Harshraj Ghai, who owns 180 fast-food establishments across California, including 140 Burger King franchises, spoke with Business Insider about his strategy. Ghai expressed urgency in rolling out self-service kiosks, stating that approximately 25% of his restaurants already have them. He plans to equip the remaining 75% with these digital kiosks within the next 30 to 60 days.

By installing kiosks in every single restaurant, Ghai aims to streamline operations and decrease reliance on human labor. He also revealed plans to cut down on worker hours, eliminate overtime, and pause the expansion of his restaurant empire.

To offset rising costs, Ghai had raised menu prices between 8% and 10% in the past year. However, he emphasized the limitations of further price hikes, stating that anything beyond the aforementioned percentage range would significantly impact customer traffic. As a result, Ghai found it more feasible to invest in the capital expenditure required for self-service kiosks, which he could acquire at a lower price due to bulk purchasing.

Prior to the minimum wage increase, Ghai had initially planned a gradual rollout of kiosks over a period of five to ten years. However, with the new legislation, he has opted to expedite the process and equip all of his restaurants with digital kiosks to mitigate the impact of rising labor costs.

Ghai's move aligns with recent actions taken by other fast food chains in response to the minimum wage hike. Many have opted to increase menu prices, reduce operating hours, and delay renovations to help manage the financial implications of the new wage structure.

The challenges faced by franchise owners and industry executives highlight the need for creative solutions in an increasingly competitive market. As automation and digitalization continue to reshape the fast-food industry, the impact of higher labor costs and the implementation of self-service technology will undoubtedly shape the future of the quick-service restaurant sector.