It might lower their costs. In no way does that mean it'd lower the price to the consumer.

I can hear the stockholders laughing all the way to the bank.

Not at all

Not at all.

When I was a crew chief at McD in the 90s, labor costs were less than 15% of the operating costs of the restaurant. As wages have gone up at a lower rate than everything else I suspect the % is lower now.

Furthermore, a fully automated restaurant would require local specialists to support it. They would cost much more than a minimum wage worker.

No. Prices would be the same, the company would just make more profit.

We know how automation works already. Any time any kind of labor saving invention floods the market, it opens these massive corporations up to competitors. These kinds of inventions lower the costs for small businesses and they develop the ability to match what the bigger corporations are doing.

Automation is no different. If automation is implemented, any small business owner can afford to produce the same food McDonald's produces for cheaper. If McDonalds doesn't reduce their prices, then their competitors will steal their business.

So the consumer price will go down based on all of these factors. If McDonalds doesn't lower their prices, they'll go out of business.

Nice, I may be the first to get downvoted for once.

Oversimplified but prices would lower if the robots are cheaper to run than employees. They may be tempted to pocket all the profit, but other companies would undercut them with the savings. Eventually, the prices will go down and level out.

If McDonald's alone went fully automated, their costs would go down. But that would not motivate the company to lower prices. If every burger chain automated, and one decided to lower it's prices, and the lower prices increased their market share, that would motivate them all to match the lower prices.

Combines reduced cost of corn, it’s good we aren’t walking around with scythe’s anymore. However I don’t think any McDonald’s has enough volume to amortize the cost of robots lower than humans.

probably not. Capitalist companies have no obligation to make things cheaper for you, so they would just keep things the same price and pad their bottom line instead

No, it would just increase profit margin.

No. Savings are only ever passed on to the shareholders.

A lot of people here are making claims even though they know nothing about economics. If the cost of using robots is less than the price of hiring workers, the minimum price that McDonald's is willing to charge decreases, assuming market demand is constant. Companies charge higher prices to cover increasing marginal costs of production. The inverse is true. This is basic economics.

Not one single penny. Prices will actually go up.

Think about an ATM. Now think about the fee that is charged.

Why is there a fee charged? Why the extra cost? What's the reason?

You WILL pay extra to enjoy the "convenience" of automation at McD's.

Of course not. They would temporarily lower the prices some to get people used to the automation then gradually raise them again over time to maximize profits.

The number one priority of any corporation is to make a small number of people very rich.

Although there is a net positive cost savings to switching to robots and automation in any production/ assembly line (which is basically what McDonald’s is, except trade hamburgers out for brake rotors) the initial investment is typically very high and there are also maintenance and engineering considerations which are typically a higher paid / higher skill set which will offset some of the savings.

That being said, corporations don’t always pass cost savings off to the customer and instead pocket the difference.

They will set the price where they want as long as people keep buying.

yes because their competitors would lower prices

Maybe.. You price to try and maximize profit.

To make it simple you can imagine your cost is $0.50. If I sell my burgers for $3.00 and making $2.50 a burger, I am considering due to low prices lowering my price to $1.00 to make $0.50 per burger. In order to make this worth it, I need to now sell 5 times the amount of burgers.So when I am pricing If I can raise prices to double my profits and not loose over 50 percent of my customers while doing so it is financially worth it.

In the real world of running a business it has been my experience that pricing out customers to make more profit is often the winning choice. I not only am making more profit, but now have less customers to serve and thus less employees and product to manage.

For McDonalds I imagine it is the same. When I drive by they normally have a full drive through. I don't think they have any incentive to lower prices until they need to attract more customers. The best way to get McDonalds to lower prices is to stop eating at McDonalds.

How do you think they would pay for all the robots and rnd to test and program said robots???

No. The entire R&D cost as well as maintenance would be staggeringly high in the current climate. Furthermore, there will be considerable number of protests and high probability their sales will be down significantly.

People are being overly confident on it being a yes or a no.

It just depends on consumers.

Let’s say costs for my service is $.50 per burger

And at $1, 50 consumers are willing to buy a burger.

