Minimum Wage Hike Backfiring? Wendy's Increases Self-Service Kiosks
May 20, 2016 20:57:34 #
Out of curiosity I went looking, here's the recent reason..Corporate changes because they are loosing money...
http://www.chicagobusiness.com/article/20150806/NEWS07/150809909/mcdonalds-lays-off-225-as-part-of-cost-cutting
McDonald's is laying off about 225 employees, including 135 at its corporate headquarters in Oak Brook, as part of a corporate reorganization that aims to cut costs by $300 million by the end of 2017.
The struggling burger giant, fresh off seven consecutive quarters of declining sales at its U.S. restaurants, notified employees last month of the cuts, which affect workers in multiple departments, a spokeswoman said.
“We do not take decisions that impact jobs lightly, but we committed in May to implement meaningful changes to reset our business, remove layers and find cost efficiencies, and we are acting with a sense of urgency on that commitment,” Heidi Barker Sa Shekhem, the spokeswoman, said in a statement. Workers who lost their jobs will remain on the payroll through mid-September, she said.
With the latest round of cuts, McDonald's has laid off at least 263 in its Oak Brook offices since December. McDonald's laid off 63 workers in late December as part of a $100 million cost-cutting effort, and 65 at the end of January as part of a major restructuring timed with the arrival of new CEO Steve Easterbrook, who has pledged to remove layers of management to boost efficiency and cut costs.
Easterbrook in May hinted at the scope of the restructuring, suggesting a large-scale overhaul of the business and reporting structures. The change, he said at the time, "is about restructuring and delayering. We're putting the right people in the right places. ... We'll be conducting an additional review of our corporate functions in the coming weeks and reducing (general and administrative expenses) as we look to align our support more closely with the new structure."
In addition to the January cuts, dozens of McDonald's employees have left the company in recent months, many of whom declined to accept new—or in some cases lesser—positions, sources have told Crain's.
About 90 McDonald's employees overseas also will lose their jobs, the result of a global enterprise reorganization that eliminated layers of workers in Europe and Asia.
McDonald's CFO Kevin Ozan also referenced the cuts on the company's second-quarter earnings call on July 23. He said the layoffs "were right for the business and will result in a leaner, more-agile organization that can better respond to market conditions and most importantly, our customers. The rapid execution of these resourcing decisions is an example of our sense of urgency to reset our business and change the trajectory of our financial performance.”
The fast-foot chain said last month that profit declined 13 percent to $1.2 billion in its most-recent quarter, the result of a dropoff in customers at its U.S. restaurants. Sales fell 0.7 percent to $6.5 billion.
McDonald's employed 420,000 people worldwide, including its company-owned restaurants, as of Dec. 31. The figure excludes people working at franchised locations. It has about 2,100 employees in its home offices in Oak Brook. <snip>
http://www.chicagobusiness.com/article/20150806/NEWS07/150809909/mcdonalds-lays-off-225-as-part-of-cost-cutting
McDonald's is laying off about 225 employees, including 135 at its corporate headquarters in Oak Brook, as part of a corporate reorganization that aims to cut costs by $300 million by the end of 2017.
The struggling burger giant, fresh off seven consecutive quarters of declining sales at its U.S. restaurants, notified employees last month of the cuts, which affect workers in multiple departments, a spokeswoman said.
“We do not take decisions that impact jobs lightly, but we committed in May to implement meaningful changes to reset our business, remove layers and find cost efficiencies, and we are acting with a sense of urgency on that commitment,” Heidi Barker Sa Shekhem, the spokeswoman, said in a statement. Workers who lost their jobs will remain on the payroll through mid-September, she said.
With the latest round of cuts, McDonald's has laid off at least 263 in its Oak Brook offices since December. McDonald's laid off 63 workers in late December as part of a $100 million cost-cutting effort, and 65 at the end of January as part of a major restructuring timed with the arrival of new CEO Steve Easterbrook, who has pledged to remove layers of management to boost efficiency and cut costs.
Easterbrook in May hinted at the scope of the restructuring, suggesting a large-scale overhaul of the business and reporting structures. The change, he said at the time, "is about restructuring and delayering. We're putting the right people in the right places. ... We'll be conducting an additional review of our corporate functions in the coming weeks and reducing (general and administrative expenses) as we look to align our support more closely with the new structure."
In addition to the January cuts, dozens of McDonald's employees have left the company in recent months, many of whom declined to accept new—or in some cases lesser—positions, sources have told Crain's.
