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Wendy's to Install 1,000 Self-Ordering Kiosks

<p>With the impending minimum wage increases&comma; quick-serve restaurants are looking for innovative ways to cut corners&period; Enter self-ordering kiosks&period;&nbsp&semi;<&sol;p>&NewLine;<div>Wendy&&num;8217&semi;s is the latest fast food chain to announce its implementation of these kiosks&period; 1&comma;000 of Wendy&&num;8217&semi;s franchise stores will be installing these technologies in order to cut labor costs&period;&nbsp&semi;<&sol;div>&NewLine;<p>According to&nbsp&semi;<em>The Columbus Dispatch<&sol;em>&comma; the typical store will have at least three kiosks and the brand is focusing on high-volume locations&period;<&sol;p>&NewLine;<p>David Trimm&comma; the chief information officer at the Ohio-based fast food chain&comma; believes that the kiosks reduce the store&&num;8217&semi;s labor costs&comma; but also that they will increase sales with the younger generation&period;&nbsp&semi;<&sol;p>&NewLine;<p>&&num;8220&semi;They are also trying to enhance the customer experience&period; Younger customers prefer to use a kiosk&comma;&&num;8221&semi; said Trimm&period; He also mentioned that they will help alleviate the long lines during peak hours&period;&nbsp&semi;<&sol;p>&NewLine;<div>&NewLine;<div>Another perk of the kiosk rollout for the franchisees is that they aren&&num;8217&semi;t responsible for installation&period;&nbsp&semi;<&sol;div>&NewLine;<p>&&num;8220&semi;They are looking to improve their automation and their labor costs&comma; and this is a good way to do it&comma;&&num;8221&semi; said Darren Tristano&comma; vice president at Technomic&comma; a food-service research and consulting firm&period; &&num;8220&semi;This move puts them at the forefront of the kiosk and tech movement&period;&&num;8221&semi;<&sol;div>&NewLine;<div>&nbsp&semi;<&sol;div>&NewLine;<div>The chain will also be collecting valuable data from these machines&period;&nbsp&semi;<&sol;div>&NewLine;<div>&nbsp&semi;<&sol;div>&NewLine;<div>Wendy&&num;8217&semi;s has already been testing these machines at several Ohio stores&period;&nbsp&semi;<&sol;div>&NewLine;<div>&nbsp&semi;<&sol;div>&NewLine;<div>The bad news is that this evidently means less jobs and hours for current employees&period;&nbsp&semi;<&sol;div>&NewLine;<div>&nbsp&semi;<&sol;div>&NewLine;<div>Restaurant businesses already have low profit margins&period; Most restaurant operators spend 33&percnt; of their revenue on employees&&num;8217&semi; wages&period; Not to mention&comma; franchisees give a percentage of the store&&num;8217&semi;s income to the corporate brand&period; So it&&num;8217&semi;s not surprising that they are in support of ways to increase profits&period;&nbsp&semi;<&sol;div>&NewLine;<p>Then with the increases in minimum wage&comma; operators have no choice but to find someway to cut labor costs&period;&nbsp&semi;<&sol;p>&NewLine;<p>&&num;8220&semi;With government driving up the cost of labor&comma; it&rsquo&semi;s driving down the number of jobs&comma;&rdquo&semi; said Andy Puzder&comma; Carl&rsquo&semi;s Jr&period; and Hardee&rsquo&semi;s CEO&period; &ldquo&semi;You&rsquo&semi;re going to see automation not just in airports and grocery stores&comma; but in restaurants&period;&rdquo&semi;<&sol;p>&NewLine;<div>&nbsp&semi;<&sol;div>&NewLine;<div>Not only are these kiosks proving to be more cost effective than employees&comma; they are more reliable&period; Kiosks won&&num;8217&semi;t call out of work&period;&nbsp&semi;<&sol;div>&NewLine;<div>&nbsp&semi;<&sol;div>&NewLine;<p>Again&comma; this isn&&num;8217&semi;t good news for the employees&comma; many of which who support minimum wage increases&period; Many worker don&&num;8217&semi;t realize what these spikes really mean for them&period;&nbsp&semi;<&sol;p>&NewLine;<p>&ldquo&semi;Wherever cities implemented big minimum-wage hikes to &dollar;10 an hour or more last year&comma; the latest data through December show that job creation downshifted to the slowest pace in at least five years&comma;&rdquo&semi; wrote Investor&&num;8217&semi;s Busines Daily&&num;8217&semi;s Jed Graham&period;<&sol;p>&NewLine;<div>&nbsp&semi;<&sol;div>&NewLine;<div><strong>Author&&num;8217&semi;s note&colon;<&sol;strong>&nbsp&semi;Honestly&comma; it&&num;8217&semi;s really ironic&period; Many of the liberals backing policies that spike the minimum wage&comma; will find out the hard way that this will only hurt workers not help them&period; Not only will operators look for ways to cut their hours and reduce the number of staff on their payroll&comma; but this is encouraging the industry as a whole to move to automation&period; Is the fight for the increase in minimum wage really worth it if the employee ultimately gets replaced&quest;<&sol;div>&NewLine;

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