McDonalds Starts Rolling Out Automated Kiosks.

[Mai72]

https://www.google.com/amp/s/ijr.co...ce-them/amp/?client=ms-android-hms-tmobile-us

Well, the people who were demanding for $15 starting wages got what they deserved. It looks like this is just the start as I'm sure other fast food restaurants will be doing the same.

 

[HomerJS]

https://www.google.com/amp/s/ijr.co...ce-them/amp/?client=ms-android-hms-tmobile-us

Well, the people who were demanding for $15 starting wages got what they deserved. It looks like this is just the start as I'm sure other fast food restaurants will be doing the same.

Hell that's China. The country that have us black Big Macs

 

[Kazukian]

I've used a couple at different fast food places, and really like them, ordering with my phone is a pleasant experience too.

Anything that can be automated will be automated.

 

[Sonikku]

And if only the greedy minimum wagers hadn't demanded more than the $7.25 McD's has paid for years these kiosks definitely would never have happened ever. Probably. Possibly.

Maybe?

 

[HumblePie]

And if only the greedy minimum wagers hadn't demanded more than the $7.25 McD's has paid for years these kiosks definitely would never have happened ever. Probably. Possibly.

Maybe?

If the price to pay people is cheaper then people will be paid. If not, something else will be done. That's business.

 

[Sonikku]

No shit. And there's no way maintaining a kiosk costs $7.25 an hour. These kiosks were always coming as technology allowed it. This belief that businesses are pushing that it is solely the result of people pushing for a higher wage are basically using the protests as a smoke screen for doing what they were always going to do as the circumstances allowed.

 

[Svnla]

Funny this thread is about McD automation. A friend in Las Vegas just told me that yesterday a bunch of people hold several protests in front of at least one of the local McD. Their demand? At least $15/hour or else.

I also created a thread a few months ago about the former high ranking executive of McD talked about how the company and its franchises would face a lot of challenges and changes.

 

[K1052]

No shit. And there's no way maintaining a kiosk costs $7.25 an hour. These kiosks were always coming as technology allowed it. This belief that businesses are pushing that it is solely the result of people pushing for a higher wage are basically using the protests as a smoke screen for doing what they were always going to do as the circumstances allowed.

Pretty much. We've run a service business for generations and every time we could cost effectively use technology to replace human's we've done it, regardless of what the min wage was. Changes in how people want to buy things is also pushing this along.

 

[Commodus]

I always have mixed feelings about these. I do think the minimum wage needs to go up, and that this is classic "screw you workers" material. At the same time, though, I wouldn't want to insist on keeping crummy, thankless jobs with few career opportunities. Ideally, we'd create jobs in more meaningful spaces that give people a chance to move up.

 

[HumblePie]

No shit. And there's no way maintaining a kiosk costs $7.25 an hour. These kiosks were always coming as technology allowed it. This belief that businesses are pushing that it is solely the result of people pushing for a higher wage are basically using the protests as a smoke screen for doing what they were always going to do as the circumstances allowed.

It doesn't have to cost $7.25 an hour. It has to cost LESS than the $15 hour or more times the number of jobs it replaces. If 1 kiosk can replace in terms of productivity 2 or even 3 cashiers it can be a significant savings.

When people are cheaper than automation, then people get the jobs. When automation is cheaper, then the jobs go away. That has been the way for a very long time. Unless you're a Luddite.

McDonalds is just saying that with the increase wage to $15 as a min in many places now, that for those places automation is now much cheaper than labor. So they are installing automation and those labor positions are gone.

 

[K1052]

It doesn't have to cost $7.25 an hour. It has to cost LESS than the $15 hour or more times the number of jobs it replaces. If 1 kiosk can replace in terms of productivity 2 or even 3 cashiers it can be a significant savings.

When people are cheaper than automation, then people get the jobs. When automation is cheaper, then the jobs go away. That has been the way for a very long time. Unless you're a Luddite.

McDonalds is just saying that with the increase wage to $15 as a min in many places now, that for those places automation is now much cheaper than labor. So they are installing automation and those labor positions are gone.

The argument that it's the $15 min wage actually driving this is what's being overblown. I get into this argument with our CFO all the time when he comes in complaining about liberals, Obama, and the min wage. I just ask him point blank if we would still automate if the min wage did not go up (or even down) and the answer is invariably: yea. It's a no brainer business decision to replace humans with a couple grand worth of technology no matter what we're paying them.

 

[JSt0rm]

the stuff is barely food.

 

[HumblePie]

The argument that it's the $15 min wage actually driving this is what's being overblown. I get into this argument with our CFO all the time when he comes in complaining about liberals, Obama, and the min wage. I just ask him point blank if we would still automate if the min wage did not go up (or even down) and the answer is invariably: yea. It's a no brainer business decision to replace humans with a couple grand worth of technology no matter what we're paying them.

You automate when the cost of labor exceeds the cost of automation, no matter what the wage setup is. You don't automate just to automate. It's as a cost ratio analysis. When the cost ratio and the ROI is in favor of automation then as a business you should automate.

