Wendy’s Chief Operating Officer, Bob Wright, stated the company experienced a five percent wage inflation and they expect wages to rise at least four percent in 2017. He addressed possible options to accommodate the rising costs of business and inflation, and the unfortunate answer was to eliminate 31 hours of labor each week.
They can’t afford to pay $15 per hour to every employee when they’re selling four items for $4. As a business, they need to profit or their business will eventually fold. That’s basic business 101 – make money or close down.
The solution is to replace one job with another by purchasing self order stations. These machines allow customers to order on a computer screen, then their meal is prepared. This essentially skips the basic “register person” and this is guaranteed to irritate the pro-$15 an hour crowd.
“Last year was tough — 5 percent wage inflation,” said Bob Wright, Wendy’s chief operating officer, during his presentation to investors and analysts last week. He added that the company expects wages to rise 4 percent in 2017. “But the real question is what are we doing about it?”
Wright noted that over the past two years, Wendy’s has figured out how to eliminate 31 hours of labor per week from its restaurants and is now working to use technology, such as kiosks, to increase efficiency.
“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.”
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.
Instead of protesting for $15 an hour, the entitled people will be filling out job applications. Hopefully they’re doing that instead of milking the taxpayer by turning into a welfare queen.
Fast food was not designed to be a career. It’s a stepping stone into the real world for teenagers and a laid back job for retired folks.
If you want a career in the food industry, then learn how to become the manager, become a chef, or do something that pays a salary. Get your training and move up, don’t settle for being the person behind the register. Those jobs are going away with automation. Fast food workers shouldn’t get $15 an hour minimum wage because it’s not worth it.
Anyone who says technology is a job killer is incorrect. Technology is a job creator.
Wendy’s may get rid of the register person, which is one job. The machine that replaces the register person creates tons of new jobs. Who builds it? Who programs it? Who services it? Who provides training to businesses on how to use it? What if it breaks, who fixes it? Who tests it to ensure it works properly? Who delivers it and sets it up?
Those are all new jobs created by technology. Entitled workers OUT, skilled workers IN!
Thank you very much.
This machine wants $15 an hour.