
An army of robot baristas could mean the end of Starbucks
Raise the minimum wage! To $10, $12, $15 — more!
Help the downtrodden fast food worker. It all comes out of corporate profits, and so who cares? What could be more fair?
Two problems: 1. Economic reality. 2. Technology.
Dramatically raising wages (coupled with all the ancillary costs of labor) is a huge incentive to replace labor with machines. Below is a highly sophisticated coffee dispensing kiosk (not yet in commercial production) that is potentially thecompletereplacement for a Starbucks store. It’s a highly specialized, heavily customized “coffee shop” with next to ZERO labor.
Don’t get me wrong. For years to come, many clueless liberals will still pay $5 or more for their handmade coffee at Starbucks. Saving the world, one cup of java at a time.
But if (more likewhen) this technology innovation wave is fully commercialized, market forces (and lower prices) will have a devastating effect on unskilled fast food labor. Unemployment will grow, with fewer and fewer able to get even… Read More