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Automation Coming To Restaurants, But Not Because of Minimum Wage Hikes
dcblogs writes: McDonald's this week told financial analysts of its plans to install self-ordering kiosks and mobile ordering at its restaurants. This news prompted the Wall Street Journal to editorialize, in " Minimum Wage Backfire," that while it may be true for McDonald's to say that its tech plans will improve customer experience, the move is also "a convenient way...to justify a reduction in the chain's global workforce." Minimum wage increase advocates, the Journal argued, are speeding along an automation backlash. But banks have long relied on ATMs, and grocery stores, including Walmart, have deployed self-service checkouts. In contrast, McDonald's hasn't changed its basic system of taking orders since its founding in the 1950s, said Darren Tristano, executive vice president of Technomic, a research group focused on the restaurant industry. While mobile, kiosks and table ordering systems may help reduce labor costs, the automated self-serve technology is seen as an essential. It will take the stress out of ordering (lines) at fast food restaurants, and the wait for checks at more casual restaurants. It also helps with upselling and membership to loyalty programs. People who can order a drink refill off a tablet, instead of waving down waitstaff, may be more inclined to do so. Moreover, analysts say younger customers want self-service options.
"automation backlash" aka increased productivity is fantastic for the economy .
Dammit, I want my 80s cyberpunk sit at the table, order from computer (bonus points for miniature holographic waiter who appears in middle of table), and food is delivered out of hidden conveyor system experience!
Vintage computer games and RPG books available. Email me if you're interested.
They turned into a Murdoch rag is what happened.
What you hear in the ear, preach from the rooftop Matthew 10.27b
The sane thing to do would be to institute a minimum basic income.
I write sci-fi for metalheads
I want every person who is willing to work full-time to be able to earn at least poverty plus a dollar. I don't care about the skill level of the employee. In this way I ama liberal.
I recognize that you cannot put artificial price controls in place and expect the market to just absorb it. In this way I am a conservative.
My best solution is that we have a tax on the wealthiest to subsidize those that don't have skills that don't allow them to hit pverty level. Some subsidy that will bring lower earners up, but not discourage them from trying to make more.
My rationally is that people are much more productive than they were 100, 50 or even 20 years ago. Part of the promise of automation is that everyone would benefit... shorter hours... higher pay. This never materialized. So, I am fine with a level of socialism for those who are willing to work but cannot make ends meet.
-- MyLongNickName
Currently, the way it's implemented in european country, McD doesn't use it to reduce workforce (you're still required to walk up to a clerk to retrieve your order).
McD uses it to accelerate it service and increase the "number served": by the time you finish typing your order and have confirmed, the order is already broadcast to employee's screen. By the time you finish paying and walk to the queue, your order is already ready.
This cuts drastically the waiting time, and european McD's use to cram more customer served per minutes.
In the long run such stategies won't neceessarily reduce the workforce that much, but on the other hand, they will be used to propel "fast food" to a whole new definition of "fast".
On the other hand, that will probably be quite alienating for the workforce: no more breaks between customers, no more small talk while ordering. Work experience is going to be Charlie Chaplin's "modern times"-style: read the screen, pack the bag, hand over the bag, as fast as possible and repeat so the next customer doesn't need to wait.
"Sufficiently advanced satire is indistinguishable from reality." - [Tips: 1DrYakQDKCQ6y52z6QbnkxHXAocMZJE61o ]
Or maybe in this instance it's just a better way to serve food.
They have had these machines in Japan for decades. It's basically a ticket vending machine, you choose what you want and pay for it, then hand the tickets to the staff. They prepare and serve your food, without handling dirty money that has been through FSM knows how many hands and pockets. The line for the machine is usually very short too, because you get the ticket immediately and can sit down while waiting for food.
const int one = 65536; (Silvermoon, Texture.cs)
SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
In contrast, McDonald's hasn't changed its basic system of taking orders since its founding in the 1950s
When I was a kid in the 1970s, I remember the order-takers at McDonalds would take the order down on a paper pad, then in seconds add it all up with a pencil and present you with the total.
Wonder if the cashiers would even be able to do that today...
Point of fact: McDonalds as a corporation doesn't sign those peoples' paychecks, at least if their business model hasn't changed since 2000ish. They do franchising, and make money on the fact that franchises have to purchase supplies from the company. This allows them to dodge risk on opening in poor locations, or personnel expenses.
Now, I'm not so thick-headed as to imagine that they wouldn't come up with something like this to help franchises with wage costs, but I'm also aware that this tech is coming to all sorts of places other than Seattle where the minimum wage actually went up.
I said what I meant. We already have a basic income for the elderly and disabled in the US. It's called Social Security. There's no reason we can't extend it to cover everybody, except that doing so would require taxing rich individuals and corporations more while spending less on the military-industrial complex. It might be a political impossibility, but it isn't necessarily an economic one.
I write sci-fi for metalheads
"and kept politics contained in the opinion pages" - To play devil's advocate - this particular article IS in the Opinion section.
retrorocket.o not found, launch anyway?
