The Dangerous Economist: Self-service kiosks at McDonald’s are not reducing employment

See McDonald’s touchscreen kiosks were feared as job killers. Instead, something surprising happened by By Nathaniel Meyersohn of CNN. Excerpts:

"Self-service kiosks at McDonald’s and other fast-food chains have loomed as job killers since they were first rolled out 25 years ago. But nobody predicted what actually happened.

In one of the earliest mentions of kiosks in fast-food settings in 1999, now-defunct trade industry publication Business Information said that McDonald’s was working to “develop an electronic order-taking system that may eventually replace some of its human equivalents.”
Instead, touchscreen kiosks have added extra work for kitchen staff and pushed customers to order more food than they do at the cash register. The kiosks show the unintended consequences of technology in fast-food and retail settings, including self-checkout. Chains are now experimenting with artificial intelligence at drive-thru lanes, and the experience with kiosks holds lessons for them.
Today, instead of replacing workers, companies deploy kiosks to transfer labor to other tasks like handing off pickup orders, help increase sales, easily adjust prices and speed up service. (Many chains, including Subway, Chick-fil-A and Starbucks, don’t use them much or at all.)

Kiosks “guarantee that the upsell opportunities” like a milkshake or fries are suggested to customers when they order, Shake Shack CEO Robert Lynch said on an earnings call last month. “Sometimes that is not always a priority for employees when you’ve got 40 people in line. You’re trying to get through it as quick as possible.” Kiosks also shift employees from behind the cash register to maintaining the dining area, delivering food to customers or working in the kitchen, he said."
"“In theory, kiosks should help save on labor, but in reality, restaurants have added complexity due to mobile ordering and delivery, and the labor saved from kiosks is often reallocated for these efforts,” said RJ Hottovy, an analyst who covers the restaurant and retail industries at data analytics firm Placer.ai. Kiosks “have created a restaurant within a restaurant.”"
"Christopher Andrews, a sociologist at Drew University who studies the effects of technology on work, said the impacts of kiosks were similar to other self-service technology such as ATMs and self-checkout machines in supermarkets. Both technologies were predicted to cause job losses.
“The introduction of ATMs did not result in massive technological unemployment for bank tellers,” he said. “Instead, it freed them up from low-value tasks such as depositing and cashing checks to perform other tasks that created value.”"

Do businesses replace workers with robots or other capital to cut down on costs? Or do they add robots because there is a labor shortage? Or, as mentioned in some of my related posts, do robots and humans complement each other?

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