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PYE offers assistance to restaurants amid California's FAST Recovery Act wage hike

BESSEMER, Ala., Sept. 28, 2022 /PRNewswire/ -- On the heels of California's new FAST Recovery Act, leading self-service solutions firm PYE wants to partner with quick service restaurants to help combat the legislation many operators believe will harm their businesses.

Since the bill's introduction, PYE has fielded inquiries from more than 500 restaurants searching for ways to lower labor costs and increase profitability. The company hopes to help position the restaurants against an uncertain future with its growing line of kiosks.

The threat

The recently signed act established a wage council for fast food workers made of 10 representatives– fast-food restaurant franchisors, franchisees, and employees, along with employee advocates and two government representatives.

The council will set industry standards for working hours, conditions, and wages for California's 500,000-plus fast-food workers. Read the bill in its entirety here.

Fast-food employers are concerned about increasing labor costs, as the bill creates the potential for the minimum wage to reach $22 per hour – much higher than the state's current minimum wage of $15 per hour.

How can employers respond to mandated wage increases?

Employers should review their labor and employment practices and policies with their attorneys to ensure they remain compliant with California law throughout the changes.

Employers will also need to prepare for big wage increases. That means adjusting budgets, lowering labor costs, and increasing profitability, all without cutting the employee hours necessary to run an efficient business.

At first glance, the task is nearly impossible without drastically raising customer prices. However, the California employers contacting PYE to implement self-ordering kiosks see a solution to keep their businesses resilient against wage increases.

Lower labor costs with PYE kiosks

Quick service restaurant (QSR) kiosks allow customers to order independently, eliminating the need for restaurants to pay an employee to take orders and secure payments. Case studies have shown that self-ordering kiosks allow many restaurants to minimize the use of cashiers and, in some situations, reduce payroll spending by $48,000 per year. Self-service kiosks typically increase order size by more than 20% due to factors like upselling, automated menu optimization, and privacy while ordering that result from kiosk implementation.

In addition to lowering labor costs and increasing profit, PYE kiosks have been shown to reduce revenue loss by securely accepting both cash and credit card payments directly from the consumer. This is a rarity among QSR kiosks, as many only accept card payments. PYE kiosks also reduce wait times, improve order accuracy and speed up table turnaround times.

The time to act is now

Wage hikes may take place on Jan. 1, 2023, and annually thereafter. Wages can increase by no more than the lesser of the following, rounded to the nearest 10 cents: 3.5% or the increase in the Consumer Price Index.

The FAST Recovery Act applies to quick-service restaurants in California that meet the following criteria:

  • Sells for immediate consumption on or off-premises.
  • Customers order or select items and pay before eating.
  • Items are prepared in advance, including those prepared in bulk and kept hot or with items prepared or heated quickly.
  • Limited or no table service (table service doesn't include customers ordering from their table via an electronic device).
  • Part of a set of fast-food restaurants with at least 100 establishments that share a common brand.

Employers facing mandated wage hikes need to lower labor costs while driving profit. PYE's QSR kiosks are the answer.

PYE is offering kiosks with no upfront hardware costs. Learn more by scheduling a demo before the changes take effect.


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