Pizza Hut made over $6 billion last year, you’d think they could afford to pay their drivers.
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.
Technically it’s mega franchisees like Provender Capital Group’s “PacSun Pizza,” not PizzaHut that is going to be pocketing the cash from this move.
It’s all about maximizing profit.
Expending the least, while taking in the most.
There’s 19,000 pizza huts, but most all of them are franchises. It’s not “pizza hut” firing drivers over this. It’s franchise owners. Also, if you were to do some napkin math, 19,000 (I know. Just california, but that would hardly be fair to everyone else) pizza huts needing say…5 drivers each at 40 hours a week paid 20 means a cost of about 28 after insurance and such… that’d be 95 thousand drivers…$106,400,000 a week…$5,532,800,000 a year.
Shit gets expensive.
But face it. Delivery drivers make a lot in tips. People have been willing to do it using their own vehicles for decades while they make super low minimum wages. Making $20/ hour plus the tips will have the delivery guy out doing everyone else at the restaurant, which means their pay will have to go to like $35/hour which means a stupid pizza is gonna cost $30. Let uber eats handle the deliveries.
What pizza hut has 5 full time drivers? There’s only 1200 people affected by this and 560 locations so a little more than 2 per location. Now let’s look at the cost those delivery apps charge 30%. So if 35% of sales are deliveries now theyre paying Uber ~110k to deliver their pizzas. 28$/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.
Pizza in Boston delivered by door dash is routinely right about $30 before tip. My credit card offers free door dash premium whatever it’s called and I usually choose places offering a promo and tend to order early when there are also promos. That brings things down to the $20s. But it’s generally about $30 with tip even doing all that. If I’m not paying attention it’s easy to order a $45 pizza.
To be fair I don’t eat from pizza Hut or Dominos or other chains. Those might be a few percent cheaper.
What card is that?
Chase sapphire reserve. $595 annual fee seems crazy at first but if you use the perks it pays for itself multiple times over.
That’s half my point, though. You choosing to pay $30 through door dash or Uber eats is your choice. The restaurant isn’t charging way more for their pizzas because they have to pay everyone on staff a lot more. Delivery has been outsourced and so have the added costs that go along with it.
Are you figuring places only deliver one pizza an hour?
No more than you’re imagining each pizza hut only has one employee that cooks,preps, waits tables, takes orders, and delivers the pizza all on their own.
The ones around my place do.
They even have to be the bathroom attendants too but the cologne selection sucks.
$20/hour is only part of employee compensation. It does not include benefits or taxes. Your employer pays a lot of taxes on your behalf.
Don’t even get me started on the money and time taken to recruit, hire, and train new employees.
Don’t misunderstand me. I support a higher minimum wage. I am a firm believer that minimum wage should be $25/hour and increases should be tied to inflation.
Your employer pays a lot of taxes on your behalf.
That’s money they would have paid you anyway, and you would have to pay in taxes. Your employer is not out any extra cash, they’re just saving you the trouble.
Don’t even get me started on the money and time taken to recruit, hire, and train new employees.
For delivery drivers?
Know how to drive? If not, next. Here’s the pizza. Put it on a flat surface in the vehicle, don’t throw or flip it. Use Google maps to get to the house. Hand it to the customer. Come back. Done.
Delivery guys should always outdo nearly everyone else at pizza joint, you seem to lack a necessary depth of knowledge and experience to make your conclusions.
They could have just focused on providing a better delivery experience, instead they’re going to let uber drivers deliver cold pizza with the wrong soda.
With higher delivery fees! Why on earth would anyone even order Pizza Hut after this? If I’m paying obscene delivery fees and jacked up menu prices through doordash or whoever anyway, I’m getting better food than that. Or just eating at home like I end up doing every time I look at the total from one of those services.
It doesn’t even make sense as sure, Uber doesn’t pay drivers much and Pizza Hut won’t have to employ them, but customers will have to pay more. So Pizza Hut could have just said “due to increases in wages we have to implement a delivery fee”, and actually paid their drivers. They’d rather do this dramatic ‘omg we have to fire them’ thing though.
Its a punitive measure. Our lords want to send the message that further wage legislation will not be tolerated.
I agree. It might make financial sense for them as far as reducing payroll and management costs, but it seems just as likely to reduce their sales by as much as that saves. To me it feels like a political statement “how dare you expect us to pay employees!” where they pretend it’s not possible for them to make it work. Which is fine. If a business depends on paying subsistence slave wages, it should just close.
Oh no, whatever shall we do if they put themselves out of business?!
Boomers keep threatening the collapse of the fast food market, “no one wants to work anymore”. Like they think anyone is going to miss the absolute shit that is fast food. Why are we supposed to care?
