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Message
Automated kiosks do not save money
Posted on 3/10/19 at 11:22 am
Posted on 3/10/19 at 11:22 am
Thats the argument, you can cut headcount and save money, thats not true.
Who now operates that kiosk....how much do you make, probably more than minimum wage.
Or look at it another way, how much free time do you have in a day, and what do you do, you volunteer, free, to become a gas station attendant, bank teller, customer service rep.
Heck sometimes you dont even do it for free, some times you have to pay to do the job. Amazon has you pick out the item take it to the cashier, check yourself out, and then charge you to get it to your house...you dont actually think its free delivery, there is no money for nothing and the chicks for free (particularly the latter).
Who now operates that kiosk....how much do you make, probably more than minimum wage.
Or look at it another way, how much free time do you have in a day, and what do you do, you volunteer, free, to become a gas station attendant, bank teller, customer service rep.
Heck sometimes you dont even do it for free, some times you have to pay to do the job. Amazon has you pick out the item take it to the cashier, check yourself out, and then charge you to get it to your house...you dont actually think its free delivery, there is no money for nothing and the chicks for free (particularly the latter).
Posted on 3/10/19 at 11:26 am to trinidadtiger
You are incredibly dumb.
Posted on 3/10/19 at 11:28 am to trinidadtiger
You forgot facts and evidence in your assertion.
Posted on 3/10/19 at 11:30 am to trinidadtiger
Saves the fast food place money, which is the point.
Just like self checkout. Instead of one cashier per register you have one cashier for 4-6 registers. Meanwhile you're doing the store's job for free and not even getting a discount.
Just like self checkout. Instead of one cashier per register you have one cashier for 4-6 registers. Meanwhile you're doing the store's job for free and not even getting a discount.
Posted on 3/10/19 at 11:32 am to trinidadtiger
So instead of paying 4 people and a manager to take orders, you now pay 1 person to manage all the kiosks and assist if someone is having trouble.....also, reduction in thrown away food or giving it away because the user gets to confirm exactly what was entered
This post was edited on 3/10/19 at 11:33 am
Posted on 3/10/19 at 11:39 am to IT_Dawg
You are missing the point, I said saving money, not the restaurant saving money. How much money is your time worth, more than the kid who used to check you out at McDs? I would hope so. They just transferred the cost to you, and the cost is your time.
Posted on 3/10/19 at 11:42 am to trinidadtiger
If i use the self checkout, shouldn’t I get a price reduction for doing the work myself? You do the work that an employee should be doing, why does business get the extra profit? I never use the self checkout, i get my money’s worth by using the employee labor. The wonderful personal interactions are just lagniappe,
Posted on 3/10/19 at 11:44 am to trinidadtiger
Yes, but the alternative is raise prices to pay many people some artificially inflated wage for pressing one of 24 buttons.
Economics 101.
You are missing the point.
Economics 101.
You are missing the point.
Posted on 3/10/19 at 11:44 am to trinidadtiger
quote:There's a better than even chance that I'm faster on the kiosk than the kid taking my order.
You are missing the point, I said saving money, not the restaurant saving money. How much money is your time worth
Just sayin
Posted on 3/10/19 at 11:44 am to trinidadtiger
$15 isn’t total comp or expense. Payroll tax, health insurance, workmen’s comp, lost income due to staffing shortages, etc etc plus the not-yet-implemented mandates.
This post was edited on 3/10/19 at 11:46 am
Posted on 3/10/19 at 11:46 am to Bestbank Tiger
quote:
Just like self checkout. Instead of one cashier per register you have one cashier for 4-6 registers. Meanwhile you're doing the store's job for free and not even getting a discount.
and I will do that all day long, almost never have to wait even when the store is a little busy
Posted on 3/10/19 at 11:46 am to Big Jim Slade
quote:
If i use the self checkout, shouldn’t I get a price reduction for doing the work myself?
You save money by keeping prices down at the grocery store just as at the fast food location. Lower labor costs means savings for customers since competition keeps prices competitive.
Posted on 3/10/19 at 11:47 am to trinidadtiger
quote:
You are missing the point, I said saving money, not the restaurant saving money. How much money is your time worth, more than the kid who used to check you out at McDs? I would hope so. They just transferred the cost to you, and the cost is your time.
But...you were talking about the restaurant...
quote:
Thats the argument, you can cut headcount and save money, thats not true.
Posted on 3/10/19 at 11:50 am to trinidadtiger
quote:
Thats the argument, you can cut headcount and save money, thats not true.
Anyone making that argument alone (whether for or against) is a moron.
There are two aspects to replacing workers with kiosks: variable costs and fixed costs.
The use of employees is a variable cost based on the amount of business (both projected and actual). If a business has high traffic, it takes more employees to service all these customers; conversely if there is low traffic (or not the expected amount) then it takes fewer employees. For every employee there is training costs, time for a manager to do scheduling and taxes.
In contrast, using a kiosk (or kiosks) is a fixed cost as the number of kiosks remains constant despite how busy the business is. The only ongoing overhead items are the cost of electricity and any warranty/repairs.
With all this in mind, a busier business with minimal skill requirements (like a McDonald's, for instance) would benefit from a kiosk whereas a slower business or one that requires more skill may not benefit.
To put numbers into this... if it costs $10k to purchase, install and run a kiosk for the first year and then $2k every year thereafter (warranties, electricity, IT support, etc), that's a cost of $20k over 5 years. Paying an employee $7.50/hour for 30 hours a week comes out to ~$10,800 per year, which makes for a 5-year cost of $54k. So for every employee replaced the business is saving ~$5,400 per year over the course of 5 years.
Posted on 3/10/19 at 11:56 am to trinidadtiger
quote:
You are missing the point, I said saving money, not the restaurant saving money. How much money is your time worth, more than the kid who used to check you out at McDs? I would hope so. They just transferred the cost to you, and the cost is your time.
Go back and read the thread about the couple in MD who just saw their morning Egg McMuffins jump up a whole dollar as MD pushes toward a $15/hour minimum wage (the price jump is as they are now at $12.25, I believe). They've decided that it's not longer worth their money to purchase morning breakfast at that McDonald's any longer. As that price increases, more customers will feel the same.
Those dollars that had been going to the kid who used to check you out at McD's are now going to the kid at the grocery store or the kid working at the McD's across the state line where the minimum wage is lower. The owner of the McD's will eventually put in kiosks to lower his price back down to the range where customers will come back daily once again for a more affordable Egg McMuffin.
Posted on 3/10/19 at 11:57 am to Bard
And you didn't even go into the reality that kiosks don't need to get overtime. Also. To your point about uneven traffic. Sometimes places expect to be busy and staff that way and are less busy than expected. During those periods they are paying employees they don't really need. Conversely sometimes they get hit with busier times and get caught short-handed. With kiosks they eliminate the risk of not having enough staff during busy times without risking being overstaffed during slow times
Posted on 3/10/19 at 11:59 am to trinidadtiger
quote:
Automated kiosks
quote:
Who now operates that kiosk..
quote:
Automated
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