I Met McDonald's New Multilingual Employee

https://steemit.com/life/@ericp1/i-met-mcdonald-s-new-multilingual-employee

I met McDonald’s new multilingual employee. The order kiosks are being placed in McDonald’s across the country. I live in a small town of about 6,000 residents. The McDonald’s in the town just put 2 kiosks in their dining room. I had heard they were put in, but since I haven’t eaten at McDonald’s for years, I never noticed. I decided to go in and look at this new machine, that will, if not already, take jobs away from humans.

Fortune Magazine

A Fortune.com magazine article claims that, “Implementing these kiosks is expected to cost franchisees between $120,000 and $160,000.” The writer of the article sees this as a loss of money since drive-thru service comprises 70% of a restaurant’s business. He is accurate about there only being roughly 30% of the customers that order inside, but he is failing to see the long-ball for the run up the middle. Once implemented and customers can become use to the application of these kiosks, much like other kiosks found in malls and airports, or ATMs, then McDonald’s would be able to completely remove inside cashiers and would only need an attendant to clean and service the dining room. I have worked numerous years in the restaurant business as a general manager of Burger King and McDonald’s and only during peak hours was a dining room attendant needed for full-time purpose. The initial cost may be over $100,000, but how much would be made back after just 1 year of no front counter cashiers?

PC Magazine

PCmag.com published an article in 2016 about McDonald’s rollout of the self-serve ordering kiosks. The article reports that over 500 kiosks were being rolled out to stores in New York, California, and Florida. The kiosks cost $60,000 each to install during that time. It is no surprise that the kiosks rolled out in California, New York, and Florida for two reasons. Generally new trends are launched in these states before any other, and these three states generally have the highest cost of living and highest wages. They could recoup the $60,000 price tag in a short time when they begin reducing staff, if not already.

Kiosks are the Way of the Future

The two kiosks I observed in my little town are part of the larger trend. If they have made it here, then it is safe to say that every major city in the U.S. now have these kiosks. We are over two years since the initial launch of the kiosks. They are becoming commonplace and based on the trend we can assume it is a financially beneficial move. McDonald’s is a wildly successful enterprise and even though some things they have tried before having flopped they do not keep them around very long. The two kiosks in the McDonald’s near me had two sides each. Four people could order at one time. I don’t think I have ever seen a McDonald’s with four cashiers. Additionally, the kiosks could operate in either English or Spanish. We have a rather large Spanish peaking community here, which would explain the choice for the two languages. I would imagine that the languages would be based on the demographics and could be added or changed as needed.

We will not be told the specifics of the operations or the total monetary output or savings be reduced workforce, but the writing is clear. The McDonald’s in my town have just employed four new bilingual cashiers that cost around $120,000. The kiosks will never need a break, or medical leave, or a raise, or steal food or money, or claim workman’s compensation, or complain. The benefits are numerous. I would argue that they are so numerous that we will start seeing kiosks either by touch-screen or voice activation in McDonald’s drive-thru next.

Minimum wage in my state is $7.25 per hour. That equals just over $15,000 a year based on 40 hours and 52 weeks. Four minimum wage employees would thus make $60,000 in one year. This one restaurant would essentially recoup their money in two years on these kiosks. The numbers fair even better for the company than that because the kiosks work from open to close every day, which would be far more than 40 hours per week. As a previous business professional with an MBA, I see this as a brilliant business strategy.

The Truth of the Matter

However, this article is not written with the intent of praising and glorifying McDonald’s shift to robotic ordering. This move is a dire warning to the workforce. This part may hurt some feelings but stay with me because the message needs to be spread. My brother works at a Honda manufacturing plant. He works with over 5000 other employees. There are two welders at the plant. One of the welders works in a supervisory role and does not actually weld. The other welder only welds the equipment and other parts in the factory. He does not weld any part of the vehicles being manufactured. All the welding on the vehicles are from robotic welders. This is no new trend. The industrial revolution initiated this type of work in the factory setting. The customer service industry has always been different and resistant to take away personal interaction. It was the hand shake and one-on-one business model that welcomed people; even to corporate places like McDonald’s.