“In retaliation we shall destroy their Pizza Hut. Let us see how the uppity peasants like that!”
Not aboutdestroying, its about directing anger back to the working class. Its a look what you made me do for standing up for yourself.
Sucks to be them when they refuse to pay for any staffing and close.
You are vastly overestimating the brain dead American population that will see the higher price, order delivery anyway, and then stop thinking about it.
Like, they just don’t think about how it will affect their finances at all. People order takeout and delivery every day without a second thought.
To be clear I am not victim blaming the poor, but we are beyond late stage capitalism here. They won.
This is a defeatist take and while the answer isn’t a super simple “just tell people to not order out and cook more” we can definitely do more to help people stop relying on eating out and fast food.
No. In the days you maybe added $3 to an order for delivery and added a tip. Now you pay a $5 delivery fee and tip plus 20%-30% markup. They cornered and ruined the market and only those with too much money will simply not care.
Except that’s not what’s happening at all. Go look at Just Eats stock price after aquiring grub hub for a few billion. Turns out, people actually do scoff at the delivery price of these services.
I’ve only ordered from the big ones to avoid fucky delivery services. It just eliminates the point of it.
Why on earth would anyone even order Pizza Hut after this?
More money than sense.
Businesses have long realized it’s easier and cheaper to rip off a smaller group of wealthier customers.
After winning on Prop 22, Uber/Lyft guaranteed drivers $13/hr. I’m not sure where the likes of Uber Eats/Grubhub stand in comparison, but even if we assume they’re also at $13/hr, that’s a full ‘federal minimum wage’ less than the Pizza Hut drivers would need to be paid. For doing literally the same job but with way, way worse benefits (e.g., having to provide your own insurance).
It’s actually insane. Prop 22 is a travesty.
$20/hr isn’t even what I would consider a living wage in California, and Pizza Hut is here proudly admitting they were paying their drivers substantially less than that. But the deliveries will still happen, just to even worse-paid people. It’s a crazy cycle of abuse of labor.
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Seriously. I don’t see why companies that were already paying for delivery drivers (eg, the chain pizza companies) don’t sell their delivery services as a value add. When I order a pizza from DoorDash, it doesn’t come wrapped in an insulated carrier and so often arrives cold. I’m not sure what else they could throw in but they’re just tossing it (no pun intended).
I’m also curious as to the numbers on this. I don’t know if this was done after a full evaluation of raising delivery service fees or other ways of addressing it, but the fact that they’re doing it in all of California instead of keeping it in markets like SF or LA makes me think it was a petulant act rather than a rationally justified one.
Right? Just charge me $5 for delivery and pay your drivers a decent wage.
Just as a clarification (not a defense) from someone that drives for DoorDash - every time the driver picks up a pizza order, they are required to provide photo proof that they own a pizza bag. I’m not saying this forces drivers to use them, but they have to upload different pics of their pizza bags sometimes with every pickup.
Edit: autocorrect
The reason you have to do this is because you drivers are notorious for having absolutely zero standards and a solid “idgaf” attitude.
Give them a low rating, then. Hardly anyone leaves ratings, and a 1 star could easily tank them below the 4.2 rating they need to avoid their account being deactivated. I’ve done over 600 runs and only 35 have left any kind of rating, for example. Super easy to tank the average.
Oh, I had no idea. Thank you for the clarification!
This is so weird to me because pizza is one of the few things I actually order for delivery… there isn’t much around here other than 3rd party services, which I don’t use because I’m rural and the way it works here is just gross. Had 6 come in for the same failed order while I was out on Tuesday (menu wasn’t open for that item but it was ordered through another platform, and 6 people came asking for it for the same order because of how the platform works). I can’t imagine actually working there.
But I suppose in more urban areas, pizza hut is competing with actually good food also on delivery (for a very steep markup people are apparently willing to pay or the services would die), so it’s no surprise they can’t compete on their own; and still also turn record profits. Heaven forbid they die in the region. 🙂
This is why I won’t order pizza from places that use a sub contracted delivery. It gets here like shite. No thanks.
It was not a good move on their part.
And they are going to charge for it. I hate pizza places that have done this. It’s at LEAST $20-$30 more now to get delivery.
Yeah. It’s pretty bad. It’s the good pizza places that do that, too.
If it even comes at all. I had several just disappear driving all over town and never show. Last one I got a bag of soup. That’s the plastic bag, with spilled bowl of soup, leaking out of said bag. Never again
Right? It’s pretty bad. A lot of the food drivers don’t really speak English, either, so you’re kind of fucked in some way each time you order.
(I don’t mind immigrant uber drivers, but it’s a pain when there are food issues and they can’t understand you.)
