CEO Crushes The Minimum Wage Lie: "It's Cheaper To Buy A Robot Than Hire At $15/Hour"

[Geaux4it]

Well everyone knows that

-Geaux

------

While this should come as no surprise to any rational non-establishment-teet-suckling economist (and certainly not to our readers), former McDonalds' CEO Ed Rensi continued his crusade against the naive "solution" to poor living standards that has been peddled by a clueless administration in the form of a higher federal minimum wage, and after he patiently explained one month ago that "the $15 minimum wage demand, which translates to $30,000 a year for a full-time employee, is built upon a fundamental misunderstanding of a restaurant business just do the math" Rensi found that nobody has still done the math.

Which is perhaps why the ex-CEO reappeared on Fox Business yesterday to explain to Maria Bartiromo that as fast-food workers across the country vie for $15 per hour wages, many business owners have already begun to take humans out of the picture, McDonalds most certainly included.



As Rensi admitted, "I was at the National Restaurant Show yesterday and if you look at the robotic devices that are coming into the restaurant industry - it’s cheaper to buy a $35,000 robotic arm than it is to hire an employee who’s inefficient making $15 an hour bagging French fries - it’s nonsense and it’s very destructive and it’s inflationary and it’s going to cause a job loss across this country like you’re not going to believe."



“It’s not just going to be in the fast food business. Franchising is the best business model in the United States. It’s dependent on people that have low job skills that have to grow. Well if you can’t get people a reasonable wage, you’re going to get machines to do the work. It’s just common sense. It’s going to happen whether you like it or not. And the more you push this it’s going to happen faster,” the former McDonalds Chief Executive added.

Rensi also said that we should do away with the federal minimum wage and leave it up to the states, which is quite logical. It's also why it will never happen.

"I think we ought to have a multi-faceted wage program in this country. If you’re a high school kid, you ought to have a student wage. If you’re an entry level worker you ought to have a separate wage. The states ought to manage this because they know more [about] what’s going on the ground than anybody in Washington D.C." Spot on.


Former McDonalds CEO Crushes The Minimum Wage Lie: "It's Cheaper To Buy A Robot Than Hire At $15/Hour" | Zero Hedge

 

[Indeependent]

So if a CEO HASN'T done so, that CEO should be FIRED!

 

[bucs90]

Ahhhh.....Fight for 15....this is working great.

 

[JoeB131]

i was at a panera bread where they had one of these Kiosks.

There was one person trying to use the Kiosk and 20 people waiting in line for a HUMAN to take their order. I actually tried to use the Kiosk because I was kind of in a hurry between meeting clients. Ten seconds of scrolling and I took my business somewhre else.

If anything, they are LESS efficient, because they can only serve one customer at a time, and that customer has to take the time to figure out what he wants (by scrolling through the option) then running his order.

Which will still have to be prepared by a human in the back.

 

[tinydancer]

Have you seen the Pizza Hut robot they're testing in Japan? It's freaking amazing!

 

[tinydancer]

Here he is. Cutest little guy called Pepper. The fools that are running for $15. an hour don't seem to "get it" that Pepper is about to take their jobs.

Check out what he can do.

"Pepper will be able to make recommendations and complete transactions, and is expected to begin employment by the end of this year."

From the article:

"Once paired, Pepper can explain the menu, make personalized recommendations, and take your order.

And if you want to know how many calories are in your meal, Pepper will tell you the answer, along with a breakdown of the fat, carbs, and protein in that particular item.

‘Consumers have come to expect personalized service, customized offers and simple and seamless process both in store and online,’ said Tobias Puehse, vice president, innovation management, Digital Payments & Labs at MasterCard.

‘The app’s goal is to provide consumers with more memorable and personalized shopping experience beyond today’s self-serve machines and kiosks, by combining Pepper’s intelligence with a secure digital payment experience via MasterPass.’

The robot will use Wi-Fi to connect to MasterPass, allowing it to complete the entire transaction through the wallet."

