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Wendy’s Self-Serve Kiosks Being Offered Nationwide To Combat Minimum Wage Hikes

By Tara Dodrill
Published on: 02:34 PST, May 13, 2016

Wendy’s is adding self-service kiosks at all of its more than 6,000 restaurants across the country. The automated ordering stations are expected to be in place before the end of the year. The cost-cutting move is reportedly being enacted in response to minimum wage hikes.

Wendy’s President Todd Penegor stated the decision about using the self-service ordering kiosks will be left up to individual restaurant franchise owners, KIRO News 7 reports. Penegor also noted some restaurant owners had already elected to raise prices to compensate for minimum wage increases and insurance costs.

Wendy’s is not the first fast food place to consider using self-service kiosks in order to save money and move customers through the line far more quickly. McDonald’s has been using similar devices overseas for several years and is now testing them at locations in America.

Due to rising wage inflation, Wendy’s has decided to fully embrace the automated ordering process at its locations, Investor’s Business Daily reports. Penegor also noted that approximately 10 percent of Wendy’s stores are seeing wage inflation to a tune of 5 to 6 percent. The corporation reportedly plans to reduce company-owned stores to only 5 percent of the total restaurants operating in the chain in the near future.

All 258 California Wendy’s restaurants are now forced to adhere to a $10 per-hour minimum wage. The hourly cost of labor will ultimately increase to $15. About 75 percent of the 200 Wendy’s restaurants in New York are operated by private owners who bought into the franchise. Restaurants in New York City have to pay unskilled workers $10.50 per hour. Stores located elsewhere in the state must pay $9.75 per hour in worker wages. The minimum wage is slated to raise to $15 per hour statewide.

“We are seeing a bit of a softer overall category in April,” Penegor said when referencing the sales figures from the past two quarters and current trends in the fast food industry.

Wendy’s recently enjoyed its first net increase since 2010. The company president feels wage increase pressures are currently manageable primarily because commodity prices have decreased and customers levels have grown slightly. Penegor said the company is working diligently to find “efficiencies” to create better service while saving money.

The hamburger chain is following McDonald’s and Yum Brands lead and creating mobile ordering apps. Yum Brands owns Taco Bell, KFC, and Pizza Hut.

Dave Thomas opened the first Wendy’s restaurant in Columbus, Ohio, in 1969, the company website notes. In 1970, Thomas opened his second restaurant in the city and installed an innovative idea at the time: a pick-up window. Wendy’s went public and was listed on the NASDAQ stock exchange in 1976. One million stock shares were issued at $28 each. Later that same year, the 500th Wendy’s restaurant, which by this time had spread to locations in Canada, opened.

The first Wendy’s commercial aired in 1977.

https://youtu.be/iU_0UPOh2rk

The 1,000th Wendy’s restaurant opened in 1978 and a year later the chain added a salad bar to its hamburger and Frosty offerings. The Ohio-based franchise surpassed the 2,000 restaurant mark in 1980. In 1981, Wendy’s was listed on the New York Stock Exchange.

The classic “Where’s the Beef” commercial starring Clara Peller, Elizabeth Shaw, and Mildred Lane aired in 1984.

Dave Thomas was born to an unwed mother in New Jersey. He was ultimately adopted but left home at a young age. Thomas became a lifelong advocate for adoption. Thomas first appeared in a Wendy’s commercial in 1989 and soon became an American icon. He appeared in more than 800 commercials before his death.

What do you think about Wendy’s adding self-service ordering kiosks to its restaurants?

[Image by AP Photo/Paul Vernon]

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