Honestly, that’s not much difference from how it’s been
It has been getting worse.
Out of curiosity, did you send that message recently or a day or two ago? My inbox says it’s been like 20m. Looking at the thread it says 2 days.
Definitely at least a day 🤔
I wonder if instances just take time to federate all content across to each other
If your business plan can’t make a profit while paying your people a living wage, than it doesn’t deserve to be in business.
Expecting people to live paycheque to paycheque in order to subsidize your desire to be a business owner is the Pinnacle of bullshit.
Pizza Hut is a joke in the bay area and Sacramento area. There are just too many good pizza places. I think it’s messed up, but I also think they aren’t doing well for more than just the delivery process.
Bay Area pizza is great if you want to spend $45 on a pizza
That’s good to hear. I left the bay area almost 20 years ago and I remember there being very little good pizza back then. Don’t get me wrong - there was some great food to be found, but the pizza wasn’t it
I can always find a slice anywhere better than Pizza Hut.
Look there is always better pizza, but I’m still going to have to buy Pizza Hut once in a while unless The Pizza Shop in SF starts selling stuffed crust
If you actually want cheap shitty pizza, then at least go to Little Caesars and only pay $5 for it
Pretty sure they aren’t $5 anymore.
And little caesar’s sells cardboard, not pizza. Just eat the box your pizza comes in if you want the Little Caesar’s® experience.
It’s honestly no worse than pizza hut. It’s not great pizza, but the quality is similar for half the price
Sorry, you’re wrong.
I think the only people who believe little caesar’s isn’t shit are those who were raised on it and got used to eating cardboard.
It absolutely is shit. But so is pizza hut. I might give pizza hut a slight edge, but just barely
They’re still charging $5 where I live. I can’t disagree about the cardboard, but it’s hard to beat the calorie/dollar ratio.
Try Tony’s pizza from Walmart.
If you’re feeling frisky, add your own extra toppings.
This is exactly why we have the type of shit we have right now. Because stuffed crust is more important than principles. I swear people have no willpower anymore.
I don’t get why people like stuffed crust anyways. It sounds like a good idea, but it’s trash
It was fine like 25 years ago when it came out. Tastes have since changed and there’s far more good quality food available even in the middle of nowhere.
Especially PizzaHut’s rubber cheese.
Other places do stuffed crust too.
Just a weird excuse to be shitty.
Wow you made a lot of assumptions about the type of person I am entirely off the fact that I genuinely enjoy stuffed crust pizza. You think me enjoying stuffed crust means I have no principles nor willpower? You might want to try not judging people so hard over incredibly unimportant things.
Wow… it took you 9 days to come up with that?
And, yes…that’s exactly what it means. I didn’t assume anything. The topic is literally avoiding buying Pizza Hut because of bullshit like this and your response was “But muh stuffy crust!”. I didn’t assume anything. You laid it all out for everyone.
1 guy isn’t going to change corporate America. Real change is only gonna come from execs and politicians, not from the 5 people who start a boycott.
There can be no flood if there are no raindrops.
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That saying doesn’t work because non-water floods exist
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A water droplet ain’t gonna form with 5 hydrogen atoms
Wow. The level of pedantry here while simultaneously missing the point is, quite frankly, staggering.
Way to argue semantical nonsense as opposed to the point.
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You mean some gimmick no one gives a fuck about? Have you seen a real pizza restaurant sell stuffed crust? I haven’t. And if they did I wouldn’t order it.
You’ll eat shitty pizza that tastes like ass purely because it has stuffed crust.
Bullshit like this is why everything in this country is going down the toilet.
lol someone else made a disparaging comment and was voted into oblivion. I never knew but it seems that people really like stuffed crust pizza.
In a fair economy every business pays for all of their externalities
Honestly I learned how to make bread awhile back and haven’t ordered pizza ever since. I can make my own better than they can.
F*ck the people who empower gig economy. Fuck Uber eats, door dash and everything similar.
They only exist because people use them.
People generally should use the best option. Often expense is the metric. These are able to operate at competitive rates because they get away with shenanigans. They should be regulated properly, then their rates would reflect that and people would use them less.
Already they are expensive AF. The menu prices on doordash can be like 50% more, then there are the service fees and more.
Yeah, last time I ordered through grubhub from a Chinese restaurant, by the time I paid the delivery fee, inflated menu price, service charge, and driver tip, I was looking at almost $90 for mid-tier Chinese food. I ordered by calling the restaurant up and ordering takeout and paid $40 instead.
I literally could order from halfway across the state and make a road trip out of it and still come out ahead.
100% agree. Too rich for me, or at least their local counterparts Foodora and Wolt, but that is highly subjective. I guess many just place a higher value on date night with PJ’s and a bed.
