McDonalds Is Replacing 2,500 Minimum Wage Workers With Digital Cashiers: Here Is Its Math

While the latest employment figures in the USA appeared to signal a pick up in the jobs market, with unemployment benefit claim falling, only people unaware if the statistical prestadigitation used to massage the figures (people unemployed for two years or more are not counted as unemployed – they are, to borrow a term from the old Soviet Union, ‘unpersoned.’) oblivious to the carnage among the broader restaurant and fast-food sector or what financial news website Zero Hedge calls the waiters and bartenders economy.

McDonald’s are doing particularly well, after several years of looking like the sick man of the stock market, the fast food chani’s latest innovation has sent share prices soaring. In a report published this week, analyst Andrew Charles, the calculates the jump in sales as a result of Ronald McDonald’s new Experience of the Future strategy of replacing minimum wage workers with digital ordering and payment kiosks (shown above). As a result of legally mandated increases in minimum wages, the biggest employer of minimum wage workers will replace cashiers in at least 2,500 restaurants by the end of 2017 and another 3,000 over 2018. Cowen also mentioned plans for the fast food chain to roll out mobile ordering across 14,000 U.S. locations by the end of 2017.
Here is a snapshot of the figures that Cowen, used to come up with the cost-savings as McDonalds increasingly lays off more and more minimum wage workers and replaces them with “Big Mac ATMs” It shows the full costing and identifies the increases in minimum wage mandated under the Obama administration as the reason  why the Ronald McDonald’s little munchkins, the client-facing minimum wage  workers are now obsolete. And you can bet in a highly competitive business other fast food chains will be quick to follow suit.

McD is cultivating a digital platform through mobile ordering and Experience of the Future (EOTF), an in-store technological overhaul most conspicuous through kiosk ordering and table delivery. Our analysis suggests efforts should bear fruit in 2018 with a combined 130 bps contribution to U.S. comps. We believe mobile ordering better supplements the drive-thru business where 70%+ of U.S. sales are transacted. In our view, MCD’s differentiation lies in the operational enhancements of mobile ordering that includes curbside pick-up of orders in order to not disrupt the drive-thru.
We are most excited for mobile ordering, Experience of the Future and the launch of fresh beef to help drive U.S. same store sales in 2018. We provide analysis for the latter three, which cumulatively we expect to contribute roughly 150 bps to U.S. same store sales in 2018, respectively. This gives us confidence to raise our 2018 U.S. same store sales forecast from 2% to 3%, in excess of Consensus Metrix’s 2.5%.
Experience of the Future Features Lower ROI Than Mobile Order, But Offers Greater Potential Longer Term
We are constructive on the use of guest facing technology for the restaurant industry. MCD’s longer-term U.S. story revolves around Experience of the Future (EOTF), a holistic operational and technological overhaul to the store base. MCD’s March 2017 investor meeting centered around the initiative with interactive displays. Perhaps the most conspicuous piece of Experience of the Future lies in digital kiosk ordering, which have seen success in International Lead Markets. Additionally, food ordered via the kiosk is delivered to the customer’s table. We believe EOTF better enhances the instore experience, which represents roughly 30% of domestic sales compared to mobile ordering, which allows customers to avoid leaving their cars.
Our ROI math suggests EOTF leads to a 9% cash/cash return in Year 1 in the 55% of domestic stores that do not require a store remodel, and 5% in the 45% of stores that require a remodel, which is a predecessor to implementing EOTF. Our math is premised on total costs of $150,000 for the Experience of the Future enhancement, and $700,000 of all-in costs when including EOTF as well as a store remodel. MCD has offered to pay 55% of the cost for Experience of the Future, in excess of the 40% the company contributed to the store remodel initiative beginning in 2010, for restaurants that commit to the program by the end of 2017.
McDonald’s targets a high-teens return on incrementally invested capital (ROIIC, or McSpeak for evaluating ROI), improving to the mid-20% range beginning in 2019. We believe EOTF’s ROI is captured over time as the sales lift does not dissolve as in the case of a traditional restaurant remodel. Rather, the lift should sustain as we expect consumers to increasingly embrace technological change. This is evidenced across concepts, such as Panera’s experience with 2.0, as well as McDonald’s own experience in Canada, where kiosks saw 12-13% sales mix in Year 1 and 27% in Year 2. We also note kiosk ordering will also likely lead to labor savings over time which should help boost ROIIC, but is unlikely for the foreseeable future.

