Remember Those Clowns at McDonalds Who Wanted $15 An Hour? Yea They’re Getting Replaced by Computers

WSJ The McDonald’s earnings report on Tuesday gave a hint at how the fast-food chain really plans to respond to its wage and profit pressure—automate. As many contributors to these pages have warned, forcing businesses to pay people out of proportion to the profits they generate will provide those businesses with a greater incentive to replace employees with machines. By the third quarter of next year, McDonald’s plans to introduce new technology in some markets “to make it easier for customers to order and pay for food digitally and to give people the ability to customize their orders,” reports the Journal. Mr. Thompson, the CEO, said Tuesday that customers “want to personalize their meals” and “to enjoy eating in a contemporary, inviting atmosphere. And they want choices in how they order, choices in what they order and how they’re served.” That is no doubt true, but it’s also a convenient way for Mr. Thompson to justify a reduction in the chain’s global workforce. It’s also a way to send a message to franchisees about the best way to reduce their costs amid slow sales growth. In any event, consumers better get used to the idea of ordering their Big Macs on a touchscreen.

Last week McDonalds workers across the country protested for a raise to $15 an hour. I called them borderline lunatics even suggesting that they deserved anywhere close to the $30k annually that would earn them. In my mind there is a clear seperation between the limited effort that goes into qualifying for and working a McDonald’s job. People roll out of college with a degree and struggle to find that kind of compensation.

Colin Cowherd always says “resent money you will never make it, resent success and you will never achieve it.” I have no problem with a McDonalds worker stealing $15 an hour. I knew the ramification of such a payroll hike and feared for the life of the Dollar Menu. Yesterday’s earning’s report however reminded me the power of big business when they casually floated out the notion that the methheads behind the counter were completely replaceable but some IBM’s that could swipe your credit card. Drop the mic Mickie D

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