McDonald's Touchscreen Kiosks, Feared As Job Killers, Created More Jobs Instead (cnn.com)
(Wednesday September 25, 2024 @11:30PM (BeauHD)
from the would-you-look-at-that dept.)
- Reference: 0175133435
- News link: https://hardware.slashdot.org/story/24/09/25/220217/mcdonalds-touchscreen-kiosks-feared-as-job-killers-created-more-jobs-instead
- Source link: https://www.cnn.com/2024/09/20/business/self-service-kiosks-mcdonalds-shake-shack/index.html
An anonymous reader quotes a report from CNN:
> Some McDonald's franchisees -- which own and operate 95% of McDonald's in the United States -- are now rolling out kiosks that can take cash and accept change. But even in these locations, McDonald's is reassigning cashiers to other roles, including new "guest experience lead" jobs that help customers use the kiosks and assist with any issues. "In theory, kiosks should help save on labor, but in reality, restaurants have added complexity due to mobile ordering and delivery, and the [1]labor saved from kiosks is often reallocated for these efforts ," said RJ Hottovy, an analyst who covers the restaurant and retail industries at data analytics firm Placer.ai. Kiosks "have created a restaurant within a restaurant." And in some cases, kiosks have even been a flop. Bowling ally chain Bowlero added kiosks in lanes for customers to order food and drinks, but they went unused because staff and customers weren't fully trained on using them. "The unintended consequences have surprised a lot of people," Hottovy said.
>
> Even some of the benefits of kiosks touted by chains -- they upsell customers by suggesting menu items and speed up orders -- don't always play out. A [2]recent study from Temple University researchers found that, when a line forms behind customers using kiosks, they experience more stress when placing their orders and purchase less food. And some customers take longer to order tapping around on kiosks and paying than they do telling a cashier they'd like to order a burger and fries. Not to mention the kiosks can malfunction or break down. "If kiosks really improved speed of service, order accuracy, and upsell, they'd be rolled out more extensively across the industry than they are today," Hottovy said.
>
> Kiosks have also been threatened as a fast-food industry response to higher minimum wage laws. [...] But the quick-service and fast-casual segments of the restaurant industry continue to grow. Staffing levels were nearly 150,000 jobs, or 3%, above pre-pandemic levels, according to the latest Labor Department [3]data . Christopher Andrews, a sociologist at Drew University who studies the effects of technology on work, said the impacts of kiosks were similar to other self-service technology such as ATMs and self-checkout machines in supermarkets. Both technologies were predicted to cause job losses. "The introduction of ATMs did not result in massive technological unemployment for bank tellers," he said. "Instead, it freed them up from low-value tasks such as depositing and cashing checks to perform other tasks that created value."
Self-checkout have also not resulted in retail job losses, the report adds. "In some cases, self-checkout backfired for chains because self-checkout leads to higher merchandise losses from customer errors and more intentional shoplifting than when human cashiers are ringing up customers."
[1] https://www.cnn.com/2024/09/20/business/self-service-kiosks-mcdonalds-shake-shack/index.html
[2] https://news.temple.edu/news/2024-04-12/feeling-rushed-food-ordering-kiosk-you-re-not-alone
[3] https://restaurant.org/research-and-media/research/economists-notebook/economic-indicators/total-restaurant-industry-jobs/
> Some McDonald's franchisees -- which own and operate 95% of McDonald's in the United States -- are now rolling out kiosks that can take cash and accept change. But even in these locations, McDonald's is reassigning cashiers to other roles, including new "guest experience lead" jobs that help customers use the kiosks and assist with any issues. "In theory, kiosks should help save on labor, but in reality, restaurants have added complexity due to mobile ordering and delivery, and the [1]labor saved from kiosks is often reallocated for these efforts ," said RJ Hottovy, an analyst who covers the restaurant and retail industries at data analytics firm Placer.ai. Kiosks "have created a restaurant within a restaurant." And in some cases, kiosks have even been a flop. Bowling ally chain Bowlero added kiosks in lanes for customers to order food and drinks, but they went unused because staff and customers weren't fully trained on using them. "The unintended consequences have surprised a lot of people," Hottovy said.
>
> Even some of the benefits of kiosks touted by chains -- they upsell customers by suggesting menu items and speed up orders -- don't always play out. A [2]recent study from Temple University researchers found that, when a line forms behind customers using kiosks, they experience more stress when placing their orders and purchase less food. And some customers take longer to order tapping around on kiosks and paying than they do telling a cashier they'd like to order a burger and fries. Not to mention the kiosks can malfunction or break down. "If kiosks really improved speed of service, order accuracy, and upsell, they'd be rolled out more extensively across the industry than they are today," Hottovy said.
>
> Kiosks have also been threatened as a fast-food industry response to higher minimum wage laws. [...] But the quick-service and fast-casual segments of the restaurant industry continue to grow. Staffing levels were nearly 150,000 jobs, or 3%, above pre-pandemic levels, according to the latest Labor Department [3]data . Christopher Andrews, a sociologist at Drew University who studies the effects of technology on work, said the impacts of kiosks were similar to other self-service technology such as ATMs and self-checkout machines in supermarkets. Both technologies were predicted to cause job losses. "The introduction of ATMs did not result in massive technological unemployment for bank tellers," he said. "Instead, it freed them up from low-value tasks such as depositing and cashing checks to perform other tasks that created value."
Self-checkout have also not resulted in retail job losses, the report adds. "In some cases, self-checkout backfired for chains because self-checkout leads to higher merchandise losses from customer errors and more intentional shoplifting than when human cashiers are ringing up customers."
[1] https://www.cnn.com/2024/09/20/business/self-service-kiosks-mcdonalds-shake-shack/index.html
[2] https://news.temple.edu/news/2024-04-12/feeling-rushed-food-ordering-kiosk-you-re-not-alone
[3] https://restaurant.org/research-and-media/research/economists-notebook/economic-indicators/total-restaurant-industry-jobs/
This reminds me of Edinburghâ(TM)s driverless (Score:2)
This driverless bus, which can do a 14 mile route over the bridge into and out of Edinburgh, actually needs 2x as many people to operate it as a regular bus which only needs one driver. I love the irony of this its classic big brain stuff. Its a page out of Yes Minister. [1]https://news.sky.com/story/amp... [sky.com]
[1] https://news.sky.com/story/amp/edinburgh-worlds-first-driverless-bus-service-doesnt-quite-live-up-to-the-hype-12878530