Mickey D's fixin' to lay-off workers and reorganize

NG HAN GUAN

Sure sounds like those demands for a $15 hr minimum wage are paying off!

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I’m not sure what the minimum wage battles are looking like in other states, but I do remember hearing about California’s. There, the minimum wage for the state hit $15.50 to ring in the New Year, but that isn’t the top end. Oh, no, no, no. Every city in the state gets to do its own thing as far as setting a higher threshold if they choose to, and some do.

…The pay increase applies to the entire state, but some cities and counties have higher minimum wages already in place.

The minimum wage in city of Los Angeles goes to $16.04. In Pasadena, it’s $16.11. In Malibu, it’s $15.96. In West Hollywood, it’s $17.95.

The McDonald’s corporation has had a screaming good run lately and still has big expansion plans. The corporation intends to do it all while paring operational costs at the same time.

McDonald’s is planning to accelerate the pace of new restaurant openings while embarking on a cost-cutting programme expected to lead to job losses under a strategy announced on Friday.

“Systemwide sales”, which include revenues from franchised restaurants as well as those owned by the fast-food chain, had risen by $20bn to $120bn a year since the start of the coronavirus pandemic, Chris Kempczinski, chief executive since November 2019, said in an interview.

…In a note to staff, Kempczinski said McDonald’s would “evaluate roles and staffing levels”, with the aim of telling those affected by April 3.

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Sounds ominous, especially since it’s not a financial imperative but an efficiency maneuver.

…The fast-food giant said the job cuts aren’t a cost-cutting measure but are instead intended to help the company innovate faster and work more efficiently. As part of the reorganization, the company will be deprioritizing and halting certain initiatives, according to a company-wide memo from Kempczinski viewed by CNBC. It’s unclear what those projects are.

McDonald’s has been test-driving some of their automated concepts in selected areas for a bit. One opened in Fort Worth late last year which is completely automated – not a living soul in the place. Which is gravy as far as corporate McDonald’s HQ speak is concerned.

McDonald’s new test restaurant near Fort Worth, Texas could be the future of fast-food operators: Instead of human workers handing you a bag at the drive-thru, an automatic conveyer belt brings your order to the window. Ordering is done through kiosks or an app — no humans involved there, either.

In a December blog post, McDonald’s said the test restaurant demonstrates its commitment to “finding new ways to serve [customers] faster and easier than ever before.”

But not all customers are loving it.

“Well there goes millions of jobs,” one commenter on a TikTok video said about the new restaurant said.

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One customer’s TikTok video of her trip through the creepy auto-serve zone went viral and the comments lit up. Most of them were noting this result was inevitable.

…Jbarbeezy’s video has reached over 301,000 views as of Dec. 27. In the comments section, viewers were divided over the new high-tech additions to McDonald’s operations.

“I can’t wait for this to succeed so that every McDonald’s could be like this,” one user wrote.

“I refuse to buy anything that way,” another pushed back.

Other users suggested that increased automation in fast-food restaurants stems from the demand for higher wages.

“Yeah because some workers asking to get paid like someone with college or trade degree. This is meant to be temp work not career making $50k,” one viewer commented.

“There was an inevitable conclusion to the constant wage increase demands,” another wrote.

Is this what $22 an hour looks like?” a third added.

Sure looks like it’s the $22hr of the fast food future.

That place gives me the willies.

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Stephen Moore 8:30 AM | December 15, 2024
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