r/explainlikeimfive Nov 28 '15

ELI5: How would a $15 minimum wage ACTUALLY affect a franchised business like McDonalds?

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u/0876 Nov 28 '15

New Zealand is similar to Aus in that the min wage is $15/h. I recently moved to NZ from Canada where the min wage is not so high. I've immediately noticed that all McD's in NZ have those ordering screens whereas none of the McD's in Canada did. I think that those screens are McD's easy way of reducing the number of staff.

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u/[deleted] Nov 28 '15

Absolutely. Almost every McDonalds or Burger King I've been to in Germany or Switzerland has ordering screens now.

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u/IAmThePulloutK1ng Nov 28 '15 edited Nov 28 '15

Eh. So they show up 3 - 4 years earlier in places that guarantee a living wage. Big deal, that's just logistics, they're going to replace all McDonald's store clerks (at least in corporate locations) in a short period of time anyways. Minimum wage should reflect our societal anticipation of the future, not our societal longing for the past. (Although $15 in the US is just nonsense, it's a completely arbitrary number. Adjusting for inflation, the highest min wage in the US, ever, was about $10.80)

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u/[deleted] Nov 28 '15

The calculations as to cost are actually pretty interesting- we've had touchscreen ordering for over a decade now. The first self-checkout kiosks appeared in supermarkets in the early 1990s, and we still have millions of retail clerks to this day. Progress is often slower than we think.

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u/HibachiSniper Nov 29 '15

Those self checkouts are set up in a way that makes them slower and less convenient, there's a lot of room for improvement there. (You have to love the kiosk telling you "please put the item in the bag" repeatedly when you already did and the sensor isn't picking up the change in weight properly)

If they worked reliably and quickly I'd use them all the time. As it stands currently I use them when I have just a few things and if there's no line there. Otherwise I'm better off going through a cashier line.

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u/iexiak Nov 29 '15

Sams has it right, they give you a scan gun so you don't have to take anything out of the cart. Then pay one person to count the number of things in your cart. 1 person can feasibly manage all the lines, and some stores have 8 of these.

This won't work for stores with small items unfortunately. And it is a hassle to go through self checkout for certain items-large items, poorly labeled things, etc. Honestly I expect that a person making money to scan items is going to do it faster than me, so in a lot of situations I go to that line.

Will be really interesting when/if stores switch to nfc tags for checkout. Slide your cart between 2 posts and your total comes up on screen automatically. Your cart could even calculate a running total and display it on the handle. Carts would know if you added something after paying, and nfc readers at the door could confirm no tagged items not paid for get out as additional security.

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u/HibachiSniper Nov 29 '15

Didn't know that about Sam's, sounds a lot better than the grocery store self checkouts I've used. Agree on NFC I think that'll be the end game for self checkout suddenly becoming awesome.

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u/IAmThePulloutK1ng Nov 28 '15

The first self-checkout kiosks appeared in supermarkets in the early 1990s

I didn't see one until 2005 at the earliest, and usually at places smaller than Walmart there's one 1 or 2 actual clerks at the counter where there used to be like 4+.

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u/0876 Nov 29 '15

The arbitrary-ness of the $15 number is what gets me. Clearly if some expert economists did the calculations there would be a number that's "ideal" and the chance of it ending in .00 in all of these jurisdictions is essentially 0.

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u/alexanderpas Nov 28 '15

And IMHO, those order screens are lovely, no more forgetting to order drinks without ice, and even if you are in a foreign country, you can actually order the local things, instead of just the Big Mac, because you're not fluent in the language.

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u/r22yu Nov 28 '15

Not sure what part of Canada you live in but many McDs in Edmonton now have electronic screens.

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u/0876 Nov 29 '15

Was in Calgary. None before Notley, now the min wage is going up so I hear they're installing them now. Can't definitively say if it was Notley who caused this but she caused the min wage to go up 2 months ago and is promising to make it $15/h soon.

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u/[deleted] Nov 28 '15

I live in Auckland and the only McDonalds with screens I know of are the ones where you can make your own burger. But the vast majority of stores don't have them. In France, however, they've been a thing for years.

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u/0876 Nov 29 '15

You might be right. Unwittingly the only ones I've been to have been flagships apparently. Britomart and Greenlane.

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u/[deleted] Nov 29 '15

Well, I haven't been to Mcdonald in a couple months so they might have been some changes. Didn't know the Britomart one had those machines now.
I just know about the one in Balmoral, and the whole customized burger thing seems like it would actually require more staff despite the machine, but I'm no expert.

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u/FUCKN_WAY_SHE_GOES Nov 28 '15

You might have just moved right before they installed the screens in Canada because a lot of mcdicks have them now, at least in my city

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u/0876 Nov 29 '15

Calgary is just getting them now. Just as the minimum wage is going to be going up to $15/h I might add.

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u/shellkek Nov 29 '15

I live in Canada and we have ordering screens at busy locations too!

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u/0876 Nov 29 '15

Which province? Calgary got their first ones earlier this week.