Minimum Wage Massacre: Jack In The Box CEO Says “Just Makes Sense” To Replace Workers With Robots
by Tyler Durden
ZeroHedge.com
Wed, 01/10/2018
Jack in the Box CEO Leonard Comma told a room full of attendees at a Tuesday conference that the company is considering replacing cashiers with robots as the minimum wage in California rises.
“As we see the rising costs of labor, it just makes sense,” said Comma.
The San Diego based fast-food chain says that with California’s minimum wage rising to $15 by 2022, automated kiosks and other previously tested technology which was previously failed to pencil out are now economically feasible.
18 states are raising minimum wage in 2018, including California, with the Golden State scheduled to be the first to hit $15.
Meanwhile, McDonald’s and Wendy’s have been testing automation to reduce labor costs. McDonald’s is adding 2,500 kiosks to its stores, while Wendy’s unveiled plans last February to install self-ordering kiosks at 1,000 restaurants – 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.
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.
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