 

In 2017, MCD expects to end the year with EOTF offered in 2,500 domestic locations from 500 at 2016-end. MCD targets the majority of domestic locations to feature EOTF by 2020, but has not given intermediary targets. The amount of stores adding EOTF depends on franchise reception to the initiative but we see positive indicators given our checks as well as the company’s disclosure that 90% of franchisees approved of the initiative after taking the same interactive tour that was given at the March 2017 investor day.

We estimate 3,000 locations to add EOTF in 2018, which should lead to a 70 bps contribution to U.S. same store sales assuming an even cadence of restaurants adding the initiative over the course of the year. Further we assume the mix of stores adding EOTF in 2018 reflects the mix of overall stores needed to add EOTF, or 55% of stores that already have a remodel while 45% require a store remodel. McDonald’s  has previously announced plans to remodel 650 restaurants in 2017, which we expect will also add EOTF.

Or to put it more succinctly, the great achievement of the Social Justice Warriors and the Community Organiser In Chief in the closing stages of the Obama presidency has succeeded not in doubling the wages of low paid workers but in putting them out of jobs.

Throughout the US presidential election campaign one of the main policy pledges of Democratic nomination contender Bernie Sanders was that the minimum wage would be lifted to $15 per hour. This current move by McDonalds is a direct reaction to minimum wage laws in some states where liberals dominate the state legislature. The jobs being lost to technology are simply not worth $15 an hour, so well done Bernie Sanders & Co. as predicted in January 2016 thanks to your economic illiteracy many thousands of people who used to earn minimum wage will have no job at all.

MCDONALDS is using the excuse of 15 dollar an hour minimum wage, to eliminate PEOPLE from their workforce, however to maintain profits they need people with money who can afford to buy their toxic-shiteburgers. The endless pursuit of the lowest possible labor coast means ‘things’ and ‘services’ cost less BUT what do you do when nobody below the to ten per cent is still working (strike that, I’m still in the top ten per cent and I haven’t worked for twenty years,) How will the global economy keep growing when the majority of people have no money to buy anything but the most basic essentials?

And I promise you the top ten per cent are not going to be buying many burgers from McDonalds. The new serfdom is going to be worse than the 12th century version and the path there is going to see a bigger die off than the Black Death. What was it Ted Turner desired? A reduction in global population to six hundred million?

They’re not just killing off minimum wage jobs – they’re slashing all they can at levels all the way up to the top. Anything to make better numbers.
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John Steinbeck said “the bank is a monster that men created.” It’s true, but does not go far enough, the global corporations are monsters too, and all monsters are insatiable! Steinbeck also said if the monster does not grow it dies, and if the monster is to grow it must be fed. Think about that, who feeds the monsters but the wage slaves. And when the wage slaves cannot produce enough to satisfy the monster, it will consume them, starting at the bottom. Then the people who comtrol the monster will find find that the botton was supporting them the whole time!

As thousands of stores close across Europe and the USA close, partly due to online competition and partly to people having no money for anything but essentials, the corporations think they can solve the problem by replacing people with robits and Artificial Intelligence?

AI is a pipe dream. Show me the program that writes its own classes and functions, fixes its own bugs, and I’ll start to believe. Many prominent computer science programs in the country have already changed their course names from “AI” to “Machine Learning” for just this reason – as complex as algorithmic design has gotten, machine learning is still just a series of complex decision trees. It’s only natural that they become more accurate as they’re fed more data and refined. Incredible tools for good and for evil, but hardly conscious.

There’s a bizzare religiosity to transhumanism and AGI has become its de-facto “Deus ex Machina.” As I’ve yet to find a “God” (in the religious sense) that actually exists, I’m left to assume that transhumans will follow in the footsteps of their Trinity-based counterparts and use an entrenched (technological) Priest class to sell their “God” to the largely tech – illiterate masses.

I mean, your average schmuck already believes their Amazon Alexa is some kind of AI. When you try to explain to them that it’s simply a device for retrieval, manipulation, and presentation of stored data (like all computers), their eyes glaze over as their preference for a world of “magic” watched over by machines of loving grace kicks in.

As for the zero cost promise of automation, if molecular printing and near-free energy show up anytime soon, this is a possibility; but certain industries are already highly automated with no such overwhelming price/supply effect. Look at the way food production is going, almost entirely automated, getting cheaper all the time yet still suffering from the ravages of inflation, to say nothing of the quality!

