AM I NEXT? NO LOVE AT TOAST

Boston, Massachusetts-based Toast, a cloud-based restaurant management software company providing an all-in-one point-of-sale system built on the Android operating system, has announced a restructuring intended to lower operating costs and a ten percent reduction in its workforce amid slowing demand for Toast’s tools for mobile ordering and payments.

The reduction in force will impact 550 employees.

Co-founder and CEO Aman Narang noted, "Our decisive actions to streamline operations and focus on core growth areas are reflected in our strong financial performance and the positive response from the market. We are committed to executing our restructuring plan efficiently to position Toast for long-term success."

According to an SEC filing, "On February 13, 2024, Toast’s Board of Directors approved a restructuring plan designed to promote overall operating expense efficiency, including a reduction in force that is expected to impact approximately 550 employees, as well as certain other actions to reorganize the Company’s facilities and operations. The Company expects to complete the Plan by the end of fiscal year 2024. As part of this Plan, the Company expects to incur restructuring and restructuring-related charges of approximately $45 to $55 million, primarily related to severance and severance-related costs and certain other costs related to facilities. Substantially all of these charges are expected to be incurred in the first quarter of fiscal year 2024.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT CALIFORNIA'S PIZZA HUT FRANCHISES

Pizza Hut franchisees in California have announced the layoffs more than 1,200 in-house delivery drivers as the direct result of a new California law that increases fast-food worker's pay to $20 an hour in April 2024.

In 2022, California Governor Gavin Newsom, at the behest of the unions, signed Assembly Bill 1228 into law, which mandated a minimum wage increase for fast-food workers to $20 an hour.

Plano, Texas-based Pizza Hut, owned by Yum Brands, declined comment on the actions of their franchisees.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? IS THE HANDWRITING ON THE WALL AT BURGER KING?

Miami, Florida-based Burger King, a major fast food restaurant chain owned by Toronto, Canada-based Restaurant Brands International, has announced that they will be closing approximately 400 stores by the end of the year.

The number of employees impacted is unknown since many of the locations are owned by franchises, some of which have already declared bankruptcy.

According to the company, 124 Burger Kings have already shuttered this year, and up to 400 face closure by the end of 2023. The company plans to focus on working with smaller franchisees to "improve the overall health" of the company's franchise system.

Joshua Kobza, Restaurant Brands International CEO, noted, "One of the most important factors is the willingness of our franchisees who have several restaurants to work with us and commit to implementing the changes necessary." And that the company plans to only allow high-quality operators to build or acquire existing restaurants that will operate regionally and with local ownership. There is a "fair degree of uncertainty regarding exact numbers" of future closures. This will depend, to some extent, on the pace of recovery in the business, which we've already begun to see."

Like most large restaurant chains, rising interest rates and rising minimum wages have an adverse impact on the business. The idea of paying a burger flipper $35,000/year seems outrageous, given the lack of an increase in productivity. It is not uncommon to see a $50 bill for a family of four, pricing fast foods beyond the range of its traditionally poor to middle-class customer base.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?