McDonald's shoots down fears it is planning to replace cashiers with kiosks

[godlyitems]

Some bag fillers do get paid 13 an hour. They still (*)(*)(*)(*) up.

And they need to be retrained, and if they continue to fail, they must be let go.

[bryant.coleman]

Self-service kiosk is a nice idea. Other restaurant / fast-food chains should also consider implementing this idea. The positive is that McDonald's will be able to reduce the expenses, thereby making their food products more affordable. The main drawback will be that a lot of illegal aliens (especially those from Mexico and El Salvador) will be left without a job.  

[redandblack]

why don't you price fast food within an airport or stadium? As costs go up, so must the prices. Airports are a great example of how high prices become when costs go through the roof.

You sure couldn't have picked a worse example than airports who charge vendors ferocious amounts to give them access to an essentially captive audience. I'm talking about the real world as I am sure that's what the study which developed that cost increase used.

[redandblack]

Not only has that been debunked, I believe some of that debunking was done on this forum. But maybe you can explain how almost doubling the cost of 1/3 of your business expenses leads to a mere 4.3% increase in product costs?

The link I gave you when I posted that contains a link to the study that quoted that price increase. Please feel free to give me (and everyone else) the benefit of a link to a factual study that proves what I posted is incorrect. I'll be happy to thank you for that.

[tiffany8]

http://burgerbusiness.com/wp-content/uploads/McD_Aussie_BYO3.jpg


McDonald's is rolling out self-service kiosks in restaurants across the US that allow customers to order and pay for their food without ever having to interact with a human.

"At least half of the operators in my region are on the verge of collapse," one franchisee wrote in response to a recent survey by former Janney Capital Markets analyst Mark Kalinowski. "With minimum wage for fast food workers potentially increasing to incredibly high levels, we are facing a crisis situation."

Another franchisee wrote, "We are in uncharted waters. The minimum wage issue is a major threat to the survival of the operator community." The franchisee said McDonald's should be "putting every resource available" into finding labor savings, through technologies such as kiosks and automatic fry dispensers.

The price increases needed to offset any added labor costs "would cause a complete collapse in guest counts," the franchisee added. "I see no other options but the company paying to keep operators alive until they figure out how to reduce labor required by 30%."

http://finance.yahoo.com/news/mcdonalds-shoots-down-fears-planning-202513285.html

My take - From a profit standpoint, it makes sense. I do feel bad for potential cashiers, but technology is going to do it's thing. While I'm all about higher pay for retail and fast food employees, I don't want to prevent companies from taking advantage of cost saving technology.

I think that it's just an excuse by the franchise owners; they are businessmen and are out to maximize profits. They don't provide the jobs because they feel charitable, instead they were waiting for the technology to improve to a point where they could replace humans with automation/robotics; just that the minimum wage issue timing gave them the lame excuse to make the switch.

[peterson33]

This will spell the end for McDonalds. People like to serve by humans with a friendly smile not by machines!

that's just wishful thinking on your part due to your hatred of McDonalds. Do you know why the President of McDonalds earns MILLIONS while fry cooks make 8/hour? Because the President is expected to use his education and experience to make sure McDonalds won't fail while the fry cook and cashier is not.

a kiosk won't replace the President...... it can replace a fry cook.

Raising the minimum wage will hurt black male teenagers the most. Another unintended consequence that well intentioned, but woefully uneducated in Economics, liberals deny until it's too late, then they will simply suggest McDonalds is racist is the problem, not because economic policy that was forced on Mcd's caused it.

[peterson33]

I don't think jobs are lost.... because for every unskilled cashier replaced by a kiosk, the demand for someone who can work on kiosks increases. Maybe not 1:1, but there will be a demand for those that have the skillset to work on the technology.

The problem is.... cashiers that are downsized, aren't picked up by kiosk repair people. that 35 yo cashier will simply have a harder time finding a job if hers is the job that is cut.

[jeckman]

This will spell the end for McDonalds. People like to serve by humans with a friendly smile not by machines!

Do we? I want my food fast, and that's about it. If I want a friendly smile, I'll go to a sit-down restaurant.

[bryant.coleman]

I think that it's just an excuse by the franchise owners; they are businessmen and are out to maximize profits. They don't provide the jobs because they feel charitable, instead they were waiting for the technology to improve to a point where they could replace humans with automation/robotics; just that the minimum wage issue timing gave them the lame excuse to make the switch.

It is not the responsibility of the franchise owners to provide jobs for everyone. If someone want a good job, then he should get quality education and the necessary skills. If automation / robots can reduce the prices, then I am supporting it. Banning the usage of technology, with lame excuses such as unemployment is retarded. McDonald's is not the only job provider in the United States. If you can't get a job with McDonalds, then try the USAF or the local supermarkets.

[jayce]

It is not the responsibility of the franchise owners to provide jobs for everyone. If someone want a good job, then he should get quality education and the necessary skills. If automation / robots can reduce the prices, then I am supporting it. Banning the usage of technology, with lame excuses such as unemployment is retarded. McDonald's is not the only job provider in the United States. If you can't get a job with McDonalds, then try the USAF or the local supermarkets.

I'm not sure those businessmen will reduce the price of their products if they use automation systems for their business. I think they will increase the amount of production instead of reducing the price.

[tss]

i heard new york is pushing for $15 minimum wage.  i think its absurd but seeing as how devalued the usd has become it probably makes sense.  not sure how franchisees can afford such labor costs across the board without switching to kiosks for faster ordering.  or else say goodbye mcdonalds dollar menu. 

[SubversiveTech]

i heard new york is pushing for $15 minimum wage.  i think its absurd but seeing as how devalued the usd has become it probably makes sense.  not sure how franchisees can afford such labor costs across the board without switching to kiosks for faster ordering.  or else say goodbye mcdonalds dollar menu. 

The parenthetical argument I've heard time and time again is "if they increase the minimum wage, then my job at $20/hour (upper lower/lower middle class) is devalued!".

If the minimum wage increases to $10.10 at a federal level as Obama discussed in his 2015 State of the Union Address, I expect those grievances to amplify.

Who knows what the future holds.