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McDonalds answers $15 minimum wage with the Big Mac ATM
- ctrl-j 10y agoIt's silly to think this is due to a $15 an hour minimum wage. This was coming as soon as the cost of installing the thing was cheap enough to make back the difference. Automation is coming for all jobs that do not require critical and/or dynamic thinking. A higher minimum wage may have accelerated the process, but this would have happened regardless.
- mattnewton 10y agoIt's debatable; cheap labour could in theory have indefinitely postponed this. But I think it is not a loss that less people take orders for burgers. What is a loss though is there are less easy ways for people to participate in society economically.
- rukittenme 10y agoSlavery could not have postponed this. Automation is inevitable. We would still have things like the tractor and the combine even if slavery were still permitted.
- acjohnson55 10y agoInterestingly, technology, in the form of the cotton gin, actually made slavery in America more viable. So the relationship between automation and labor demand isn't necessarily trivial. But I would agree that it seems like in today's society, automation will indeed substantially decrease the demand for labor.
- mattnewton 10y agoRight, if labor is cheap automation will take the form of augmenting it instead of supplanting it; think call centers instead of kiosks.
- pwagland 10y agoIndeed. We have had these things in Europe for a long time already. They tend to be really convenient when you are in a foreign country, since you don't need to be able to speak to them, you just press the buttons, and get what you want, without fear of the order getting "lost in translation". And given that they are in use in thousands of restaurants in Europe, then you know that the price per machine is only going down, not up. Which means that at some point they will _always_ end up price competitive with humans, unless the humans also keep on accepting wage cuts to stay "competitive". Forcing people into sub-poverty incomes is not a viable long term solution to this problem of low paid labour.
- dogma1138 10y agoOne of the reasons you see these in Europe is because of high employment costs (and I don't mean minimum wage alone, that one isn't particularly high in Europe). These things are pretty common in the UK, but on the other hand in Asia I haven't seen those yet, Hong Kong, China, Philippines don't have them despite having on average huge McDonald's stores with considerably more staff and customers than the average Western European one. It's also worth noting that you can pretty much follow the employment costs in Europe to see where are these things deployed and at any country that is below a certain threshold you won't really see those. Service automation is a simple calculation of TCO of the automation vs wages, as long as the wages are even marginally lower than the cost of automation there is no point. I would say tho that while I visit McDonalds maybe 3-4 times a year (I love their fries, even tho you can't get mayo in the UK anymore... because "health and safety") I much rather use the ATM than talk to the person at the counter. They can't hear/understand half of the things you say, and vice versa, orders are often taken wrong, and you some how always get stuck behind a group of 5 people that can't make up their mind. So all in all they might also get a better customer satisfaction from automated service than from human employees.
- rahimnathwani 10y agoMcDonald's in China (at least in some branches in Shanghai) has automated kiosks for ordering. They're similar to the ones they've had in the UK for a while now, except that they have a way to scan a QR code from your phone's screen (commonly used for WeChat and Alipay payments via QR code).
- GFK_of_xmaspast 10y agoGas stations, if you're up for eating gas station food, have had that kind of computer ordering for many years now.
- geezerjay 10y ago> A higher minimum wage may have accelerated the process, but this would have happened regardless. That's precisely the point: a higher minimum wage does accelerate the problem. Deciding whether a restaurant hires a servant or purchases a vending machine is a decision made purely on cost. If a politician decides to increase the cost of investing in a specific option (hiring a servant) to the point that the alternative option becomes the best option available to the business, that politician needs to be held accountable for his actions.
- ctrl-j 10y ago> ... that politician needs to be held accountable for his actions. You do realize in this case the politician's action is saying "if you're going to make money off of somebody's labor, you need to pay them enough to take care of their own family.", right? I still disagree with the premise of the article, but it sounds like you do subscribe to the belief that fair pay is killing jobs. In that case, I just have to disagree. If automation kills jobs because we don't allow businesses to make billions while their employees collect food stamps, I think I'm OK with that. The next few years will be rough for many. Jobs are likely to be automated away en-masse, and unemployment will spike. Then maybe enough people will be upset about the situation that we'll see the rise of social programs to help people. Keeping the lower class working multiple jobs to feed and clothe their children isn't a solution.
- gdulli 10y agoInteresting that the article mentions Democrats. They were the ones who saw the inevitability of automation and tried to make education free to counter it in a real, long term way. The strategy of blaming immigrants instead can apparently win an election in the short term, but technology isn't going away.
- smcl 10y ago"Soon the McDonald’s workers Sanders and Democrats promised would get a “fair living wage” to take customers’ orders for Big Macs “will have absolutely no wages at all courtesy of the ‘Fight for $15,’ ” Zero Hedge reported on Jan. 26." I love how these guys spin things, truly impressive. So Bernie wanted a $15/hr minimum, but didn't even get the Democratic nomination. Hillary sorta backed $12.50/hr, but lost the election. Yet somehow the World Tribune lays the blame for some future job losses in the fast food industry at their feet? Incredible! We are well and truly in The Zone now ...
