News

Wendy’s to Introduce More Automation to Dodge Paying Minimum Wage

US fast food chain Wendy’s has admitted that, rather than maintain its current staffing levels at the new minimum wage rate, it will seek to replace staff with self-ordering kiosks and back-of-house automated systems, and cover wage hikes of existing staff by raising its prices.

During a sales call, Wendy’s Chief Financial Officer Todd Penegor admitted that the company will “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. And you’ll see a lot more coming on that front later this year from us.”

CEO Emil Brolick added that “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.”

Last week, California and New York became the first states to agree to a $15/hr minimum wage rise by 2022, with campaigners fighting to have the policy adopted across the United States.

Ashley Allen

Disqus Comments Loading...

Recent Posts

ThermalTake Ceres 300 TG ARGB Snow Mid Tower PC Case

Ceres 300 TG ARGB Snow Mid Tower Chassis is an ATX case that comes with…

15 hours ago

ASUS Intel B660 PRIME B660M-K D4 Micro-ATX Motherboard

ASUS Prime series motherboards are expertly engineered to unleash the full potential of 12th Generation…

15 hours ago

Intel 24 Core i9 13900F Raptor Lake CPU/Processor

Say hello to Raptor-Lake. Intel's incredible 13th generation processors are here to break the boundaries…

15 hours ago

ASRock 34″ PG34WQ15R2B 165Hz VA FreeSync Premium WQHD Curved Monitor

This PG34WQ15R2B Phantom Gaming monitor provides exceptional clarity to any gamer thanks to its WQHD…

15 hours ago

Corsair Vengeance Black 64GB 5600MHz DDR5 Memory Kit

CORSAIR VENGEANCE DDR5, optimized for Intel® motherboards, delivers the higher frequencies and greater capacities of…

15 hours ago

ASUS ROG STRIX B760-F Gaming WiFi DDR5 ATX Motherboard

Leap into the future with the ROG Strix B760-F, a fantastic upgrade into 13th Gen…

15 hours ago