Fmr. McDonald's USA CEO: $35K Robots Cheaper Than Hiring at $15 Per Hour.

[lockedout]

As fast-food workers across the country vie for $15 per hour wages, many business owners have already begun to take humans out of the picture.

“I was at the National Restaurant Show yesterday and if you look at the robotic devices that are coming into the restaurant industry -- it’s cheaper to buy a $35,000 robotic arm than it is to hire an employee who’s inefficient making $15 an hour bagging French fries -- it’s nonsense and it’s very destructive and it’s inflationary and it’s going to cause a job loss across this country like you’re not going to believe,” said former McDonald’s (MCD) USA CEO Ed Rensi during an interview on the FOX Business Network’s Mornings with Maria.

According to the Bureau of Labor Statistics, 1.3 million people earned the current minimum wage of $7.25 per hour with about 1.7 million having wages below the federal minimum in 2014. These three million workers combined made up 3.9 percent of all hourly paid workers.

http://www.foxbusiness.com/features/...-per-hour.html

[Kujako]

OK... and?

[Deleted]

the computers your can order food from at mcdonalds are amazing, i use them all the time.
though i agree with the worries that it could cause widespread job losses, specially in unskilled jobs like that.

[Beej]

As fast-food workers across the country vie for $15 per hour wages, many business owners have already begun to take humans out of the picture.

“I was at the National Restaurant Show yesterday and if you look at the robotic devices that are coming into the restaurant industry -- it’s cheaper to buy a $35,000 robotic arm than it is to hire an employee who’s inefficient making $15 an hour bagging French fries -- it’s nonsense and it’s very destructive and it’s inflationary and it’s going to cause a job loss across this country like you’re not going to believe,” said former McDonald’s (MCD) USA CEO Ed Rensi during an interview on the FOX Business Network’s Mornings with Maria.

According to the Bureau of Labor Statistics, 1.3 million people earned the current minimum wage of $7.25 per hour with about 1.7 million having wages below the federal minimum in 2014. These three million workers combined made up 3.9 percent of all hourly paid workers.

http://www.foxbusiness.com/features/...-per-hour.html

And this is why I fear capitalism is doomed to fail. Once we reach a certain technological height, capitalism may no longer be sustainable. Communism or some other form of socialism may become a reality and maybe the only possibility in the future.

[Independent voter]

Okay, bagging french fries? I agree.



But I'm not sure what else it could do. I don't think it could run the cash register.

[Jotaux]

Whats the life of a 35k robot? 4 years?

Assuming it will only be running for half the time due to maintenance you would need to be able to pay an employee less than $2 an hour in order for them to be more cost effective than a robot.

[taliey]

The march to basic income continues.

[Deleted]

Okay, bagging french fries? I agree.



But I'm not sure what else it could do. I don't think it could run the cash register.

a robotic arm couldn't, but you could easily have a robotic cash register... like a vending machine. type in what you want, it processes the order, put your money in and it dispenses change. there is really no reason for people to be working on checkouts at all

[McFuu]

In other news, the sky is blue.

I have a hard time seeing why people can't understand the massive paradigm shift coming because of a sweeping change to the minimum wage.

[Deleted]

Whats the life of a 35k robot? 4 years?

Assuming it will only be running for half the time due to maintenance you would need to be able to pay an employee less than $2 an hour in order for them to be more cost effective than a robot.

If the robots are up to the standards that most industrial robots are, including upgrades and replacement parts. 15-20 years, depending on conditions that it is run under.

I know my robots

[Deleted]

And this is why I fear capitalism is doomed to fail. Once we reach a certain technological height, capitalism may no longer be sustainable. Communism or some other form of socialism may become a reality and maybe the only possibility in the future.

i like that basic income idea where everyone gets a basic income on top of any wages. but i want it to be tested somewhere like Sweden first before it comes here

- - - Updated - - -

Whats the life of a 35k robot? 4 years?

Assuming it will only be running for half the time due to maintenance you would need to be able to pay an employee less than $2 an hour in order for them to be more cost effective than a robot.

with proper maintenance it would probably last longer than 4 years i would think

[PC2]

The march to basic income continues.

How much per month does each person get?

[Kujako]

In other news, the sky is blue.

I have a hard time seeing why people can't understand the massive paradigm shift coming because of a sweeping change to the minimum wage.

Likewise I can't understand why people don't comprehend that there are basically two choices. A living wage, or welfare. If you are in favor of paying taxes, to supplement the income of Mc Food workers, then you can be against an increase in the minimum wage. Otherwise, you can only logically be in favor of the increase, even if it means the loss of a 99 cent "cheese burger".

[Deleted]

I understand how this can affect people, losing their jobs and all, but I'd much rather have robots working in Fast Food establishments. The employees mess orders ups, don't follow proper hygiene rules and mess with people's food. I know they'll probably still have actual human employees there to make sure everything goes smoothly, but I welcome the day when robots just completely run it.

same, most of the time its not too bad, but ocasionally you get that one employee who doesn't speak a word of english, and it takes 5mins just to place your order, and then you end up with the wrong thing anyway because it turns out his nodding didn't mean he understood

[Deleted]

Sounds like bullshit.

A company doesn't have morals besides what makes the most money. If robots where so much cheaper they would get them regardless.

It might be slightly cheaper but the price for maintenance and the complexity involved makes me hard to believe it would be a large gain.

[kail]

How much per month does each person get?

Should depend on cost of living.

OT: A machine would be cheaper in the long run with today's wages. We're heading to automation so we might as well get it done with.

[Al Gorefiend]

I wouldn't knock it just yet OP, these self service computers are looking promising, streamlining the fast food service. Technological advancement begets job loss as humans are replaced. It's a natural cycle of invention. How many ditchdiggers lost their jobs on the creation of the bulldozer? How many farmhands lost their jobs when the harvester and underground sprinklers were invented?

[PC2]

Should depend on cost of living.

What is that figure for you where you are at this month?

[McFuu]

Likewise I can't understand why people don't comprehend that there are basically two choices. A living wage, or welfare. If you are in favor of paying taxes, to supplement the income of Mc Food workers, then you can be against an increase in the minimum wage. Otherwise, you can only logically be in favor of the increase, even if it means the loss of a 99 cent "cheese burger".

I don't support welfare for all. There are people who need and deserve welfare and other social services.

It's thoroughly possible to survive off of the average McDonalds wage. Buying only the necessities and living with other people it's very possible. No you don't deserve your own apartment/house if the best you can do is hold down a McD's job.

A lump raise to $15 an hour is reckless. There are some professions where it's warranted, but there are many that don't warrant it. I don't support a sweeping change to the federal minimum wage for this exact reason.

[Xeones]

I know what point you think you're making lockedout but you aren't making it. Automation happens no matter what, if this makes it happen faster? Big deal, if people work people should be able to live.