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

[redandblack]

If the minimum wage were increased to $15 an hour, prices at fast food restaurants would rise by an estimated 4.3 percent, according to a new study. That would mean a McDonald’s Big Mac, which currently goes for $3.99, would cost about 17 cents more, or $4.16.

The study from Purdue University’s School of Hospitality and Tourism Management also found that in order to compensate for the higher cost of employee compensation at limited-service restaurants, or those without table service or tipping, if they decided to change food sizes rather than prices, the Big Mac would shrink somewhere between 12 and 70 percent.

http://thinkprogress.org/economy/2015/08/03/3687171/15-minimum-wage-big-mac/

Yepper - a whole bank account busting $.17 more for a Big Mac. Kinda sets your hair on fire, doesn't it?

[ezly]

but look on the bright side of this..video games will be a big seller because these kids will be staying home with mommy and daddy until they are 30 something now..facebook will have more revenue from ad sales because will be home doing nothing but sucking off their parents...

[Daewoo]

Yup globalism sucks so does these machines that cut our jobs so the company can save a buck.

Wrong, you used to have jobs but libs legislated them out of existence.

[rodzimajid]

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.

Self checkouts are also beginning to make a comeback in supermarkets and hardware stores. And many tasks in automobile assembly plants are now accomplished by robots. It happens when the cost of unskilled labor rises to nonsensical heights.

[SubversiveTech]

Yup globalism sucks so does these machines that cut our jobs so the company can save a buck.

It's not like anybody really WANTS to work at Mcdonalds. Well, maybe the Executives do...

If we could somehow make better jobs for unskilled labor, perhaps without the stigma of fast-food, nobody would give a damn if McDonalds was entirely autonomous.

[rio3232]

Yup globalism sucks so does these machines that cut our jobs so the company can save a buck.

Tell that to the people who designed, sold, installed and maintained the machines.

Do you feel sympathy for those who own/operate cemetaries or funeral homes? The rate of burials by year end 2015 will be about 1/2 what it was in 2000

Revenue is down as cremations are much cheaper. Employment is down.

Should we mandate people to be buried because jobs have been eliminated?

If a fast food joint finds a way to pay employees what the govt mandates, and people still show up in droves, then good for them.

On the other hand, if we the people continue to support Democrats, and businesses must automate and cut staff to remain viable, then so be it. We knew what we were doing when we voted Democrat.

[godlyitems]

Tell that to the people who designed, sold, installed and maintained the machines.

Do you feel sympathy for those who own/operate cemetaries or funeral homes? The rate of burials by year end 2015 will be about 1/2 what it was in 2000

Revenue is down as cremations are much cheaper. Employment is down.

Should we mandate people to be buried because jobs have been eliminated?

If a fast food joint finds a way to pay employees what the govt mandates, and people still show up in droves, then good for them.

On the other hand, if we the people continue to support Democrats, and businesses must automate and cut staff to remain viable, then so be it. We knew what we were doing when we voted Democrat.

Why not have both ? Get rid of jobs that the kiosks can handle, but pay the fry cooks and burger flippers a wage that keeps them just above the poverty line.

[ended]

The government has inflated the cost of one input, so alternative inputs look more attractive. It makes sense to anybody without a PhD in voodoo economics.

[rio3232]

If the minimum wage were increased to $15 an hour, prices at fast food restaurants would rise by an estimated 4.3 percent, according to a new study. That would mean a McDonald’s Big Mac, which currently goes for $3.99, would cost about 17 cents more, or $4.16.

The study from Purdue University’s School of Hospitality and Tourism Management also found that in order to compensate for the higher cost of employee compensation at limited-service restaurants, or those without table service or tipping, if they decided to change food sizes rather than prices, the Big Mac would shrink somewhere between 12 and 70 percent.

http://thinkprogress.org/economy/2015/08/03/3687171/15-minimum-wage-big-mac/

Yepper - a whole bank account busting $.17 more for a Big Mac. Kinda sets your hair on fire, doesn't it?

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.

[fontana]

but look at all the new jobs that are being created building these machines...overseas...

