Investor's Business Daily is reporting that the Wendy’s restaurant chain is increasing its number of self-service ordering kiosks because of minimum wage hikes.
“Wendy’s said that self-service ordering kiosks will be made available across its 6,000-plus restaurants in the second half of the year as minimum wage hikes and a tight labor market push up wages,” the report says.
It will be up to the franchisees to decide whether or not to deploy the technology.
Wendy’s President Todd Penegor said company-operated stores, only about 10% of the total, are seeing wage inflation of 5% to 6%, driven both by the minimum wage and some by the need to offer a competitive wage “to access good labor.”
Franchisees might be facing more of a labor-cost squeeze than company operated restaurants.
All 258 Wendy’s restaurants in California, where the minimum wage rose to $10 an hour this year and will eventually rise to $15, are franchise-operated. 75% of Wendy’s restaurants in New York are run by franchisees. New York’s minimum wage has been increased and is set to progress to $15 an hour.
In addition to self-order kiosks, the company is also reportedly getting ready to move beyond the testing phase with labor-saving mobile ordering and mobile payment - to be available system-wide by the end of 2016.
You can read the full report by clicking here.