Fast food chains cutting jobs in California

State minimum wage for industry will rise to $20

Fast food workers are losing their jobs in California as more restaurant chains prepare to meet a new $20 minimum wage set to go into effect next week.

Restaurants making cuts are mostly pizzerias, according to a report published by The Wall Street Journal. Multiple businesses have plans to ax hundreds of jobs, as well as cut back hours and freeze hiring, the report says.

Democratic Gov. Gavin Newsom signed the Fast Act back in September to require fast food chains with 60 or more locations nationwide to meet that wage increase after labor unions fought for it alongside the health care industry, which will also see a boost in wages in June.

“This is a big deal,” Newsom said alongside union members in September. “That’s 80% of the workforce.”

Pizza Hut announced cuts to more than 1,200 delivery jobs in December, USA TODAY previously reported. Some

Pizza Hut franchises in California also filed notices with the state saying they were discontinuing their delivery services entirely, according to Fox Business.

“The franchisee is transferring their delivery services to third-party. While it is unfortunate, we look at this as a transfer of jobs,” Pizza Hut told Fox. “As you know, many California restaurant operators are following the same approach due to rising operating costs.”

Round Table Pizza will lay off around 1,280 delivery drivers this year in the Golden State, and Excalibur Pizza has plans to cut 73 driver jobs, as well as 21% of its workforce in April, a state filling obtained by The Wall Street Journal shows.

The legislation indicated that businesses that “feature ice cream, coffee, boba tea, pretzels, or donuts” could meet the definition of a “fast food restaurant covered by the law,” according to The National Law Review’s breakdown of the bill. The law could extend to similar businesses that provide things like sweets and drinks.

Starbucks committed to at least a 3% increase to wages that went into effect on Jan. 1, according to a statement put out by the company.