The Answer for Fast Food Restaurant Owners Is Automation

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As expected, some fast-food restaurant owners have been thinking of ways to cut costs and maintain a healthy profit margin. To pay an employee, business owners must pay other costs such as unemployment insurance, salary, and other prices associated with keeping an employee on payroll.

The $20 per hour California wage only increased the urgency of each owner to make their restaurant more efficient. The owners will invest in more self-service kiosks in their restaurants, eliminating the need for cashiers at the counter. To survive, fast food business owners will turn to automation and self-service kiosks to replace the $20 per hour employee they are mandated to pay.

It's a wake-up call for fast-food restaurant owners everywhere. Many will eventually turn to features such as mobile pick orders, self-kiosk, and any automation to help owners cut costs and make money.

For example, burger chain Shake Shack installed self-kiosks in all its locations before the end of 2023, and Burger King plans to add more self-kiosks in its restaurants.

The unintended consequence will be for California fast-food restaurants to find a way to survive and make a profit because of the new law. As it turns out, the ripple effect will be that California's fast food restaurants will lead the way in how fast food restaurants operate.

Other nationwide fast-food restaurant owners will take notice of California's increased automation, self-kiosk, and the need for fewer workers it will need nationwide. Fast-food restaurants will need fewer workers to run the restaurant.

The California $20 minimum wage law is the catalyst for the industry to avoid having more restaurant workers. If California owners are successful, the fast food industry will have fewer workers.

Final Thoughts

It's only a matter of time before owners downsize their workforce in favor of more self-kiosks and mobile pick-up technology. It keeps menu prices down and keeps businesses stay in business.

Here is an excerpt regarding downsizing from a restaurant executive:

"The goal is to be 100% AI order-taking capability this time next year."

It means that restaurant owners intend to replace some workers and let self-kiosk and other technology take their place.

California is leading how fast food restaurants will do business in the future. The unintended consequence of the new law is fewer workers in the fast-food restaurant industry.