California pizza chains cut hundreds of jobs ahead of $20 minimum wage

Fast food workers in California are losing jobs as chains prepare for a new $20 minimum wage taking effect next week. Pizza Hut, Round Table Pizza, and other pizzerias are cutting hundreds of jobs.

The wage boost comes from a new law signed by Gov. Newsom called the Fast Act, which targets large fast food chains and the healthcare industry.

Pizza Hut announced over 1,200 delivery job cuts in December ahead of the law. Some franchises are discontinuing delivery entirely due to rising costs.

The law could extend to similar food and drink businesses like ice cream, coffee, and donut shops. Panera tried unsuccessfully to claim an exemption for in-house bread making.

Prices are expected to increase at chains like Chipotle to offset the wage hike. It's unclear if Starbucks will comply, though they closed some California stores after committing to a small wage increase.