If the sticking point is that the increase to min wage is what changed the balance in favor of automation, then that is the breaks.

 

[HumblePie]

the stuff is barely food.

You don't have to eat it, just escape through the window!

 

[Smoblikat]

No shit. And there's no way maintaining a kiosk costs $7.25 an hour. These kiosks were always coming as technology allowed it. This belief that businesses are pushing that it is solely the result of people pushing for a higher wage are basically using the protests as a smoke screen for doing what they were always going to do as the circumstances allowed.

I dont think thats how it worked. I bet the push for higher minimum wages severely accelerated the automated kiosk installs, I bet its much less hassle to just keep paying employees $7.25 an hour, but you raise that to over double and it starts to make sense to install kiosks sooner than later.

 

[Balt]

Just hope you don't get caught behind the old people in line. There is no automated system simple enough for them.

But seriously, this is kind of inevitable. If people thought they were ever going to make a career of these jobs (or even enough to support a family), they were mistaken. What we should start to consider is the possibility that at some point automation make even make career-type jobs obsolete.

 

[K1052]

You automate when the cost of labor exceeds the cost of automation, no matter what the wage setup is. You don't automate just to automate. It's as a cost ratio analysis. When the cost ratio and the ROI is in favor of automation then as a business you should automate.

If the sticking point is that the increase to min wage is what changed the balance in favor of automation, then that is the breaks.

The technology McD's is using to replace labor has been around for many years now and $15 really isn't the tipping point. We started at half that. I'm betting that the resistance to change was much more institutional inertia rather than sheer math.

 

[KMFJD]

I saw them in the Maritimes last summer already...was ok, wish they had it in Quebec when i was there

 

[HumblePie]

The technology McD's is using to replace labor has been around for many years now and $15 really isn't the tipping point. We started at half that. I'm betting that the resistance to change was much more institutional inertia rather than sheer math.

There is always that factor. Usually the tipping point is higher than just being barely above due to institutional inertia as you call it. But eventually that push happens, in this case doubling min wage, and the inertia push back gets blown away.

 

[trenchfoot]

All I can say about this is that I'm glad there are still fast food venues where I can talk to a human when I have a problem with my order. I like to look at the person who screwed up my order eye to eye and have their throat within arm's reach while I'm at it.

I find no satisfaction discussing the merits of serving food that's toasty and well made through a monitor or speaker box while the person on the other end is safely ensconced behind a locked office door.

 

[nickqt]

Every single businesses will continue to cut employment whenever it is possible.

Technology and automation will continue to increase and will continue to allow every single business to continue cutting employment whenever it is possible.

Either we adapt as a species, or we don't.

 

[Sonikku]

I'm thinking in another 20 years there will basically be no need for unskilled labor in the work force. I imagine the Republican hope is that these people not smart enough for highly technical positions recognize their inherent obsolescence in the economy and kindly die in a gutter with minimal fuss.

 

[rstrohkirch]

You guys don't realize how little total operating profit an average McDonalds makes. You're only looking at 10% of net sales on average. A store that does 3 million a year makes around 250k if they do things right and has decent rent. That store has a crew payroll of around 450-550k. You add 50% to that payroll and look at what you're left with at the end of a year. These minimum wage changes absolutely pushed them to roll these machines out faster. Having large portions of your franchisees profits obliterated is not good and it's their job to come up with immediate solutions. McDonalds is also one of if not the strictest food franchise out there. They push standard, products, changes and you do it. You don't get away with opting out of products/machines/remodels and stay a franchisee.

There is a lot of work vs actual profit in a super high volume restaurant like these.

 

[Balt]

You guys don't realize how little total operating profit an average McDonalds makes. You're only looking at 10% of net sales on average. A store that does 3 million a year makes around 250k if they do things right and has decent rent. That store has a crew payroll of around 450-550k. You add 50% to that payroll and look at what you're left with at the end of a year. These minimum wage changes absolutely pushed them to roll these machines out faster. Having large portions of your franchisees profits obliterated is not good and it's their job to come up with immediate solutions. McDonalds is also one of if not the strictest food franchise out there. They push standard, products, changes and you do it. You don't get away with opting out of products/machines/remodels and stay a franchisee.

There is a lot of work vs actual profit in a super high volume restaurant like these.

On the contrary, I think most people here at AT actually do realize that if you read all of the replies to this thread. Same with grocery stores. Profit margins are really pretty minimal.

I'm not sure the rest of the country is aware, however.

 

[Kazukian]

I have gotten increasingly frustrated with the basic English skills of fast food workers, I ended up in a shouting match with a guy in LA at a fast food drive up, my order was all kinds of screwed up, my girlfriend cried, and to not be an ass, I just smile and nod when language is an issue, and take the screwed up order, because I never want a repeat of that episode. I could have done it in Spanish, GF is fluent in English, Korean, & good with Mandarin, we never could figure out which Asian language the guy spoke.

Using a kiosk or an app is so much better, no language issues.