
Jack in the Box CEO reconsiders automation, kiosks - artsandsci
https://www.businessinsider.com.au/jack-in-the-box-ceo-reconsiders-automation-kiosks-2018-1
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schnevets
The Target near my apartment in Brooklyn is not giant, but due to population
density it has a ton of registers. Over the holidays, the replaced a sizable
chunk of these registers with self-checkout kiosks. Although there was a long
line to use the self-checkout kiosks, it was a faster and better experience
than waiting for a register to open.

More importantly, there were still a lot of people working in this section.
People were directing customers to registers, guiding people through checkout,
and (my favorite) putting things that people left behind back on shelves
immediately. Although it was still hard work, the job definitely seemed
preferable to standing behind a register and moving things past the scanner.

I am still confident that short-term automation will improve environments and
turn bottom-tier jobs into more productive roles (in Jack-in-the-Box's case,
maintenance teams for the kiosks, software developers to code the kiosks). In
the debate about minimum wage increases, a lot of people see automation as a
negative. It may hurt in the short-term but we will see a major benefit faster
than people assume.

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prklmn
We as consumers will see no gains from using self service checkouts. I am
doing the job that someone once did for me so that Target can make more money.
Those efficiency gains for Target are a direct burden on me.

Also, I’d argue that self checkout is not faster than having someone checkout
and someone bag for me, maybe it seemed faster in that scenario, but it’s
unliekly faster in general.

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taoistextremist
I'd argue that's a lag in price, though. Even if Target doesn't lower their
prices, as self-checkouts get more and more ubiquitous (I mean, they kind of
have, but they aren't necessarily the standard), if a Target competitor wants
to lower their prices to steal customers it's now easier to do so because
they're making more money as well. The lack of benefit to the consumer is due
to the lack of competition, but with adequate competition this technology
would definitely bring down prices.

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baldeagle
I used a Jack in the Box kiosk in San Diego. It was awesome; I almost always
order the same thing and it would ring my usual by just swiping the credit
card to pay for it. Normally, I wouldn't bother to the cashier with the
extras, since I had only ok success with them being done correctly. The kiosk
order was always on point though. The only friction was the time to make the
food. (and in retrospect, the caloric content).

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danielfoster
I'm curious if higher minimum wages in a small number of states will also
impact jobs in low-wage states. I would imagine a fair bit of the cost of
installing these machines is fixed (software development, machine design), and
chains might as well roll them out in low-wage states as well.

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bluGill
Maybe. Well trained humans give better customer service when you are talking
to them. (try to tell the kiosk the restroom is out of toilet paper) Thus
there are advantages to humans who are easy to talk to.

However a kiosk allows 1 person to work the 10pm->5am shift - this shift is
not profitable with 3 high wage employees, but if one person can cook and
deliver food it might make sense.

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taoistextremist
These kiosks are already in tons of McDonald's locations from what I
understand (I've only seen them in Canada but I'm told they're elsewhere) so I
don't get the hesitation.

They work well, especially if there's a long line or you're hungover and don't
want to talk to anybody.

What I'm wondering is when they're gonna figure out how to replace the cooks
with machines (though that's a different task from kiosks, you need actual
robotics) and staff the place with a single manager to deal with customer
complaints.

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tonylemesmer
The kiosks have been in all the McDonald's in the UK I've been to in the past
3 years (probably only about 6 tbh). They're great because you can get exactly
what you want, down to the pickle and mustard and it entertains the kids
whilst you're in the restaurant.

In busy restaurants the kiosks do allow a massive backlog of orders to build
up. The kitchens cannot keep up.

edit: added 2nd para.

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taoistextremist
>In busy restaurants the kiosks do allow a massive backlog of orders to build
up. The kitchens cannot keep up

This sounds like it could be understaffing, but if not, they should just put a
pause on all orders. Of course, managers would never want that because they're
averse to turning down business even if it worsens the quality for everyone.

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jnwatson
Reminds me of an oldie but a goodie: Manna, a short story by Marshall Brain.
It is speculative fiction from 2003 that starts with the first burger joints
being automated.

[https://en.m.wikipedia.org/wiki/Manna_(novel)](https://en.m.wikipedia.org/wiki/Manna_\(novel\))

It is available to read for free on the author’s web site.

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searine
My local Burger King has transitioned to this. I don't often eat there, but
I'll admit it is a guilty pleasure.

One interesting thing I've noticed is that with ordering kiosks, I'm much more
likely to be upsold.

Having all the option laid out in front of me, and no pressure from someone
trying to "sell" me I find it far easier to select add ons.

This says to me that there is a profit motive beyond simple efficiency. It
creates opportunity for better sales as well.

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samfisher83
In Europe the McDonalds I have been to already have screen everywhere where
you can order food. There still seems to be a bunch of people working there.

I think this might is problem with automation. If you automate everything and
you hire no people then who will buy your products. I think its why Henry Ford
paid his people so well. So they could buy cars.

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harryh
That Henry Ford story is apocryphal. If you think about it, it doesn't really
make any sense.

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elsurudo
Maybe, but he was a bit of an idealist and has strong thoughts about how
people should and how society should be structured. And the resources to make
a noticeable change. HAve you heard of Fordlandia?
[https://en.wikipedia.org/wiki/Fordlândia](https://en.wikipedia.org/wiki/Fordlândia)

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Daniel_sk
McDonalds around the Europe already have those kiosks (not all, yet). Same
like self-checkout in stores - it’ not uncommon.

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mulletbum
They have them in the US too. It is funny, if you go in and there is a line at
register, almost all the kiosks sit empty. You can order your food and have it
handed to you before even part of the line is served. It tends to get you
dirty looks.

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zghst
Most Jack in the Box orders are through the driv-thru, there’s not nearly as
many people coming in to eat compared to McDonald’s. Adding Kiosks to their 10
urban locations would be a waste of money at this point.

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csbrooks
Is it really true that the minimum wage before was JUST at the point where
replacing workers wasn't worth the cost, and now it's going just over that
threshold?

If they can find a way to replace workers with machines, my guess is they
will. My local walmart has one worker managing about ten self-checkout
stations now. Panera Bread has stations where you order your food; no cashier
needed. And the wage they are paying here is well above minimum wage, anyway.

CEOs will eliminate all the employees they can, because they consider that
their job. And then they'll give out executive bonuses as massive as they can
get away with.

There is no reason why the minimum wage should be so low that no one could
make a living off it.

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pythonaut_16
At the same time, those same CEOs will create jobs and add employees if they
think it will drive revenue or improve the business.

An easy example with the fast food restaurants is that they keep opening new
locations.

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pc86
Aren't most fast food restaurants franchises, and the individual corporations
running them own a handful in a fairly constrained geographic area? There are
3-4 companies that own the various McDonalds locations in my area and I don't
think any of them own more than 3.

