California Pizza Hut franchises are set to lay off more than 1,100 delivery drivers ahead of the mandated pay increase for fast-food workers in the state. This move comes as a response to the upcoming statewide minimum wage hike 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 across Orange to Stanislaus counties have announced cuts in their delivery services, resulting in the layoff of over 1,100 drivers.

The layoffs are expected to take effect in February, just before the state’s $20 minimum wage for fast-food workers is implemented. The pay increase is a result of Assembly Bill 1228, applicable to California workers employed by fast-food chains with over 60 locations in the United States. Currently, California’s minimum wage stands at $15.50 for all workers, and the increase is estimated to impact more than 500,000 workers statewide. The legislation also establishes a council to recommend minimum standards for work hours and other working conditions in partnership with state agencies.

Despite opposition from restaurant owners, who argue that they cannot absorb the increased costs without raising prices for customers, the legislation has pushed forward. While it is unclear whether the new wage requirements directly influenced the decision to eliminate first-party delivery services and subsequently the delivery driver positions, the companies have cited ‘a business decision’ as the reason for the move.

The affected Pizza Hut operators, PacPizza affiliates and Southern California Pizza Company, which include Southern PacPizza, CalPac Pizza II, and Cal PacPizza, did not immediately respond to inquiries from The Times. The impacted restaurants span across Los Angeles, Riverside, San Bernardino, Sacramento, Tulare, and Kern counties.

In response to the situation, the parent company of Pizza Hut stated that they are ‘aware of the recent changes to delivery services at certain franchise restaurants in California.’ They emphasized that their franchisees operate independently in compliance with local market dynamics and all regulations while continuing to provide quality service and food to customers through carryout and delivery.