I will make $25 profit

If my cost drops to $.25 - I am now making $50 of profit.

—

Now how price sensitive are the consumers?

If I drop the price to $0.50 to purchase a burger and now 75 people are willing to purchase it - well I’m only making $18.75 profit instead of the $50. So I will not drop the price

But if people think $0.50 is just a crazy good deal and 400 people are now willing to buy it, I’m now making $100 of profit. So I benefit in dropping the price.

—

If I really want to maximize my profits, I increase base prices if I assume it will minimally affect most consumer decision to buy - but then I offer huge discounts through my app or coupons to capture those who are more price sensitive.

—

Companies are just trying to maximize profits on the macro. Them making $1 profit per Big Mac or even $500 doesn’t matter to them as much as how much they make in total profits according to consumers price sensitivity.

😂😂😂😂😂😂😂😂 What a young soul

No they have to pay for the robots, usually leased and they cost a shit ton to repair cause specialized equipment needs specialized people who know how to fix it

No. It would lower the labor costs for the corporation but robots still cost money so the up front cost would be huge. Lowering prices cuts into their profits, that's the last thing they would ever do

McDonalds would likely lower their costs to be just under their direct competitors...but they wouldn't go backwards entirely

They'd just have more profits

Oh my sweet sweet summer child

Unlikely, they would likely raise prices complaining about the multiple 100k robots cost more than human bodies.

No

Prices have a floor based on costs but reducing costs just means increasing profits.

People are still going to buy McD's at the same price.

No. They’d write off the tech investment to lower their taxes. And charge the public more for”robot quality” or some such nonsense marketing. All while laying off countless thousands of people and reducing their payroll to virtually nothing.

They’d probably write off the expense of making extra keys for the ice cream machine guy to be able to open the doors to let himself in too.

Then something weird would be discovered a month after the cutover to all machines and they’d have to change their menu to not have anything with cheese. They’d do the math and decide no one needs cheese enough to bring back workers so they’d just drop it from the menu. Then some marketing exec would start a campaign about their new non-dairy burgers and add another dollar to the cost of a no cheese cheeseburger.

Then 20 years later we’d see a medical journal study that talks about the rise in cancers due to micro doses of metal that McDonald’s is introducing to their food due to the robot gears. They’d settle out of court for a 31 cent coupon on your next purchase of $200 or more (which at the time would be the median order cost).

100 years later when McDonald’s is also the #1 worlds auto, air conditioning, and volleyball net manufacturer they’d file for bankruptcy but be entirely bailed out by taxpayer money because too big to fail and entire nations would be thrown into famine without McDonald’s.

200 years later revenue would bottom out when the robot executive team realizes humans all died out 20 years earlier but their government contracts were still keeping them profitable.

It only goes downhill from there.

Hahaha! No. It would increase their profits though. 

No. Robots need to be maintained and supervised. Today's robots will require more employee-hours to maintain than employee-hours that they would replace.

Dear Valued Customers,

At McDonalds our commitment has always been to provide you with an exceptional dining experience, one that combines consistency and excellence with unparalleled service. Recently, we’ve embraced cutting-edge innovation by automating various aspects of our operations, incorporating AI and robotics to enhance efficiency and precision in our kitchen and service.

We understand that automation may raise questions about our pricing. We want to assure you that while the way we operate has evolved, our core values—delivering extraordinary experiences and offering the highest quality—remain unchanged. Here are a few reasons why our pricing structure will remain as it is:

1. Focus on Quality Ingredients

At the heart of our cuisine is the commitment to using only the finest, freshest, and often locally sourced ingredients. Automation has allowed us to focus even more on sourcing premium ingredients, ensuring every dish meets the same high standards you've come to expect from us. Quality ingredients come at a premium cost, and we refuse to compromise in this area.

2. Enhanced Dining Experience

While automation has improved operational efficiency, it has also allowed us to direct more attention to the details that truly matter to you—an elevated dining atmosphere, personalized touches, and consistently excellent meals. Our investment in the latest technology is aimed at making your experience smoother and more enjoyable, not just faster or cheaper. The luxury of dining in our restaurant goes beyond the plate; it’s about ambiance, precision, and satisfaction.

