Wednesday, August 7, 2019

The Minimum Wage Kills Again: Pizza Hut Closing As Many as 500 Dine-In Restaurants

Pizza Hut is closing as many as 500 dine-in restaurants.

They are moving to a less labor-intensive format.

“We are leaning in to accelerate the transition of our Pizza Hut U.S. asset base to truly modern delivery/carryout assets,” said David W. Gibbs, president, chief operating officer and chief financial officer for Yum! Brands, in an Aug. 1 earnings call.



  1. We were in Anaheim, California last week as a family. We looked into ordering pizza from a Pizza Hut there and noticed that they have started adding a "service fee" that was noted as being related to the cost of doing business in the state of California.

    I wondered to my wife if this was the result of minimum wage laws in that state, although I wasn't sure. (The location we were ordering from was a carryout / delivery location).

    1. And was it? Is there a point to this story?

    2. I presumed that was the case. Pizza Hut's website there simply indicated that the service fee was "related to the cost of doing business in the state of California".

      Otherwise, my point was simply that there are issues with raising the minimum wage and that some of those issues including slapping "fees" on customers who simply choose to order a pizza. My apologies for not making that very clear.