Introduction

The new law in California that raises the minimum wage for fast food workers to $20 per hour has led many to question whether it will drive more automation in fast food restaurants. This article sheds light on the potential impacts of such wage hikes on automation in the fast food industry.

The Impact of Wage Hikes on Automation

Not at all, the cost of making robots also increases with inflation. When inflation increases, wages rise to offset the cost of living. Therefore, by the time any wage increases occur, the costs of robots may have already risen. Higher wages make it easier to sell automation; once automation is perfected, it becomes a difficult decision to revert.

The Evolution of Fast Food Automation

Absence of workers due to the pandemic caused a significant decrease in teenage and retired workers in fast food after-school jobs. Since the 2000s, the number of teens working in fast food after school has dropped dramatically. Automation is a response to the expansion of fast food businesses, not their replacement. Automation is still seen as an expense. When automation malfunctions, people often try to fix it themselves, leading to constant maintenance costs. Health regulations also require human intervention for cleaning, adding to operational expenses.

Case Study: Flippy the Burger Flipping Robot

Next time you order a burger at White Castle, look at the guy flipping burgers—it's likely Flippy the Burger Flipping Robot. While machines cannot run the place alone, automation is still expanding. Machines can reduce the burden on less skilled and experienced staff, making it easier for them to handle tasks that were previously too complex.

Comparative Analysis of Current Wage and Automation

According to the Bureau of Labor Statistics, the average pay for fast food workers in California is already $23.15 per hour. Even those earning less than $20 perform tasks that are difficult to automate, such as cleaning, cooking, and packaging. Automation and robotics make it easier for less skilled and experienced people to do these tasks.

Challenges for Low-Wage Workers

In much of California, attracting legal workers who earn less than $20 per hour is challenging. Fast food places often rely on teenagers, retired part-time workers, recent immigrants with limited English and job skills, and other marginal employees. If higher minimum wages are mandated, some of these workers could be replaced by higher-skill full-time workers rather than robots. In lower-wage areas, the business model may not justify the costs of automation, and these places may still use local diners.

Consumer Behavior and Technological Advancements

Fast food jobs are being automated not because of the minimum wage increase but due to improvements in technology and customer comfort with mobile ordering and kiosks. Any impact of the California minimum wage increase on the automation process is likely to be minimal.

In conclusion, while the wage increase in California may not immediately lead to widespread automation, it can have significant indirect effects. As technology advances and customer preferences evolve, automation in the fast food industry will continue to develop, driven by broader economic and technological factors rather than just wage levels.