https://www.msn.com/en-ca/money/news/mcdonalds-planning-kiosks-takeover/vi-AAygLzl
McDonald's Planning Kiosks Takeover 1 day ago
McDonald's will roll out self-order kiosks to 1,000 stores every quarter for the next two years, according to CEO Steve Easterbrook. The kiosks were already in roughly 3,500 US McDonald's restaurants as of March, or about one-fourth of its domestic stores. They will be in about half of US restaurants by the end of 2018 and in all stores by 2020. McDonald's locations in Australia, Canada, and the UK are even further along in kiosk usage. Customers who use the kiosks tend to browse the menu and order more, Easterbrook told CNBC this week, adding, "There's a little bit of an average check boost." As part of its modernization efforts, the fast-food chain is offering customers alternative ways of ordering, including through kiosks, the mobile app, and delivery through Uber Eats. McDonald's spokesperson Terri Hickey told BuzzFeed News the redesigned restaurants "still have cashiers — kiosks provide another option for customers to order and pay. We’re finding with kiosks, customers tend to feel less rushed, take their time, browse the menu, and often order more." McDonald's and other restaurant companies are wrangling with rising labor costs in the US as minimum wage hikes take effect in markets around the country. In the first quarter of the year, McDonald's payroll and employee benefits were 30.2% of sales, up from 27.8% during the same period in 2017. While Hickey did not say roughly how many cashiers are being replaced by kiosks, she said the restaurants are shifting those workers to other roles: "[With] the addition of self-order kiosks, restaurants are transitioning some roles to more customer engaging positions like Guest Experience Leaders and table service."
Definitely ironic that companies will replace humans with these (and other) machines. It's a definite challenge to the work force that will only grow as technology improves.
Will, getting gas has to be a real PIA for you, then.
he he he
:-)
Next thing you know, the process from ordering to fixing your sandwich will be all automated, no people required. Shoot, they'll probably even eat it for you. ;)
Matt
Matt
Gotta have those entry level jobs. To many rules and regulations in a lot of the workforce that won't let them pull summer jobs in those areas. But that is a whole 'nother topic.
So, I ask you, what is the better alternative? 1) Struggling franchises go under, thereby eliminating all their jobs, or 2) they further automate their service, making them more efficient and profitable, albeit at the expense of a few cashier jobs, perhaps.
Matt
Perhaps you overestimate me. ;-)
Several years ago, I was tasked with turning around my father-in-law's struggling manufacturing plant. He gave me carte blanche decision making power. The company had over 100 employees and was on the verge of bankruptcy due mostly to mismanagement and inefficiency. One of the first things I realized was they had 2 huge CNC machines that weren't being used because they couldn't find a competent programmer. Instead, they were making many parts using conventional manual tooling.
I made finding a CNC programmer a priority. Once he was on board, and we started utilizing the CNC machines, I had to let 25 workers go, regrettably. That was one of the most profitable moves I made, and one of the most difficult. In the end, we staved off bankruptcy and eventually sold the company. I eliminated 25 jobs by automating certain tasks, but I also saved 75 jobs by making the company profitable again. For me, that was a win, so I can relate to McDonald's situation,.
I know you guys want to make this all about minimum wage and politics, but sometimes it simply comes down to making logical business decisions.
Matt
All honesty..... I much prefer dealing with a kiosk or ordering online, etc. than dealing with a human factor. I really don't care for dealing/socializing with people, despite my sparkling personality...... I love to hunt alone as well as work alone, but that's just me. I know others who go into a panic if not surrounded by people, they fear solitude and have a great desire, even a need to socialize. To each their own.....
Plus... you don't have to tip a machine..... =D
I couldn't agree more.
"...or you can replace the bottom rung of the employment ladder, with a CNC machine or a kiosk.
Now you're making my point. I'm glad we agree. Whether it's a $7/hr employee, or a $15/hr employee, if you can be more profitable by automating those jobs, it only make sense to do so.
You seem to place a high value on low paying jobs. I don't. There will always be jobs for 16-18 year olds, if they are willing to work. I made more money mowing lawns at 12 yrs old than I could ever make taking burger orders. The same applies today.
Matt
I don't disagree with the automation, and the more businesses are regulated into high costs and expenses (many if not most times labor is the highest expense) the more sense it makes to automate. Always has been so and will continue to be. That is reality.
