Thanks To 'Fight For $15' Minimum Wage, McDonald's Unveils Job-Replacing Self-Service Kiosks Nationwide

Ed Rensi Mr. Rensi is the former president and CEO of McDonald’s USA. As the labor union-backed Fight for $15 begins yet another nationwide strike on November 29, I have a simple message for the protest organizers and the reporters covering them: I told you so. It brings me no joy to write these words. The push for a $15 starter wage has negatively impacted the career prospects of employees who were just getting started in the workforce while extinguishing the businesses that employed them. I wish it were not so. But it’s important to document these consequences, lest policymakers elsewhere decide that the $15 movement is worth embracing. Watch on Forbes: $15 Minimum Wage, What We Can Expect ...

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Los Angeles workers protest for higher wages, union rights in 'Fight for 15' movement

Hundreds of workers across Los Angeles, including at least 40 who were arrested, joined a national effort for higher wages in what is being considered a "day of disruption" for businesses Tuesday morning in downtown L.A. and near Los Angeles International Airport.

http://www.yahoo.com/news/los-angeles-workers-protest-higher-150430722.html

They cut their noses off to spite their face... because they are soooo... Progressive

Nawwww... there will plenty of jobs popping up...like "Kiosk Repairman" when I plant my foot thru the screen when it shorts me one McNugget.

yes,,because McDonalds doesnt suck so much that its profits have been bombing for years

and technology has not been replacing jobs until people asked for (but never received) more pay,,,

Technology doesn't really replace jobs, it simply changes them from unskilled work to skilled labor.

kiosk replairmen, software developess to creat the kiosk, network engineers to cable them up, steel/metal fabrication for design. .....it takes many many people to implement such a change. ...it' actually created jobs that one could make a career out of......

but surely, since the point is to save money,, it replaces many more than it creates

,,the point is spending less money...


and McD is out the door anyway,, considering the appeal was the price and the 'quick service'

its going to be a blast waiting behind joe schmoe trying to serve themselves for what I imagine is mostly pre prepared food,,,

,,,,with all the true fast food competition out there,,,?

this is the last hoorah after trying the 'dollar menu' to keep customers

...............for those who would like to better themselves...................

 The unskilled labor work force could  replace the illegal workers. (So they have health coverage).

Then the cries of poverty, racism and for Socialism will be intense.

But.. since this country has ALREADY  been set up for economic collapse and internal unrest/ martial law and WW-3
 they can't blame Trump... " He Inherited It"
And Obama will be laughing his as@ in Dubai or calling in the blue helmets, from his U.N. office - for a round up of the dissidents.


Happy New Year

It may not save ANY money....actually it could cost MORE money...but if it brings in MORE money by being more efficient than it doesn't necessarily mean less jobs.

for example.

Say a typical employee can process and sale 500=$4 cost is $2500 hamburgers in a day, and their profit margin is 25% or $1 profit. Meaning profit would be $500.
On this.
So let's say this McDonald's is staffed 24/hrs a day...you need 3 workers(each working an 8 hour shift) at $15/hour $15x24hr=$360/3 employees, each employee makes $120 take home.
This means Their profit for the day is $500-$360=$140 made for the company.

Now say one machine can quadruple the processing, meaning it can be process 2000 a day. 2000x$4= $8000. Their profit would be $2000 on this.
They can afford now to hire 4 skilled employees at a higher rate. Let's say $25/hr. Even keeping the 24hr model. $25x24=$600/4 employees each employee takes home $150.

$2000-600=$1400 in profit for the company.

Meaning the point isn't always "spending less money" sometimes spending more money but increasing production is the right way to go.

I think a desire for greater efficiency had more to do with self service kiosks than a desire for avoiding an increase in minimum wage.

If any employment issue had an effect on pushing self service kiosks it's the high turnover rate. Which has more to do with job satisfaction than wages. People will stay in crappy paying jobs far longer than they should if they're happy with what they're doing.

If all crappy jobs pay the same amount of money, that doesn't do anything to keep people from going from one crappy job to a slightly less crappier job.


The point is efficiency.
Not really to "save money" so much as "use money more effectively for greater returns."


