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11/02/2024 07:21:20 am

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Former McDonald's CEO on Minimum Wage Hike: 'You're going to see a job loss like you can't believe'

McDonald's Domestic Sales Remain Weak, Posts Decline For May

(Photo : Andrew Burton/Getty Images) People walk past a McDonald's restaurant on June 9, 2014 in New York City.

As reports of a minimum wage increase in the United States makes headlines, a former McDonald's CEO has warned that this move will guarantee massive job loss as robots will take over from human employees.

Edward Rensi, the former head of one of the world's largest food chains, said that he guarantees that once the $15 minimum wage is implemented across the country, people are going to see a "job loss like you can't believe." He pointed out that it will be cheaper to buy robotic arm worth $35,000 than to hire an employee who makes $15 per hour while bagging French fries.

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The minimum wage hike has been a hot topic in the U.S. States and employers work out a plan to raise the minimum wage to $15 an hour. California is set to raise the minimum wage by 2022 while New York aims to raise it by 2019.

Rensi said that discussions about raising the minimum wage are nonsensical and will only destroy the middle class of America. He said that he saw first-hand a range of robotic devices during the National Restaurant Show that are set to make their way into the restaurant industry. He also suggested that instead of raising the minimum wage, states should set the figure based on the cost of living in their respective regions.

The former McDonald's CEO is not the first person to say that robots will be used in restaurants in the future. The CEO of Carl's Jr., Andy Puzder, said in a statement that he wants to try to have a restaurant completely run by robots. He pointed out that this would reduce labor costs and the restaurant can offer healthier and cheaper options due to the decreased costs in terms of employing people.

Pizza Hut will also be featuring Pepper robot, a white humanoid figure equipped with an accelerometer, cameras, and touch sensors. Pepper robot interacts with customers when they place their order. Meanwhile, Wendy's is testing self-service kiosks at some of its branches. 

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