In their misguided attempt to ‘help’ low wage earners, statists have increased the minimum wage to the point where Wendy’s, the Dublin based fast food company, is reducing their purchases of minimum wage labor and instead, adopting automated Kiosks where customers can place orders to reduce labor costs. These Kiosks will likely replace many minimum wage workers and will spread beyond Wendy’s.
“Last year was tough — 5 percent wage inflation,” said Bob Wright, Wendy’s chief operating officer, during his presentation to investors and analysts last week. He added that the company expects wages to rise 4 percent in 2017. “But the real question is what are we doing about it?”
Wright noted that over the past two years, Wendy’s has figured out how to eliminate 31 hours of labor per week from its restaurants and is now working to use technology, such as kiosks, to increase efficiency.1
When will statists ever learn basic economic principles? If labor costs rise and the business owner cannot raise their prices to offset the rise in their costs, they will cut costs.
- Malone, J. D. “Wendy’s to install ordering kiosks in 1,000 stores this year.” Columbus Dispatch. N.p., 28 Feb. 2017. Web. 28 Feb. 2017.