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Pizza Hut franchises in California lay off all delivery drivers ahead of $20 minimum wage increase
(www.sfchronicle.com)
this post was submitted on 26 Dec 2023
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What pizza hut has 5 full time drivers? There's only 1200 people affected by this and 560 locations so a little more than 2 per location. Now let's look at the cost those delivery apps charge 30%. So if 35% of sales are deliveries now theyre paying Uber ~110k to deliver their pizzas. 28$/hr is high closer to 23-25$/hr for overhead. That's roughly what the delivery drivers would have cost and now they're getting way shittier delivery service and people are much less likely to buy pizza from them. Sounds like a dumb move.
5 too many? I just figured there'd be like 2 delivery people at any given time and trying to have 3 on Friday and Saturday night.
But as to Uber, that's the customers choice if they want to pay an arm and a leg to have pizza brought to their door. It won't much effect the pizza hut. Store dedicated delivery drivers are a thing of the past now. They've been outsourced.
I don't think you understand the business models of those food delivery apps. I used to own a restaurant and talked with many other restaurant owners at the time all those apps take 25-30% Uber was 30 the less known ones were 25%. This is outside of whatever the customer paid for the delivery. You also weren't allowed to change the prices for delivery to compensate. So it does affect the pizza hut.
More than paying everyone on staff an extra $10 an hour, though? If the delivery guy is getting 20 an hour plus tips, the in house staff won't be happy with making $22/hr.
States minimum wage is 16$/hr so it's not as big a difference. That's also not really an argument because then they could just leave and go to another pizza place that does do delivery if that made sense.