McDonalds Introduces Self Serving Kiosks in Response to Min Wage Increase

[martybegan]

The average McDonalds nets $156,000 on 2.6 million dollars in yearly sales. If they can't afford a wage increase out of the $156,000 how they hell are they going to purchase expensive automation equipment?

The Ugly Truth About Ed Rensi

Because it replaces some of the salaries they would have to pay, and the hourly operating costs even with maintenance figured in is much much less than a breathing employee?

 

[danielpalos]

I'm calling bullshit.

They would have done the kiosk thing anyway.

How long does it take to design and develop the kiosks and computer programs? How long to install them nationwide?

This has been in the works longer than the call for wage increases.

How do you know? A kid making $8.00 an hour might be cheaper than the infrastructure costs needed to keep kiosks running. What we do know is that companies always look ahead for things (at least the successful ones do) and their concern might be that $15 an hour STILL won't placate the union idiots, and then they want $20 an hour.

no one is claiming automation is not an improvement to our standard of living.

Well it's not an improvement to the Standard of living to the person it replaces.

it could be, with unemployment compensation simply for being unemployed on an at-will basis. fourteen dollars an hour works.

 

[martybegan]

Haha it wont last....I have seen many self checkouts come and go at our local stores.

Really? Because over here, the self checkout lines are growing if anything. Our store started with one about five or six years ago. Today they have four of them.

I talked to one store manager and the cost to repair and maintain the machines was too expensive. People would jam stuff in the money collection slots that would require repair. Tabs off soda cans would be jammed in the change slots.

I do feel for the companies having to pay $15.00 an hour....that's almost impossible

They are getting better and better. Most of the CVS's and Walgreens I go into have self checkout. Same as the Stop & shops.

Their biggest issue isn't the reliability of the machines, its people trying to steal crap. That's where a cashier/bagger is a more effective barrier.

But the companies are working on the theft angle.

 

[martybegan]

I'm calling bullshit.

They would have done the kiosk thing anyway.

How long does it take to design and develop the kiosks and computer programs? How long to install them nationwide?

This has been in the works longer than the call for wage increases.

How do you know? A kid making $8.00 an hour might be cheaper than the infrastructure costs needed to keep kiosks running. What we do know is that companies always look ahead for things (at least the successful ones do) and their concern might be that $15 an hour STILL won't placate the union idiots, and then they want $20 an hour.

no one is claiming automation is not an improvement to our standard of living.

Well it's not an improvement to the Standard of living to the person it replaces.

it could be, with unemployment compensation simply for being unemployed on an at-will basis. fourteen dollars an hour works.

Pay people for doing nothing if they feel like doing nothing?

No way.

 

[AntonToo]

I'm calling bullshit.

They would have done the kiosk thing anyway.

How long does it take to design and develop the kiosks and computer programs? How long to install them nationwide?

This has been in the works longer than the call for wage increases.

How do you know?

It's called understanding how the world works. Automation of checkouts is not a question of IF it will happen, it is a question of how soon.

Look at supermarkets in low minimum wage states - you'll find very same self-checkout kiosks.

 

[ClosedCaption]

Henry Ford introduces the assembly line in response to min wage increase

 

[martybegan]

I'm calling bullshit.

They would have done the kiosk thing anyway.

How long does it take to design and develop the kiosks and computer programs? How long to install them nationwide?

This has been in the works longer than the call for wage increases.

How do you know?

It's called understanding how the world works. Automation is not a question of IF, it is a question of how soon.

Only if the cost of the automation is significantly less then the use of a live person.

 

[AntonToo]

I'm calling bullshit.

They would have done the kiosk thing anyway.

How long does it take to design and develop the kiosks and computer programs? How long to install them nationwide?

This has been in the works longer than the call for wage increases.

How do you know?

It's called understanding how the world works. Automation is not a question of IF, it is a question of how soon.

Only if the cost of the automation is significantly less then the use of a live person.

Which it will be, given enough time even at $2/h.

touchscreen computing used to be expensive, now it's pennies.

 

[danielpalos]

I'm calling bullshit.

They would have done the kiosk thing anyway.

How long does it take to design and develop the kiosks and computer programs? How long to install them nationwide?

This has been in the works longer than the call for wage increases.

How do you know? A kid making $8.00 an hour might be cheaper than the infrastructure costs needed to keep kiosks running. What we do know is that companies always look ahead for things (at least the successful ones do) and their concern might be that $15 an hour STILL won't placate the union idiots, and then they want $20 an hour.

no one is claiming automation is not an improvement to our standard of living.

Well it's not an improvement to the Standard of living to the person it replaces.

it could be, with unemployment compensation simply for being unemployed on an at-will basis. fourteen dollars an hour works.

Pay people for doing nothing if they feel like doing nothing?

No way.

why be illegal to the law? are you a gun lover.

 

[Ray From Cleveland]

The average McDonalds nets $156,000 on 2.6 million dollars in yearly sales. If they can't afford a wage increase out of the $156,000 how they hell are they going to purchase expensive automation equipment?

The Ugly Truth About Ed Rensi

Because it replaces some of the salaries they would have to pay, and the hourly operating costs even with maintenance figured in is much much less than a breathing employee?

Not only that but people think when an employer increases wages by two dollars an hour, it's just two dollars an hour they lost.

There are many more costs when an employer gives a raise that are not considered, especially if your city or state increases it from $8.00 an hour to $15.00 an hour.

 

[1stRambo]

Yo, you gotta love McDonald`s, now the rest will follow, and the "Socialist Democrats" can eat shit!!!