Once they fully stop subsidizing them with VC capital we’ll probably see the return to traditional delivery
Yeah, it’s this. The only thing innovated by DD or UberEats is avoiding regulation. This is the real cause of all of the enshittification that everyone is seeing. It’s been the plan all along; charge an absolutely unsustainable price, jack things up when you’re the only option. DD is already well along this pattern; it used to be much cheaper, and it’s still going to go up.
I look forward to the downvotes again because everyone has their heads so far up their asses but we are the problem. Fuck us.
We are the reason we are racing to the bottom. We expect cheap & fast and we don’t care how it happens as long as it does.
I think about this a lot whenever Airbnb comes up. People mention it and I’m like airbnb caused rents to rise a lot, and I just get deafening silence.
Honestly I would respect “I know it has externalized costs I’m not paying for, but it’s convenient and I accept it’s not the best thing” more than awkward silence or clumsy justifications.
I’m guilty too, sometimes. I should probably order directly from the restaurant instead of using seamless or whatever
It’s not like housing is inherently capped. Cities choose to pass and enforce zoning laws that limit the number of housing units - shortages drive up prices, which homeowners love.
Blaming AirBnB for taking up a fraction of housing units in a market that is profoundly short on housing because of the NIMBY greed of residents is missing the forest for a tree.
I look forward to the downvotes again because everyone has their heads so far up their asses but we are the problem. Fuck us.
We are the reason we are racing to the bottom. We expect cheap & fast and we don’t care how it happens as long as it does
Yep. Some More News had a sobering bit in their video on the generation war about how Millennials are also responsible for fucking up the world for the people coming after us like the Boomers were (as in, the real problem lies with politicians but we do make it worse in some ways). The gig economy was one example of fucking shit up for Gen Z without us realizing it at the time.
(Obviously the major problem here is that somehow DoorDash and Uber Eats get to pay people less, poorly written regulation that carves out concessions to make shit worse for everyone.)
Been a while since I watched it and I don’t know how well it holds up but it was interesting.
I will challenge that the advent of the gig economy did exactly what it was supposed to do and it never benefitted worker. All it did was enable employers to further justify stripping benefits like a living wage and private healthcare and all those other things that full-time employees benefit from.
Sharing economy is the same bullshit. Exploit our need for cheap and fast over all the rules and regulations that evolved in the industry they’re undercutting.
Uber fought tooth and nail against providing rides for handicapped users “let the market sort it out”
Airbnb did and does the same on all those things hotels have to do.
Mark my words years from now those undercutting companies will die or morph into the industry they killed as costs go up because they will stop being able to skirt the decades of regulations that existed to benefit us all.
This is what happens when you have a bunch of entitled techno bros thinking they can design a better wheel.
Doordash and UberEats are neither of those though. They’re expensive as fuck and often show up with cold food. The only thing they have going for them is convenience.
You can say fuck on Lemmy
I’m pretty sure certain instances actually censor out swear words automatically.
You could say it anywhere except in front of insecure reddit mods.
For every else (like me) who had never heard the term ‘gig economy’ before:
A gig economy is a free market system in which temporary positions are common and organizations hire independent workers for short-term commitments. The term “gig” is a slang word for a job that lasts a specified period of time. Traditionally, the term was used by musicians to define a performance engagement.
AKA a “contractor”, AKA a 1099 (vs. W2) ‘employee’.
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The lock-downs definitely aren’t at fault for doordash and ubereats, they were there and gaining traction before covid was discovered.
wat
Bruh, idk where you’re at, but in the major cities we were using Grubhub back in 2016. Though I think it was “Eat24” back then. And Door Dash had existed even earlier. This one isn’t on the 'rona.
This is one of the most ignorant comments I’ve seen on the internet today.
The new law, a modified version of the FAST Act proposing a minimum wage increase for fast-food workers to $22 an hour this year, has faced resistance from major chains such as McDonald’s, Chipotle and Chick-fil-A. These chains said they plan to raise menu prices to offset higher operating costs.
Can’t trim executive pay or profits. Must cut out services. All hail the mighty dollar.
Same reason my bank branch has tons of empty stations and only two tellers and a long line. Same reason they’re closing the drive-through lanes where my mom banks in the midwest. Convenience for customers is now the enemy getting in the way of higher profits.
I recently introduced my partner to The Sopranos. It opens with Tony Soprano commenting that he feels like he got into the scene (the mob) at the end of its heyday. I feel that way about capitalism.
Anecdotal for sure, but I can’t remember the last time I actually had to step foot in a bank. I’d argue that banks CAN cut staff as I can’t be alone in not really needing to go into a physical shop to bank anymore. All my banking requires an appointment.
