With minimum wages rising throughout the country due to the “fight for $15,” business owners are looking for ways to offset labor costs.
Wendy’s, the fast-food restaurant chain recently known for roasting people on Twitter, announced this month that it will be installing self-service ordering kiosks in 1,000 restaurants by the end of 2017.
The Dublin, Ohio-based franchise began installing self-order kiosks late last year, and the demand has only been growing.
David Trimm, Wendy’s chief information officer, said during the company’s investor day, “There is a huge amount of pull from (franchisees) in order to get them.”
“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.”
Really, this move kills two birds with one stone. Trimm believes that not only will the company cut labor costs, but it will also give younger customers an ordering experience they prefer.
This type of announcement isn’t new. Eateries and businesses around the country that have raised they minimum wage led to layoffs. While installing kiosks doesn’t necessarily mean job cuts, it could shift the focus of labor to other areas.
Earlier this year, Massachusetts hiked their state minimum wage to $11 an hour. It’s a move that appears to be hurting millennials the most.
Jeremy Adler from AR Squared told Red Alert in January that “all this policy would do is eliminate jobs and make it tougher for workers to find employment opportunities.”
“These minimum wage hikes on the backs of employers are devastating to local economies. Small businesses have made it clear that these increases make it much more difficult for them to hire, grow, and expand. Studies have shown that a federal $15 minimum wage would eliminate 7 million jobs which would have severe economic ramifications at all levels.”
