Drive-Thru Becomes a 'Job Killer' Following Kiosks

McDonald's to Implement Layoffs by April
Despite Increased Performance... Workforce 'Reduction'
Drive-Thru Expanded Due to COVID-19

Following the massive loss of jobs in the food service industry due to the surge of kiosks, drive-thrus are emerging as the new 'job killers.' As takeout stores become more active and the demand for in-store staff decreases, the need for hiring is disappearing.

McDonald's, the world's largest fast-food chain, recently announced that while it plans to increase the number of stores, it will reduce the number of employees. Although drive-thru orders surged due to COVID-19, the company revealed plans to carry out layoffs and use the savings to introduce innovative ordering methods.

McDonald's, which operates drive-thrus worldwide, appears to have made this decision as fewer in-store staff are needed. On social media (SNS), opinions are divided between views that this is "the market's choice favoring fast and convenient service" and concerns that it will "lead to irreversible job losses."

McDonald's Sales Increased but... "Reducing Staff"

According to Bloomberg and AP News on the 7th (local time), Chris Kempczinski, CEO of McDonald's, sent a message to all employees the day before stating, "Due to increased demand over the past few years, we plan to reduce staff to accelerate the opening of new stores." He added, "The layoff process will be completed by April 3," but the exact number of new stores and the specific scale of layoffs have not yet been decided.

McDonald's is drawing attention for deciding to reduce staff despite improved performance. As of the fourth quarter of last year, McDonald's sales per store increased by 9.5% compared to the same period the previous year, significantly surpassing the previous forecast of 5.8%. In the third quarter, sales reached $5.87 billion, with an operating profit of $2.76 billion.

Kempczinski plans to invest in digital ordering systems by simplifying the menu and reducing staff costs. This is because drive-thru demand has expanded due to increased on-the-go dining after COVID-19. In particular, some stores in Chicago have seen drive-thru sales account for two-thirds of total sales even before COVID-19. Additionally, this year, new types of stores focusing on takeout sales, unlike traditional restaurants, are planned to open in parts of Europe, the U.S., and Asia.

Automation Machines and Drive-Thrus Reducing Jobs

McDonald's introduced the Hi-Pass payment system to its drive-thru (DT) service for the first time in Korea last year.

McDonald's operates drive-thrus worldwide. Drive-thrus minimize the number of employees taking orders, improving workers' working conditions. Only employees taking orders and handing over food are needed.

Also, there are no missed orders or long waits, allowing customers to comfortably wait in their cars and receive their food. In drive-thru-only stores that do not operate dining areas, staff for cleaning and customer service are significantly reduced. Due to kiosks and drive-thrus eliminating the need for in-store staff, many stores maintain only minimal employees.

Furthermore, McDonald's announced on its official website that it will introduce "innovative ordering methods incorporating technology." The first unmanned store opened last month in Texas, where machines handle everything from order confirmation to food preparation. Customers place orders via kiosks and receive food on a conveyor belt. This is why concerns about "job losses due to automation and unmanned systems" are growing.

The situation in Korea is no different. With telecommuting and delivery culture becoming widespread due to COVID-19, the number of drive-thru customers has greatly increased. Additionally, a Hi-Pass payment system has been introduced to drive-thrus, making ordering and payment faster and more convenient.

Drive-thrus are permeating beyond the food service industry into various aspects of daily life. In Cheongju, Chungbuk, a "smart library" that allows borrowing books via drive-thru by recognizing vehicle license plates has been operating since last year.

The electrification and automation accelerated during the COVID-19 period are also directly impacting job reductions. According to Statistics Korea's "2020 Economic Census Results," the number of workers in accommodation and food service businesses has decreased by nearly 100,000 over five years. Statistics Korea analyzed that "as more entrepreneurs use kiosks to reduce labor costs, the number of businesses is increasing while the number of workers is shrinking."

This content was produced with the assistance of AI translation services.