Wendy’s Restaurants To Offer Self Service Kiosks In Response To Higher Minimum Wage
The phrase "may I take your order" could soon become a part of history. It will be across 6-thousand Wendy's Hamburger locations across the country. The addition of self-service kiosks is expect to be completed by years end.
Economist are suggesting that this is the burger chains way of managing the increased cost of a higher minimum wage. By reducing the paid staff the establishment feels it can still serve its customer base and keep prices in line with what consumers are willing to pay.
The reason for the automated move?
Because the cost of capital isn’t that expensive and they can substitute those in for those entry level jobs.
Those comments were made to the Louisiana Radio Network by Tulane Professor of Business Mark Rosa. Rosa suggests that Wendy's won't be the only fast food franchise to move toward fewer employees and a more automated approach.
He suggests that the cry for a higher minimum wage across the country might have a backfire effect on those seeking jobs.
The expectation is you’re going to pay everybody that at every level. If they keep pushing that drum too loudly, I think it’s going to force them out of the labor pool.
You can expect states like New York and California to see the automated kiosks in place first. Those states currently have the highest minimum wage laws. Then the rest of the country will follow. Rosa believes that the move to automated attendants won't hurt the industry's business that much, especially when customers notice the price of a sandwich will remain relatively low because of this move.