From Jed Graham’s article at Investors Business Daily:
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.
Does this surprise anyone? The more labor costs, the more companies have to adapt to the new realities of the marketplace.
If higher wages are forced on fast-food restaurants, it stands to reason they will either:
-raise their prices accordingly (which can cause fewer customers/lower volume), and/or
-find ways to lower labor costs (bye-bye to the workers who can most easily be replaced).
So Wendy’s is the first to automate ordering. And, as the article points out, it probably won’t be the last.
Nor is it likely to be the only way this industry figures out how to reduce labor costs.
But keep raising that minimum wage, guys. Everyone knows there’s no down side. Right?
Er…..right?
