McDonald’s Big Mac ATM Is No Joke As Restaurants Deal With Rising Minimum Wages

Perhaps it was the success of Snap’s recent vending machine promotion that has led McDonald’s to bring the first “Big Mac ATM” to consumers, but underneath it all the increasing interest in the fast-food industry for automation and robotics is no joke. Facing increasing cost pressures, including rising minimum wages, restaurant groups from McDonald’s to Wendy’s and all those in between are exploring ways to hold in check rising employment costs that has and is likely to plague the ability to deliver earnings to shareholders. When pressed against a wall, companies will look for solutions even ones that might be rather disruptive.

For a few hours on Jan. 31, McDonald’s will give Boston its first “Big Mac ATM,” which is exactly what it sounds like. McDonald’s franchisee Vince Spadea called it a “really just a fun way to be modern and progressive.”But restaurants have been attempting to automate the fast-food business for more than 50 years—and not just the part where a cashier hands over your cheeseburger.

As the US’ 12.5 million fast-food workers advocate for expanded overtime protections and a $15-per-hour federal minimum wage, restaurant automation is increasingly appealing to executives. US labor secretary nominee Andy Puzder, who is CEO of the company that owns Carl’s Jr. and Hardee’s, has said that robots are “always polite, they always upsell, they never take a vacation, they never show up late, there’s never a slip-and-fall, or an age, sex, or race discrimination case.”

Source: McDonald’s may have a Big Mac ATM, but America has been trying to automate cheeseburgers for more than 50 years — Quartz

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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