Fast food chains find a way around $20 minimum wage: Get rid of the workers

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Fast food chains find a way around $20 minimum wage: Get rid of the workers
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In response to recent minimum wage increases in California, fast food restaurants across the state are shifting to automation to get rid of wage-earning humans.

In this Thursday, June 1, 2017, photo, Brandon Alba from Milwaukee, orders food at a self-service kiosk at a McDonald’s restaurant in Chicago. The company that helped define fast food is making supersized efforts to reverse its fading popularity and …

Harsh Ghai, a Burger King franchise owner who manages 140 outlets along the West Coast, is leading the transition to automation. He plans to introduce digital kiosks across all his restaurants within months — a drastic acceleration from his original timeline of five to 10 years. He said about 25% of his restaurants already use the ordering kiosk, and he expects the rest to start using them within the next two months.

Rather than make less money, restaurant owners are exploring alternative strategies to maintain profitability. Reducing staff numbers appears to be their primary solution for lowering overheads.

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