McDonald's Kiosks: Job Creation and Operational Complexity

McDonald's kiosks, initially feared as job killers, have paradoxically created more jobs. Franchisees, owning 95% of U.S. McDonald's, deploy kiosks that handle cash and change. Instead of reducing staff, these kiosks reassign cashiers to new roles like "guest experience leads," aiding customers with kiosks and resolving issues.

RJ Hottovy, an analyst at Placer.ai, notes that kiosks haven't cut labor; they've added complexity. With mobile ordering and delivery, labor saved by kiosks is redirected. Kiosks have even flopped in some cases, like at Bowlero, where lack of training rendered them useless.

Kiosks' touted benefits—upselling and speeding orders—aren't guaranteed. Temple University research shows that kiosk lines stress customers, leading to fewer purchases. Some customers take longer on kiosks than with cashiers. Malfunctions and breakdowns further complicate matters.

Kiosks were seen as a response to higher minimum wage laws. Yet, the restaurant industry continues to grow, with staffing levels 3% above pre-pandemic levels. Christopher Andrews, a sociologist at Drew University, compares kiosks to ATMs and self-checkout machines. ATMs didn't eliminate bank teller jobs; they shifted tasks, freeing tellers for higher-value work. Similarly, self-checkout hasn't led to retail job losses; it's increased merchandise losses due to customer errors and shoplifting.

In essence, kiosks haven't streamlined labor; they've reshaped it, creating new roles and complexities.