Why McDonald’s Doesn’t Think Automation Will Fix Staffing Shortages – Tasting Table

If wide-scale automation is not in the cards for McDonald's, then the answer to the fastfood giant's labor shortage seems to be focusing on human employees.CNBC reported in November 2021 that while 78% of restaurant operators said recruiting and retaining employees was their biggest challenge in July of that year, Kempczinski called the situation "challenging" but "not unsolvable," noting that stores had resorted to raising pay and increasing manager training. "We've got to kind of get after this the old-fashioned way, which is making sure we're a great employer and offering our crew a great experience when they come into the restaurants," Kempczinski told QSR.

QSRreported that McDonald's raised wages across the board at its 660 company-owned stores in 2021, bringing the average hourly pay up to $13 per hour, with a plan to increase average pay to $15 per hour by 2024. The federal minimum wage in the U.S. is $7.25 per hour. QSRalso noted that McDonald's corporate-owned stores consistently outperform those owned by franchisees who may not have increased wages as much.

While Kempczinski acknowledged there have been other challenges, including inflation and reducing some store hours, overall the brand is performing well. According to QSR, the relatively low-priced menu has drawn back customers with U.S. store sales up 3.7% while international stores have seen 13% growth, a rebound which has helped absorb the damage done by the brand's decision to eliminate its estimated 800 Russian locations in light of Russia's invasion of Ukraine.

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Why McDonald's Doesn't Think Automation Will Fix Staffing Shortages - Tasting Table