SAN DIEGO—Sixty-two Pizza Hut units in San Diego County were closed abrubtly on May 27.
According to Pizza Hut spokesperson Julie Hildebrand, the stores' operator, RLLW Inc., has not secured "worker's compensation," and decided to close the units. Hildebrand was not certain whether a lack of worker's compensation insurance was the core issue, but she insisted the matter wasn't related to worker safety or health.Related news reports confirmed that RLLW Inc. had let its worker's comp insurance lapse.
"We're hopeful this will be resolved quickly and the restaurants will be reopened," Hildebrand said.
No word on when the units might reopen. Based on pizza industry sales and staff size averages, the shutdown could cost Pizza Hut about $100,000 a day in lost sales and leave more than 1,200 employees out of work.
RLLW Inc. also is being sued by San Diego County's deputy district attorney for allegedly adding an energy surcharge to customers' orders without telling them (see Calif. Pizza Hut operator faces fines for charging energy fee).