I think they're human beings. I think that money is power, and that political suffrage (the vote) is no longer enough. We must also have universal economic suffrage as well. Every individual needs to have an assurance that their annual income won't fall below the poverty line, because poor people aren't human beings in the USA.
If they don't want to work, but live on ten grand a year while sharing an apartment with a few other people who want to live on basic, that's their problem. Ideally it would help parents, especially single parents. It would help students. It would help artists. It would help open source hackers and other people who do useful work that isn't adequately valued by our system.
And it would give us an excuse to get rid of our existing welfare system. We can tell people who aren't working, "You got your basic income. If you need more money, get a fuckin' job."
I write sci-fi for metalheads
Democrats are going to keep demanding that the government force low-skilled workers out of work... sorry, increase the minimum wage.
Now that it's been studied, it turns out this isn't the case. Raising the minimum wage doesn't force people out of work, and, in some cases, causes local economies to surge. Seattle is the most recent example.
http://seattletimes.com/html/l...
Canadian experiments from the 70s suggest otherwise. Canada tried it in the city of Dauphin, and people didn't down tools en masse. The ones who did either went to school or were staying home to care for children or relatives.
I write sci-fi for metalheads
The goal of any significantly advanced civilization should be 100% unemployment and automation.
"Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
Point of fact: McDonalds as a corporation doesn't sign those peoples' paychecks, at least if their business model hasn't changed since 2000ish. They do franchising, and make money on the fact that franchises have to purchase supplies from the company. This allows them to dodge risk on opening in poor locations, or personnel expenses.
Actually, this isn't how McDonalds corporate works.
The way McDonalds works is it picks your location for you, buys it, builds a McDonalds there, and guarantees you your franchise buy-in back in one year. The franchise buy-in is $1M, which you get back in one year, and then you make that each year thereafter.
They *do* sell you trade dress items - fry boxes with the 'M' on them, and they sell you food supplies - but their primary profit actually comes from their real estate holdings, the fact that they are your landlord, and franchise fees.
Once they do sell you a franchise, they dictate your trade dress, which means corporate pays for remodeling the individual franchise stores (after all, McDonalds themselves owns the property), and when they tell you remodel, expect the crews to show up and just do it, you are at best granted minor choices on things like arrangement of the bathrooms, and the manager's office, and so on. Otherwise, they dictate. This is a typically good thing, since they know how many people will go through in a given amount of time, max, because they have a PhD in mathematics who understands queuing theory work it out.
In addition, you can't buy a franchise unless you have been a store manager, and you can't be a store manager unless you've been an assistant manager, and you can't be an assistant manager unless you've been a shift lead, and you can't be a shift lead unless you've been an ordinary employee. In other words, every step in responsibility requires that you be able to do all the jobs at the previous step in responsibility. This is why when they have walkouts, they typically don't close down over them.
So it's not like this will change the need for employees, from the line on up, or they'll have no new franchise owners, unless they totally rework their entire model. Which they won't do, since their primary profit comes from real estate, them being your landlord, and franchise fees.
This really has nothing to do with the Minimum Wage issue; that's just because the author of the opinion section piece that the OP referenced, since they could care less.
They did however throw $200M in venture funding behind the company providing the automation software and equipment a few years back. Time to recoup their investment there.
And why, exactly, do you think any of those rich individuals and corporations would remain in America, when you're forcing them to work just so you can steal their money and give it to the people who don't?
I'll overlook your obviously imflammatory language and answer your question in earnest.
I think that these rich individuals and corporations would remain in America for several reasons. Foremost is my belief that rich individuals specifically aren't generally sociopathic, and consequently understand the value of contributing back to the society in which one lives. Additionally, I think the comfort of living in America (partly because it's not so bad here, partly because it's a bit of a pain in the ass to uproot and emigrate) would prevent many from wanting to leave. Furthermore, I think any developed country they could move to would impose an even higher tax burden on them, and I don't think it's realistic to think any significant number will head out to the undeveloped corners of the world.
Now, to maintain some semblance of balance, I'd like to add some of my own obviously inflammatory language. Stop assraping this site with your retarded hypotheses.
Chuuch. Preach. Tabernacle.
You do realize that people aren't, you know, actually, like, supposed to be able to support themselves with the lowest-paid jobs in the country? These are the kind of jobs that used to be done by kids still living at home, not those who expected to make a career and raise a family by saying 'Do you want fries with that?' a thousand times a day?
But with today's fucked economy, that's the only type of job many adults with kids, rent and car payments can find.
Our society has deep structural problems relating to automation that have been ignored for forty years and those chickens are coming home to roost. One of those major problems is that we've given preferential tax treatment to capital gains over income (labor).
We can either have egalitarian democratic society, or we can be like Mexico. I hope the walls on your gated community are high enough and you pay your private security contractors enough not to steal from you.
the preceding comment is my own and in no way reflects the opinion of the Joint Chiefs of Staff