McDonald’s is replacing 2500 human cashiers with digital kiosks. Partly, they were spurred on to replace human beings after Democrats’ began demanding living wages for menial labor.
Half of low-level jobs and as much as seventy percent of menial agricultural jobs will be taken over by machines. That should tell people two things. One, we don’t need all that stoop labor and two, Bernie’s living wage for menial jobs will soon be a talking point in need of a replacement.
The stock market has responded to McDonald’s move and it’s at an all time high. Their shares are up 26%. The outlook for the restaurant and fast food sector appears grim except for McDonald’s.
Obliterating Bernie’s $15 an hour plus benefits workers is a huge attraction.
The restaurant chain will roll out mobile ordering across 14,000 U.S. locations by the end of 2017.
CNBC, quoting Cowen’s, analysis cites the kiosks as a reason. A recent article says it’s raising its rating on McDonald’s to outperform. Shares are price targeted to $180 from $142.
Andrew Charles from Cowen raised his 2018 U.S. same store sales growth estimate for the fast-food chain to 3 percent from 2 percent.
“MCD has done a great job launching popular innovations within the context of simplifying the menu, while introducing more effective value initiatives that have recently begun to improve the brand’s value perceptions,” Charles wrote.
But then there’s these guys.
Other innovations might help too
McDonald’s calls their innovations, ‘Experience of the Future’ and it includes other ideas such as their new line of Signature Crafted Recipes sandwiches– marketed with a french fry-fork hybrid dubbed the “Frork.”
The franchises have shouldered the cost of the renovations and innovations at $150,000 to $700,000 per restaurant. Some restaurants have folded, but in the end, the outlook for McDonald’s is rosy.
Wendy’s announced in February their intentions to install 1,000 digital kiosks by the end of 2017.