- al2o3cr 10y agoTBH, if Zero Hedge accurately reported that the loss of wages was due to the executives who authorized the R&D for this system half of their readers would immediately denounce the site as Communist propaganda.
- dxhdr 10y ago> TBH, if Zero Hedge accurately reported that the loss of wages was due to the executives who authorized the R&D for this system half of their readers would immediately denounce the site as Communist propaganda. Not sure I understand; your argument is that automation is the result of sinister executive R&D?
- smcl 10y agoWhere are you getting "sinister" from? There's no negative implication in the GP commenter - they were literally just describing the root cause. We're on Hacker News, I think it's safe to say that automating processes/jobs is our bread-and-butter. The issue is that someone's trying to imply that merely proposing that the US has a modest minimum wage is enough to endanger people's livelihoods. To me that's the only sinister thing here - which is basically what my original comment was hinting at.
- dxhdr 10y agoI'd argue the root cause is the decreasing utility of unskilled labor in an increasingly automated economy. Automation is inevitable, not the result of a few executives "authorizing" R&D. Describing it that way is a gross mischaracterization. > The issue is that someone's trying to imply that merely proposing that the US has a modest minimum wage is enough to endanger people's livelihoods. I didn't interpret the argument that way. To me it read as: look, here's a machine replacing unskilled labor at the current minimum wage, imagine how much more common this will be if it were raised to $15? Unfortunately they didn't provide any actual economic analysis as to the answer to that question and instead just smeared a political party; very low quality article indeed.
- masterleep 10y agoPerhaps governments shouldn't try so vigorously to make it expensive and legally risky to hire people?
- gwright 10y agoWhy is this being voted down? It is a simply a restatement of the basic economic concept that when the price of a service goes up the demand will go down. In this case the service is labor. In general I think labor costs in Europe are higher than the US and the observation in another comment that these sorts of ordering systems are common in Europe doesn't surprise me. The cost of labor isn't just the hourly wage, but all the associated regulations and liability that surround having a human employee. Changes in minimum wage are just the most visible cost component.
- CaptSpify 10y agoBecause, as has been pointed out by most of the other comments here, this was going to happen anyway. It didn't really matter that wages went up, other than it potentially hurried it along.
- jbuzbee 10y agothis was going to happen anyway As pointed out by other comments here, this is not happening as much in Asia where labor and regulatory costs are lower. The parent comment has a valid point. It's a balance. Higher labor and regulatory costs tilt the scales toward automation.
- CaptSpify 10y ago> this is not happening as much in Asia where labor and regulatory costs are lower. Yet It's still going to happen, it just isn't happening as fast. Even if you are paying a person $2 a day, a machine that costs $1 a day, and doesn't need breaks is cheaper.
- 10y ago
- manmal 10y agoHere in Austria McD recently installed the second version of ordering machines. The first one was not bad, but it was deployed inconsistently and seemed like a trial run. Now just about every McD has at least 2 of those HUGE terminals with a reasonably responsive and friendly UI. You can order gluten free options, choose ingredients for every dish, and even choose kids' meal goodies (they call that Happy Meal here). It's also integrated with their smartphone apps, so you can order in the car and then just pick it up. At the same time, they restructured many branches' service counters into two sections - one for ordering with an actual human and one for picking up your finished order. And I think they already reduced active staff by 1 or 2 in the process (for most branches). I have to admit, it makes for a more streamlined process, and your order is always correct (or it's your fault if wrong). One downside is that staff at the takeaway counter is very stressed since there is no switching between tasks - they become handing-out-food-machines.
- fuzzfactor 10y agoImagine if you will, a modern cafeteria in one of the 48 US states during the 1950's, back when McDonald's was really just a startup with less than 100 outlets, not universally familiar. This would be in black & white. There were already well-established positions as handing-out-food-machines in the cafeteria serving line. These never have been high-paying jobs, but otherwise over the decades evolving levels of stress would seem to be dependent on benevolence of owners when it comes to balancing the gradual benefits of mass production/automation with their employees. These were usually very low stress jobs back then, so at one time there was a lot to work with.
- peterwwillis 10y agoFrance and Spain have had them for a while, and they're only mildly complicated. Used them twice, no complaints. Spain has been really eye opening in terms of what's possible in big cities with cost of living. Everything here costs 1 to 3 euros, unless you're eating fancy, in which case 6-12 euros. It's nutty compared to the US. So I'm hesitant to believe we need to raise pay for unskilled, manual labor (no labor?) jobs when we pay so much for basic things (that don't come out of a trade deal or conglomerate pressuring global production to lower its cost with harmful side effects) That said, they were just protesting in Barcelona against, of all things, tourism. Tourism! You know, the free money a city gets from charging people to stare at a building? Apparently hotel rooms raised property taxes. I'm somewhat of a dunce at tax laws, but I thought the ridiculously high tax rates for hospitality services were meant to help offset this? Either way it sucks that Joe Schmoe can't see the Sagrada Familia, and it sucks that their neighbors can't afford rent. But I think Barcelona is lame, so, meh. Why don't they just make an app? Seems simpler.
