California's Fast Food Minimum Wage Increase is Resulting in Rapid Technology Adoption
IFBTA (International Food and Beverage Technology Association)
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The restaurant industry was once again front and center these past few weeks after the California law to increase fast-food workers to a $20/hour minimum wage officially took effect on April 1st. Operators are responding in different ways - some by cutting jobs or increasing prices, others are closing locations all together - and the slack is very likely to be picked up by adopted technology.
Whether it's self-service kiosks or automation, the adoption of technology in the state seems imminent. While many in the QSR space were already in place to adopt technology in some format, the wage increase serves as an accelerant.
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While the trend for automation is not new, technology is beginning to be viewed by operators as essential to offset rising costs. "'From here on, what will drive the accelerated rate of technology use is necessity and not just that customers want it.'" asserts Jot Condie of the California Restaurant Association. Employment levels in fast food restaurants have not returned to prepandemic levels and with the new minimum wage increase, the race to install self-service kiosks in California restaurants is underway.
Read this and other takeaways from Natasha Chen at CNN
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