On April 1, more than 500,000 fast food workers in California I got a raise, the sector-wide minimum wage was raised to $20 an hour. The same week, the self-proclaimed “world’s first fully autonomous restaurant” opened in Pasadena.
These two stories have caused quite a stir. media attentionFast food franchise owners are struggling to stay afloat amid rising labor costs, and many believe automation is the only viable solution. But this simple depiction of cause and effect paints a picture of innovation and necessity that sells fanciful myths to the masses.
I study low-wage industries in Los Angeles County, including the impact of new technology on workers. My research shows that automation does not necessarily lead to greater efficiency or lower costs for businesses, as AI advocates want the public and policymakers to believe. This kind of innovation also promises to further widen income inequality. Working people have the right to have their voices heard in decisions about when, where, how, or whether AI and automation should be used.
I visited Pasadena’s new robotized restaurant, CaliExpress, to see what the future of fast food would look like (and taste like) . Outside, a slogan befitting a traveling circus was posted: “AI FRYING ROBOT MARVEL!” Curious, I went inside and passed a facial recognition scanner with the creepy advertisement of “pay with your face.”
I ordered on the giant touch screen and watched a human employee come to life behind the counter. They quickly loaded the robot with raw beef and frozen fries and ran around the kitchen to retrieve the cooked items the robot had placed in buckets. This person then manually assembled, packaged, and delivered the food to waiting customers. A second worker cleaned up after the robot.
While an animatronic arm hurriedly dips a basket of french fries into a vat of hot oil, a show reminiscent of a bizarre science fair project, workers hustle behind the scenes. did most of the work.
As in many AI stories, humans remain mission-critical.example Richfrom “” on AmazonJust Walk Out” Stores to local food delivery bot. Each case illustrates how the high promises of new technologies can be used as a pretext to restructure industries and infrastructure, often at the expense of workers, consumers, and communities. Masu.
Automation often provides cover for employers to further enhance cost-cutting measures that lead to chronic staff shortages. increases Potential for injury and wage theft. Although automation may reduce marginal labor costs, There is little evidence that it will inevitably improve Productivity, safety, or cost-effectiveness.
As I observed at CaliExpress, integrating automation into a service department often results in fewer workers doing more work. Economists have also recorded this phenomenon. Significant increase in revenue per employee Achievements in the fast food industry over the past five years. This means that productivity and wealth concentration already Even before automation, people are growing hand in hand. This is a sobering finding that challenges the narrative that unsustainable labor costs are the main driver of automation.
Similarly, automation requires high levels of standardization, so consumers end up paying more for less. Fast food means a small menu with minimal customization.Meanwhile, food prices will continue to rise rise rapidlyAs in the past decade, corporate profits far outpaced inflation. Unprecedented new heights. My order at CaliExpress (burger and fries, current menu range) was $15.44, more than double the same order at In-N-Out.
As the profits of multinational conglomerates soar, local franchisees may feel pressure to automate. However, to completely renovate a commercial kitchen, huge and dangerous Increased capital investment will help already struggling small and medium-sized enterprises new debt.
So who can actually benefit from automation and AI?
The winners will be a new class of technodormers who will market their leased hardware and subscription-based software solutions to the world. public and private Sector. The company developing this technology is billions of They seek to impose their “solutions” on an unsuspecting public, with little input from workers, small business owners, and consumers. The fast food industry is the latest test kitchen for these ideas.
Fortunately, California has a reputation for taking bold policy actions.
With the increase in the minimum wage, Assembly Bill 1228 The state’s firstSectoral Negotiations CouncilHere, workers and employers come together to jointly determine industry-wide standards and protections. It is hoped that this will also include the role of new technology in the workplace.
This is a fundamental development in the pursuit of workplace democracy. The timing was fortunate, given the rapid and unchecked rise of automation and AI, as evidenced by Governor Gavin Newsom’s recent statements. presidential order Requires an overhaul of state government operations and public services using AI. But until ideas like sectoral bargaining and a living wage for everyone become commonplace, there is a real risk that AI and automation will become just that. accelerate inequality.
Unlike the novelty of unproven AI, California’s new fast food bill is a form of innovation that should require policymakers to invest in, lifting thousands out of poverty and supporting marginalized workers. It gives people a seat at the table. It’s more transformative than what’s in store in Silicon Valley.
Brian Justy is a senior research analyst at the UCLA Labor Center.