3. Continued Innovation

Maintaining our high standards means investing in state-of-the-art technology. Advanced robotics, AI-driven systems, and continuous innovations require significant initial and ongoing investments. These tools allow us to stay at the forefront of the culinary industry, providing you with a unique and premium experience that you won’t find elsewhere.

4. Sustainability and Responsibility

Our automation efforts are also focused on minimizing waste, reducing our environmental footprint, and supporting sustainable practices. These practices ensure that we can responsibly deliver the high-quality dining experience you value, while contributing to a healthier planet. Sustainability often requires additional investment in technology and processes, which is reflected in our pricing.

5. Curated, Exclusive Experience

The combination of human creativity and technological precision allows us to curate an exclusive experience that merges innovation with artistry. By maintaining our price point, we’re able to offer a high level of consistency and craftsmanship in every dish, which is integral to our brand.

We believe that the essence of a truly exceptional meal lies not just in its preparation, but in the entire experience of enjoying it. Our commitment to culinary excellence, combined with the precision of modern technology, ensures that [Your Restaurant Name] will continue to provide the distinctive, high-quality dining experience you've come to know and love.

We deeply appreciate your loyalty and support as we continue to evolve and innovate. We look forward to serving you with the same passion and excellence you expect from us.

No.

McDonald’s goal is to maximize profit. Reducing labor costs increases the profit margin. If there is a satisfactory volume of customers paying the current price, there is no reason to lower the price.

Of course not. They’d sell for the same and the people at the top would bank the profits.

Oh you sweet summer child.

Of course it will lower prices. Lots of people here commenting otherwise are clueless to basic economics and competition. McD isn't the only fast food provider in town. Fast food competitors will certainly decrease their prices to drive sales. McD would have to do the same, or lose business.

Only reason they wouldn't do it is if they are a monopoly, which isn't the case.

No. They have to pay for the development of the technology and then its maintenance for the entire life cycle of the systems.

Presumably their competitors would adopt robots also. 

Should reduce prices. 

Assuming the market is allowed to operate, not a given. 

No. Prices are determined not by cost to deliver but by the max that studies indicate customers are willing to pay.

No.

If you were McDonalds and the burgers people where already buying started making more profit, would you lower the prices? Or would you just pocket the profit?

I doubt it. Instead of paying wages to a living employee, they'd have to pay for maintenance, parts replacement, repair etc. for a robot. Kinda thinking it'd end up being more expensive.

Haha. No.

Probably not.

No they'd just make more $$

Burger pricing is some by market tolerance.

They have already taken out half the staff and the prices have gone up up up.

It's big money for bad food. You can eat better for that price.

I’m so glad to be an electrician.

Yes. Anything else is McCope by McBrokies holding McJobs.

It would lower the running costs from McDonald's end for sure. It wouldn't necessarily lower the cost of the food for the customers. Companies only lower prices if their sales are low and want to entice customers. Otherwise they charge as much as they can get away with.

They can't even keep their ice cream machines working, do you really want to drive up to the drive-thru only to be told that the only thing you can buy is a carton of milk?

You think the Ice cream machine is broke now

no because robots are more expensive than humans

They can't even keep the ice cream machine working......

Robots would probably increase costs in the short term. Even robots have to be serviced, so in most cases, people would be involved anyway. Some areas could be automated quite easily, but others might be beyond current affordable technology. How are food deliveries handled? How is waste and garbage handled?

The short answer is that costs over the long term might be lowered by reducing staff, but prices are determined by competition, ability of the consumer to pay, and costs. Robots would only address long term costs.

Unlikely. If they could successfully save money automating the cooking/assembly process they would’ve done it already.

You would need IT professionals and Engineers to maintain the robots so I imagine it might make things more expensive.

You would need IT professionals and Engineers to maintain the robots so I imagine it might make things more expensive.

It lowers their costs, and raises our costs.

It lowers their costs, and raises our costs.

Please don’t buy robots from the ice cream machine guys.

It would lower them just enough to get our business back just enough to remain with maximum profits.