About 90 McDonald's employees overseas also will lose their jobs, the result of a global enterprise reorganization that eliminated layers of workers in Europe and Asia.
McDonald's CFO Kevin Ozan also referenced the cuts on the company's second-quarter earnings call on July 23. He said the layoffs "were right for the business and will result in a leaner, more-agile organization that can better respond to market conditions and most importantly, our customers. The rapid execution of these resourcing decisions is an example of our sense of urgency to reset our business and change the trajectory of our financial performance.”
The fast-foot chain said last month that profit declined 13 percent to $1.2 billion in its most-recent quarter, the result of a dropoff in customers at its U.S. restaurants. Sales fell 0.7 percent to $6.5 billion.
McDonald's employed 420,000 people worldwide, including its company-owned restaurants, as of Dec. 31. The figure excludes people working at franchised locations. It has about 2,100 employees in its home offices in Oak Brook. <snip>
May 20, 2016 21:00:41 #
crazylibertarian wrote:
This was just at the Yahoo home page today, May 15. Nothing more to say.
Sure raise the minimum wage & force minimum wage jobs off the market. Nobody will ever lose money underestimating the economic savvy of liberals.
Next stop - twenty five dollars an hour?
Sure raise the minimum wage & force minimum wage jobs off the market. Nobody will ever lose money underestimating the economic savvy of liberals.
Next stop - twenty five dollars an hour?
Not at all surprising is it???
More to come as well, I'm sure..Where there is a will to save profits, there will be a way!
http://anonhq.com/wendys-autonomize-6000-locations-fight-wage-increases/
The fight for $15 per hour. The unintended consequences of raising the minimum wage are already beginning to take hold on several industries nationwide. In one of the most public moves combating wage increases to date, Wendy’s fast food chain has announced plans to automatize cashiers at over 6,000 facilities nationwide by the end of 2016.
Though Wendy’s made their decision official this past Thursday, Company CEO Emil Brolick hinted last August that the franchise might do just this. At the time Wendy’s was debating laying off employees in favor autonomization, or increasing the prices on their menu. As Emil Brolick stated “our franchisees will likely look at the opportunity to reduce overall staff, look at the opportunity to certainly reduce hours and any other cost reduction opportunities, not just price. You know there are some people out there who naively say that these wages can simply be passed along in terms of price increases. I don’t think that the average franchisee believes that.”
Wendy’s CFO Todd Penegor went on to add “We continue to look at initiatives and how we work to offset any impacts of future wage inflation through technology initiatives, whether that’s customer self-order kiosks, whether that’s automating more in the back of the house in the restaurant. You’ll see a lot more coming on that front later this year from us.”
Indeed they will. In an interview with Business Daily, Wendy’s representatives noted how the company’s 258 restaurants in California were struggling to keep up with the $10/hr wage demands, and similarly, the company’s 200+ franchises in New York simply cant keep up with the cost of wage inflation. Last month these two states voted to impose a minimum wage increase to 15$ statewide – going into effect within the next several years.<snip>
May 20, 2016 21:21:22 #
archie bunker wrote:
Tell me about your coffees. Please?
I like coffee.
I like coffee.
I absolutely will...Sending you a PM~~
Make that in a few, have to run an errand....
May 21, 2016 05:34:17 #
archie bunker wrote:
This is funny Louie! Our Friend jelun is clueless!
I am a courier by trade, and have delivered many a computer part to restaurants, banks, car dealerships, hospitals, you name it.
I have seen restaurants shut down waiting on the part! They are always glad to have their part so quickly, but have to wait on a tech to come install it.
It pays me GOOD money too!!
Meanwhile, the business is down waiting on a tech!
I am a courier by trade, and have delivered many a computer part to restaurants, banks, car dealerships, hospitals, you name it.
I have seen restaurants shut down waiting on the part! They are always glad to have their part so quickly, but have to wait on a tech to come install it.
It pays me GOOD money too!!
Meanwhile, the business is down waiting on a tech!
Uh huh, I am clueless.
Thanks for making my point for me.
May 21, 2016 14:38:47 #
archie bunker wrote:
This is funny Louie! Our Friend jelun is clueless!
I am a courier by trade, and have delivered many a computer part to restaurants, banks, car dealerships, hospitals, you name it.
I have seen restaurants shut down waiting on the part! They are always glad to have their part so quickly, but have to wait on a tech to come install it.
