#Raisethewage & The Restaurant Robot Revolution

September 18, 2015

Biz-Blog-Photo-(1)

The food industry, which relies on labor more than many other industries and employs over 8 million people nationwide, could be facing drastic changes as costs continue to rise. Employee salaries already account for 30 percent of the industry’s costs, and as the minimum wage rises so do a multitude of other costs, such as real estate, wholesale food prices, etc. The initiative to raise the minimum wage, doubling it from $7.25 to a whopping $15.00, has already gained momentum in the DC Metro Area, but now the fight to raise the wage is sweeping across the states. California and New York have jumped onto the bandwagon as well, and New York is determined to set the precedent. On July 22, the New York Fast Food Wage Board voted on a motion to raise the minimum wage to $15.00 for fast food employees, and it passed. The wage increase will officially take effect in New York City by December 31, 2018, and in 2021 for the rest of the state. 

As the fight to #Raisethewage, a hashtag coined to propel the initiative, continues to escalate, restaurants are already beginning to search for technological advancements that may serve as more cost effective alternatives to human labor. Inventions geared at producing larger quantities of food with lower waste could potentially begin to replace slower moving human employees, eliminating job functions and positions. Olive Garden has announced plans to implement a kiosk ordering system, meaning that the servers need only deliver food to tables. Industry experts are also making predictions about utilizing robots in restaurants for food production, or using drones as a delivery system to consumer’s homes, potentially eliminating the need for restaurants altogether. However, one cannot forget that this industry is closely intertwined with hospitality as well.  

Diners, especially millennials, are looking for establishments that project ambiance, customer service, and most importantly, people. Restaurants have become a major source of socialization, and customers are actively seeking out establishments that promote human interaction.  A new generation of food lovers, known as “foodies”, look specifically for restaurants with experimental menus, and unfortunately robots or kiosks cannot make menu suggestions. And, as is always a risk with new technology, the possibility of inconvenient technological malfunctions could drive customers away from establishments. If the restaurant industry is not careful, it could end up driving away the very thing that it is striving to serve and please: people. 

What do you think? Share your own thoughts, opinions, or industry experience concerning the #Raisethewage campaign and the potential impact to the industry by emailing us at PastryTeam@auifinefoods.com or visit our Facebook page.

The facts in this article were sourced from:

About the Author  

Danielle Romano graduated from Towson University with a degree in English Literature and Writing. Since then she has put her knowledge of grammar and syntax to good use, working as an intern and freelance editor for a multitude of magazines and online newspapers. Danielle has also worked in the medical field for a number of years, but recently left medicine behind to join AUI as an Executive Assistant; she claims she did it for the chocolate.