Obama lookalike thought it was great, thumbs up to the Economy:

"GTP"

 

[AntonToo]

The average McDonalds nets $156,000 on 2.6 million dollars in yearly sales. If they can't afford a wage increase out of the $156,000 how they hell are they going to purchase expensive automation equipment?

The Ugly Truth About Ed Rensi

Because it replaces some of the salaries they would have to pay, and the hourly operating costs even with maintenance figured in is much much less than a breathing employee?

Not only that but people think when an employer increases wages by two dollars an hour, it's just two dollars an hour they lost.

There are many more costs when an employer gives a raise that are not considered, especially if your city or state increases it from $8.00 an hour to $15.00 an hour.

When in reality they lost $2.30 dollars?

 

[danielpalos]

No one is claiming automation decreases our standard of living.

 

[hadit]

I'm calling bullshit.

They would have done the kiosk thing anyway.

How long does it take to design and develop the kiosks and computer programs? How long to install them nationwide?

This has been in the works longer than the call for wage increases.

How do you know? A kid making $8.00 an hour might be cheaper than the infrastructure costs needed to keep kiosks running. What we do know is that companies always look ahead for things (at least the successful ones do) and their concern might be that $15 an hour STILL won't placate the union idiots, and then they want $20 an hour.

That is very, very likely to become true. No matter where you set the MW, within a remarkably short period of time inflation devours any advantage it gave.

 

[Winston]

The average McDonalds nets $156,000 on 2.6 million dollars in yearly sales. If they can't afford a wage increase out of the $156,000 how they hell are they going to purchase expensive automation equipment?

The Ugly Truth About Ed Rensi

Because it replaces some of the salaries they would have to pay, and the hourly operating costs even with maintenance figured in is much much less than a breathing employee?

Do the math. Franchise owners can't possibly swing the investment. Of the more than 2.4 million dollars in operating expenses it is doubtful more than $300,000 is in total labor cost. They send much more of that 2.4 million dollars to McDonalds corporate in the form of rents, royalties, and service fees So again, just how much can automation cut that three hundred grand? At what expense?

Nope, when your bottom line profit is half as much as your total labor cost, and your total labor cost accounts for less than 15% of your total costs, large capital investments to trim those already minimal labor costs are hard to justify.

One study found that raising the price of the Big Mac by just seventeen cents, and only raising the price of the Big Mac, McDonald's could fund a fifteen dollars an hour minimum wage. They couldn't put in a new drive thru window for that.

 

[AntonToo]

^Big Mac study was based on bad math and you are also further misrepresenting it.

A Big Mac miss by The Huffington Post

 

[danielpalos]

I'm calling bullshit.

They would have done the kiosk thing anyway.

How long does it take to design and develop the kiosks and computer programs? How long to install them nationwide?

This has been in the works longer than the call for wage increases.

How do you know? A kid making $8.00 an hour might be cheaper than the infrastructure costs needed to keep kiosks running. What we do know is that companies always look ahead for things (at least the successful ones do) and their concern might be that $15 an hour STILL won't placate the union idiots, and then they want $20 an hour.

That is very, very likely to become true. No matter where you set the MW, within a remarkably short period of time inflation devours any advantage it gave.

not true at all. price inflation for fuel was swallowed by the right wing, with relative ease.

 

[Ray From Cleveland]

The average McDonalds nets $156,000 on 2.6 million dollars in yearly sales. If they can't afford a wage increase out of the $156,000 how they hell are they going to purchase expensive automation equipment?

The Ugly Truth About Ed Rensi

Because it replaces some of the salaries they would have to pay, and the hourly operating costs even with maintenance figured in is much much less than a breathing employee?

Not only that but people think when an employer increases wages by two dollars an hour, it's just two dollars an hour they lost.

There are many more costs when an employer gives a raise that are not considered, especially if your city or state increases it from $8.00 an hour to $15.00 an hour.

When in reality they lost $2.30 dollars?

No. When an employer gives a rate increase, he also has to pay more to match their SS contributions, to match their Medicare contributions, it increases their unemployment and workman's compensation insurance since if there is a claim, they would have to pay out more because compensation is based on their wage.

Then there is vacation and holidays to consider since that's money you are being paid for not working. If you work for a company that pays into your retirement plan based on your gross pay (like my company) that's also an additional expense.

 

[Winston]

^Big Mac study was based on bad math and you are also further misrepresenting it.

A Big Mac miss by The Huffington Post

Nice try. Different study.

Study: Raising wages to $15 an hour for limited-service restaurant employees would raise prices 4.3 percent - Purdue University

 

[AntonToo]

The average McDonalds nets $156,000 on 2.6 million dollars in yearly sales. If they can't afford a wage increase out of the $156,000 how they hell are they going to purchase expensive automation equipment?

The Ugly Truth About Ed Rensi

Because it replaces some of the salaries they would have to pay, and the hourly operating costs even with maintenance figured in is much much less than a breathing employee?

Not only that but people think when an employer increases wages by two dollars an hour, it's just two dollars an hour they lost.

There are many more costs when an employer gives a raise that are not considered, especially if your city or state increases it from $8.00 an hour to $15.00 an hour.

When in reality they lost $2.30 dollars?

No. When an employer gives a rate increase, he also has to pay more to match their SS contributions, to match their Medicare contributions, it increases their unemployment and workman's compensation insurance since if there is a claim, they would have to pay out more because compensation is based on their wage.

Then there is vacation and holidays to consider since that's money you are being paid for not working. If you work for a company that pays into your retirement plan based on your gross pay (like my company) that's also an additional expense.

So whats the total /hour cost increase for $2/h raise?

P.S. vacations and holidays for minimum wage workers? Really?