Wendy’s Adds Self-Service Kiosks

The move to self-serve technology signals the QSR’s attempt to help control labor costs.

May 16, 2016

NEW YORK – During the second half of the year, Investor’s Business Daily reports that Wendy’s will add self-service kiosks to more than 6,000 of its U.S. locations in an attempt to control labor costs.

Although franchisees can decide whether to deploy the kiosks, Wendy’s President Todd Penegor told the news source that some franchise locations have already been raising prices to offset minimum wage increases. The news source continues that according to Penegor, Wendy’s company-operated stores, which represent about 10% of all locations, are experiencing wage inflation of 5% to 6%, driven by the minimum wage and the need to offer a competitive wage “to access good labor.”

In California, where the minimum wage will eventually rise to $15 an hour, all 258 of Wendy’s locations are franchise-operated. In New York, which is also nearing a $15 minimum wage, about 75% of Wendy’s 200-plus restaurants are operated by franchisees. Wendy’s is also planning to trim its company-owned stores from 10% to 5%.

The news source notes that in addition to self-order kiosks, Wendy’s is also planning to launch a labor-saving mobile ordering and mobile payment app by the end of the year. 

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