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$15 minimum wage directly contributing to fast-food industry's automation push
Posted on 6/8/21 at 8:05 am
Posted on 6/8/21 at 8:05 am
quote:
Former McDonald's CEO warns $15 minimum wage directly contributing to fast-food industry's automation push
LINK
Former McDonald's CEO Ed Rensi is warning that the fight for a $15 minimum wage is directly contributing to the restaurant industry's push toward automation.
Last month, McDonald's announced plans to raise the starting hourly wage range to $11-$17 per hour for crew and $15-$20 per hour for shift managers. The fast-food chain noted in its wage hike announcement that it planned to hire 10,000 new employees over the next three months.
However, McDonald's current CEO Chris Kempczinski confirmed during Alliance Bernstein's Strategic Decisions Conference last week that the company is testing an automated, voice-recognition based drive-thru ordering system at 10 of its Chicago locations. Kempczinski noted that the artificial intelligence technology has 85% accuracy with filling orders, with workers having to step in for approximately one in five orders.
"There's a big leap from going to 10 restaurants in Chicago to 14,000 restaurants across the U.S., with an infinite number of promo permutations, menu permutations, dialect permutations, weather - and on and on and on," Kempczinski said, according to a conference transcript from FactSet obtained by Nation's Restaurant News. "Do I think in five years from now you're going to see a voice in the drive-thru? I do, but I don't think that this is going to be something that happens in the next year or so."
A McDonald's spokesperson declined to comment on how many jobs the move will impact. A representative for the National Owners Association, which represents McDonald's franchisees, did not immediately return FOX Business' request for comment.
McDonald's leading the way on fast food automation.
Wouldn't this just make their restaurants giant vending machines?
48
Posted on 6/8/21 at 8:08 am to goofball
What about the small businesses that can't afford to automate?
Posted on 6/8/21 at 8:08 am to goofball
quote:
McDonald's leading the way on fast food automation.
Wouldn't this just make their restaurants giant vending machines?
Might fix the ice cream machine
Posted on 6/8/21 at 8:09 am to goofball
Don't think that will work with Shakesha and her special orders.
Posted on 6/8/21 at 8:09 am to member12
Removing them is a goal. Price them out then with no competition charge as you want
Posted on 6/8/21 at 8:09 am to goofball
Well no shite. What did the Lefties expect? Did they actually think fast food restaurants we’re gonna pay $15/hr to a full staff of people.
They are some delusional idiots.
They are some delusional idiots.
Posted on 6/8/21 at 8:09 am to goofball
quote:
Former McDonald's CEO warns $15 minimum wage directly contributing to fast-food industry's automation push
Well, duh.
Posted on 6/8/21 at 8:10 am to AUriptide
quote:
Don't think that will work with Shakesha and her special orders.
Was any customer of a McDonalds in the Baton Rouge or New Orleans area getting what they ordered anyways?
Posted on 6/8/21 at 8:10 am to goofball
quote:
Wouldn't this just make their restaurants giant vending machines?
It's been working great in Japan for years.
And the machine can't screw up my order any worse then the 8th grade dropout usually does.
Posted on 6/8/21 at 8:11 am to goofball
quote:
Kempczinski noted that the artificial intelligence technology has 85% accuracy with filling orders
Significant improvement
Posted on 6/8/21 at 8:12 am to goofball
I used to defend unskilled workers by saying that I support them and will avoid automation. Now that I realize that they hate my guts and think that flipping burgers should support them for their life’s work, screw them. Bring on the automation as much as possible.
Posted on 6/8/21 at 8:13 am to goofball
Lets not pretend that this wasn't already happening.
Posted on 6/8/21 at 8:13 am to member12
quote:
What about the small businesses that can't afford to automate?
Too bad. No room for small businesses, especially outside of these posh, highly progressive super-zips where $15/hour isn't a big deal.
Posted on 6/8/21 at 8:13 am to goofball
Last I checked there's no 15 minimum wage nationally and certainly not anywhere I live and they're still pushing for automation.
Here's the simple reason why - machines only have their development cost and then they're free forever - humans have to be paid.
Whether the minimum wage is $1/hr or $100, it is always cheaper long run to not have labor costs.
If you don't like that, sorry bud, that's the world you live in.
Here's the simple reason why - machines only have their development cost and then they're free forever - humans have to be paid.
Whether the minimum wage is $1/hr or $100, it is always cheaper long run to not have labor costs.
If you don't like that, sorry bud, that's the world you live in.
Posted on 6/8/21 at 8:14 am to goofball
quote:
$15 minimum wage directly contributing to fast-food industry's automation push
Ripped from the headlines of "i told you so" weekly...
Posted on 6/8/21 at 8:16 am to goofball
quote:
Kempczinski noted that the artificial intelligence technology has 85% accuracy with filling orders
More accurate than current McDonald's employees
Posted on 6/8/21 at 8:16 am to dandyjohn
quote:
Here's the simple reason why - machines only have their development cost and then they're free forever
Free forever you say?
Posted on 6/8/21 at 8:16 am to heatom2
quote:
Lets not pretend that this wasn't already happening.
It's been happening for years... just like the push for raising the minimum wage.
Posted on 6/8/21 at 8:16 am to goofball
So when they get laid off from robots they get unemployment
Posted on 6/8/21 at 8:17 am to dandyjohn
quote:
Whether the minimum wage is $1/hr or $100, it is always cheaper long run to not have labor costs.
Bingo. When a business needs to cut costs, they usually go to labor first. You typically don't see businesses selling their equipment because they had a bad quarter.
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