Monday, March 21, 2016

RESTAURANTS GOING FULLY AUTOMATIC?

So Andy Puzder, CEO of Carl's Jr and Hardee's, threatens to go fully automatic.*   What he forgets is that things like the Automat** have existed in America since 1902.  There is no wait staff or people behind a counter.  Why haven't they caught on before now?  Yes, you find vending machines in various places that may serve some sandwiches and even broths, but in a limited variety.  When I was 9 yrs old, we visited New York and I went to an Automat that had several tiers of food along a wall with a great variety of choices.  They are huge vending machines.

Well, people like to be waited on, I think, so there will always be a need for full service restaurants.  And if some drop out?  All the better for those remaining.

Of course there will always be cafeterias also that have a few helpers dishing out food which reduce the number of employees and then there are the fast-food places that have just a few people at the counters taking and passing out orders.

Also although the Automat cut out the waiters and waitresses and servers behind the counter, somebody had to prepare all that food and stuff the containers so they are not totally labor free.

What Puzder and others complaining about an increase in minimum wage don't seem to take into effect is that the other restaurant down the street is in the same boat as are the mom and pop places so it is a level playing field.  I guess there is a worry that prices will go up so much because of increased labor charges that people won't be able to afford to eat out.  Well, maybe, but wages are not the only expense of restaurants.  There is rent and facilities (gas, water, and electric among others).  I think the estimate for a $15 minimum wage at McDonald's is 5%.

* http://www.dailykos.com/stories/2016/3/17/1502801/-Fast-Food-CEO-threatens-to-go-fully-automated-because-of-Bernie-and-Hillary?detail=email&can_id=af3794f2758d0c72ac0763afb2350d28&source=email-gop-congressman-elizabeth-warren-needs-to-be-neuteredher-response-is-epic-2&email_referrer=gop-congressman-elizabeth-warren-needs-to-be-neuteredher-response-is-epic-2&email_subject=gop-congressman-elizabeth-warren-needs-to-be-neutered-her-response-is-epic&link_id=3
** https://en.wikipedia.org/wiki/Automat

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