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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's staggering how many people don't understand the difference between franchises and corporations on wall street in the internet age
It’s staggering how many people assume things without looking into them. In this case, it’s a corporation called Pac Pizza, LLC and makes over $25 million per year that’s doing the layoffs. I think they can pay their delivery drivers an extra $4 (according to the USA Today article linked above) per hour.
If they had to pay all of their less than 500 employees (according to the Zoominfo page linked above) the extra $4 per hour, and they all worked full time, 40-hour weeks all year, the company would have to pay just over $4 million in extra wages.
Assuming the franchises make the low end of the estimated revenue linked above, $4.5 million would be 16% of the total. Increasing prices by 16% to cover that cost is far less than the approximately 40% customers end up paying when using third-party delivery services.
All in all, this sure seems like the franchise corporation (probably in cahoots with Pizza Hut proper) is just using these delivery jobs as a political stunt in opposition of the mandated wage increase.
Here’s the takeaway, though. Any employer, including but not limited to mom-and-pop businesses, that can’t afford to pay its employees a living wage should not be in business.
It’s staggering how many people assume things without looking into them. In this case, it’s a corporation called Pac Pizza, LLC and makes over $25 million per year that’s doing the layoffs. I think they can pay their delivery drivers an extra $4 (according to the USA Today article linked above) per hour.
If they had to pay all of their less than 500 employees (according to the Zoominfo page linked above) the extra $4 per hour, and they all worked full time, 40-hour weeks all year, the company would have to pay just over $4 million in extra wages.
Assuming the franchises make the low end of the estimated revenue linked above, $4.5 million would be 16% of the total. Increasing prices by 16% to cover that cost is far less than the approximately 40% customers end up paying when using third-party delivery services.
All in all, this sure seems like the franchise corporation (probably in cahoots with Pizza Hut proper) is just using these delivery jobs as a political stunt in opposition of the mandated wage increase.
Here’s the takeaway, though. Any employer, including but not limited to mom-and-pop businesses, that can’t afford to pay its employees a living wage should not be in business.