Robots that Grill could mark the end of Fast Food Jobs
Unions are pushing them for higher wages, and they have almost no pricing power, so something must give and that something is the human worker. We expect the fast-food industry to replace most of their human workers in the years to come.
Burger bots have hit the market.
Take the burger robot from Momentum machines it can produce 400 burgers per hour. It grills, slices and can make and a bag a burger. It has the potential to replace up to 3 full-time cooks. There is another company with a bot called Flippy; it has an AI component built-in which enables it to learn and adapt. The bottom line is that unions are not considering the trend and as they push for higher minimum wages, what they are doing is only hastening their demise in the process. We are not looking at this from a morally right or wrong perspective; that’s a whole different story. We are examining this on the basis of trends, and when it comes to trends, we know that a trend in motion is unstoppable. Therefore how we (personally) feel about the situation is irrelevant.
This is good news for takeaway managers and owners. Staffing restaurants cost massive overheads not to mention the stress of managing staff personalities, schedules, safety and training. Robots on the other hand work long hours and never get tired, and if they are working as designed don’t often make mistakes. This robot has a pretty expensive outlay of $30,000 but you can imagine it would pay itself off very quickly. Tech blog Xconomy reported the prototype they saw demoed could save a fast-food restaurant up to $90,000 a year in training, salaries, and overhead costs. Full Story
Tactical Investor take
Automation is here to stay, and the robot market is going to grow by several magnitudes. Unions will soon become a thing of the past. The landscape is going to change significantly in the years to come. Manufacturing jobs are never coming back, a host of low paying minimum wage jobs will vanish and anything no matter how complex it is that involves logic or has a pattern will be replaced.
Wage deflation is the big picture most of the experts are missing.
Colleges are in for a shock. The education landscape will change suddenly and a college degree will be as good as an old newspaper in the not too distant future. Most degrees are worthless as it stands. We will expand on this in a future update. Otherwise it could add another 1-3 page to this update, and frankly, we are quite exhausted after all the data we had to process over the past few days.
Two small, private liberal arts colleges plan to slash the price of tuition by nearly half for incoming freshmen next year. In doing so, they join a small but growing crop of schools that are experimenting with ways to make higher education more attainable for students and families by removing sticker shock.
Rosemont College, a Catholic school just 10 miles west of Philadelphia, and Utica College in New York both announced in the last two days that they’re moving from a “high price, high discount” model to a “low cost, low discount” model. US News