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A Pizza Hut franchise is laying off 366 delivery drivers as restaurants brace for California's new $20 per-hour fast-food wage

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• In April 2024, California fast-food workers will get a nearly 30% pay bump to $20 an hour.
• Fast-food chains like Chipotle say they'll raise prices to offset higher labor costs in the state.
• A Pizza Hut franchisee plans to lay off 366 delivery drivers in February at 72 California stores.

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A Pizza Hut operator in California is eliminating its in-house delivery service at 72 stores, resulting in 366 driver layoffs, according to federal employment notices reviewed by Business Insider.

The layoffs, effective throughout February 2024, impact Pizza Hut delivery drivers in California, stretching from Sacramento to Palm Springs. The Pizza Hut franchisee, PacPizza, and its affiliates are reducing staff as fast-food chains in California brace for a new law that increases worker pay to $20 an hour in April 2024.

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"PacPizza, LLC, operating as Pizza Hut, has made a business decision to eliminate first-party delivery services and, as a result, the elimination of all delivery driver positions," according to one of five federal WARN Act notices filed by the fast-food operator with the state's Employment Development Department.

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