McDonalds Is Replacing Human Cashiers With Digital Kiosks In 5,500 locations: Here Is Its Math

The stock market is luvin’ McDonalds stock, which has continued its recent relentless rise to all time highs, up 26% YTD, oblivious to the carnage among the broader restaurant and fast-food sector. There is a reason for Wall Street’s euphoria: the same one we discussed in January in “Dear Bernie, Meet the “Big Mac ATM” That Will Replace All Of Your $15 Per Hour Fast Food Workers.”

In a report released this week by Cowen’s Andrew Charles, the analyst calculates the jump in sales as a result of the company’s new Experience of the Future strategy which anticipates that digital ordering kiosks will replace cashiers in at least 2,500 restaurants by the end of 2017 and another 3,000 over 2018. Cowen also cited plans for the restaurant chain to roll out mobile ordering across 14,000 U.S. locations by the end of 2017 (we did not show that particular math, but the logic was similarly compelling).

Here is a snapshot of the math that Cowen, likely in conjunction with management, used to come up with the cost-savings as McDonalds increasingly lays off more and more minimum wage workers and replaces them with “Big Mac ATMs”

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  • Liberal Progressive

    But how are the digital kiosks supposed to pay their dues to the labour unions?

    • Blacksmith

      There are no unionized Macdonalds I think.

  • Clausewitz

    And the idiots in the left will still look upon the $15 minimum wage as a victory, even after all the jobs are gone.

    • Observer

      But now all those students can get summer jobs working for George Soros’ groups as Social Justice Warriors!

      Unfortunately, most are volunteer positions or non-paid “intern jobs”.

    • DMB

      Poverty pimps will look at this as well as increasing welfare benefits as a victory not because it puts more people out of poverty which it does not but entraps more people into it making them more dependent on government. Poverty pimps will then advocate for more funding due to the increase in poverty from inflation and higher unemployment further enriching them while low income and the poor will lose. It also will mean more votes for Liberals, NDP who promise unsustainable government social programs.

  • Jaedo Drax

    So a couple years ago the math went like this, a kiosk works out to $14.40/hour to run, and it doesn’t take breaks, doesn’t need health insurance or vacations, doesn’t require you to pay the hidden payroll taxes and it is always there.

    In Ontario, at the current minimum wage the employer is paying $12.13 per hour ($11.40), not including workers comp.

    2018 – Wage goes up to $14.90 per hour ($14.00) not including workers comp.

    2019 – Wage goes up to $15.99 per hour ($15.00) not including workers come.

    Assuming no change in the employer side of either CPP or EI in the next 2 years.

  • Blacksmith

    I am NOT a fan of MacDonalds and rarely eat there, however using a kiosk is probably better than some of the tards they employ now. Once you learn the kiosk it would certainly making ordering more accurate.

    • ntt1

      yes they should factor an occasional ,random, thick young girl screw up, into the programming in order to get us gradually used to correct orders every time.

      • Blacksmith

        How are they going to mimic the vacant expression when you place your order though.

  • k1962

    Husband went to the kiosk. I went to the human. I got my food waaaaay before him. If you are against these horrible inventions, then get in line and order from a person.

  • Old Guy

    Is McDonalds just the beginning?

    Will union contracts that maintain a differential pay rate above the minimum wage be next. Will LCBO workers in Ontario soon be a distant memory?

    IBM RFID Commercial – The Future Market
    https://www.youtube.com/watch?v=eob532iEpqk