"I want you to hold it between your knees."
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.
And you know what they say about "Idle Hands"......It isn't going to be pretty.
Robert Byrd founded it? ;)
That manager doesn’t realize docs don’t make 30 bucks an our. If they do, they are not doing it right, on any level.
Arrogance can be found anywhere, and you saw a great example of it.
Directive 10-289.
Like I said before, this is different-a higher end restaurant (for our neck of the woods) and people expect service.
Time will tell. I’ve worked there a very short time and it’s been fun. The tips are great. I guess I will just enjoy it while I can.
Maybe we should try to get to know our niebhbors, spend where ther is respect and stop paying $100 a month to be able to order robot pizzas on our iphones.
Know the owner, know the cook, tip yer waitress.
I hate were we are going.
Not really a great reason to do anything, considering.
Same neck of the woods but no.
If this spreads how will I get my Big Mac with quarter pounder meat? And extra sauce.
That’s yet another factor: as prices forcibly rise above natural economic flux, supply-and-demand will adapt by customers wanting more for their money. I paid $23 for a fast food lunch for four today; raise it much more and either give me superior food or I’m going to a sit down formal restaurant instead.
I used to be a vendor for a mining facility in Florida where there were 200+ employees and it was 15 miles from anything, literally nothing but trees and brush for 15 miles. Prepared food? Even further.
Imagine this pizza making machine with some refinements and sitting in the lunch/break lounge.
Hmmm... Does your eggs taste like WD-40?
Last time I was in a Sheetz and came face-to-face with the kiosk, I walked away. I need to look the woman in the eyes as I tell her how to make me a sammich.
"I want you to hold it between your knees."
Amen, and I would be happy to tip for superior food.
I aint paying for robot pizza
when the prices get higher than I want to pay. I stop going there. I had been going to the Maryland Fried Chicken in Plant City, Florida for chicken for about 40 years. Last week the price was what I consider the breaking point. Their chicken is now worth more to them than to me. I have no desire to return.
Yessir.
Can I getcha some kethup hon?
No I’m good darlin’
I could use a side of slaw..
Real...story. I work in a hospital...we get moonlighting Doc's here seeing patients.
I asked one, one day...how busy she was. She said she was getting real busy that day...making $35 a progress note. Meaning...she might see that patient two minutes and review the chart. Write a note..but no orders..and go on her way.
Or, she might get stuck for two hours..making that $35 too. And then again...she might have seen 50 patients times $35 during her 12 hr. shift.
Waaaaa.
Chinese wheelbarrow: $80
Bag of cement: $17
Food: too high.
Fuel: too high.
Vehicle: you’ve got to be joking. I’ll build one myself.
Small tractor: ha! I’ll build one myself.
It’s time for new blood in business, politics and academia.
I'll have the quarter pound klanburger with fries.
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