
You have to get to GS 3 Step 2 to equal 20 bucks an hour if you work for Cali.
Get ready for people falling behind on their bills, credit cards, auto loan and mortgage payments.
Thanks Newsom 😂
We have all learned not to expect much from a network owned by disney.
The funny thing is they will keep increasing the minimum wage till nobody can afford to hire.
$20 minimum wage….ok……now businesses are going to have to find a way to still make a profit. So, layoffs will occur and here comes AI….in a year or so in California……more layoffs to come, more AI to replace employees and more individuals out of work. It has gotten crazy…..individuals thinks that flipping burgers at McDonalds should be enough for a career and to buy a home. Never meant for that
They never thinking CA business only thinking about employees salary
Lays are happening in Washington state as well
Gee, who could have seen this coming (besides anyone with the slightest business economics knowledge).
Do residents of California realize nation laughing at them. Runaway crime in broad daylight, gas & real estate prices, fuel etc. Your state is failing miserably, no one at the wheel.
I live in California. I'm already laughing.
@@davidpulido2942 Hi David, it’s no secret that a certain political party has been in control for decades, it’s not working. What’s the solution?
Happy New Year!!
@Steve-cw1zo You're telling me I lived here sixty plus years. Can only do my part. First solution term limits for all politicians and federal judges. Ain't gonna happen.
California introduced the first fully automated ff resturant
As a scheduleling manager For Panera Bread I'm leaving the food industry. I feel so bad cutting hours to my regular good hardworking staff we can't even give them a full shifts anymore no more 40 hours no more 8 hours a day and I honestly I can't take it everyone is complaining about there hours coming to me but hey what can I do I'm just doing my job from the big bosses. Also I'm stopping going out to fast food joints, coffee shops and all that junk is just bad for the body. Time to step it and save me my money!
Way to go newsom ..😂
Wheres the hut?
If you meet anyone who is in favor of the increase for the fast food minimum wage to $20, ask them why not $50 or $100? They'll probably say no, $50 would be too much, but it's not based on anything other that what "feels" appropriate. It's just arbitrary. If you can artificially set a price (and labor is a price) than there is no need for a market. Let government determine all prices and see how things turn out.
Bad for the workers AND bad for the pizza purchasers. If they get their pizza via Door Dash or the like, the cost will be higher…prompting people to order less often…lose, lose, lose.
So
California voters get EXACTLY what they voted for, again and again. Now who wants a large one topping pizza for $22?
I used to always support minimum wage increases until the pandemic happened. Employers had to raise wages to atteact people to work and then turned around and raised prices. Feom then on I'll never support any mandated wage increases. It causes inflation, reduces the middle class purchasong power in the short to longer term as middle class wages have to rise to play catch up.
I mean... duh?
They own more then 1 business and they are firing their delivery drivers because they mad because they don't want to pay them more!!
Big Corporate gotta save their bottom line and it’s not the workers Cash/ Profits rule over everything
I m interested
I stop ordering these kind of pizza after discovering build your own with unlimited for $12
April fools! Get a raise, lose your job!
All you do is take the basement and move it to the first floor. You are still on the bottom of the economic ladder. Then in 5 years, they will be back crying $20.00 an hour isn't enough as price increases will erode everyones buying power.
This is a false flag headline folks. In California, Pizza deliver drivers get paid as servers while they are delivering pizzas, which is around $2.25. However for the limited time they are in the store folding boxes, cleaning, oiling pans, or even making dough, they get paid the minimum wage advertised $15.50.
The store charges about a $4 delivery fee, but the driver only gets $1.50 (if they are lucky).
Drivers usually leave the store with about 4 orders and take about 45 minutes out of the store. Therefore 4 orders at $4 deliver charge, means $16 to the store. They pay the driver $1.50 each order, so they get $6, and the PH keeps $10. The salary paid is ¾ hour, times $2.50, or $1.69. So from the $16, driver gets $6 deliver fee and $1.69 salary. From the deliver the PH gets $8.31 in profit. The driver can make $6 + $1.69 = $7.69 plus any tips.
This layoff is a business decision because of the liability issues with delivery and insurance, not because of the minimum wage, and automation you will never see behind the scenes.
How can PH save money? 1. No deliver liability insurance. 2. Order takers jobs will be gone. 3. Mistakes will be paid for by DD if misdelivered. 4. PH’s expensive computer telephone ordering system with GPS directions and order history will not need to be maintained. 5. PH will still charge a delivery fee (most likely) which will be used to pay DD their order fee.