However, fast food, in particular pizza places, need delivery drivers. Especially pizza hut. I can’t for the life of me think that people are going to go in and sit at a pizza hut anymore… what is it, 1988?
They’ll probably partner with door dash and triple the price of delivery doing so
This is exactly what I assume they’re doing
If you read the article you would know this IS exactly what they’re doing.
Then I assumed correctly and have no reason to read it further
Also half the quality of service. I only order delivery from places with dedicated delivery staff because without fail, food delivered by a gig worker is cold, incorrect, missing, late or otherwise fucked up.
The trend has been that delivery is getting worse, not better
To be fair, just because you may be out of touch with some part of business or society doesn’t mean it no longer exists or operates… That’s incredibly self centered. We are all out of touch with various industries, but that doesn’t mean it no longer operates as intended.
Every pizza shop I’ve been to in the last 5 years has been bustling with sit down eaters. Just not pizza hut.
Can’t trim executive pay or profits. Must cut out services. All hail the mighty dollar.
Well I mean yeah, how else are CEOs going to have 15 yachts? You think having only 14 yachts is acceptable? Yeah right!
Well I obviously need a yacht to dock my yacht in. What kind of sloven only has one billion kind of oligarch do you think I am?
To be fair, most of these are franchises. Meaning the restaurant itself makes money from the food sales and rats the costs of supplies and workers.
The franchise, like McDonald’s, makes their money from the real estate.
The consensus seems to be Holsten’s
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It would take a lot to convince me that they haven’t been discussing this for years and have been waiting for the right time. The market is now loaded with others to do the delivery, which was probably one of the considerations. I’m sure another was how to announce it where they can blame someone else; at least to the point of ensuring some will defend them.
The minimum wage increase is their excuse. What they are doing is outsourcing their delivery to a 3rd party (GrubHub, Uber eats, etc). They wont have to pay them anything, the customer will. They are decreasing their head count, payroll, insurance, taxes, benefits, etc. They will lose some sales, but that wont even be close to their cost savings. They will easily make more money while selling their product at the same price. Any business would love to be in the same position.
Weird part is that San Diego increased their minimum wage to $15 an hour in 2016, $18 an hour in 2018, and $20 an hour in 2020. Papa Johns and Domino’s still have delivery drivers. I can’t actually speak to Pizza Hut, since I never order from them.
Methinks this is just more corporate greed that will be masked as “inflation,” even though their costs just went down.
It’s such a short sited goal though. Those delivery apps are going to start dictating terms and extracting money from restaurants eventually.
Delivery apps are not in a strong position though - both demand (customers) and supply (delivery personnel) easily change where they are on.
I’d say that they’d lose more business than that, but I guess not considering how happy people are to pay ridiculous prices to Uber Eats and DoorDash for fast food that’s already overpriced. My neighbors get DoorDash from fast food places 5-6 times a week.
The minimum wage increase is their excuse.
Why would they need an excuse? No one cares about the principle of the matter except anti-consumerist hipsters who weren’t eating their pizza anyway.
Shareholders. They might have a opinion on massive layoffs and long term success of the company
Pizza hut is trash anyways, unless you live in the middle of nowhere, you’ve probably got a better local pizza place. Please support them instead of a chain.
Shit, even Dominos is better than Pizza Hut these days. (Though yes, local is better.)
Domino’s is horrible but still better than Pizza Hut.
I actually quite like Dominos, specifically their Philly Cheesesteak pizza. They really turned their brand/quality around a few years back.
But there is obviously better pizza out there.
Most chains don’t have stuff crust. But I agree with you anyway
And? Stuffed crust is terrible. Ever wonder why real pizza places don’t bother?
Have you even been to a real pizza place or is Pizza Hut all you know?
Taste in food is subjective and not everybody hates something that you hate.
I never knew that people felt so strongly on this question. TIL
Eh, local places are usually bigger scams than chains.
That heavily depends on location. Here in Philly competition among food places is so tight that a lot of places offer a better deal than the chains and have much better products.
I think they meant scams towards workers, which checks out in my area at some businesses. Obviously this is unique to each area and not every local place.
Exploited workers? In this capitalist hellscape? I don’t believe it!
Though honestly most local places I’ve been in are doing much better for their workers than any of the corporate run chains. Most are either family run, or community local places.
Is no one else going to blame an overly specific minimum wage? I couldn’t find anything too specific but in California, it looks like:
- fast food minimum wage: $20/hr, going to $22
- gig drivers: $15/hr
Of course they’re going to outsource drivers, This looks like a nice Christmas gift to UberEats/DoirDash
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They should create incentive by taxing the shit out of businesses and offering tax breaks for actually offering living wages and benefits to their employees. If the “correct” answer in capitalism is to find the cheapest solution,
I think this is a novel idea and an interesting thought experiment.