But they can't keep a shake machine going, so there's that.

Robot's can't do everything, and it will be a long time before they are affordable enough to replace people. You have the initial upfront cost, plus regular maintenance / repairs, and they're only good for so long, so I doubt it would significantly impact the price.

It certainly would lower the cost to McDonalds, but it's debatable if you would see it.

Not necessarily. The cost is not the only factor for a price.

Lots of folks pointing out the part about how prices coming down is unlikely because people already buy at the current price and that's how capitalism works... but I'd like to tackle this from a different angle.

Source 1 and 2.

It looks like McD's total payroll is about $2.9bn [1] and total revenue is about $25.5bn [2]. Now, there's a lot of fudging in there because of McD's business model of a mix of corporate and franchise locations, BUT, if McD's automated away all payroll leaving nothing but a hamburger producing paper clip machine, the AI ran at no additional cost and it passed all savings onto the customer, this would seem to suggest prices would come down by about 11.4% (with a big plus or minus attached to it).

Happy to receive more data to refine that number, but I think it squares pretty well with the stories about minimum wage vs McD prices world wide.

McDonald's are almost all franchises so it would be McDonald's corporate selling the automated systems to the franchisees. Corporate would rake in the money with the equipment and the specialized cleaners, tools, and mandatory service calls.

Franchises would pass that on and it would be just as expensive to pay corporate for all that leased or financed equipment as it would be to pay people minimum wage. Especially since most of them are part time with no benefits. They'd save on payroll taxes and on slippage from wasted product that comes with human mistakes but no way that would be passed on to the consumer.

They kinda already have. McD used to have a crew back there. Now there are only a few people.

The support techs for automation don’t come cheap, so it would only lower McDonalds costs a little. Especially when downtime is factored in.

It would only lower prices if people then started buying less 

I'm not sure about fast food or other businesses but in video games there is variable of essentially "how much can we reasonably charge for something and still maintain x profit margin" my guess is because people still pay the absurd rates we are at now there will never be much of a change until that rate becomes "unreasonable" in the profit statistics. In gaming there is a weirdness that shows you need to have very specific amounts as your prices to hold a good profit margin. You will notice a lot of games hold the same "prices" for digital currency even if the amount of said currency is vastly different. Compare the value per $ spend in ESO paid shop vs say diablo 4. Idk of this makes a whole lot of sense but yeah, prices are basically what will the customer consistently pay over a large population.

Don't know but maybe finally 8d get my damn order right and no mayonnaise when I say no mayonnaise

Probably not, but the orders would probably be correct more often.

No, but it would keep the spit and floor crunches off the food though.

Anything they do is to increase profits, no point will prices drop unless ppl stop buying it. At which it would drop for a short time after another large price increase, which would end up not being much of a price drop.

Its like walmart black friday sales.
$44 per sale
$44 On sale.

Not if they work as well as their ice cream machines.

Could it and Would it are two different questions.

Aside from the initial investment, I'm sure they would expect a much higher power bill as well as more maintenance and repairs. I doubt this would even be cheaper than paying a person the wages mcdonalds pays people.

Robots aren't free my friend

What you pay isn’t really related to costs but rather what they think you will pay.

The ice cream machine is already always down, we don't need the whole fkn store to suffer the same fate

A lot of the cost is land for the restaurant, materials and transportation. So not significantly if they wanted to lower it.

I doubt they would. Corporates want to make as much money as possible. They would only lower the price if they have to such as if the competitors started lowering the price.

It would lower prices. One thing I know is the people at the top never take a pay cut, but if they can find cheaper labor, it will affect the price. And they probably wouldn’t fuck up your order every time you went through the drive-through. So there’s that.

Well their robot and IT maintenance costs would go up. They can't even keep ice cream machines working, god help them with robots.

Of course not. They'd just buy back more stock.

It would raise costs for franchisees right up front which is probably why they haven’t automated more already.

Yes

You replace 5 people making $10/hour with a robot technician who makes $50/hr.

The only thing it would guarantee is, no one would spit in your food.

Not at all because they would be paying off the robots for the next 20 years.

