A fast-food franchisee says she's turning to automated drive-thrus to solve her labor shortage, rather than offering a $15 hourly wage to attract new staff.
Shana Gonzales, a Checkers franchisee who owns four restaurants in the Atlanta area, told The New York Times that she wanted to hire more workers, but that it wouldn't be profitable. She said raising wages to $14 or $15 would allow her to fully staff her restaurants but that she'd have to raise menu prices, which could deter customers.
Instead, she's turning to automated technology, such as voice-recognition drive-thrus, to keep business booming, she said.
The US is suffering from a severe shortage of workers, and restaurants have been especially hard hit. The US Chamber of Commerce has called the shortage a "national economic emergency" and warned it could hold back the recovery from the pandemic.
Read more:These 9 food tech startups are capitalizing on the labor crunch with tools that help franchisees hire or automate the restaurant workforce
Gonzales told The Times that she had raised wages to around $10 for entry-level workers, from around $9 pre-pandemic. But she found it difficult to find enough workers to meet soaring fast-food demand during the pandemic, she said, and had to work behind the cash register herself.
"We really felt like there has to be another solution," she said.
She turned to automation. In December, she started using technology from Valyant AI, a startup that makes voice-recognition systems for restaurants, to take orders at one of her drive-thru lanes. The technology takes orders, including noting modifications and suggesting add-ons, and feeds this directly to the kitchen and cashier.
Gonzales is planning to roll out Valyant's technology at her three other restaurants, she said.
"We'll look back and say why didn't we do this sooner," she told The Times.
Even before the pandemic, restaurants had been turning to digital ordering to keep staff costs down because of rising wages in the restaurant industry, Andrew Lapin, a lawyer specializing in retail at Robbins, Salomon, and Patt, told Insider.
Former McDonald's CEO Ed Rensihas said that the push for a $15 federal minimum wage could cause fast-food chains to raise prices or slash jobs by turning to automation instead.
"Technology is always cheaper than people," he toldFox Businessin June.
McDonald's is testing out voice-recognition software at some drive-thrus in Chicago, while other restaurants like Starbucks, Panera Bread, and Burger King are pushing customers to order using apps, QR codes, and digital kiosks, reducing the need for servers.
But Gonzales, the Checkers franchisee, told The Times that she doesn't view technology as a replacement for workers and instead sees it as a way to let staff focus on customers instead.
"Our approach is, this is an assistant for you," she said.
The tight labor market is causing some businesses tocut operating hours, slash production, and raise prices, while others have been offering higher wages,sign-on bonuses, and evenfree fitness machinesandiPhonesto attract new hires.
Got a story about how your business is overcoming the labor shortage? Email this reporter at gdean@insider.com.
The rest is here:
Restaurant owner: Automated drive-thrus trump $15 wages for business - Business Insider
- The Automation Conference - December 9th, 2016 [December 9th, 2016]
- The Best Home Automation Systems of 2016 | Top Ten Reviews - December 24th, 2016 [December 24th, 2016]
- Compact Automation - Actuators, Hydraulic Cylinders, Linear ... - December 24th, 2016 [December 24th, 2016]
- What is Home Automation? | Home Automation Systems - December 24th, 2016 [December 24th, 2016]
- Job Seekers - Automation Personnel Services - December 24th, 2016 [December 24th, 2016]
- iAutomation - December 25th, 2016 [December 25th, 2016]
- Beyond Automation - hbr.org - December 25th, 2016 [December 25th, 2016]
- Automation The Car Company Tycoon Game on Steam - December 25th, 2016 [December 25th, 2016]
- Automation - Wikipedia - December 25th, 2016 [December 25th, 2016]
- Build automation - Wikipedia - December 26th, 2016 [December 26th, 2016]
- Home - Enerwave Home Automation - December 27th, 2016 [December 27th, 2016]
