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Pizza Hut franchises in California lay off all delivery drivers ahead of $20 minimum wage increase
(www.sfchronicle.com)
this post was submitted on 26 Dec 2023
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It would take a lot to convince me that they haven't been discussing this for years and have been waiting for the right time. The market is now loaded with others to do the delivery, which was probably one of the considerations. I'm sure another was how to announce it where they can blame someone else; at least to the point of ensuring some will defend them.
The minimum wage increase is their excuse. What they are doing is outsourcing their delivery to a 3rd party (GrubHub, Uber eats, etc). They wont have to pay them anything, the customer will. They are decreasing their head count, payroll, insurance, taxes, benefits, etc. They will lose some sales, but that wont even be close to their cost savings. They will easily make more money while selling their product at the same price. Any business would love to be in the same position.
It's such a short sited goal though. Those delivery apps are going to start dictating terms and extracting money from restaurants eventually.
Delivery apps are not in a strong position though - both demand (customers) and supply (delivery personnel) easily change where they are on.