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Fast food chains find a way around $20 minimum wage: Get rid of the workers
Washington Times ^ | April 24, 2024

Posted on 04/30/2024 5:04:32 AM PDT by Cronos

In response to recent minimum wage increases in California, fast food restaurants across the state are shifting to automation to get rid of wage-earning humans.

The move to making customers place orders at digital kiosks alleviates what owners say is the financial strain of rising labor costs after the minimum wage for the state’s fast food workers increased on April 1 from $16 to $20 per hour.

Harsh Ghai, a Burger King franchise owner who manages 140 outlets along the West Coast, is leading the transition to automation. He plans to introduce digital kiosks across all his restaurants within months — a drastic acceleration from his original timeline of five to 10 years.

...Rather than make less money, restaurant owners are exploring alternative strategies to maintain profitability. Reducing staff numbers appears to be their primary solution for lowering overheads.

“Undoubtedly we will lose some people. There’s no way around it. If we continue to maintain our current menu pricing and absorb higher labor costs, 100% of our restaurants won’t be profitable,” Ghai said. “We can’t raise menu prices because that will hurt traffic and we’ve already seen in the media the backlash from customers having to pay more for burgers because of food price inflation.”

(Excerpt) Read more at washingtontimes.com ...


TOPICS: Business/Economy; Front Page News; Government; Politics/Elections
KEYWORDS: minimumwage
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1 posted on 04/30/2024 5:04:32 AM PDT by Cronos
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To: Cronos

Gosh, if only someone could see this coming. Congratulations, liberals, you now see the real minimum wage is zero dollars per hour when you get fired because you have unreasonable demands to push pictures of different hamburgers on the computer screen.


2 posted on 04/30/2024 5:07:20 AM PDT by matt04 ( )
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To: Cronos
A case of "Be careful for what you wish, you just might get it."

People seem not to understand that the TRUE minimum wage is $0.00.

3 posted on 04/30/2024 5:08:43 AM PDT by EnigmaticAnomaly ("The truth doesn't damage points of view that are legitimate.")
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To: matt04

This is exactly what Deep State wants.

The destruction of the American middle class, the dependence of more and more Americans on the government for handouts.


4 posted on 04/30/2024 5:09:10 AM PDT by mewzilla (Never give up; never surrender!)
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To: matt04

1 minute 23 seconds...GMTA


5 posted on 04/30/2024 5:09:22 AM PDT by EnigmaticAnomaly ("The truth doesn't damage points of view that are legitimate.")
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To: Cronos

Been doing that in Europe for at least a decade. Wasn’t needed in US because people were paid to make careers serving fast food. Now things are different.

As it is (to others) please stop claiming that the Democrats didn’t expect this in response to the high minimum wage, they knew EXACTLY what would happen, and thus the Democrats are PERFECTLY HAPPY to throw people out of work to make their political points.

That’s how you fight them - don’t call them dumb, after all they outsmarted our side to install Biden in White House - simply call them EVIL, as that’s what they are.


6 posted on 04/30/2024 5:09:53 AM PDT by BobL (A society built on MERIT cannot survive on DEI (ref. South Africa, and now USA))
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To: Cronos

People will never accept correct, spit-free orders, delivered promptly.


7 posted on 04/30/2024 5:15:30 AM PDT by Flag_This (They're lying.)
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To: Cronos

I have frequent occasion to buy lunch from McDonalds. Presently there are 7 or 8 parking spaced detailed for picking up on line orders. Those spaces are mostly vacant. Not many online orders to be filled. The order kiosks inside are also not used. customers will stand in a short line at the now reduced in size order counter. Interestingly, most customers prefer waiting in line in their cars to order and then be served.

8 posted on 04/30/2024 5:19:05 AM PDT by bert ( (KE. NP. +12) Hamascide is required in totality)
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To: mewzilla
[The destruction of the American middle class, the dependence of more and more Americans on the government for handouts.]

Get more and more people dependent upon government money - EBT, SNAP - shoot I'm there, too, with SS at this point in my life - I'd rather work - the crash of 2008 ... sigh

Once Digital Currency is the only available means of BUYing and SELLing to the average person - well, then it's only short distance to the coming Mark of the Beast (not until the MIDDLE of the 7 years of 'Peace and Security' - which have NOT started yet)

Then shall be Great Tribulation - Grocery shopping will be impossible for Tribulation Saints (Revelation 20:4)

Buying groceries will be impossible for Tribulation Saints who refuse the Mark of the Beast. Look at how quickly a substantial portion of the world was locked down for COVID-19(84).



Revelation 20:4 King James Version

4 And I saw thrones, and they sat upon them, and judgment was given unto them: and I saw the souls of them that were beheaded for the witness of Jesus, and for the word of God, and which had not worshipped the beast, neither his image, neither had received his mark upon their foreheads, or in their hands; and they lived and reigned with Christ a thousand years.


https://www.biblegateway.com/passage/?search=Revelation%2020%3A4&version=KJV
9 posted on 04/30/2024 5:21:04 AM PDT by SaveFerris (Luke 17:28 ... as it was in the Days of Lot; They did Eat, They Drank, They Bought, They Sold ......)
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To: Cronos


Would you like fries with that?

