Wendy’s isn’t the only restaurant installing self-serve kiosks in their stores; McDonalds, Panera Bread, and even Carl’s Jr. and Hardee’s are now even switching to use kiosks instead of high-priced button-pushers – and the customers like it better also.
“If you’re making labor more expensive, and automation less expensive — this is not rocket science” – CEO of Carl’s Jr. and Hardee’s Andy Puzder
Wendy’s franchises “will likely look at the opportunity to reduce overall staff, look at the opportunity to certainly reduce hours and any other cost reduction opportunities, not just price,” – Wendy’s CEO Emil Brolick
VERY SOON we will see a LOT more automation being put in place for other tasks in and around restaurants, such as cleaning the store and even cooking the food; and when that day comes the people pushing for these wacko minimum wage increases will all be out of jobs, and have nobody to blame but themselves.
In yet another awkwardly rational response to government intervention in deciding what’s “fair”, the blowback from minimum wage demanding fast food workers has struck again. Wendy’s plans to install self-ordering kiosks in 1,000 of its stores – 16% of its locations nationwide.
“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.
Wendy’s chief information officer, David Trimm, said the kiosks are intended to appeal to younger customers and reduce labor costs. Kiosks also allow customers of the fast food giant to circumvent long lines during peak dining hours while increasing kitchen production.
As Dispatch.com reports, the Dublin-based burger giant started offering kiosks last year, and demand for the technology has been high from both customers and franchise owners.
“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.
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