Humanoid robot ‘Pepper’ will soon be taking orders in Pizza Huts in Asia. MasterCard announced this week that it is teaming up with SoftBanks Robotics and Pizza Hut Asia to launch a new commerce app for the bot. Pepper will make recommendations and complete transactions, and will begin working by the end of this year

Read more: Pepper the robot to take Pizza Hut orders and give recommendations
Follow us: @MailOnline on Twitter | DailyMail on Facebook



Read more: Pepper the robot to take Pizza Hut orders and give recommendations
Follow us: @MailOnline on Twitter | DailyMail on Facebook

 

[JoeB131]

Guy, it sounds like Pizza Hut is making yet another bad business decision.

Let's not forget, the world is full of buildings that "Used to be a PIzza Hut"... One only imagines what these Japanese Robots will be doing after they start glitching and annoying the customers.

 

[Wyatt earp]

i was at a panera bread where they had one of these Kiosks.

There was one person trying to use the Kiosk and 20 people waiting in line for a HUMAN to take their order. I actually tried to use the Kiosk because I was kind of in a hurry between meeting clients. Ten seconds of scrolling and I took my business somewhre else.

If anything, they are LESS efficient, because they can only serve one customer at a time, and that customer has to take the time to figure out what he wants (by scrolling through the option) then running his order.

Which will still have to be prepared by a human in the back.

How long and how much schooling one must have to slap peanut butter and jelly on two pieces of bread?


.

 

[JoeB131]

How long and how much schooling one must have to slap peanut butter and jelly on two pieces of bread?

I think you miss the point. If you are on your feet for 8 hours on a shift, making food for hundreds of people, you SHOULD get paid a decent wage.

 

[bullwinkle]

Guy, it sounds like Pizza Hut is making yet another bad business decision.

Let's not forget, the world is full of buildings that "Used to be a PIzza Hut"... One only imagines what these Japanese Robots will be doing after they start glitching and annoying the customers.

Automation is coming to fast food. The demands for a decent wage is just the trigger and the excuse to change. I have no idea how this will work out. It may not work as a good way to deal with the public. No computer can be programmed to accommodate EVERY request.

Thousands of factory workers lost their jobs to robots, and I assume other workplaces have gone automation too. There is automatic checkout at the grocery store, among other stores. And I even remember when some human pumped your gas, cleaned windshields, and checked tires and oil. And remember when you could call a service center for help and get a human to advise you instead a menu of buttons to push? Now this guy who got rich off McDonald's is predicting automation as a measure of meanness to keep costs down? Surprise! But I think the wage hikes is just the driver they have been seeking for a long time to cut out the human touch.

 

[JoeB131]

Automation is coming to fast food. The demands for a decent wage is just the trigger and the excuse to change. I have no idea how this will work out. It may not work as a good way to deal with the public. No computer can be programmed to accommodate EVERY request.

Actually, it won't work at all. Again, I've seen people who ignore the automated kiosk and go right to the counter, even if they have to wait in a line.

And remember when you could call a service center for help and get a human to advise you instead a menu of buttons to push?

Yes, I remember that. And here's the thing, no one actually likes that and a lot of companies are going back to putting HUMANS behind those phones because most of us scream "Representative" instead of trying to navigate all those buttons.

 

[SAYIT]

...Now this guy who got rich off McDonald's is predicting automation as a measure of meanness to keep costs down?

Same old sorry song: "Corporations are evil! They just want to screw their workers!"

Keeping costs (and prices) down isn't meanness ... it's BUSINESS! It's why the peeps in charge have jobs!

Anyone who wants to make more money just needs to acquire some skills and get out of that min wage job (and the vast majority of Americans do).

Wringing ones hands about how "unfair" life can be just doesn't cut it.

 

[gipper]

Automation is coming to fast food. The demands for a decent wage is just the trigger and the excuse to change. I have no idea how this will work out. It may not work as a good way to deal with the public. No computer can be programmed to accommodate EVERY request.

Actually, it won't work at all. Again, I've seen people who ignore the automated kiosk and go right to the counter, even if they have to wait in a line.

And remember when you could call a service center for help and get a human to advise you instead a menu of buttons to push?

