Sometimes major companies make huge operational mistakes, and Frito Lay, a subsidiary of PepsiCo, has done just that. The company recently made major cuts to their delivery driver’s wages by around 33% (almost $30,000 for some drivers) and many drivers opted to quit. Before the wage cut, drivers worked on salary as well as a commission system. The company chose to do away with the commission system, opting for a “bonus” system instead. Many drivers relied on the commission system to increase their salaries. The wage cut was a nationwide move for the company, but it has backfired in New York City. Out of 245 drivers for the Brooklyn, Manhattan, and Bronx boroughs, 47 of them quit. That is roughly 20% of Frito Lays delivery drivers. The company has made attempts to spread out their remaining delivery drivers and have even had managers step in to deliver goods, but the attempts are failing drastically.
Many bodega owners are being forced to go without Frito Lay’s products, with some store owners reporting that they haven’t had a delivery in months. This is a major set back for many stores because Frito Lay makes a lot of products (30 different brands) that are found in bodegas. Some of these brands include Doritos, Lays, Grandma’s cookies, Funyuns, Rold’s Gold pretzels, Matador meat snacks, and more. The shortage has become so prominent that bodega owners are getting desperate. They have been searching out delivery drivers on other routes and trying to bargain with the drivers to deliver at their stores.
Back in 2016 when PepsiCo’s chief executive Indra Nooyi first announced the pay cut plan, the news was not well received. Drivers threatened to go on strike if the company continued with the pay cut, but the company responded by saying they would simply hire replacement drivers. On Frito Lay’s website in big bold letters, they state that their mission is to “delight their consumers”. It’s safe to say that this mission is not being accomplished in New York City.