[rio3232]

Why not have both ? Get rid of jobs that the kiosks can handle, but pay the fry cooks and burger flippers a wage that keeps them just above the poverty line.

They will still need someone to empty trash, clean the trash in the parking lots etc. McD's and others have automated beverage fillers at the to go window.

Wally World has self-pay and many stores have increased the number of self-pay lines. They began with a couple but have increased the amount. They know that by reducing the live cashiers and creating lines that people will go to the self pay yet continue to patronize Walmart because of low prices. You'll have a choice, wait in line for service or do it yourself. 1 employee monitors 8 self-pay stations at many Wal marts. I'd call that a success.

[godlyitems]

They will still need someone to empty trash, clean the trash in the parking lots etc. McD's and others have automated beverage fillers at the to go window.

Wally World has self-pay and many stores have increased the number of self-pay lines. They began with a couple but have increased the amount. They know that by reducing the live cashiers and creating lines that people will go to the self pay yet continue to patronize Walmart because of low prices. You'll have a choice, wait in line for service or do it yourself. 1 employee monitors 8 self-pay stations at many Wal marts. I'd call that a success.

when did i say anything to the contrary ? i'm ok with these self service machines.

[rio3232]

when did i say anything to the contrary ? i'm ok with these self service machines.

we have nobody to blame but ourselves. We were told that the regs by the EPA were for our own good and would not hurt the economy. We were told that illegal aliens help the economy and should look the other way rather than demand they be deported. The list goes on. For too long we've been "patting ourselves on the back" for being so progressive and "inclusive" that we did not see that the power brokers pulling the strings of Democrats were deliberately dismantling the working class by wrapping their policies in the cloak of "compassion and environment"

We all have one last bite at the apple in 2016. We can go against hollywood and the media and put a Republican into the WH. Then, we must demand that the GOP do something about turning around this ship. If full GOP control can't effect postive movement within 4 years, then we're doomed anyway.

[KriszDev]

Get rid of jobs that the kiosks can handle, but pay the fry cooks and burger flippers a wage that keeps them just above the poverty line.

Fry cooks are going away too. But yea, just because Roomba means we don't need people pushing a broom doesn't mean there aren't jobs. As long as we have problems, there are jobs. Accomplishing more tasks with simple automation that used to require a person means we are still just as productive but now have extra human resources to meet more challenging needs.

[eaglerock]

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

Can we believe they haven't incorporated the robotics into Ronald McDonald?

You would think they could focus on making more healthful, better tasting food for humans before putting humans out of work.

I believe you are correct. Three years from now they will start closing outlets.

[fungfung]

If the minimum wage were increased to $15 an hour, prices at fast food restaurants would rise by an estimated 4.3 percent, according to a new study. That would mean a McDonald’s Big Mac, which currently goes for $3.99, would cost about 17 cents more, or $4.16.

The study from Purdue University’s School of Hospitality and Tourism Management also found that in order to compensate for the higher cost of employee compensation at limited-service restaurants, or those without table service or tipping, if they decided to change food sizes rather than prices, the Big Mac would shrink somewhere between 12 and 70 percent.

http://thinkprogress.org/economy/2015/08/03/3687171/15-minimum-wage-big-mac/

Yepper - a whole bank account busting $.17 more for a Big Mac. Kinda sets your hair on fire, doesn't it?

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?

[tigervod]

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.

If only they could roll out a robot that could actually get an order correct...then we'd have something. It's easy to type the order in correctly, but to get the person filling the bag with food to do it right...that seems a challenge beyond decades of trying.

[godlyitems]

If only they could roll out a robot that could actually get an order correct...then we'd have something. It's easy to type the order in correctly, but to get the person filling the bag with food to do it right...that seems a challenge beyond decades of trying.

Maybe if the bag filler got paid $13/hr instead of the below poverty wage average of $7.75, they would try harder to ensure everything's correct since it would be a valuable job to lose.

[Lugaticaa]

This could spell the end for a lot of fast food places. We may be forced to actually cook our own food more often. The horror!

[Loqkani07]

Maybe if the bag filler got paid $13/hr instead of the below poverty wage average of $7.75, they would try harder to ensure everything's correct since it would be a valuable job to lose.

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