Facing CA wage hike, Wendy's to replace workers with kiosks

With minimum-wage increases looming in California and other states, Wendy's is getting ready to change the fast-food industry.

The Ohio-based fast-food giant plans to install self-service kiosks at its restaurants because of growing labor costs linked to minimum-wage increases.

California and New York are both raising minimum wages to $15 per hour over the next several years and fast-food workers in other states are pushing for similar wages.

Wendy's plans to start installing the kiosks by the end of the year. They will be in company-owned outlets but individual franchisees will decide on their own whether to invest in the kiosks. There are more than 6,000 Wendy's but the majority of them are owned by franchisees.

In addition to using the technology to cut down on labor costs, Wendy's President Todd Penegor noted on the company's quarterly conference call, that some of its franchise locations have been raising prices to offset the minimum-wage increase, according to Investor's Business Daily.

In addition to the self-serve kiosks, Wendy's is also getting ready to begin mobile ordering and mobile payments.