To lower labor costs, some fast food franchise owners are turning to artificial intelligence, including installing more automated kiosks to replace cashiers.of fast food workers, who are employed by chains of 60 restaurants and more, from $16 to $20 an hour.
But for franchise owners, the dramatic surge in labor costs, including payroll taxes and workers compensation insurance, is a nightmare.“My average store will go up $180,000 a year,” explained Michaela Mendelshon, who owns six El Pollo Loco franchises in LA and Ventura Counties. “As of today, I am well into the red. We are losing money, so we are going to need to stop the boat from leaking by making changes.
“Upon further contact with the SEIU, they also decided their scope was very limited and most likely not be able to carve out an exemption for us,” Campbell said. “So that we will probably need to write our own bill.”