We have little to fear from automation and Artifical Intelligence. Except for the minimum wage workers of course.

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Global Ransomware Attack Exposes Folly Of Putting All Your Eggs In One Basket

UK broadcast news and online news sites have been dominated for most of the day by the cyber attack that has affected government and business computer systems. Most disturbing consequence of the attack, which hijacks computer screens with a message that files have been encrypted and can only be unlocked on payment of a large fee (a type of malware known as Ransomware) is fact that hospitals across the United Kingdom had gone dark , locking staff out of patient records and appointment systems..

The situation has got significantly worse as The BBC reports the ransomware attack has gone global.

Screenshots showing a message put out by a popular screen hijacker app show a program that locks computers and demands a payment in Bitcoin have been posted online by organisations hit by the attack.

It is not yet clear whether the attacks are all connected. One cyber-security consultant tweeted that he had detected 36,000 instances of the ransomware, called WannaCry and variants of that name.

“This is huge,” he said.

There have been reports of infections in the UK, US, China, Russia, Spain, Italy, Vietnam, Taiwan and others.

The BBB details a number of Spanish firms including some of the biggest businesses in spain were among the apparent victims elsewhere in Europe.

Telecoms giant Telefonica said in a statement that it was aware of a “cybersecurity incident” but that clients and services had not been affected.

Power firm Iberdrola and utility provider Gas Natural were also reported to have suffered from the outbreak.

There were reports that staff at the firms were told to turn off their computers.

In Italy, one user shared images appearing to show a university computer lab with machines locked by the same program.

The Blue Screen Of Death

Bitcoin wallets seemingly associated with the ransomware were reported to have already started filling up with cash.

“This is a major cyber attack, impacting organisations across Europe at a scale I’ve never seen before,” said security architect Kevin Beaumont.

According to security firm Check Point, the version of the ransomware that appeared today is a new variant.

Several experts monitoring the situation have linked the attacks to vulnerabilities released by a group known as The Shadow Brokers, which recently claimed to have dumped hacking tools stolen from the NSA.

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An attack such as this has been inevitable due to the inherent vulnerabilities of the world wide web (conceived by an amateur, remember) and the near monopoly of the Windows operating system and Google search engine that has been encouraged by governments of the USA, the EU and most leading nations of the free world.

While it’s true that things are much more convenient if we all use the same computer systems, convenience is a double edged sword. What’s convenient for the lay user is even more convenient for cyber criminals who are rogue programmers and analysts.

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White South Africans Are Preparing For “Removal of All Whites Within Five Years”

Authoreed by Daniel Lang via SHTFplan.com,

Back in March, the President of South Africa made a shocking suggestion, which left many white landowners fearing that they may face a race war in the near future. In a speech, Jacob Zuma announced that he wanted the government to begin confiscating white owned lands, before redistributing them to black South Africans.

Zuma wants a “pre-colonial land audit of land use and occupation patterns” to help decide which lands need to be taken, and has said that “We need to accept the reality that those who are in parliament where laws are made, particularly the black parties, should unite because we need a two-thirds majority to effect changes in the constitution.”

 

It’s believed that Zuma is calling for this radical action in response to the rise of a rival political party known as the Economic Freedom Fighters, who have long called for the confiscation of white owned lands.

Obviously, this kind of talk doesn’t bode well for the future of South Africa. You have the leaders of the first and third most popular political parties, both of which promote socialist ideas, openly declaring that they want the government to steal from an entire racial group. Since these political parties wouldn’t be in power unless they had some degree of popular support, it’s clear that black South Africans are increasingly turning against their white neighbors. It’s a perfect recipe for genocide.

It’s conditions like that which have spawned organizations like the Suidlanders; a massive civilian-run civil defense group that is dedicated to protecting Afrikaaners in the event of social collapse or civil war. They’re currently getting ready for the possibility of a government implemented genocide of white South Africans. One of their leaders recently spoke to Infowars, and explained how they plan to respond to that threat.

Roche told Infowars that leftist South African leaders have in recent months threatened “the slaughter of all whites, and the removal of all whites within five years,” prompting Suidlanders to prepare for a surprise civil war event which they now believe is imminent.

 

“Then we would, in such an open civil war, in such a crisis, gather our people together and seek sanctuary in a remote location and then to remove ourselves from being wiped out or slaughtered,” Roche said.

However, the organization doesn’t plan to take up arms, and their best plan so far will only accommodate a minority of whites in the country.