- Oletros 10y ago> That said, they were just protesting in Barcelona against, of all things, tourism. You don't live in Barcelona, isn't? The protests were against the gentrification of the city. People that live or work there are suffering the increase of costs without having any benefit.
- peterwwillis 10y agoIf tourism is causing gentrification, protesting the tourism is a bit like shooting oneself in the foot economically. There are better ways to fight gentrification than blocking tourists from sightseeing.
- ryanlol 10y ago>People that live or work there are suffering the increase of costs without having any benefit. Some people that live or work there are suffering the increase of costs without having any benefit. On the other hand many entrepreneurs are making millions off the tourism.
- VeejayRampay 10y agoI'm surprised that those machines are just being set up in the US. We've had them for years here in France at most American fast-food franchises.
- Oletros 10y ago>"Soon the McDonald’s workers Sanders and Democrats promised would get a “fair living wage” to take customers’ orders for Big Macs “will have absolutely no wages at all courtesy of the ‘Fight for $15,’ ” Zero Hedge reported on Jan. 26." Because even if there were no fight for increasing wages McDonalds wouldn't automate their restaurants
- lazyant 10y agoI go to McDonalds once every 4-6 months or so. A couple weeks ago i noticed the machines and tried them. As an old fart I prefer the human interaction, also the machines seems slower to me to get all the details of the order right. Also I don't like the extra touching a place where everybody is touching (more so in the soda machine where the button is in the same place), seems very unhygienic. I did ask the manager if the machines meant there were less people working at the location but he told me that no, same employees as before.
- moomin 10y agoPeople seem to think that minimum wages are some left wing idea. They're not. People not earning enough to live cost the state money. They cost it in terms of benefits (believe it or not, the cheaper option) or in terms of law-enforcement and the corrosive effects it has on your society. Paying people below a certain level is tantamount to taking government subsidies. Where exactly that level is is a matter for debate, but everyone should stop pretending like it's a choice between "tough" and "kind".
- jbuzbee 10y agoPaying people below a certain level is tantamount to taking government subsidies. And the flip side to that: A minimum wage higher than the market rate, is tantamount to employees taking company subsidies which inevitably is passed on to consumers via higher prices.
- moomin 10y agoYou won't find any argument from me that higher wages can translate into higher prices. They're separate decisions, but in the case that the principal value comes from the labour, highly linked. So changing the wage of Apple Store staff is unlikely to impact the price of an iPhone too much, whereas I agree a burger is much more likely to be materially affected. My point is, it doesn't matter what the "market rate" is if the consumer is going to be paying the price anyway, either in terms of taxes or other effects, such as an increased probability of violent crime. Basically, it's the difference between micro and macroeconomics.
- gremlinsinc 10y agoHigher wages will translate into higher prices, until you tie wages to executive pay, make it so no executive can take home more than 80X what the average worker in the company makes - Not including salaries of excutives in the tally - then raising wages = raising their own salaries. When executive pay is tied to employees' -- you'll have surplus because they won't be able to give themselves bonuses or extra pay and will either have to grow the business and hire more employees are just keep it in the company bank vault for a rainy day.
- gremlinsinc 10y agoI say AMEN -- let's move to automation faster, the faster we get robots and automation the faster we will realize the need for universal basic income.. Bring on the robots so maybe we all can work 30 hours a week so more people can get hours, and have a more productive happier society, and share the leisure that a 75% or higher automated society can bring. There's plenty to go around we can choose to enrich the 80 families at the top, or spread the resources and wealth so everyone can have the necessities of life, and at least a little bit of comfort.
- Overtonwindow 10y agoIt was only a matter of time until fast food chains did this. I'm more shocked that they didn't do it sooner. Ordering in any language, with zero human interaction, I think society is not only primed for it, but in a weird sort of way, looking forward to it. Give it ten years and companies will starting using the fact that they employ actual people as a selling point. "Stop ordering from machines, and enjoy dinner with a real human being." Until they too are replaced by AI humanoids.....
- pcvarmint 10y agoThe minimum wage is a step function -- if the employee is worth less than the minimum wage, then they get $0; if they are worth the same or even slightly more than the minimum wage, then they get only the minimum wage. The minimum wage essentially says "It shall be unlawful to employ people if they are worth less than a prescribed amount". If they are unemployable because of the law, then welfare will make them dependent on the state, and it will make sure that they are never fully employed. These are the real consequences to well-meaning but misguided policy.
- DougN7 10y agoThat's a really interesting way of putting it, and it makes sense.
- DrScump 10y agoWhy isn't anybody paying attention to the fact that this is a "fake news" site without so much as a mailing address anywhere on its site?
- grzm 10y agoHere's some more info on the World Tribune. Looks like the publisher was at one time associated with the Reverend Moon. http://www.newyorker.com/magazine/2003/09/08/fit-to-print-2 http://www.newyorker.com/magazine/2003/09/08/fit-to-print-2