Podcast Summary
Offshoring cashier jobs during the pandemic: The COVID-19 pandemic led to innovative solutions in the food services industry, including offshoring cashier jobs to other countries, allowing businesses to operate with limited staff and reduced costs, but also raising concerns about labor practices and local economy impacts.
The COVID-19 pandemic forced the food services industry to adapt, leading to innovative solutions such as outsourcing cashier jobs to workers in other countries. Reporter Jacob Lawrence was surprised to find a cashier in a Toronto Freshie restaurant who was actually located in Nicaragua, thousands of miles away. This pivot allowed restaurants to continue operating with limited staff and reduced costs, but also raised questions about labor practices and the potential impact on local economies. The food services industry's struggle to find workers during the pandemic led to the exploration of unconventional solutions, including robot baristas, pizza ATMs, and offshoring jobs to other countries. This trend highlights the evolving nature of work and the increasing use of technology to bridge geographical distances.
Impact of COVID-19 on Toronto's Food Industry: Automation as a Cost-Saving Measure: The COVID-19 pandemic has led to increased adoption of automation in Toronto's food industry as a cost-saving measure. Investing in companies specializing in automation and artificial intelligence could be a smart move.
The food industry, particularly in Toronto, has been significantly impacted by the COVID-19 pandemic, leading to self-reflection and exploration of cost-saving measures like automation and offshoring labor. GlobalX ETFs, a sponsor of this message, offer investment opportunities in emerging trends like artificial intelligence, which is being increasingly used in automation. During a tour of Toronto, we saw firsthand the implementation of automation in the food industry. At RC Coffee Robocafe, we encountered a touchscreen and a coffee robot, with no human workers in sight. Instead, a robot arm made our flat whites. Similarly, at Pizza Forno 24-7, we found an automated pizzeria, essentially a pizza ATM. These examples illustrate how businesses are turning to automation to reduce labor costs in response to the pandemic. This trend is likely to continue, and investing in companies that specialize in automation and artificial intelligence could be a smart move for those looking to invest. So, whether you're looking for a new investment opportunity or just curious about the future of the food industry, keep an eye on automation and the companies that make it possible.
The Integration of Technology in Everyday Tasks: Convenience or Challenges?: Technology integration offers convenience but also presents challenges, such as dealing with malfunctions and shifting roles. Human touch and interaction remain important for customer satisfaction.
Technology is increasingly being integrated into everyday tasks, from pizza ordering and pickup to grocery shopping and checkout. This automation can offer convenience and efficiency, but it also presents challenges. For instance, figuring out how to cut an uncut pizza or dealing with malfunctioning self-checkout carts can be frustrating. However, it's important to note that these technologies don't necessarily remove humans from the process entirely. Instead, they shift roles and responsibilities. While some may welcome the convenience of robot coffee and ATM pizza, others may prefer the human touch and interaction. Ultimately, it's a matter of finding the right balance between automation and human interaction to ensure customer satisfaction. The MIT research on self-checkout highlights that automation can indeed make workers more productive, but it also raises questions about the impact on employment and the importance of human skills and connections.
Self-checkout systems may not always boost productivity or provide satisfactory customer experience: Considering specific context and needs of businesses and customers is crucial when implementing new technologies
While self-checkout technology, such as those found at ATMs and self-service kiosks, may save time and resources in some ways, they don't necessarily boost productivity or provide a satisfactory customer experience. This was evident in the author's personal experience with self-checkout systems at a grocery store and a restaurant. In contrast, a virtual cashier system, where a human representative assists customers through a video call, offers better customer service and the ability to answer questions and accommodate special requests. Despite initial skepticism, this approach has proven successful for some businesses, like the Freshie restaurant in the example. This illustrates the importance of considering the specific context and needs of both businesses and customers when implementing new technologies.
Virtual cashiers at Freshie sparks controversy: New technologies can face intense public backlash, potentially damaging a company's reputation
The implementation of new technologies, even those intended to solve significant problems, can spark intense public backlash. In this case, the use of virtual cashiers by Freshie led to widespread anger and accusations of job outsourcing and exploitation. The controversy resulted in significant negative attention for the company, forcing them to go public before they were ready. Despite their belief that the concept was unremarkable, Freshie was surprised by the intensity of the reaction, which highlights the importance of considering the optics and potential public perception of new innovations.
The outsourcing of services is a long-term trend transforming the economy: Companies have been outsourcing manufacturing jobs for decades, but recent advancements in technology have made it easier to outsource services, leading to the 'manufacturerization' of services and the rise of overseas call centers.
The outsourcing of jobs, particularly in the service industry, is not a new phenomenon but rather a long-term trend that has transformed the economy from manufacturing-based to service-based. Companies have been offshoring manufacturing jobs for decades, leading to the rise of service industries where we all serve each other. However, not all services can be outsourced easily. For instance, it's challenging to have a plumber in Beijing fix leaky pipes in Dallas or a babysitter in Paris take care of a child in Toledo. Services like customer service have become easier to outsource due to advancements in technology and the "manufacturerization" of services. This means breaking down jobs into smaller tasks and training individuals to do those tasks exceptionally well. In the past, making international phone calls was difficult, but with the advent of fiber optic cables and faster computing, companies could make simultaneous and cheap phone calls from the US to other countries, leading to the establishment of overseas call centers. The recent years have seen the bandwidth and ability to compress video and send information quickly becoming cheap and fast, making it possible to outsource even more services. However, it's important to note that while outsourcing may make business sense for companies, it can create hypocrisy when it comes to public perception. Companies must acknowledge their outsourcing practices and be transparent about them to maintain public trust.
Virtual cashiers in restaurants: A growing trend but with limitations: Virtual cashiers offer cost savings and efficiency in restaurants but the customer experience can be strange and new, and there are limitations to what they can do, such as assembling food orders or handing out physical items.
The use of virtual cashiers in the restaurant industry is a growing trend, but the technology is still in its infancy and the customer experience can be awkward. Companies like Percy are hiring virtual cashiers from video call centers in various countries to handle the cashiering part of the transaction remotely. For instance, they have about a hundred virtual cashiers working in Bolivia, Nicaragua, Pakistan, and soon in the Philippines. However, there are limitations to what a virtual cashier can do, such as assembling food orders or handing out physical items. The virtual cashier, Carla, for instance, could only take orders and process payments, and when the customer needed a physical item, a real person had to step in. Carla could also disappear from the screen to give the customer some privacy. While the technology offers cost savings and efficiency, the customer experience can be strange and new, and there are limitations to what the virtual cashier can do. The labor market is undergoing significant changes, and the use of virtual cashiers is just one example of how technology is transforming the workforce.
(c) 2019
