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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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Of course the can pay their drivers but think of the poor shareholders who may see 0.1% less profit or the CEO who may get only 99% of their usual bonus. Oh the horror!!
The Pizza Hut corporation will be fine. These are franchises we are talking about. The franchises pay an initial fee of $25k and then 6% + 4.75% sales/marketing fees to Pizza Hut.
It's the owners of the franchises that are responsible for fucking over their employees. While Pizza Hut could reduce their fees, they won't. Franchise owners could increase pay, but they won't. It's more likely that the franchise owners will offload deliveries to Uber and Door Dash and not have to worry about managing drivers anymore.
The entire model sucks, so I am not blaming franchise owners over the corporation. They are both at fault for relying on the extortion of teenagers or other people who don't have extremely profitable job skills.
https://franchise.pizzahut.com/faqs/
Edit: Also, these aren't one-off mom and pop franchise owners anymore. These are franchise owning conglomerates that likely have more negotiable franchise fees.
Won't offloading the delivery to those services cost even more? They take a pretty hefty cut of the sale. Last I heard it was around 30% of an order.
At least where I live, delivery food is extremely expensive for that reason. Restaurants have two prices: one for walk-ins and the other for delivery that they show on the apps. The restaurant business (especially for independent owners) has cutthroat margins already so the customer is always going to pay the fees, one way or another.
They just offload it on consumers by raising the price of the food and the ever present tip feature.
So done with post Covid timeline here.
They will likely make a deal with a delivery company, as they should. It is inefficient for every restaurant to have delivery drivers.
Pizza places have had delivery drivers for years, it’s not inefficient.