The Down Range Forum
Member Section => Down Range Cafe => Topic started by: billt on February 27, 2017, 07:12:46 AM
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This is the result when the liberal Democrats want burger flippers to be paid $15.00 an hour.
http://www.tristateupdate.com/story/34608401/wendys-plans-to-install-self-ordering-kiosks-in-about-1000-stores-by-the-end-of-the-year
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Robots don't take time off either.
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"Wendy's spokeswoman Heidi Schauer says higher-volume stores will get priority for the kiosks because demand for the technology is so high."
Translated. The higher volume stores will get priority because they have to hire the most people.
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We've seen and quoted this before: Ignorance is curable with education; Stupidity is fatal.
Stupid dummycraps killed entry-level jobs for at least one generation and maybe forever.
It's a very simple economic truth: if you inflate the cost of production, you also must inflate the price of the product or service or YOU GO OUT OF BUSINESS. You can't lose on every sale and "make it up in volume."
To paraphrase Margaret Thatcher: Socialism is great until you run out of other peoples' money.
Crusader Rabbit
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I agree that the push for ultra high minimum wage is a current driver for these kiosks. However, they were coming anyway. If you haven't experienced Self Check Out at a big box store you haven't been shopping, ATMs, Red Box, self serve fuel pumps, and what about vending machines. This is where we have been heading for decades as price tags have been replaced by bar codes, and skilled checkout clerks have been replaced by bar code readers.
If blaming high minimum wage makes you feel good - blame high minimum wage, if you want to blame corporate greed - blame corporate greed, if you want to blame demand for low prices - blame the demand, or if you want to blame incompetent clerks - blame incompetent workforce.
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I have a friend/client that owns17 mcd. They have those already, but when ca goes too 15/ hour. Tgey are also getting more automation. Too the tune that he will be cutting about 100 employees. Essentially 2 a shift. More then a few times he has laid out the numbers for people, and tgey always say"just charge more" then he explains the reality, that corporate won't let him and they still don't get it.
All min wage increase does is increase inflation. You get more money,but its worth less. All of the guys making 15 now, sure as hell are not get a 7.50 raise(same % of min wage increase.)
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Mike is right about automation hitting fat food places being a matter of time. Car manufacturers replaced welders with robots 40+ years ago. Where you will see the impact is when your local diners start disappearing because THEY can't afford their waitress' and dish washers. (actual cooks already make that or more )
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Dishwashers will be the only hit in restaurants. Wait staff is exempt from minimum wage laws due to tips being a part of their wage.
The biggest hit, and the reason this won't go away, has nothing to do with low wage jobs or the working poor. It is unions! Many union contracts and negotiations tie to minimum wages in one way or another. It is just like credit card interest and its tie to the prime rate. Buried in contracts is a clause that if minimum wage increases there is an increase in union pay.
TAB also hit on something that a few have tried to educate us on, but the media hides: All wages affect the prices we pay for goods and services. Consumer prices will increase due to this rapid and large jump in labor costs. This inflation will hit those who it is intended to help the hardest. It will also be like all other high inflation and actually cause a reduction in spending, which will further the cut back in jobs.
Think of this one:
We go to a restaurant, enjoy a meal and cocktails, and we tip well. A nice evening with the wife and another couple amounts to $300.00 (meal, tax, tip). We do this a couple times a month. Inflation hits, and prices jump by 25% due to the establishments added costs for housekeeping staff and dishwashers, plus a hit from their suppliers. Now we only go out for a meal like this once a month or month and a half. Instead of $7200 per year we now spend between $4500 and $6750. We go out less, we give fewer and lower tips, and due to the over all rise in prices we save the hundreds we don't spend rather than overpaying for extras.
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Dishwashers will be the only hit in restaurants. Wait staff is exempt from minimum wage laws due to tips being a part of their wage.
Depends on the State. Here in MT, wait staff make minimum wage and then tips.3
As a side note, I know a certain young woman, who really is paid less than what she should be. Yes, they are quite flexible with her disabled children and the needs there, however, it is fairly gross. Recently the local McD's started offering $12/hr, which was about where she was at. She also had to be licensed, and trained, on her own dime to do this job. Anyway, she did get a raise, plus sick and vacation benefits (none before).. :D