It pays me GOOD money too!!
Meanwhile, the business is down waiting on a tech!
I am a courier by trade, and have delivered many a computer part to restaurants, banks, car dealerships, hospitals, you name it.
I have seen restaurants shut down waiting on the part! They are always glad to have their part so quickly, but have to wait on a tech to come install it.
It pays me GOOD money too!!
Meanwhile, the business is down waiting on a tech!
Jelun thinks she knows best but those of us that have had a business know the ins and outs of working with the public. She is as clueless as a ice cube.
May 21, 2016 14:47:51 #
Louie27 wrote:
Jelun thinks she knows best but those of us that have had a business know the ins and outs of working with the public. She is as clueless as a ice cube.
So could you explain to poor, clueless, little ol' me who has only run one business...what exactly does the dog's rectum say that disagrees with my premise that those in the service sector will be making a mistake by replacing people with machines?
And while you are at it, could you count up the Frostys that those machines drink per annum?
May 21, 2016 15:06:16 #
jelun wrote:
So could you explain to poor, clueless, little ol' me who has only run one business...what exactly does the dog's rectum say that disagrees with my premise that those in the service sector will be making a mistake by replacing people with machines?
And while you are at it, could you count up the Frostys that those machines drink per annum?
And while you are at it, could you count up the Frostys that those machines drink per annum?
You never stated, that I can recall, in your previous posts, that your premise is that the service industry would be making a mistake. As for those frosty machines, where did that come from.
May 21, 2016 16:55:23 #
jelun wrote:
So could you explain to poor, clueless, little ol' me who has only run one business...what exactly does the dog's rectum say that disagrees with my premise that those in the service sector will be making a mistake by replacing people with machines?
And while you are at it, could you count up the Frostys that those machines drink per annum?
And while you are at it, could you count up the Frostys that those machines drink per annum?
If you are talking about Wendy's frostys, you don't drink them unless you are slow on the draw. They don't last long enough to turn to liquid around me!!
May 21, 2016 20:02:17 #
Louie27 wrote:
You never stated, that I can recall, in your previous posts, that your premise is that the service industry would be making a mistake. As for those frosty machines, where did that come from.
Where ever it came from it sure won't equate to much that's for sure..Frosty's are mostly air and they probably throw out more than any employees, who do have a limitation on what they drink and eat, usually, anyway, would be drinking up...Businesses typically have a shrinkage ratio that is factored into their "pricing as well"..Not that having a frosty even equates to that..But its a good visual, that employee hiding behind a wall eating a burger or eating a Frosty, all on company time no less..
And no, Louie, I don't see where that comment was made either..To the contrary it was not..Premise being automation was going to create even more jobs to service the needs of the company..Like they are going to hire a tech or plumber, or someone like you that fixed electrical issues etc.,to sit around waiting for something to happen versus having a Service Contract that is a tax write off for them doing that work..Also someone made reference to the computer issues..Typically your larger corporations have an IT Dept. that would service that requirement especially since their systems are corporate systems customized to their needs, along with not having to worry about piracy of data...
Customers may like the automated systems and then again may not..If they have to do everything just to get their order, well, why bother??? Its the convenience of that fast food enterprise that was its selling feature in the past and now you do everything including picking up your order..Soon the drive throughs will have such a feature as well, like your ATM machine....Again, more for the customer to manage..All they do is cook it and serve it..I think I can eat better doing that at home and save more money too...Also just my little statement since they are always profit driven, may their profits continue to decline and hopefully close up soon....They sure aren't good for our health anyway..Hey, they are doing us a favor, right??
May 21, 2016 20:04:07 #
archie bunker wrote:
If you are talking about Wendy's frostys, you don't drink them unless you are slow on the draw. They don't last long enough to turn to liquid around me!!
You hangen around slatt too much, arch???
May 21, 2016 22:18:44 #
lindajoy wrote:
You hangen around slatt too much, arch???
You ever had a Wendy's chocolate frosty Linda?
May 21, 2016 23:49:33 #
archie bunker wrote:
You ever had a Wendy's chocolate frosty Linda?
oh hushhhhhhhh up, of course I have ..A small one many times,,lolol..I can't eat more than that and yes, I liked them very much...
But when you said what you I saw you an slatt at one with slatt trying to take yours..Don't ask me why,I just did~~may be this Hypnotic I decided to sip tonight....
Jul 16, 2016 21:08:34 #
Jul 16, 2016 21:11:00 #
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