If we passed this federally, I think it’s most likely we see an outsourcing - to ourselves. With the market floor raised so high across the board, distortionary effects would then kick in and what I posit we’d see is a shitload of both business and consumer flight to rural areas.
Prices for rent, obviously, would go through the fuckin roof. This would cause a mass exodus to surrounding areas, but I think business investment would actually beat them, because if you’re paying 60k/year anyway, you may as well put your facility in the cheapest possible location.
Businesses are already shifting toward being physically close to their suppliers/major logistics hubs, to save cost elsewhere, so big “shipping towns” (which are, essentially, a few big wholesale distributors and nothing else) could see massive investment.
What’s weird for me is that this may actually help our housing situation in the medium term, as explosive growth in these areas even out demand hotspots.
Idk about high raises in labor market floors to predict much beyond that, but it’s something I’ll definitely check out.
These aren’t completely pie-in-the-sky proposals, either. Simply tying maximum compensation for publicly owned companies would start this kind of a chain rolling, in a smaller way, I think. Labor prices would jump ludicrously just from the amount of low-skill labor employed by major companies.
Inflation would be bonkers and you can’t raise interest rates too fast or you basically nuke your economy, so how this plays out for the average joe is anyone’s guess. Fun to think about tho
I can’t for the life of me think that this will be good for them though. Food delivery services are notoriously shitty/slow. If I order a pizza and have to wait for an intendent person to come pick it up and deliver it when ever is convenient for them? Thats not gonna work for me… and I would be loud and boisterous to the company.
In an alternate timeline where restaurants never thought to offer delivery (or regulated against it…since objectively it is kind of strange how we do it now), but did offer takeout, I’d expect private food courier services would have thrived. Especially in denser areas.
Even in an era before DoorDash and internet, it’d be a call-center/concierge style.
But also gig drivers aren’t getting the minimum. Uber and Lyft promise you’ll make the minimum through the ride fares if you work a whole hour. But that doesn’t happen. Many people don’t notice because the pay is distributed across the rides but some have actually done the math with their daily totals. They also just lost a court case about paying mileage, so they not have to reimburse mileage they weren’t doing before.
With a business climate like that it’s no wonder everyone else is jettisoning delivery drivers. The rideshare companies are getting away with murder by comparison.
This is what’s so annoying. I had literal arguments with both people online and IRL about this massive jump in minimum wage and how it would have this exact effect. I was told over and over that it didn’t work like that, that people needed a livable wage, etc. My argument was that not all work has equal value and that minimum wage jobs aren’t intended as jobs you raise a family on. They’re a stepping stone as you enter the workforce and begin to develop/gain skills to be able to do work which has more value. With the insane increase in fast food minimum wage only one of two things will happen. Option one is that the price of the food shoots up and can no longer be competitive. Why would you pay $30 for fast food when you can go to an actual restaurant and get better quality for the same price? This leads many of these fast food joints to close and with it the jobs. Option two is that companies find ways to cut services and/or automate to offset the increased cost. The end result here is that once again the jobs go away.
I would love to have a proponent of this explain to me how no jobs is preferable to lower paying jobs. As a highschool kid, I was grateful to have my minimum wage job.
Except minimum wage should support you fully because, as you may have noticed in high school, NOT everyone working at your minimum-wage workplace was “a high school kid”. Walmart and a lot of other places that skate by offering minimum wage effectively outsource the rest of the money they SHOULD be paying to the government - what you may know as “your fucking taxes”. You wanna see less people using welfare? You should be out there demanding companies pay more - some estimates are that Walmart’s profits are effectively buoyed as much as 40% by taxpayer-funded welfare programs like EBT, SNAP, TANF, and various forms of rent assistance, and there are similar numbers for other minimum-wage retailers and workplaces.
“BUT THAT MIGHT RAISE PRICES”, you cry? Well, here’s the good thing - by raising MINIMUM wage, you can go to your boss and say “hey I’m only making $17 an hour doing [highly skilled job], that’s only $2 more than minimum, could we work out a raise?” And if you get your whole workplace to do this, or enough of your fellow coworkers doing similar positions, they would definitely feel far more compelled.
Actually everyone I worked with in high school was a high school kid. The only person older than that was the store owner, and she obviously was making more due to her larger investment/risk.
Here’s the problem with your entire pitch, I’m going to be paying taxes regardless. They will never go down, they will only ever go up. If one problem is solved the government will simply use my taxes for something else. This is how government works. Additionally, increased wages get passed onto the customer. I know many people here like to pretend that they don’t, but prices either go up, or quality/quantity go down. That IS what happens, so I’ll be paying for it either way.
