[UPDATED] McDonald’s stock goes up as it prepares to replace cashiers with kiosks

Business / Tech
kiosks

The way of the future is automated kiosks where customers can place their order and pay without ever talking to a human.

McDonald’s stock is on the rise and it’s due in part to the company preparing to replace cashiers with kiosks. As workers start to fight for higher wages, companies like McDonald’s are seeking ways to keep their profits high and prices even. The way of the future is automated kiosks where customers can place their order and pay without ever talking to a human. The food is still cooked and made by a crew in the back but eventually, that may even come to an end with robotics.

UPDATED (06/22/2017 17:03EST): A McDonald’s spokesperson has reached out to us concerning this story and has provided an official statement.

“Our CEO, Steve Easterbrook, has said on many occasions that self-order kiosks in McDonald’s restaurants are not a labor replacement. They provide an opportunity to transition back-of-the-house positions to more customer service roles such as concierges and table service where they are able to truly engage with guests and enhance the dining experience.”

ORIGINAL STORY:

The use of automated kiosks is the subject of some debate as the planned install into 2,500 restaurants will end up cutting many human jobs. McDonald’s is also rolling out mobile ordering to 14,000 locations by the end of this year which will further cut into the need for human cashiers and order takers.

“MCD is cultivating a digital platform through mobile ordering and Experience of the Future (EOTF), an in-store technological overhaul most conspicuous through kiosk ordering and table delivery,” Charles wrote in a note to clients Tuesday. “Our analysis suggests efforts should bear fruit in 2018 with a combined 130 bps [basis points] contribution to U.S. comps [comparable sales].”

“MCD has done a great job launching popular innovations within the context of simplifying the menu, while introducing more effective value initiatives that have recently begun to improve the brand’s value perceptions,” he wrote.

These moves made by McDonald’s are most certainly being watched by other fast food chains and we can probably expect others to follow. Automation and robotics seem like they’re on the fast track to taking service jobs such as these off the table for human workers. It’s an interesting dilemma and one many have an opinion on.

What’s your opinion? What are your thoughts? Let us know in the comments below or on Google+, Twitter, or Facebook.

  Source: CNBC
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