How This Restaurant is Handling the Raise in the Minimum Wage

  • 05/14/2016
  • Source: Townhall
  • by: Christine Rouselle
Fast-food workers have engaged in the #FightFor15 for quite a while now, but one chain has a different way of ensuring that labor costs remain low without having to raise the cost of a product. Wendy's plans on installing self-service kiosks at over 6,000 locations to replace cashiers. This is in response to laws mandating higher wages.

Wendy’s (WEN) said that self-service ordering kiosks will be made available across its 6,000-plus restaurants in the second half of the year as minimum wage hikes and a tight labor market push up wages.

It will be up to franchisees whether to deploy the labor-saving technology, but Wendy’s President Todd Penegor did note that some franchise locations have been raising prices to offset wage hikes.

McDonald’s (MCD) has been testing self-service kiosks. But Wendy’s, which has been vocal about embracing labor-saving technology, is launching the biggest potential expansion.

Wendy’s Penegor said company-operated stores, only about 10% of the total, are seeing wage inflation of 5% to 6%, driven both by the minimum wage and some by the need to offer a competitive wage “to access good labor.”

Yikes. Kiosks, of course, do the job of a human at the cost of $0 per hour.
 Source: Townhall
Tags: Issues: Culture War; Categories:

People, Places & Things

Article Index