Times, they are a changing. McDonald’s employees have a bad rap. They are used as examples of the unskilled, low-paid teens that habitually mess up an order and are unhappy in doing so. In a lot of ways this stereotype is correct. An unskilled person can get hired at McDonald’s and can learn a skill and work a job that can lead into a career that supports a family. McDonald’s employees are low-paid, and many teens work there as their first job just like I did many years ago. I believe we have all been to McDonald’s or any other restaurant and had our order messed up. Another truth but does not consider the frequency that everyone in every industry makes mistakes. Job satisfaction in the quick-serve restaurant industry is generally low. I would receive monthly bonuses if I maintained my turnover rate below a certain percent. The stereotype is there for a reason. Who is trying to change that stereotype? If interacting with a person is more of a problem than it is worth, then the whole idea of customer service interaction changes.

They employees are being phased out of their customer service roles at McDonald’s. Skilled and unskilled employees are losing their jobs to machines. The industry and proponents of the change say this is great, but I say, only if the unskilled become skilled. The million-dollar question is how will that happen? The first issue comes from the campaign launched several years ago for fast-food workers to make $15 per hour. Whether you agree with me or not about this issue, we can both see the backlash from this campaign. I showed you above how quickly the company will recover their money from the kiosks based on federal minimum wage. How much quicker and more beneficial would it be at $15 per hour? The arrogance has cost the people in the industry. There are parts of the country where $15 is barely enough to survive, but there are other parts that it is enough to provide for the whole family. Either way, what rationale does an unskilled worker have to justify a wage more than skilled workers? This article is not to discuss our views on that solitary issue, rather it is about how this has damaged the ability of unskilled workers to obtain jobs.

The next issue is the education and training involved in moving from unskilled to skilled. We know that the workforce is being reduced at McDonald’s and soon-to-be other restaurants. The competition will get harder, and the wages will not change, at least not enough over a short period of time. What does one do? The unskilled worker that desires a job at McDonald’s or such type place must strive to be set apart from other unskilled workers through character traits such as discipline, being on time, and working hard with an emphasis on learning about as much as possible. If you are a cashier; now would be a good time to learn another position before you become obsolete. Aside from character traits, another way to become a skilled worker is to learn a trade. We have been force-fed the idea of college immediately after high school for decades now, but the reality is not always there. Sometimes trades such as electrician or plumber pays better than a job that requires a college degree. The initial money is often low in starting a trade, but we have proof that the idea of sitting at McDonald’s being lazy and having someone hand you a high wage is not going to happen. I went to college while in the army and after the army while working a full-time job. Know more people that went into the workforce after high school and then went to college than I do the other way around.

Let’s Wrap This All Up

I have said a lot in this article and would love to say more. I am not pleased to see jobs at McDonald’s being phased out for the use of machines, but I can understand the perspective of those that believe it is a good idea. There are no handouts, and those that get the little that is handed out will never have any more than that. If you want better, you will have to be better. If you want to earn $15 per hour, then you must earn it. Even if you were to make $15 per hour at McDonald’s you should still have to work for that money and be expected to perform just as you expect others to perform when you require their services. This is a warning of what is coming. Do not let your job be phased out because of technology without you having prepared for that to happen. If you are unskilled and looking for something that has longevity and pays well then consider trades such as carpentry, electrician, or plumber. These jobs are not being replaced with robots, yet. Look out for yourself and your family. Be the best employee you can. Whatever your skill level is, work to improve it. Learn a different skill to fall back on or make money as a side job. Whatever you do, do not sit, and wait for someone to take care of you.

1. http://fortune.com/2015/08/25/mcdonalds-self-service-kiosk-problem/

2. https://www.pcmag.com/news/349707/mcdonalds-pilots-mobile-ordering-and-self-service-kiosks