Kevin Bae

Non-Social in a Socially Networked World

Krispy Kreme to save $2 million a year reducing manual labor

$15 per hour is a great wage if there will be an entry level job open to pay it. Just wait until this automation catches up with all those Starbucks employees joining labor unions. Machines don’t sleep, don’t complain, don’t need healthcare, don’t show up late, and rarely make mistakes. The “fight for fifteen” will eventually kill almost all entry level jobs.

The company has raised prices this year to offset inflation, and is also investing in automation to save on labor costs in its doughnut theater shops, said Chief Financial Officer Josh Charlesworth.

“There’s a lot of manual intervention behind the scenes,” said Mr. Charlesworth, who also serves as global president and chief operating officer, discussing doughnut production. For instance, employees manually dip doughnuts into bowls of icing, he said.

Krispy Kreme has begun testing new technology in its shops that would cut back on repetitive labor, and expects to automate about 18% of its total doughnut production over the next 18 months, according to Mr. Charlesworth. The company expects the investment, which has so far cost $6 million, to produce $2 million in annual savings. 

Krispy Kreme Outlines Plans to Automate Doughnut Production, Reduce Debt – WSJ