I like your ideas, but # 3 would need to be clarified
@@lapislazuli30001If pH delivered to wrong address, original buyer would be made and want refund. DD would have to eat that bad delivery, b/c original buyer did not get it, or was significantly late. PH would always give credit or free if they made a mistake. Now, if you were online and made a bad order, let's say I wanted deep dish but hit the hand tossed button. Since there was no confusion when a printer prints out what they want at the store, the buyer was the one hitting the keys, not the PH order taker.
I am making some assumptions here, but I can certainly see a test market where ordering will even be passed over to another company along with liability.
PH customer service may well go in the drain if another company takes the orders.
I delivered pizzas as a supplement throughout my 18yo -15 yo life. Unfortunately my bro lives in SOCAL and b/c this choice still supplements income driving pizzas. in his 50's. The cost of living there is insane!
I agree that this would have happened regardless of what the minimum wage was. It's a no-brainer that outsourcing your deliveries too. Doordash would save money.
But I just want to inform you as somebody who lives in California and has done pizza delivery jobs. California does not have a "tipped minimum wage". That goes for pizza delivery and for restaurant servers.
Just wanted to clear that up for you.
@@u2571man101 you are 100% wrong. Obviously you do not drive pizzas now. Go find out for yourself by driving some pizzas today. Thanks for the interaction.
@@nstraws326 No you're the one who's wrong.
Here's proof: www.dol.gov/agencies/whd/state/minimum-wage/tipped
Now please edit your post to remove disinformation. And for anyone reading this let this be a lesson as to why you should verify/ask for proof when dealing with people on the internet.
Bold decision, let's see how this shakes out in a year.
Little Caesars doesn't deliver and they do fine, apart from their inability to manage a dinner rush..
A low paying job is better than no job at all!
Vote blue no matter who!! $10 BILLION DOLLAR minimum wage!! 😁
@ApatheticPotato23 that was the way my grandmother voted. When my grandfather ran for sheriff as Republican. She voted Democrat and said she would vote Democrat even if the Devil was running.
what happens when you kiddos vote for blue. :P
This is not surprising. Raising minimum wage to those levels wasn't a smart idea.
Good time, food deliverer to get REAL JOBS... Places like Pizza Hut by laying off drivers are do8ng society a huge favor!
Any legal legitimate job is "real". Tell me you think like someone's great, great, great Grandad without telling me
Raising the minimum wage is a great policy but needs to be implemented along with other policies that increase demand and revenue. Without those other changes, firms’ will have to cut back.
Raising minimum wage is terrible. Not everyone can provide work value of $20 per hour and if this going to get mandated, companies will be forced to fire employees and raise prices.
@@darkrai7597 Exactly my point. Without the needed increase in aggregate demand, the wage hike will just pinch profits and firms will cutback in those areas.
Ha ha
Who eats pizza shut anyway?
If wages had moved along with inflation like most first world countries, it wouldn’t be such a shock to these random franchises. America is prob one of the few places where the citizens think they themselves deserve scraps while being surrounded by a buffet
If minimum wage is SO bad, why do so many aspire to it?🤔
I can't wait for the $40/hr. pay increase, free incentives for registering as a democrat, and 70% off your SCE, SDG&E, or PG&E bill for public school janitors.
I don't know if I should take you seriously or as a joke.
@craiganderson9819 Friendly advice, error on the 51% side of being "dead serious."
@@1SmokingLizard Sometimes I feel 100% dead inside reading youtube comments.
@@craiganderson9819 Don't worry. I feel 0.9% assured I'm gonna make it financially ahead in 2024.
All the money Pizza Hut is making, they should be ashamed... Everyone should stop buying from the franchise
Wouldn't have happened in the first place if drivers were paid properly by franchises and delivery app companies.
What's "proper" pay? Because it's still not going to be proper at $20. So what should it be?
$20/hour Minimum Wage hike will help Small Business Owners as the Bigger Boys will have to raise their prices to offset the $20
CA Minimum Wage is $16/hour
Im so glad that the poor billion dollar companies are suffering from paying their workers pennies while so called economists in the comments have no clue how much theyre getting screwed over by big businesses
I know we should be more like China and North Korea how dare business want to make money and they are causing global warming or is it global cooling? Oh it’s just climate change now. 😂. clown