News & Politics

Former McDonald's CEO: It's Cheaper to Hire Robots than Pay $15 an Hour

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Ed Rensi, the former CEO of McDonald’s, warned economic agitators that deploying robots is cheaper than paying workers $15 an hour.

Democrats and their allies across the country are trying to mandate that wages be set at $15 an hour. But critics along with Rensi say the increase will result in lost jobs as companies move to use $35,000 robots to replace workers at a $15 an hour wage

“If you look at the robotic devices that are coming into the restaurant industry — it’s cheaper to buy a $35,000 robotic arm than it is to hire an employee who’s inefficient making $15 an hour bagging French fries,” Rensi told Fox Business. “It’s nonsense and it’s very destructive and it’s inflationary and it’s going to cause a job loss across this country like you’re not going to believe.”

“It’s not just going to be in the fast food business,” Rensi continued. “Franchising is the best business model in the United States. It’s dependent on people that have low job skills that have to grow. Well if you can’t get people a reasonable wage, you’re going to get machines to do the work. It’s just common sense. It’s going to happen whether you like it or not.”

Rensi said he believes the states should determine the minimum wage and the federal government should stay out of it.