Unintended consequences always bite unions on the ass

The left-wing is incapable of grasping the simplest notions, whether they are political, social, or economic, and while it continues its campaign to boost the minimum wage for all workers toiling in hourly rate jobs, businesses will normally figure out strategies to circumvent the economic doom that those higher labour costs guarantee.

With this in mind, Wendy’s is slated to install automated, selfordering kiosks in 1,000 of its sites by the end of 2017. That equates to approximately 16 percent of all of its sites. Obviously, if successful (and it’s going to be), kiosks will replace most of the lowerskilled workers at fastfood chains as well as other kinds of companies around the world.

The Dublin-based burger giant started offering kiosks last year, and demand for the technology has been high from both customers and franchise owners.

“There is a huge amount of pull from (franchisees) in order to get them,” David Trimm, Wendy’s chief information officer, said last week during the company’s investors’ day.

“With the demand we are seeing … we can absolutely see our way to having 1,000 or more restaurants live with kiosks by the end of the year.”

Trimm said the kiosks accomplish two purposes: They give younger customers an ordering experience that they prefer, and they reduce labor costs.  

A typical store would get three kiosks for about $15,000. Trimm estimated the payback on those machines would be less than two years, thanks to labor savings and increased sales. Customers still could order at the counter.

Kiosks are where the industry is headed, but Wendy’s is ahead of the curve, said Darren Tristano, vice president with Technomic, a food-service research and consulting firm.

“They are looking to improve their automation and their labor costs, and this is a good way to do it,” he said. “They are also trying to enhance the customer experience. Younger customers prefer to use a kiosk.” […]

Demand for the technology is high, and higher-volume stores will get priority, said Heidi Schauer, Wendy’s spokeswoman.

Among the 1,000 kiosks will be close to 100 at company-owned stores. There already are kiosks in some central Ohio locations where Wendy’s has tested the technology.

Kiosks might not immediately replace workers, but instead shift labor to other areas, Tristano said. Kiosks might also mitigate the rise of wages, something Wendy’s noted as well.

Unions never learn. They’ve destroyed many businesses through their never ending desire to extract profitability from companies with no discernible improvement in productivity.

Eventually, the owners say enough or the business tips over. One thing is for sure, the kiosks don’t need rest breaks, don’t take drugs and work 24/7 without any whinging about over time or penal rates.

But no matter, Grant Robertson conducted a study into the Future of Work and concluded…oh… no one knows what he concluded.

 


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