California’s $20 minimum-wage mandate officially went into effect on April 1, much to the dismay of major franchisees and Republican critics. AB 1228, hailed as “extraordinarily beneficial” by Gov. Gavin Newsom, faced immense backlash amid its initiative process back in Sept. 2022. That backlash has only intensified as fast-food chains scramble to offset the bigger pay checks.
In anticipation of the minimum wage hike, several franchises in the state laid off their workers in an effort to cut costs and remain profitable. Pizza chains, notably Pizza Hut and Round Table Pizza, began by cutting an estimated 1,280 delivery jobs this year, per a Wall Street Journal report. Southern California Pizza Co. announced layoffs in December of around 841 drivers across the state, FOX Business said. Small restaurants also followed suit. Two San Jose-based Vitality Bowls restaurants are currently being operated by two employees instead of the typical four. The restaurants’ owner, Brian Hom, told the WSJ that he is “definitely not going to hire anymore.”
