A Popular Chain Now Makes Unexpected Layoffs in California

December 28, 2023

A popular US chain now makes unexpected layoffs in California ahead of the minimum wage increase soon to take place.

In October, California Governor Gavin Newsom passed a new law to increase wages for fast-food workers across the state.

The new AB 1228 legislation, or the Fast Food Franchisor Responsibility Act, will come into effect on April 1, 2024, and guarantees fast-food employees in California a minimum wage of $20 per hour- the highest in the United States.

Pizza Hut franchises in California are expected to lay off approximately 1,200 drivers amidst the minimum wage increase.

The company will be relying on third party delivery companies such as DoorDash.

Southern California Pizza Co, a franchisee covering Orange County and the Inland Empire, has stated it will cut 841 salaried delivery drivers, while PacPizza, which operates Pizza Hut establishments across California, will eliminate jobs in February.

“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.”

The CEO of popular restaurant chain Jack in the Box, Darrin Harris, expressed his views on how this may impact the industry this week.

The business owns Jack in the Box, which has about 43% of its 2,200 locations in California, and Del Taco, which operates about 63% of its 591 locations in the state.

Harris expects to raise prices 6% to 8% companywide, mainly because of the California wage hikes.

BJ’s, a restaurant chain headquartered in California, has also stated that higher menu prices will reflect the wage increase. BJ’s has 59 locations across California.

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Also Read: Massive Layoffs in California Now Underway Prior to Holidays

Other Economy News Today

A new round of unexpected layoffs now hits Texas as more businesses file WARN notices advising of upcoming job cuts.

Online retail company Custom Ink just announced that it plans to close a Dallas area plant and lay off a whopping 256 employees early next year.

Custom Ink originally filed the notice with the Texas Workforce Commission advising of the layoffs.

This is the company’s latest move to ‘streamline’ costs about 11 months after it closed two other U.S. plants as part of a larger companywide consolidation.

It’s important to note that under the Worker Adjustment and Retraining Notification Act, an employer with more than 100 full-time workers must provide a 60-day notice before laying off 50 or more people at a single site.

So far in 2023, there has been approximately 23,231 layoffs in Texas across 219 businesses according to the latest WARN data.

California remains the #1 state with the most layoffs in the country.

In second place is New York followed by Texas, Washington, New Jersey, Florida, Michigan, and Georgia.

Below is a list of upcoming layoffs in Texas:

MV- Transportation Austin (South Yard). 778 job cuts by 12/31.
Vmware Inc. River Place. 577 job cuts by 1/26/2024.
MV-Transportation Austin (North Yard). 400 job cuts by 12/31.
Southwestern Health Resources. 288 job cuts by 12/31.

Also Read: A US Company Now Declares An Unexpected Bankruptcy

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