Rising labor costs are accelerating the fast-food industry’s adoption of robotics and automation to maintain profitability and productivity.

The fast-food industry has long considered robotics. Automated ordering systems powered by artificial intelligence are already in place, streamlining customer interaction and reducing the need for staff at the counter. But now, the industry is shifting toward a broader embrace of robotics—looking to replace human workers in multiple areas of restaurant operations and reap the full benefits of automation.

Why is this happening? Just look at the market. Numerous fast-food locations and even entire chains have shuttered due to unprofitability. Faced with rising costs, particularly labor expenses, many of these businesses simply can’t remain competitive under traditional staffing models.

They’re struggling to survive in a market where rising minimum wages have upended the economics of fast-food operations. Paying workers $15 an hour is already difficult. For some, the prospect of $20 or even $25 hourly wages renders their business models untenable, especially when combined with the price constraints of value-based menu offerings.

The use of robotics across industries is no longer a futuristic concept. Increasingly, robots are being introduced as pragmatic, cost-effective tools in sectors far removed from their original industrial settings. They’re no longer novelties—they’re becoming a credible substitute for semi-skilled labor in a range of workplace environments.

When most people think of robotics, they often envision factory floors, particularly in the automotive industry. That perception is accurate: the automobile industry has been a pioneer in robotics for decades. Robotic arms and machines install components, tighten sub-assemblies and weld joints, perform visual quality inspections, and paint car frames as they move down the production line.

The automotive sector has adopted robotics to reduce labor costs and enhance the quality of its products. Before the advent of automation, there was a popular saying: “Never buy a car made on a Friday or Monday.” The implication was that workers were either too eager to leave or too slow to return—resulting in cars that might not have received adequate attention. Robots corrected those human inconsistencies and raised production quality. Now, that same rationale is being applied to other industries—restaurants among them.

 

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Robots today no longer come with six-figure or seven-figure price tags. Three decades ago, a multifunctional robot might have cost anywhere between $250,000 and over a million dollars. Today, a fully functional robot—one with a humanoid design—can cost between $16,000 and $60,000. That’s a massive drop in cost and one that places robotics well within reach for many fast-food businesses.

Meanwhile, in New York City, a Democratic mayoral candidate recently proposed raising the minimum wage to $30 an hour. That kind of policy, if enacted, would dramatically alter the economics of food service throughout the city—affecting both fast-food outlets and high-end restaurants. Would a Big Mac in New York cost $30 to match those wages? Perhaps not quite—but it would have to approach that price point to preserve profitability. Ironically, such proposals could fast-track the very automation they intend to resist.

In practice, wage hikes of that magnitude could trigger a rapid shift toward robotics as businesses seek to maintain viability by lowering labor costs through automation. For workers with limited skill sets, this shift means job creation may soon give way to job reduction.

Consider Starbucks. In just one year, the company progressed from using a large robotic testbed in South Korea to actively evaluating how to automate roles typically held by baristas and store staff. In that short span, Starbucks expanded its automation strategy—from testing delivery robots that shuttle products through commercial buildings to using robotic systems for various in-store services.

Yet even now, some analysts fail to see the broader implications. One expert, commenting on Starbucks’ robotics push, focused narrowly on AI-powered assistants taking orders—missing the larger trend. The real transformation is not just in who takes the order but in who prepares the drink and cleans the equipment afterward.

Starbucks has also tested a striking new form of automation: 3D-printed construction. In Brownsville, Texas, the company used 3D printing to build an entire store. They are now evaluating other sites for this method of store construction. This introduces a new dimension to automation—one that extends beyond internal services and into the very structure that houses the business itself.

This demonstrates that automation is not confined to the product or the customer experience. It’s now influencing the design and construction of physical infrastructure. It’s entirely possible that other restaurant chains will soon adopt similar technology to “print” their stores, reducing both labor costs and construction time.

Starbucks is not alone. Other major restaurant chains are also exploring the potential of robotics. McDonald’s, another fast-food juggernaut, is undergoing its own quiet revolution. In an unprecedented move, the company is actively seeking new franchise owners, advertising daily on platforms such as LinkedIn. That was never the case in the past. Traditionally, aspiring McDonald’s franchisees needed at least $500,000 in liquid capital before being considered.

The shift in recruitment strategy suggests a deeper economic strain. Many independent operators and long-time franchisees appear to be considering retirement or divestment. They’re recognizing that at higher wage levels, the returns are simply no longer what they used to be. It’s one thing to run a crew at $8 an hour and turn a profit. It’s another to do so when wages have nearly tripled, yet menu prices haven’t.

As minimum wages rise, businesses with narrow profit margins are increasingly forced to consider automation—not just to boost productivity but to remain in business at all. In many cases, the decision isn’t about enhancing performance—it’s about survival.

Robotics will continue to permeate daily commercial life, not because of technological enthusiasm, but due to economic necessity. We are not witnessing a slow march toward automation—we’re already inside it.