*Hmm…let me ask you a question. Do you think Wendy’s, the burger joint, believed that the federal minimum wage of $7.25 would remain at that rate say…forever? I mean, they must have, based on their latest move, and the reason they have given for it.
The what is: They have chosen to replace all of their human workers with machines.
The why…? Due to rising labor costs and the federal minimum wage hike.
California and New York are both expected to raise their minimum wage to $15 per hour over the next few years.
That’s worth repeating.
Over the next few years.
So, to combat this, Wendy’s — the third largest fast-food company in the nation, plans to install self-service kiosks in their company-owned restaurants; and later, franchise owners will be given the option to invest in them as well.
The fast-food giant says plans to start installing the kiosks by the end of the year. They will be in company owned outlets, but individual franchisees will decide on their own whether to invest in the kiosks.
There are more than 6,000 Wendy’s, but the majority of them are owned by franchisees.
In addition to using the technology to cut down on labor costs, Wendy’s President Todd Penegor noted on the company’s quarterly conference call that some of its franchise locations have been raising prices to offset the minimum-wage increase, according to Investor’s Business Daily.
Read more at EURThisNthat.