Page 8 - IAV Digital Magazine #442

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Fast-food CEO Says ‘It Just Makes Sense' To Consider Replacing Cashiers With Machines As Minimum Wages Rise
By Kate Taylor
ORLANDO, Florida — Jack in the Box says it is considering swapping some cashiers with robots as the minimum wage rises in California.
"As we see the rising costs of labor, it just makes sense" to consider adding new automated technology, CEO Leonard Comma said Tuesday at the ICR Conference.
Jack in the Box previously test- ed technology such as kiosks. According to Comma, the kiosks resulted in a higher aver- age check and
helped with effi- ciency. But at the time Comma said the cost of installing the kiosks wasn't worth it.
But with mini- mum wages increasing, Jack in the Box is reconsidering
the use of kiosks and other technology, Comma said.
Minimum wages are increasing in 18 states in 2018, including California, where the West Coast-centric Jack in the Box
is based. California is on track to become the first state with a $15 mini- mum wage.
Jack in the Box isn't the only fast-food chain that has consid- ered using automation to
reduce labor costs and mod- ernize.
Wendy's announ ced plans to install self-order- ing kiosks within a year. McDonald's is adding kiosks to 2,500 stores, though it
pledged not to replace cashiers with kiosks.
Smaller chains such
as Eatsa and Ca liBurger have been working on automating the entire restaurant experience.
"With govern- ment driving up the cost of labor, it's driving down the number of jobs," then Carl's Jr. and Hardee's CEO Andy
Puzder told Business Insider in 2016. "You're going to see automation not just in airports and grocery stores, but in restaurants."
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