Will Increasing Minimum Wages Mean A Demand For Solutions That "Do More With Less?"

By Richard Livingston, Director of Marketing, OpenEdge

Let’s engage in a thought exercise. We’re going to examine the business and technology consequences of a single grassroots movement and what it may mean for point-of-sale (POS) developers and providers. Fast food workers, demanding pay up to $15 an hour, have seen successes in New York State and some municipalities, resulting in substantial wage increases. These mandates, at this moment, apply to the narrowest sliver of the workforce — only fast food workers employed by large-scale chain establishments. 

How long can the argument remain restricted to only one sector of the economy? If the minimum wage applies to restaurants with 30 locations, then why not 29? Does a grill cook deserve the wage while a big box retail staffer does not? Tough questions that, with the passing of new wage rulings, will undoubtedly be asked soon. The answers will have profound consequences for the economy and for the POS market in particular. Employers, facing skyrocketing costs, will have no choice but to drastically alter business models. Here are a few possible outcomes…

• Spin Offs. Legislators will define which companies are and are not required to pay workers more. In New York, that definition included the number of locations operated. A chain with 29 restaurants is omitted from the law, while an operation with 30 national sites will pay its people significantly more. Analysts predict this will entice some larger chains to “spin off” sub-brands in which the business model is similar but legally separate.

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