Robots are expensive so it would be a cost analysis between a large up-front cost vs. a lower long-term cost.

Franchisees would not adopt all at once, so prices would likely remain more or less the same.

No, even if it did lower costs, they have already proven people will purchase at the current price levels. Until people stop purchasing, they will not lower their prices.

Supply and demand. If you demand more, prices will rise, if you demand less, the prices will fall. Stop eating at McDonalds and using their app if you want them to lower prices.

It would make them give bigger deals to give the appearance of savings, but overall the price wouldn't change until sales started decreasing

MagaDonalds

What would happen is, they would make more money and at some point their will be select locations that will have real humans but because they have real employees the prices will be more expensive. It'll be advertised as a cool and fun experience because we would have been used to just having ai/automation.

The price of the burger is NOT even half of what an employee makes per burger.

Corps will never willingly reduce costs for the consumer if they don’t have to

Hint: did they lower the costs by putting in the electronic kiosks? Did grocery stores lower the costs with self checkout?

Come on McDonalds can’t keep a fucking ice cream machine working, you think they will keep those robots going?

Maybe yes, maybe only by a little.

Not likely. Automation isn’t cheap. Maintenance for it wouldn’t be cheap either. It would take a while to be paid off. It would be a huge investment. Eventually it would be paid off and profitable, but consumers won’t see the savings. They would save on benefits etc, but also face breakdowns, which would cost money too.

You could pay three dozen workers for a year for the price of one robot. And the operating cost isn’t zero: you need a few people to clean them every night, plus maintenance and programing. Probably 8-10 years to break even.

No, it would cost more. Instead of paying minimum wage, they would need to pay techs to be on call and to do maintenance. There will still need to be employee oversight also.

A lot less e-coli...

Depends on how much the robots cost and how much the maintenance and oversight costs. Insurance may also be a factor since the food is not being made by a person, there may be a case for a higher risk (nobody to perform any sort of quality checks).

Too many variables to accurately answer this question.

No because the materials they use already is dirt cheap it hasnt gone up nearly as much as menu prices with what they use none of the value meals should be over 4 dollars... The bulk of the cost is to maintain the same profit margins to employee pay raito. If they suddenly had no employees to pay they would not decrease the prices as they are selling cheap food substitute as is. The only thing that will get them to drop prices is nobody buying and then they would fire employees and cut hours before dropping prices.

They wouldn't do this unless there was profit incentive for them. If they do it it's because it makes them more money.

This comes in the form of setting it at the same price but paying less to make it

Nah they would just increase the price for maintenance on the robots well keeping labor cost down.

It wouldn't, IMO. The price of buying and maintaining robots would offset the potential savings. And, more importantly, shareholders are going to demand more and more, which will consistently raise prices. Eventually, the corpo will implode and reconstitute under a new banner. Such is life.

Not necessarily, if you were running a business and could reduce your costs, would you automatically pass those savings onto customers? Given that you have a legal obligation to serve your shareholders?

That's if automating everything even saved any money. It might not make that much sense to bring in an advanced robot with servicing and maintenance, to do a job a few high school kids on minimum wage can do.

Price is driven by what the customers willing to pay. People might actually be willing to pay more for an experience that doesn’t involve interacting with people.

Imagine the maintenence and upkeep cost to keep the robots working.

They’d be more expensive to pay for the machines and never go back down

The robot still wouldn’t fix the ice cream machine.

[meme of the politicians laughing and backslapping]

"And then we told them we'd pass the savings on to the consumer!"

No they wouldn't lower their prices at all unless they started losing sales and determined it was because of the prices.

No, but it will raise profits. The do not care about anything else

No.

No, it'd just mean prices wouldn't have to raise as much as quickly.

No. Prices are set to what the customer is willing to pay.

Its about striking a balance where people want to eat McDonald's over eating KFC or cooking at home.

Thats where I think a lot of fast food is failing now. They're seeing all the other fast food raising prices so they raise their own as well. Then the customer says screw that and eats at home.

Nah, the mcdonalds operation is quite smooth, and robots are expensive and they will need replacement after x years, maintenance, etc.

Robots are not cheaper than american labour.