- Automation | Technologies | Systems | Integrator ... - December 27th, 2016 [December 27th, 2016]
- Automation - DESHAZO - December 27th, 2016 [December 27th, 2016]
- Custom Automation & Machine Design | Automation GT - December 27th, 2016 [December 27th, 2016]
- IT Automation - BMC - December 27th, 2016 [December 27th, 2016]
- Werner Electric | Automation - January 28th, 2017 [January 28th, 2017]
- Automationtechies | Automation Engineering Recruiting - January 28th, 2017 [January 28th, 2017]
- Automation - Mazak Corporation - January 28th, 2017 [January 28th, 2017]
- Automation | Food Engineering - January 28th, 2017 [January 28th, 2017]
- Test Automation Services for Development of Regression ... - January 28th, 2017 [January 28th, 2017]
- UI Automation Overview - msdn.microsoft.com - February 5th, 2017 [February 5th, 2017]
- The Evolution of Automation and What It Means for the Integration Industry - Commercial Integrator - February 7th, 2017 [February 7th, 2017]
- Automation, robots could replace 250000 public sector workers in the next 15 years - Computer Business Review - February 7th, 2017 [February 7th, 2017]
- New telecom transformation goals require service automation - TechTarget - February 7th, 2017 [February 7th, 2017]
- Automation expected to displace insurance underwriters, real estate brokers - CIO Dive - February 7th, 2017 [February 7th, 2017]
- The Perks Of Automation And The Risks: Why To Think Twice About Getting Into That Driverless Uber - Forbes - February 7th, 2017 [February 7th, 2017]
- Voices Reinventing enterprise finance by overhauling AP automation - Accounting Today - February 7th, 2017 [February 7th, 2017]
- DFLabs Launches the First Security Automation and Orchestration Platform based Upon Supervised Active Intelligence - Business Wire (press release) - February 7th, 2017 [February 7th, 2017]
- VIDEO: Going Big on Automation in a Small Footprint Facility - ENGINEERING.com - February 7th, 2017 [February 7th, 2017]
- Building a better model of human-automation interaction - Phys.org - Phys.Org - February 7th, 2017 [February 7th, 2017]
- Cruise Automation Is Testing an App For Hailing Self-Driving Cars - Fortune - February 8th, 2017 [February 8th, 2017]
- AlixPartners examines automation in manufacturing and logistics management - Logistics Management - February 8th, 2017 [February 8th, 2017]
- Women need to look out for each other in automated workplaces - The Guardian - February 8th, 2017 [February 8th, 2017]
- Automation vs. the H-1B visa program: Which matters to employees? - TechTarget - February 8th, 2017 [February 8th, 2017]
- Automation is the unavoidable future of the economy - The Daily Cougar - February 8th, 2017 [February 8th, 2017]
- Speeders beware: Legislation would allow automation crackdown ... - SFGate - February 9th, 2017 [February 9th, 2017]
- Robots versus bureaucrats: Why public sector work is ripe for automation - Financial Post - February 9th, 2017 [February 9th, 2017]
- Rockwell Automation Surged 10% in January as Growth Picked Up Steam - Motley Fool - February 9th, 2017 [February 9th, 2017]
- Global Medical Automation Market to Reach Approximately $75.6 Billion by 2025 - By End User, Application ... - PR Newswire (press release) - February 10th, 2017 [February 10th, 2017]
- Automation 'key' to advancing Thai production - The Nation - February 10th, 2017 [February 10th, 2017]
- WorkWave Releases New Lead Management And Marketing ... - PR Newswire (press release) - February 10th, 2017 [February 10th, 2017]
- 'We employ insane levels of automation' Kris Canekeratne - Times of India - February 10th, 2017 [February 10th, 2017]
- Most people are optimistic about workplace automation, social data suggests - ZDNet - February 10th, 2017 [February 10th, 2017]
- Yes, there's a job creation argument for automation and technology ... - The Hill (blog) - February 10th, 2017 [February 10th, 2017]
- Technobabble: Automation and the modern worker - CIO Dive - February 10th, 2017 [February 10th, 2017]
- Improving Behavior Through Automation of Vehicle Systems - School Transportation News (blog) - February 11th, 2017 [February 11th, 2017]
- Automation Nightmare: Philosopher Warns We Are Creating a World Without Consciousness - Big Think - February 11th, 2017 [February 11th, 2017]
