Sansan Chicken, Sansan Ramen, and Yaso Kitchen - all part of a new restaurant chain with locations popping up in Manhattan, Queens, and Jersey City - are making people talk due to their use of virtual hostesses and cashiers. Instead of being greeted by an in-person employee, customers are welcomed by the friendly face of a person via video chat - all the way from the Philippines.
This innovative and somewhat controversial approach is driven by the significant difference in minimum wage between New York City ($16 per hour) and the Philippines ($3.75 per hour). By utilizing virtual staff from the Philippines, Sansan Chicken is able to reduce labor costs across its Sansan Chicken, Sansan Ramen, and Yaso Kitchen brands - and manage menu costs for customers.
The company behind the virtual cashiers is Happy Cashier, a Philippines-based company that hires and trains Filipino staff to provide remote customer service through video calls. At Sansan Chicken, virtual cashiers greet customers, take orders, and process payments, offering a similar experience to traditional cashiers.
The use of virtual cashiers presents both potential benefits and drawbacks. Advantages are obvious savings in labor costs, which in theory, would allow for smaller restaurants to more readily manage rising food costs. And while it's a financial win for the restaurant, it's not a great thing for U.S. workers in the quick service industry who may find themselves out of a job. There may also be concerns about the working conditions or wages paid to virtual employees overseas.
In a now-viral post from Brett Goldstein, an AI startup founder and owner of Launch House Venture on X, commenters are torn on the idea. Many think the idea is genius, albeit slightly dystopian, while others disagree with the idea, arguing that human connection is still important in a digital age.
One user commented, "I'll choose physical over virtual any day," while another commented,"what?! now people have to compete with people on zoom too? AI, Robots, Zoom. This is too much." Another added, "This is not the future we asked for."
Another X user chimed in on Goldstein's post to share an interesting experience with the same technology at his dentist's office, noting, "My dentist's reception desk is manned by a woman in the Philippines on video. When you walk in, an iMac is facing you with her on camera to check you in.The owner said he previously struggled with high turnover and bad employees. This woman in the Philippines has been flawless by comparison."
Goldstein hypothesizes that as technology advances, we may see a further increase in automation, with AI bots potentially taking over human tasks like order taking and customer service altogether.
Only time will tell if virtual cashiers and increased automation will become the norm in the fast-food industry. While it offers cost-saving benefits for restaurants, the impact on local jobs and the potential loss of human connection are important considerations.
In a recent interview with the NY Post, Goldstein sums it up best. "There's nothing better than human connection, humanity, and personal connection. There's something very special about physical presence. That's why we live in New York City."