High-tech fast food replacing Louisiana workers

David Blake
August 14, 2018 - 12:40 pm

SIPA USA

Some big changes are brewing in the fast food industry. McDonald's today announced plans today to spend $114 million dollars upgrading their stores across Louisiana.  The changes will include more push-button ordering and special kiosks, meaning fewer employees will be necessary.

UNO Business Professor Mark Rosa says the push in some states to mandate a living wage has led to owners looking for ways to cut down on labor costs.

''They will substitute capital for labor, so if the cost of capital is less than labor, you're going to get these machines that are going to replace somebody,'' Rosa said. "The machine has a cost and a cost to maintin it, and it doesn't ever ask for a raise."

Rosa said consumers seem to like these changes, which are already showing up in Florida and Texas stores.

''So it pretty much eliminated the order-taker, so that's already underway and we're going to see more of that, than less,'' said Rosa.
 

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