- Why Don't We See More Automation in Federal Networks? - Nextgov - February 11th, 2017 [February 11th, 2017]
- Automation can revitalize the US workforce - Fox News - February 11th, 2017 [February 11th, 2017]
- Readers Write (Feb. 12): The moose population; jobs, start-ups and automation; diversity in the funny pages - Minneapolis Star Tribune - February 12th, 2017 [February 12th, 2017]
- Automation can replace bureaucrats and save taxpayers money - Hot Air - February 12th, 2017 [February 12th, 2017]
- TigerStop hopes to ride automation to new heights - The Columbian - February 12th, 2017 [February 12th, 2017]
- Your Most Valuable Resource is Time Get More of it through Automation - CMS Critic (press release) (blog) - February 13th, 2017 [February 13th, 2017]
- What Does Device Automation Mean for Users? - Medical Device and Diagnostics Industry (blog) - February 13th, 2017 [February 13th, 2017]
- How To Beat Automation And Not Lose Your Job - Forbes - February 13th, 2017 [February 13th, 2017]
- Logistics firm gets automation boost - The Straits Times - February 14th, 2017 [February 14th, 2017]
- PP Control & Automation launch new video to kick-start exciting plans for 2017 - Manufacturer.com - February 14th, 2017 [February 14th, 2017]
- Automation's Impace on Data Center Monitoring Alerts - The Data Center Journal - February 14th, 2017 [February 14th, 2017]
- Hollysys Automation Technologies Reports Unaudited Financial Results for the First Half Year and the Second Quarter ... - PR Newswire (press release) - February 15th, 2017 [February 15th, 2017]
- 4 Automation Hacks to Save You Money and Manpower - Yahoo Finance - February 15th, 2017 [February 15th, 2017]
- Istuary Innovation Group and Bluewrist Partner to Bring Robotics and Automation into China's Manufacturing Sector - Yahoo Finance - February 15th, 2017 [February 15th, 2017]
- Redwood Software Named a Strong Performer in Independent Robotic Process Automation (RPA) Report - Yahoo Finance - February 15th, 2017 [February 15th, 2017]
- Boeing ramps up automation, innovation as it readies 737MAX | The ... - The Seattle Times - February 15th, 2017 [February 15th, 2017]
- Robots and AI are coming for our jobs, but can augmentation save us from automation? - Digital Trends - February 15th, 2017 [February 15th, 2017]
- The Impact of Bad Data in Automation: Why Quality Management is Critical - R & D Magazine - February 16th, 2017 [February 16th, 2017]
- Automation: Are We Empowering Human Interaction Or Displacing It? - Business 2 Community - February 16th, 2017 [February 16th, 2017]
- Life in the Fast LaneAutomation with Software-Defined Intelligence - InfoWorld - February 16th, 2017 [February 16th, 2017]
- Luddite Lefty Journalists Apparently Think Workplace Automation is Conservatives' Fault [VIDEO] - Daily Caller - February 16th, 2017 [February 16th, 2017]
- Will automation define the future of network technology? - TechTarget - February 16th, 2017 [February 16th, 2017]
- Editorial: Improving automation - The Motorship - February 17th, 2017 [February 17th, 2017]
- TigerText Unveils Role-based Scheduling Automation, Amazon Alexa integration - HIT Consultant - February 17th, 2017 [February 17th, 2017]
- 89% people want automation at workplace: Adobe - Economic Times - February 18th, 2017 [February 18th, 2017]
- Delta veers to EV parts, automation - Bangkok Post - February 18th, 2017 [February 18th, 2017]
- Robotic process automation makes nearshore outsourcing more ... - CIO - February 18th, 2017 [February 18th, 2017]
- The working-class job that Trump could save from automation - Washington Post - February 18th, 2017 [February 18th, 2017]
- China must be ready for automation - Basic Income News - February 18th, 2017 [February 18th, 2017]
- Bill Gates Says Robots Should Be Taxed Like Workers - Fortune - February 18th, 2017 [February 18th, 2017]
- Trump and automation challenge India's IT industry - VentureBeat - February 18th, 2017 [February 18th, 2017]
- Both Trump and Automation Are Challenging India's IT Industry - Fortune - February 20th, 2017 [February 20th, 2017]
- 89% people want automation at workplace: Adobe - ETCIO.com - February 20th, 2017 [February 20th, 2017]