At the same time every action has a consequence, a reaction. Losing all those jobs will have a consequence.
Thru-out history technology and automation has replaced manual labor. Roles have adapted.
Matt
Since they did introduce them, I can honestly say that after the first week or so I don't see ANYONE using them. People just go right to the counter. If this holds true I can see them getting rid of them.
TRUTH!!! That's what my father told me when I had my first low paying job. "Don't like it? Then study harder so you don't have to do that all your life!"
That's were we differ, KPC. Kids will always have job opportunities, if they want them. Lawn mowing is just one of many examples. In my neck of the woods, there aren't any fast food jobs, or any other traditional minimum wage jobs, yet our kids still find work, whether it's cleaning out barns, mending fences, feeding livestock and pets, or any number of other chores that are necessary in a rural setting.
Our neighbors 3 kids have done our chores when we travel since their early teens, and are still more than willing to do it as grownups. We are grateful for their help and pay them well.
Anyway, I never had a desire to take burger orders, and I didn't need to spend a summer doing it to know that. So I think the kiosks are a great idea, especially if they make McDonalds more profitable.
Matt
As a side note, am I the only one who feels a little uncomfortable placing a fast food order with a senior citizen? I always wonder what circumstances caused them to be working there at that stage of their lives. I know you gotta do what you gotta do, but damn thats got to be hard.
Matt
Matt
I think we agree in general. I've never cared for legislated minimum wage. I think the markets should dictate the wage scale, not a bunch of politicians.
I guess where we differ is in the value you place on minimum wage jobs. To me, they were always a last resort, if I couldn't find any other better paying work. The thing is, I always found better paying work, whether it was mowing lawns, or selling sporting goods on commission, or cleaning carpets, or construction jobs, etc..there was always something that paid more than minimum wage. Heck, I made $12/hr at my first carpentry job at 17 years old.
As always, I've enjoyed our discussion. Thanks.
Matt
Worked at a bait store for a summer....hard work but fun. Don't remember the wages there.
Then moved up working at a vending machine company for a few years. Got fired and was the best thing that ever happened to me. I think that was like $2.65 an hour.
Decided I needed a change in life and went into the CG. While waiting I worked at a lumber yard for about 8-9 months....that might have been $3.25 an hour.
Forever happy and blessed I got fired from the vending machine company. That was a pivotal point in my life. That forced me to spread my wings and fish or cut bait with life. I got out on my own with a new life in new places and never looked back. I believe if I had not gotten fired I would have bounced around from job to job in the same town. I went into the CG, had a great fixing/flying career, survived it, did my 30 and retired. Ain't got no complaints at all.
I feel fortunate to have been raised in the Denver area. In the late '70s, '80s, and '90s Colorado was booming. Contractors were desperate for help, and were willing to pay well when they found a good worker. I paid for my entire college education by working full-time summer construction jobs and part time jobs during school.
What concerns me is wages have basically remained stagnant since that time, while the cost of living, educations, and everything else have continued to rise. I'd hate to be an 18 year old just getting started today. I guess that's why we see kids living with their parents well into their 20s and even 30s now.
Matt
Terry
Sorry, KPC, but your argument just doesn't fly with me. You admit that employers are desperate for good workers, but claim the lack of minimum wage jobs is the reason they can't find them? Hmm....
You DON'T have to endure a summer of minimum wage work to learn work ethics and be a good employee. I never worked for minimum wage in my life and I think I did OK. My work ethic was instilled in me long before I was of employment age by my mother and father. If I wanted to play baseball, I watered and mowed the lawn every week, and did my own laundry, and kept my grades up, and my room clean. If I wanted a car, I got a job to pay for it.
I was raised to believe that minimum wage was for those that needed it, and that it was a short rung up from welfare, not something that was a necessary step to becoming a valuable employee.
Matt
I just looked...it was $2.30 in 1976/77. I worked at a miniature golf place on the Boardwalk in Daytona. Think the pay check would vary around $25-$35 depending on how many hours I worked on Fri night thru Sun night and after Da' Man took his cut. As a first job...it was a good one to break the ice of employment and to get a few bucks for gas. I remember there was alot of good looking gals that liked to play golf....some in bikini's. I guess that was called a job perk back then.
