When Gov. Gavin Newsom, D-Calif., gleefully signed the bill boosting the minimum wage to $20.00 for fast food workers, we wrote that he’d just scored a big victory for robot manufacturers. (Complete column here.)
That’s because paying humans to do the job isn’t the only option fast food outlet owners have. Forbes reports, “Nala Robotics has launched a fast food robot that it says can fry chicken wings, french fries, and other foods, season them, and plate them all autonomously. It’s called the ‘Wingman,’ and it’s available to rent for $2,999/month.”
The Wingman will work 24 hours a day, seven days a week:
- It doesn’t get sick
- It doesn’t have childcare drama
- It doesn’t want a vacation
- And . . . It doesn’t have an attitude.
Currently the Wingman is already cheaper than the cost of human employees.
At $15 per hour — just a dollar less than the current California minimum — the Wingman costs 63% less than having a human do the work.
At the new minimum rate of $20 per hour, the savings approaches 70% over the human, “assuming 18 hours of operation per day over an average 30-day month. Naturally, restaurants that are open 24/7 will see even more savings.” (Complete column here.)
Business Insider reports on another cost–saving option, “Two large Pizza Hut operators in California are laying off all their delivery drivers ahead of a new state law that raises the minimum wage for fast-food workers to $20 per hour.
“The layoffs impact hundreds of Pizza Hut locations across the state including Los Angeles, Orange, Riverside, Ventura and San Bernardino counties and Sacramento, and involve more than 1,200 in-house delivery drivers.”
Cause: Legislature arbitrarily raised fast food minimum wage from $16 per hour to at least $20 per hour.
Effect: 1,200 pizza delivery drivers go from wage earners to wage mourners.
And that’s not all.
A second Pizza Hut franchisee is also laying off approximately 841 drivers for the same reason, bringing the total to 2,041. (Complete column here.)
Robots and layoffs aren’t the only option owners have after costs increase due to political meddling that are bad for employees.
The robot takes a few jobs.
A layoff takes some of the jobs.
Closing the store takes all the jobs.
The New York Post reports, “Shake Shack will shutter six underperforming California locations — the latest fast food chain to close restaurants after the state enacted its controversial $20 minimum wage.
“Five of the doomed locations are in the Los Angeles area and another is in Oakland, lowering its total to 37 in the state — where wages for fast-food workers shot up to $20 an hour on April 1.
“It’s the first time the chain will close restaurants for purposes that were not construction-related, a spokesperson told trade publication Restaurant Business, which first reported the news.”
No, this closure was cause and effect related.
A financially sound company like Shake Shack can close a few outlets and weather the legislatively-induced financial storm. A weak company will collapse thanks to the brilliant economist/philanthropists in Sacramento.
“Rubio’s California Grill closed 48 of its nearly 134 locations at the end of May, citing the “rising cost of doing business” in the state for the closures and filed for bankruptcy in June.”
Ask those employees how many benefits the $20 per hour minimum wage brought them.
And that doesn’t consider the effect on food prices the minimum wage will have.
This cause and effect principle is really very simple. It’s only simpleton politicians who can’t grasp the damage their meddling in the market will cause.
Cause and effect exists and acts on the foolish and wise alike.
The only ones who appear to be immune, so far, are the politicians — and the robots.
Michael Reagan, the eldest son of President Reagan, is a Newsmax TV analyst. A syndicated columnist and author, he chairs The Reagan Legacy Foundation. Michael is an in-demand speaker with Premiere speaker’s bureau. Read Michael Reagan’s Reports — More Here.
Michael R. Shannon is a commentator, researcher for the League of American Voters, and an award-winning political and advertising consultant with nationwide and international experience. He is author of “Conservative Christian’s Guidebook for Living in Secular Times (Now With Added Humor!)” Read Michael Shannon’s Reports — More Here.
© Mike Reagan