
A diner scans a QR code, places an order in under a minute and assumes the restaurant has become more efficient. But anyone who has worked in food and beverage (F&B) knows the story does not end at the screen. Someone still has to watch the orders coming in, sort out mistakes, manage the kitchen flow, calm frustrated customers and keep service moving when the system falls short.
Economists have long debated what happens when wages are pushed up by policy. Faced with higher labour costs, firms often turn to machines. Using US Census microdata from 1992 to 2021, a National Bureau of Economic Research publication found that a 10 per cent increase in the minimum wage is associated with roughly an 8 per cent rise in robot adoption relative to the mean. Evidence from other countries points in a similar direction, suggesting that when wages rise, firms invest more in labour-saving technologies to raise productivity. On paper, the logic is straightforward. In real business, it is rarely so simple.
Clara Lee is a research fellow at the Institute of Policy Studies Social Lab. Shane Pereira is a research associate at the same institute.