Wendy’s (WEN) said that self-service ordering kiosks will be made available across its 6,000-plus restaurants in the second half of the year as minimum wage hikes and a tight labor market push up wages.
It will be up to franchisees whether to deploy the labor-saving technology, but Wendy’s President Todd Penegor did note that some franchise locations have been raising prices to offset wage hikes.
McDonald’s (MCD) has been testing self-service kiosks. But Wendy’s, which has been vocal about embracing labor-saving technology, is launching the biggest potential expansion.
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Although profit exceeded Wall Street estimates, Wendy’s shares dived nearly 9% Wednesday because of weak second-quarter sales.
“We are seeing a bit of a softer overall category in April” relative to the past two quarters, Penegor said on an earnings call, implying more of an industrywide trend than an issue specific to Wendy’s.
Penegor said the reason for softer growth was hard to pinpoint, but he listed a cautious consumer, tougher spring weather in the Northeast, and a wider gap between the cost of food at home vs. food away from home as possible contributors.
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