Conservatives predicted this was going to happen.
With minimum-wage hikes come job cuts. It’s Economics 101.
After New York City and California mandated $15 minimum-wage laws, fast-food chain Wendy’s reacted, announcing Thursday its plans to make available self-serving kiosks in its 6,000-plus restaurants across the country by year’s end.
In addition to using the technology to cut down on labor costs, Wendy’s President Todd Penegor noted on the company’s quarterly conference call, that some of its franchise locations have been raising prices to offset the minimum-wage increase, according to Investor’s Business Daily.
“Wendy’s Penegor said company-operated stores, only about 10 percent of the total, are seeing wage inflation of 5 percent to 6 percent, driven both by the minimum wage and some by the need to offer a competitive wage ‘to access good labor,’” IBD reported.
It’s only a matter of time until McDonald’s, Burger King and others follow suit.