Your whole argument about an increase in minimums allowing other workers to request raises also doesn’t work. Instead what happens is the increase in pay causes an increase in prices, negating the gains across the board. We just saw this exact thing play out during covid. Stores had to very quickly increase the wages they were paying, prices went up, negating the increase in wages.
My argument is that the jobs DIDN’T go away, they just became gig jobs. In the big picture the increase had no effect except for speeding up the transition from one form of delivery job to a different form of delivery job.
Min wage has to cover living expenses because otherwise people are forced to make up the difference from wellfare. So in effect it is a subsidy from taxpayers to companies that pay low wages.
Full time, min-wage workers cannot afford rent for a 1-bedroom flat in 90% of the entire country.
But that IS the jobs going away. You converted a full time job into an occasional time job. Say you were make $15/hr 40hrs/week. That’s $600/week. Now they convert your full time job into a gig job and you’re making $20/hr, but you only work 10 hours per week. You’re now making $200/week. You now need to try and make up that $400/week shortfall in your income. Good thing you got that massive pay increase though, right?
Not ‘part-time’ work , gig work. Ubereats, Deliveroo etc. A lot of these guys are working full time. Maybe you weren’t paying attention to those guys you said couldn’t argue with you.
I thought we were supposed to hate gig work because it exploited the workers. Wasn’t that the entire point of California’s AB 5? Why all of a sudden are we in favor of gig work?
I’m not
FYI: They’re part of Yum! Brands : KFC Pizza Hut Taco Bell Banh Shop (minority investor) The Habit Burger Grill
I will continue to boycott their “foods”.
And Yum Brands is owned by PepsiCo.
Oh my god no wonder they have shit sodas
Heresy! Pepsi is my sugar poison of choice!
Not since about 25 years ago. It was spun off from PepsiCo in 1997. And in fact it was not called Yum until sometime later than that – it was never Yum under PepsiCo.
Edit to add: I still don’t go there, of course.
Your body thanks you
Taco Bell was the last holdout with their $1 beef burrito (which was actually a double beef burrito)
They removed it and added shittier $2 items with less beef and more bullshit. Idiots ate that shit up, so we’re left with expensive garbage.
KFC, lol. So fucking overpriced and it’s shitty chicken anyways.
Honestly, with all the grocery delivery options, eating out just doesn’t make sense these days. I haven’t eaten out in almost a year since I got Walmart+.
since I got Walmart+
There’s something really disappointing about reading that.
Habit started out so good and now it tastes like ‘optimized supply chains’ like all the other shit places.
Don’t forget A&W and Long John Silvers
They no longer own A&W according to their Wikipedia entry.
I didn’t know they scooped up The Habit. I love The Habit. Rest is crap. Which means they’ll ruin The Habit soon
I think you’re better off sticking to local.
I’m not in California, but if Pizza Hut thinks I’m ever going to go out of my way to get one of their shitty pizzas, they’re very wrong. There are plenty of other places that deliver.
I go out of my way to avoid them already. They changed their sauce or something like 10 years ago and it tasted awful.
I’ve found it’s highly variable by location and how much of a fuck the franchisee/owner cares.
I think they removed the msg and it was game over for their pizza. Used to think of it as like premium pizza (but with heartburn) now I think of it as a more expensive version of dominoes.
Do you know to what specific change in their recipe this is owed? I haven’t had pizza hut in 20 years, their ground meat looked like it was shaped to resemble small bones like you would for maybe dog-treats. idk, that was the last time trying their pizza.
That’s not at all what they think. They know people will pay for delivery through DoorDash or whatever and also pay the tips and the service fees. It costs them less money and passes on the majority of what they were paying onto you so they can keep prices the same and make bigger profits.
It’s insane to me that people are willing to pay the exorbitant delivery fees. Whenever I’ve checked, especially lately, it doubles the price even before tip (including things in my immediate area). Uber/Lyft/doordash all want to offset their costs onto both the restaurant and customer. I can’t see that it’s sustainable in the long term to do this.
It’s not that insane. People pay for convenience. That’s all this is.
If you’re broke as fuck then I get it but I would bet most people using DoorDash aren’t worrying about their finances.
If you do it every day for every meal then ya you may have issues.
Personally I’d rather just hop in my car and pick it up.
I used to game with a lady who ordered DoorDash constantly and was also constantly complaining about the price and how they were always late and how they could never find her apartment. I didn’t get it.
I’ve lived in California for the past 12 years and have never seen anyone I know get Pizza Hut. We have better options
If you read around this thread you’ll see that lots of Californians ordering it specifically because of stuffed crust. It’s weird.
