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Home USA Fast food chains have figured out how to dodge rising minimum wages… and it’s bad news for workers

Fast food chains have figured out how to dodge rising minimum wages… and it’s bad news for workers

by Abella
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Large fast food chains change employees for computers as a way to combat rising wages.

Yum Brands-the owner of Taco Bell, KFC and Pizza Hut Konders on Tuesday that AI will take place at 500 locations per summer at 500 locations.

Driven by Nvidia chips but developed in-house, the technology that customers speak with AI assistants will, just like an Alexa device.

The endgame is to have taken all the orders of computers – whether via AI assistants, digital kiosks or telephone apps – instead of people.

Bosses hope that it not only lowers labor costs, but also increases sales – because AI menu items can propose based on customer preferences.

After years of menus price increases Post-Pandemie-driven due to increasing costs for food and personnel, customers with their wallets and they outsourced less at McDonald's in 2024.

The wages keep climbing. In California, legislators raised the minimum wage for restaurant employees up to $ 20. Elsewhere, ten American states – together with 48 cities and provinces – now have a minimum wage above $ 15 per hour.

But restaurant bosses know that they can no longer increase prices to cover higher wages – so that they are increasingly looking at technology to replace employees.

Fast food chains have figured out how to dodge rising minimum wages… and it’s bad news for workers

Yum Brands, the owner of the brand of Taco Bell, said it promotes AI options in stores

Yum's new Drive-Thru is only the start of the AI-Push, which works with Nvidia as part of a long-term deal that was also announced on Tuesday.

Other planned upgrades are computer vision to detect order errors and AI that analyzes online chatter on valuable feedback from customers – both areas where Nvidia will play a key role.

Although employees are likely to be replaced, Joe Park of Yum turned the news as a positive for staff who remains and customers.

THe will build partnership smarter AI engines that will create easier experiences for our customers and team members, “he said.

AI is also expected to take over customer service calls, which reduces the need for human employees.

With food and labor costs to the largest editions for restaurants, many in industry AI see as the only way to maintain profit margins in the midst of rising wages.

Some companies, including Burger King, are already used to technology in California launching digital menus instead of front-end employees.

YUM brands currently have more than 60,000 worldwide locations and employs 23,000 people in the US.

Although employees are likely to be replaced, Yum's Joe Park turned the news as a positive person who remains and customers

Although employees are likely to be replaced, Yum's Joe Park turned the news as a positive person who remains and customers

The new AI bots can replace Drive-Thru employees

The new AI bots can replace Drive-Thru employees

Yum brands also has the brands of Burger King - The restaurants will probably see newly developed technology

Yum brands also has the brands of Burger King – The restaurants will probably see newly developed technology

About 85 percent of the company employees work in restaurants.

Yum Brands is not an AI-Novice. The company has already tested Nvidia's technology in selected locations of Taco Bell and Pizza Hut in the US to help with Drive Thru operations.

The company said that the further use of AI Tech will help to delight consumers and maximize shareholders' returns. '

It is also not the only restaurant that turns to computers for some help behind the counter.

Chipotle has used AI-driven robots in shops throughout the country to help cut avocados.

Wendy's, Ihop and Sweetgreen have also used to robots to help in the kitchen.

In the meantime, the Hamo Burger Chain Miso Robotics and Coffee Brand Cafe-X have built brand statues such as restaurants that are only robotics alone.

Yum brands did not immediately respond to the request from DailyMail.com for comments.

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