January 2018 – Fast-food jobs were once nearly a rite of passage for American teenagers who sought money to put gas in their car and take their significant other out for pizza and a movie.
However, with government inflating the minimum wage, driving up the cost of labor for these companies, it may be driving down the number of jobs held by people. The companies alternative is automation.
Last week the Jack-in-the-Box CEO said ‘it just makes sense’ to consider replacing cashiers with machines as minimum wages rise in California. The company had previously tested technology such as kiosks, and found they resulted in a higher average check and helped with efficiency.
The more conventional restaurant chain Red Robin announced on last week that it estimates savings of $8 million this year by eliminating bus boys from restaurants. It has already saved $10 million per year by eliminating some kitchen jobs in favor of automation.
Minimum wages are increasing in 18 states in 2018, including California and Washington, where Jack in the Box and Red Robin are respectively based.
Other chains are making the move as well. In 2017, Wendy’s announced its plans to install self-ordering kiosks within this year. McDonald’s will be adding kiosks to 2,500 stores, though it stated it would not replace cashiers. Walmart (which announced this month it is increasing wages) has been testing shelf-scanning and floor-cleaning robots.
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