I get some tone-deaf press releases across the old email transom every now and then, but I recently read something that really knocked me for a loop. There’s a technology company out of Alabama named Juke Slot that manufactures self-service tablet kiosk systems for restaurants, casinos and hotels. On the surface, I say “good for them.” I’m all for technology and advancement of better customer service practices by any means possible.
But their announcement of the new Juke Slot system comes across as extremely threatening in this climate of uncertain economics and the promise by the new administration to create and keep new jobs. In short, the company blatantly comes out and says that their product is a solution to the trend of raising minimum wage rates, especially in the service industries.
Here’s how they couch it:
Millions of American restaurant workers earning the minimum wage will receive pay raises in 2017 – not necessarily because of their on-the-job performanceA new report from the National Employment Law Project, a worker-advocacy organization, estimates that nearly 17 million Americans have gotten raises under the various minimum-wage increases. Collectively, those workers have seen their annual pay rise by close to $60 billion.
The mandates put many entrepreneurs – mostly smaller, independent operators – at a fork in their operational futures: chew into already thin profit margins to cover the higher salaries or find ways to trim staff to account for the added cost without damaging the customer experience.
“Unfortunately, we can’t sit idle,” said Tony Russo, who owns Bella Napoli, which offers Italian cuisine and pizza at two locations in New York City. “While increasing sales can offset the minimum wage increase, sales fluctuate. The minimum wage is a fixed cost that will only go up over time.”
It’s not only smaller, independently-owned eateries that will feel the financial pinch. Major chains are in the minimum wage crosshairs as well. What many of those restaurants small and large that employ some of the lowest earners are doing collectively is turning to technology for help.
Ouch. In an environment where staffing at restaurants is hard to find, they say, “no worries. Just replace them with iPads.” The company cites examples from a Roly Poly restaurant in Hoover, AL that was able to move an employee from the counter to the kitchen (read: reduce headcount) thanks to these devices.
But even more aggressively, they advocate using the Juke Slot as a tacit threat should the state attempt to raise the minimum wage. “Though Alabama has no immediate plans to increase the minimum wage, owner Matt Macke said the kiosks serve as a potential buoy against potential future increases.”
“When you’re talking about putting the minimum wage to $15 … a 300 percent increase is completely unfathomable,” Macke said. “I understand it in bigger cities. But the cost of living isn’t that high here, so there is no need for it.”
“A potential buoy against potential future increases.” I’m not exactly sure what that means, but it sure doesn’t sound like it’s making America great again. What do you think, Bitesters? Are you pleased with the thought of eliminating service jobs through touchpads? Are you cool with advertising that presents itself as a hedge against minimum wage increases? Do you prefer entering your own order on a touchpad that probably still has taco sauce on it from the last kid who used it? Your comments are invited below.