Yes, I remember that. And here's the thing, no one actually likes that and a lot of companies are going back to putting HUMANS behind those phones because most of us scream "Representative" instead of trying to navigate all those buttons.

The consequences of liberalism are almost always to harm the very people they claim to be helping.

 

[WillowTree]

i was at a panera bread where they had one of these Kiosks.

There was one person trying to use the Kiosk and 20 people waiting in line for a HUMAN to take their order. I actually tried to use the Kiosk because I was kind of in a hurry between meeting clients. Ten seconds of scrolling and I took my business somewhre else.

If anything, they are LESS efficient, because they can only serve one customer at a time, and that customer has to take the time to figure out what he wants (by scrolling through the option) then running his order.

Which will still have to be prepared by a human in the back.

Ten whole seconds huh?

 

[bullwinkle]

Automation is coming to fast food. The demands for a decent wage is just the trigger and the excuse to change. I have no idea how this will work out. It may not work as a good way to deal with the public. No computer can be programmed to accommodate EVERY request.

Actually, it won't work at all. Again, I've seen people who ignore the automated kiosk and go right to the counter, even if they have to wait in a line.

And remember when you could call a service center for help and get a human to advise you instead a menu of buttons to push?

Yes, I remember that. And here's the thing, no one actually likes that and a lot of companies are going back to putting HUMANS behind those phones because most of us scream "Representative" instead of trying to navigate all those buttons.

The consequences of liberalism are almost always to harm the very people they claim to be helping.

Sure wish you'd explain that, gipper. Of course, I am ASSUMING you are directing your tirade at me for facing up to the coming automation in fast foods and calling me a 'harmful' liberal to those I 'claim' to want to help. Could I ask how my comments are causing harm?

 

[Brain357]

Guy, it sounds like Pizza Hut is making yet another bad business decision.

Let's not forget, the world is full of buildings that "Used to be a PIzza Hut"... One only imagines what these Japanese Robots will be doing after they start glitching and annoying the customers.

Automation is coming to fast food. The demands for a decent wage is just the trigger and the excuse to change. I have no idea how this will work out. It may not work as a good way to deal with the public. No computer can be programmed to accommodate EVERY request.

Thousands of factory workers lost their jobs to robots, and I assume other workplaces have gone automation too. There is automatic checkout at the grocery store, among other stores. And I even remember when some human pumped your gas, cleaned windshields, and checked tires and oil. And remember when you could call a service center for help and get a human to advise you instead a menu of buttons to push? Now this guy who got rich off McDonald's is predicting automation as a measure of meanness to keep costs down? Surprise! But I think the wage hikes is just the driver they have been seeking for a long time to cut out the human touch.

High unemployment would be really good for business.

 

[gipper]

Automation is coming to fast food. The demands for a decent wage is just the trigger and the excuse to change. I have no idea how this will work out. It may not work as a good way to deal with the public. No computer can be programmed to accommodate EVERY request.

Actually, it won't work at all. Again, I've seen people who ignore the automated kiosk and go right to the counter, even if they have to wait in a line.

And remember when you could call a service center for help and get a human to advise you instead a menu of buttons to push?

Yes, I remember that. And here's the thing, no one actually likes that and a lot of companies are going back to putting HUMANS behind those phones because most of us scream "Representative" instead of trying to navigate all those buttons.

The consequences of liberalism are almost always to harm the very people they claim to be helping.

Sure wish you'd explain that, gipper. Of course, I am ASSUMING you are directing your tirade at me for facing up to the coming automation in fast foods and calling me a 'harmful' liberal to those I 'claim' to want to help. Could I ask how my comments are causing harm?

My post is merely stating a fact. Not really aimed at anyone in particular.

 

[Brain357]

It is crazy how the right celebrates low wages.

 

[Katzndogz]

Ordinary people will welcome automation in food service. It's better than these miserable servers who approach every customer as their personal enemy. Customers will welcome not having to check their food to see if someone spit on their burger.

 

[WillowTree]

It is crazy how the right celebrates low wages.

You are a moron.