The left never seems to understand the consequences of forcing businesses to pay people more. Either the extra cost is passed on to the consumer or the business cuts jobs. Every. Single. Time.
Now that minimum wage activists have gotten their way, Wendy’s is moving towards self-service kiosks.
Investor’s Business Daily reports:
Wendy’s Serves Up Big Kiosk Expansion As Wage Hikes Hit Fast Food
Wendy’s (WEN) said that self-service ordering kiosks will be made available across its 6,000-plus restaurants in the second half of the year as minimum wage hikes and a tight labor market push up wages.
It will be up to franchisees whether to deploy the labor-saving technology, but Wendy’s President Todd Penegor did note that some franchise locations have been raising prices to offset wage hikes.
McDonald’s (MCD) has been testing self-service kiosks. But Wendy’s, which has been vocal about embracing labor-saving technology, is launching the biggest potential expansion.
Wendy’s Penegor said company-operated stores, only about 10% of the total, are seeing wage inflation of 5% to 6%, driven both by the minimum wage and some by the need to offer a competitive wage “to access good labor.”
It’s not surprising that some franchisees might face more of a labor-cost squeeze than company restaurants. All 258 Wendy’s restaurants in California, where the minimum wage rose to $10 an hour this year and will gradually rise to $15, are franchise-operated. Likewise, about 75% of 200-plus restaurants in New York are run by franchisees. New York’s fast-food industry wage rose to $10.50 in New York City and $9.75 in the rest of the state at the start of 2016, also on the way to $15.
Guess who suffers the most because of this?
Young people who are trying to enter the job market in an already dismal economy.
Pat yourselves on the back, progressives. You won.
(Image:Source)