Ya can’t shine shit…
lol I’ve always said that you can’t polish a turd lol lol
Completely agree with you.
A few months ago I was suddenly craving a pan pizza… out of nowhere. In the 80’s, Pizza Hut pan pizza was the shit. I was pining for the nostalgia, I suppose.
The pizza was got was awful. Truly horrible. Pizza Hut is dead to me.
It’s the old adage: You can make a pizza so cheap, nobody will eat it. You can make an airline so cheap, nobody will fly it.
- Gordon Bethune
That was such a big deal back then. Haven’t touched it since. Thanks for taking a bullet so the rest of us can keep on us memories in tact
I worked there out of high school. They put in something like 5 pumps of oil into a large pizza pan, and the raw dough sits on top. A personal has a single squirt, the other sizes are somewhere in the middle.
You liked it in the past because you had no developed palate as a child and your stomach handled the grease better, plus a good amount of nostalgia. It was always bad lol.
I’m still a fan of Domino’s pan pizza. A lot better than their regular pizzas IMO.
had a similar experience a while back. our local pizza place was closed, so we ordered from pizza hut. twice as expensive for a shit pizza with a cardboard crust and boneless wings that were clearly pre-cooked frozen chicken that had been microwaved for a bit and then, rather than being tossed in sauce, were just put in a togo container and allowed to sit in the sauce. I’ll literally go to bed hungry before I buy another crumb of food from pizza hut.
Didn’t Pizza Hut use to be a high quality sit-down restaurant that didn’t even do delivery and had a big salad bar? At least, that’s how I remembered it, because I don’t think I’ve thought about Pizza Hut in years.
Also, it is worth noting that these are companies that franchises Pizza Hut, not Pizza Hut owner Yum Brands. This is more of a case of companies being horrible in general instead of a large company being horrible.
The 20 dollar minimum wage is however well deserved, and probably should be higher considering the cost of living here in California.
I’m from NJ and a few months back I went to our local Pizza Hut with my mom since it had been years since we’d been there. Its on the corner of two major roads (one is literally called Main Road) and in a shopping center.
We pulled up and there was one car there and the entire place looked dark, we weren’t sure that they were even open, even though it was like 4:30 PM. We walked in and it was a ghost town, an employee finally appeared and we asked if they were open and she said they were. For like the 30-45 minutes that we were there we were the only people there, even for pick-up.
Speaking of which, when I used to live around NY/NJ, every single random pizzarias or Italian places in general I’ve been there has been absolutely amazingly good. Maybe there is too much competition for Pizza Hut there.
Yeah in my smallish town we have a mom and pop pizza place, domino’s, pizza hut, straw hat, round table, mountain mikes, and little Caesars all on the same road. If we want good pizza we go to the mom and pop shop or straw hat. If we want cheap pizza we go to little Caesars. All the others in between we just don’t even consider
We almost ordered pizza hut because it stayed open the latest, I even had the pizza and wings in the cart about to checkout but the total was just a bit too high for not a great selection of toppings and we ended up just getting taco bell instead
Yeah, there’s at least 5 other pizza places within a few miles. IDK why my mom always chooses Pizza Hut over them 🤷♂️
So i work in the industry
Pizza huts are barely open with even as low as 2 employees at a time. Little ceasars had 10 workers on the holidays
Every franchise could vary but not really lol the original owners of all those pizza huts are no longer careee
/uuuhmmm burp
When I was home for Christmas my mom said that she went there with my dad and their friends a few weeks ago. There was one person working and they said they couldn’t wait on my parents and their friends because they had to run the entire place themselves (make the pizzas, handle the drive through, watch the cash register, etc…). For my 4 year old niece’s birthday she got Pizza Hut again. Apparently now when you call to place an order it goes to a call center, so she had to fight with that for a few minutes and then finally decided on driving there to place the order.
Damn for a company that’s been shutting down locations I’d think it be cheaper to pay their employees better than lose all those customers. My state alone has seen them shut down nearly every location.
Anyone remember reading that pizza had the highest profit margins in the restaurant industry?
And the price has? Tripled? Quadrupled?
And the ingredients are worse? And you get less?
I wouldn’t consider buying pizza without 3 or more coupons going to the same transaction.
Huh, so it was a global thing then, here Pizza Hut became more expensive than every local pizzaria, and Domino’s is even worse, it’s like they compete on who can raise the prices more before closing.
It’s literally: cheese, bread, tomato sauce, and cheap processed meats.
I stopped eating at Domino’s when they changed their 3-topping $8 large takeout deal to 1-topping.
The amount of greed coming from these companies is insane, and it only exists because there are people willing to pay for it.
that will surely help their business
