Posted on 08/11/2015 5:45:11 PM PDT by thomasryan
Wages are rising in the restaurant industry. There are two reasons for this. Minimum wages are increasing in many states. And it’s tougher for growing concepts to find workers.
Consider The Wendy’s Company. On its earnings call earlier this week, executives acknowledged that wage costs are increasing — one of several restaurant chains to admit this in the last couple of quarters.
Part of this is coming from rising minimum wages. But another part is coming from competition for labor.
“There is a war on talent,” CFO Todd Penegor said on the earnings call. As such, the chain has to raise starting wages in some markets “to make sure we’re competitive in certain markets.”
What’s more interesting is what Penegor said the company plans to do about it: Invest in technology. Penegor said the company is looking at initiatives to “offset any impact to future wage inflation through technology initiatives.”
That could be self-order kiosks, which a number of chains have investigated, or automating the back of the house. “You’ll see a lot more coming on that front later this year from us,” Penegor said.
Wendy’s is hardly the only chain working in this direction. Several restaurant companies are complaining about rising wages recently. Those rising wage costs have lit a fire under many executives to look at technology to improve efficiency after years of avoiding technology like the plague.
Chains are working on speed and efficiency efforts. They’re giving smartphone apps new capabilities. They’re investigating kiosks.
To be sure, such efforts will provide ammo to some who believe that rising minimum wages will force restaurants to cut workers and replace them with robots. But efficiency efforts are necessary even absent any debate over minimum wage or rising costs.
Productivity could enable restaurants to raise pay and benefits without raising menu prices as much, so they can lure higher-quality workers and keep them longer. It would also make restaurants more competitive with industries encroaching on their turf.
At the NRA Show in May, for instance, Hudson Riehle, head of the research and knowledge group at the National Restaurant Association, noted that restaurants average $84,000 in sales per worker. By comparison, grocery stores average $304,000. And gas stations average $855,000.
Quick-service restaurants in particular, which are less service oriented and focused more on price and convenience, and which are competing directly with grocers and c-stores, need to reduce this gap.
It remains to be seen, of course, whether such efforts will work. Kiosks in particular inspire doubters, and NRA Show veterans will recall the periodic years robots would appear on the show floor, only to disappear as the industry avoided them. Restaurants aren’t easy to automate. But the moves are still necessary.
Mmmmm...Tasty.... /s
The demise of the Spit Burger......
For years, the clerks in fast-food places haven’t been doing anything the customer couldn’t do for himself, other than opening and closing the cash drawer. All they have to do is eliminate cash, and the clerks can be eliminated.
‘’Liberalism is based entirely on emotion’’. Damn right. Being a liberal is a lot like being a drunk. It’s all about emotion over intellect. When one is in a sober state of mind generally emotion is held in check by intellect. When alcohol( for sake of argument) takes over emotion becomes unhinged from intellect. This is liberalism at it’s core.
Doesn’t look good for you. See no 6, Chili’s been using them for a year. Not for the first order, but reorders and paying the tab.
These idiots opened up a can of worms and its not going to stop now.
Well, the US sure has set the bar really high on people's talents and employer expectations.
That’s why most chains just hand you the cup and you fill you on drink order.
It’s real easy, cook yer own
It literally takes minutes!
Ironically most of the fired employees will be Progressive Millenial useful idiots that supported the wage hike.
They want the same amount of money for fewer hours plus government handouts.
They’re crazy like a fox.
This restaurant is a bit different, it’s not a chain and people expect service from this type of place. If they are going to automate it, they will have to lower the prices. All meals are made from scratch and we work very hard to cater to the customers. DIY from an ipad just doesn’t fit. But what do I know, I’m just a waitress.
“I work in a fine dining restaurant-not affected yet. The rumors are that we are about to be replaced with iPads at every table. They will keep the young and cute servers (who usually get lower tips than the experienced servers) to run food and let the rest of us go. When a long time server said something about it affecting tips, the manager stated, “You’re not a doctor, you don’t need to be making $30 an hour.”
I live in Sarasota, FL. There is a restaurant near where I live (Carmel) which gives customers an I pad to order from - it’s quick, easy and your order is never confused although you might be yourself. It works quite well.
Meybe that way they can finally get customer orders correct.
Or you just download an app, order it on your cell phone, drive thru and pick up the order.
Nothing wrong with that machine that a cratering charge couldn’t fix.
Good, I expect the food will probably improve and start to more closely match the idealized photos they show. Lot less likely there will be spit or other bodily fluids in your meal as well.
Sarasota used to be place where you drove over the sunshine bridge too not get screwed.
Sarasota used to be place where you drove over the sunshine bridge too not get screwed.
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