“It’s not about taking up arms, it’s about retiring from the threat,” Roche said. “There’s this intractable tension that seems to be building in our country, where the two parties can never be reconciled, and the stronger party is openly declaring that it will remove the weaker party within five years, slaughter them all, take all of their lands.”

 

Suidlanders has a large-scale evacuation protocol in place in case an ethnic civil war happens, designed to remove roughly 20% of the estimated 4.8 million white South Africans safely from the embattled region.

It’s sad that it has come to this. Once the most wealthy and developed nation on the continent, South Africa is quickly turning into an economic basket case, brimming with racial tensions that could spill over at any time. Once again, socialism and multiculturalism have proven to be total failures.

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That ‘Scientific Consensus Is Back In Circulation.

The phrase ‘scientific consensus’ had been absent from my web viewing for a while but this week it has cropped up in support of various pieces of scientific nonsense, including the latest wild claims by the climate change Warmageddonist club, food fascists and those really freaky nerds at NASA who want to spend $trillions on exploring space to see if that can discover life on a planet 40 light years away. (NB:   a light year is the distance travelled in one earth year by light which moves at 186,000 miles (300,000 km) per second. At the time of writing our fastest spacecraft can attain around ten miles (16km) per second.

But people like me who rely on common sense are not allowed to question the first and second or to point out the folly of planning to undertake a project to investigate the third, because ‘the scientific consensus.’

I have lost count of the times I’ve been told on challenging some piece of pseudo-scientific dogma that “the science is settled” and when I respond by pointing out how unscientific that response  is, am told “You’re obviously not a scientist so you can’t understand how science works.”

I have even been told by a well known science wanker that “when a consensus of scientists agree that a theory is probably true, they people like you (me) should treat it as a fact.”

Well no true scientist would ever talk such complete bollocks of course, but you will find plenty of wannabes and technology geeks on the web who believe it is correct and even think that is what can be called “the scientific method.” They are wrong of course and their spurious claims are best answered by Dr. Michael Crichton:

“I want to pause here and talk about this notion of consensus, and the rise of what has been called consensus science. I regard consensus science as an extremely pernicious development that ought to be stopped cold in its tracks. Historically, the claim of consensus has been the first refuge of scoundrels; it is a way to avoid debate by claiming that the matter is already settled. Whenever you hear the consensus of scientists agrees on something or other, reach for your wallet, because you’re being had.
“Let’s be clear: the work of science has nothing whatever to do with consensus. Consensus is the business of politics. Science, on the contrary, requires only one investigator who happens to be right, which means that he or she has results that are verifiable by reference to the real world. In science consensus is irrelevant. What is relevant is reproducible results. The greatest scientists in history are great precisely because they broke with the consensus.
“There is no such thing as consensus science. If it’s consensus, it isn’t science. If it’s science, it isn’t consensus. Period.”

Dr. Michael Crichton (award winning scientist and best selling Sci – fi author) on ‘scientific consensus.’
Full transcript of the Michael Crichton lecture from which that extract is quoted.

 

 

Los Angeles Residents Fear Major Riots Are imminent, Poll Reveals

Given the current political climate in the USA after eight years of incompetence and divisive policies delivered by the Obama Administration, as well as the effect of ongoing economic conditions on the working and lower middle classes it is surprising the riots witnessed in the past few years have been relatively tame and of brief duration.

Riots in U.S. urban ghettos in the past lasted for days, with millions of dollars worth of damage done and many lives lost. That could be about to change however, According to a poll carried out among resident of Los Angeles someday soon we might ‘see the LA river flowing with much blood,’  (paraphrased from Virgil’s Aeneid.)

For the first time since the riots, there is an uptick in the number of Angelenos who fear that another civil disturbance is likely, according to a Loyola Marymount University poll that has been surveying Los Angeles residents every five years since the 1992 disturbances.

Nearly 6 out of 10 Angelenos think another riot is likely in the next five years, increasing for the first time after two decades of steady decline. That’s higher than in any year except for 1997, the first year the survey was conducted, and more than a 10-point jump compared with the 2012 survey.

The notorious 1992 LA riots were largely fueled by racial tensions. Next time, while racial divisions, depite the best efforts of the race-baiter president, Barack Hussein Obama, will only play a minor role, economic factors are likely to be the driver of civil disorder. Like a majority of Democrat run cities in the USA, Los Angeles is divided by an enormous and rapidly widening wealth gap, with unemployment and under – employment rising among low skilled groups, housing costs and other necessary expenses are crushing the lower classes.