Why would you have to wait behind someone?
3, 5, 10 kiosks always open, no "I'm the only one working up front, everyone else is on break," or, "management only has 2,3,4, people on the registers during breakfast, lunch, and dinner rush."

Right now stores may only have one, but it's due to them being test run. Grocery stores used to have only 1 or 2 self checkout kiosks. Now there's like 6 in the space where 2 manned checkout lanes used to be.

Personally, I wouldn't doubt if "McD's" eventually updated their app so it allows you to order food made as soon as you pay with your banking app or card on file.
Kiosks would be for the old people that can't use their smartphone.

Not necessarily true, when you take a production line that required 12 people to run - and replace it with one mechanic. You just lost 11 jobs.

OT of wages and Mc D's ....

Wages have NOT kept up with the cost of living - period. That is a fact.

Asking for better wages does not seem to solve the problem, obviously.

I can't imagine how anyone can support a family on minimum wage.

Will the self serve kiosk be partnered with its own food preparing robot that won't screw up my order? If so, I'm all in.
And I'd drive past ten McDonalds to get to a Chic-fil-a. Foods better and their employees actually deserve more than the average McDonalds loafer. At least where I live. Might be interesting to compare wages between the two places, maybe that's the difference in service, I don't know.
I will say I travel alot, and I notice different levels of fast food service in different parts of the country. Kind of an indicator, also, of how a certain min wage in one part of the country isn't worth as much in another part.
Best bet is probably to stay away from those unhealthy places anyway lol

McDonalds just cant compete with the other fast food places

I dont know that the self serve kiosks are bad if its in addition to employees,, the supermarkets used that model, but didnt cut jobs, just added kiosks


I personally wouldnt wait behind people making their own orders for McDonalds food, the way I will to get my families groceries


but,, they have to try to compete however they can, I guess

I always say you can fire half the employees and double your production. Get rid of the ones screwing things up, or standing around doing nothing and then the good employees can do their work. Its hard to get anything done while you are holding someone's hand. Have you ever shopped at Aldis? They only have 2 or 3 employees, and they work hard, and they get paid a little more than most in similar positions. And they are able to keep prices a lot lower than others. Online retail is changing the game too. Amazon warehouses use a lot of robots and there is alot less overhead. Manufacturing jobs go to China, or 3rd world countries that pay $3 an hour. If minimum wage goes up to $15 an hour the price of everything goes up, including housing. And any money you have saved is then worth less. And all the retired, and people on welfare will need more money to live, making the US even less competitive in the world. I was in a MacDonald's 20 years ago and the had a fryer that dropped the fries, scooped them and salted them, and put them in the boxes. We have had the technology,and robots keep getting cheaper, and the software to run them gets cheaper. Its nothing new, we have been evolving since the beginning of time. If you want to make more money, get a better job, or start at the bottom and work your way up. But some High School kid don't need to make $15 while they live at home. And people who make tips don't need to make $15 an hour. There is a big difference between having a job, and having a career. Maybe not everyone should have a $700 cellphone that cost $80 a month for service. Many people just don't realize how good they actually have it.

It will be so much better when wealthy parents can pay for their child to take up an apprenticeship fixing the self serve kiosks

there is evidence suggesting paying more actually leads to less turnover and better and more devoted employees,,

just a thought though

Or, they can do what I did and work two low paying jobs as I put myself through college to be able to do what ever the hell I wanted to do.

probably those in their first jobs with no family can

those recovering from lost jobs, with families,, probably,, not so much

Like the totally automated ones at Maccas and every where else.
You don't think it will stop at the service kiosks?

When that point is reached most jobs will be servicing society.

Would such jobs be unregulated minimum wage?

Well there comes a point where those who work are just working for those who don't work. There is going to be more, and more retired people as the population ages. The thing is the unemployment rate is only like 5% and most of them don't want to work.So supply and demand kick in as places try to find people they have to pay more to get them. This also drives the price of things up. And many people don't realize the overhead of running a business. Taxes, work comp, building, materials, more taxes, advertising, insurance, maintenance all add up and keep going up, and with a few lazy employees it doesn't take much to eat up that little bit of profit, assuming there was any made in the first place.