10 posted on 04/30/2024 5:21:04 AM PDT by HombreSecreto (The life of a repo man is always intense)
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To: mewzilla

Kids today can’t get traditional 1st job experiences. No newspapers to deliver, no lifeguard IG positions, no food service. This is intentional. They are learning to be dependent or steal.


11 posted on 04/30/2024 5:21:31 AM PDT by cnsmom
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To: bert

I do not like the McDonald’s kiosk - I use it from time-to-time, as I did ordering chicken sandwiches last week (I’ve given up on Chik-fil-A long ago)

I STILL have to go to the counter to complete payment because I use the actual BOGO coupon from the previous receipt.

I DO love the BOGO deal on the receipt - takes about 1-1.5 minutes max to fill out with my phone.

Sometimes my order is so custom (Quarter Pounder with Cheese a special way) that I have to go to the counter anyway so I just skip the kiosk).

If the place is busy, I just go with the Big Mac (2 for the BOGO) as I don’t customize them, usually.


12 posted on 04/30/2024 5:25:42 AM PDT by SaveFerris (Luke 17:28 ... as it was in the Days of Lot; They did Eat, They Drank, They Bought, They Sold ......)
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To: Flag_This

The flavor suffers for a stupid cause.....................


13 posted on 04/30/2024 5:29:10 AM PDT by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
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To: EnigmaticAnomaly

GMTA written abbreviation for great minds think alike


14 posted on 04/30/2024 5:33:12 AM PDT by JayGalt (DEI = Didn’t Earn It)
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To: Cronos

No worries, soon the anti-capitalists will force the payment of taxes, unemployment, social security, medicare, etc, for every deferred human employee.


15 posted on 04/30/2024 5:34:09 AM PDT by jacknhoo (Luke 12:51; Think ye, that I am come to give peace on earth? I tell you, no; but separation.)
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To: Cronos
Unexpected , of course.

California has just legislated fast workers out of jobs.

Fortunately, the $15 minimum wage activists gave fast food chains a heads up on whats coming down the pike and gave them time to prepare.

McDonalds has been installing the infrastructure in their stores to automate just about everything.

You can order and pay from a cell phone app and even have your order delivered.
They have automated kiosks in all stores

They have most of the infrastructure installed to allow them to install robotics to automate most food preparation

It's really not that expensive and it replaces the repetitive drudge work employees hate with a better, more uniform production system so the employees left over are happier.

At current California mandated min wage and employee overheads it costs $65K per employee per shift to staff a store.

For two shift operation that comes out to $130K per job function.

Automation has never been so easy and inexpensive as it is now. At these labor prices, payoff for investing in automation is less than a year.

And that does not even take into account costs for employee labor disputes and workers comp lawsuits, harassment lawsuits, gender and racial discrimination lawsuits, personal injury lawsuits and all the other lunatic crap that California has brought upon employers.

16 posted on 04/30/2024 5:35:05 AM PDT by rdcbn1
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To: Cronos

PREDICTION:...The AUTOMATS will make a comeback!..........

17 posted on 04/30/2024 5:35:06 AM PDT by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
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To: Cronos; All

Saw a meme on Facebook—”if I have to order a meal standing up, I won’t be tipping”
Fast food places that have increased costs due to higher minimum wage. As a result, employees are being laid off or given fewer hours. Kiosks have no health benefits or sick leave/personal time off.

At least one fast food place is trying NO workers, other than the cooks.
I go to some places—chains like Ruby Tuesdays or 99—where if you pay by credit card they put the card in a reader and hand it to you so you can enter in the tip, then “sign it” with your finger. But those places are sit-down meals, etc not fast food.

What do they pay the wait staff, a mere few bucks an hour and “we depend on tips”? Any “do you want fries with that” employees shouldn’t expect miracles—there are so many costs in running a restaurant and it’s bad enough diners are paying a lot more now and getting smaller portions...

There was some kind of Wendy’s I read about some years back where they wound up getting only 29 hours a week because less than 29 meant no, or less, health benefits or other perques would have to be paid.


18 posted on 04/30/2024 5:35:24 AM PDT by raccoonradio
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To: Flag_This
Not to mention the hygiene and sanitary habits of the illegals from third world cesspools that the Democrats are bringing in the country.

And I'm not even going to mention what I caught two queer bakers doing with the jelly and cream doughnuts up in the Bay Area when I walked into the doughnut shop a 5 am.

19 posted on 04/30/2024 5:41:21 AM PDT by rdcbn1
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To: Cronos

think of all the coding jobs created from the automation of the fast food industry.


20 posted on 04/30/2024 5:43:18 AM PDT by teeman8r (Armageddon won't be pretty, but it's not like it's the end of the world or something )
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