“Economic disparity continues to increase, and at the end of the day, that is what causes disruption,” said Fernando Guerra, a political science professor who has worked on the survey since its inception.

“People are trying to get along and want to get along, but they understand economic tension boils over to political and social tension.”

Although the city’s unemployment rate last year was about half of what it was in 1992, the median income of Angelenos, when adjusted for inflation, is lower than it was around the time of the riots. Poverty rates still remain high at 22%, comparable with the years preceding the riots.

 It should be noted of course that conclusions such as those are based on the government’s fraudulent way of counting the unemployed (i.e. excluding from statistics those unemployed for 99 weeks or more)

There’s something to be said for the idea that there’s a collective unconscious. When that many people feel that violent civil unrest is a real possibility, one should take notice. These people know what their city is capable of, so I can’t help but fear that their concerns are justified.

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Ten Truths You Can’t Tell In Britain Without Being Accused Of Racism.
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Hollande Proves EU Leaders Are Delusional And Out Of Touch

You have to marvel at the stupidity of the pro – federalisation leaders of some European Union member states. They seem to thin that even now, though Article 50 has been implemented and the ‘Brexit’ process that will take Britain out of the EU, and with bookies taking bets on whether Italy, Hungary, Netherlands, Poland or Denmark will be first to follow them, these multicultural wankers still think they can dictate to the British government on how we have to run our country.

Take this story in today’s Daily Telegraph for example:

French president Francois Hollande tells Theresa May he will frustrate her hopes of a swift Brexit deal

So the cheese scoffing petit crapaud thinks he can frustrate the Brexit deal and punish Britain for frustrating the socialist dream of a bureaucratic empire stretching from Ireland to The Euphrates does he? And how does the little wanker intend to do that when he will no longer be President of anywhere by the eighth of May? Polls in mainstream media are currently predicting pro – federalism centre left candidate will beat Marine Le Pen to the presidency but mainstream media’s bias towards the left make their reporting totally unreliable. Using the method that enabled this blog to correctly call the Brexit result and Donald Trump’s victory in the USA we now believe Le Pen’s chances are far greater than polling companies and the media are suggesting.

Two striking similarities between France and last year’s US election are the huge proportion of voters polled saying they are still undecided just weeks before the election, and the fact that like Trump, Le Pen is packing them in and filing arenas at her election rallies while Macron is playing to small auditoriums that are less than half full, just as Hillary Clinton was last year.

RELATED POSTS:

Ode To Politicians
Elsewhere: [ The Original Boggart Blog] … [ Daily Stirrer.shtml ]…[Little Nicky Machiavelli]… [ Ian’s Authorsden Pages ]… [ It’s Bollocks My Dears, All Bollocks ] [Scribd]…[Wikinut] … [ Boggart Abroad] … [ Grenteeth Bites ] … [ Latest Posts ] [Ian Thorpe at Flickr ] … [Latest Posts] … [ Tumblr ] … [ Authorsden blog ] … [Daily Stirrer Headlines]
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Swedish Man Prosecuted for Assaulting Muslims with Bacon

28 March, 2017
A Swedish man has been arrested and charged with racism after being accused of eating bacon in proximity to a group of veiled Muslim women, and of calling them derogatory names.

The alleged offence occurred  in the Swedish capital of Stockholm last weekend. The Swede, who has not been named by media or the police, is said to have approached the women, who were identifiable as Muslims by the  Islamic headgear they were wearing, on a train while he was eating a bacon sandwich. He is alleged to have dangled the bacon in front of their faces, Swedish broadcaster SVT reports.

According to the report, the women moved to different seats but the bacon waving man followed. He is alleged to have called them derogatory names and made racist comments. Neither the police nor the public prosecutor has specified what was said during the incident.

The prosecutors allege he then used racial epithets on another woman in the train station after getting off the train. He faces charges of incitement to racial hatred.

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Full English breakfast, bacon, egg, pork sausage and black pudding (made with pigs blood and pork fat) Make one wonder why Muslims want to live here (image source)

Reaction to the incident on social media has been a mix of laughter and disbelief among English language users. Twitter user PeterSweden tweeted his disbelief at the charges saying: “What’s the next step, being racist for walking your dog?”

Dog are of course considered unclean animals by Islam and therefore are offensive to Muslims.

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A Chronicle Of Decay