Press Release

21 states just raised their minimum wage - and automation demand is surging

California leads the way as 21 states raise their minimum wage in January 2026, forcing restaurant operators to either adapt or face increase financial struggles. AI and automation technology are going to play a crucial role in the restaurants' future.

January 10, 2026

PASADENA, Calif. – January 6, 2026 – Twenty-one states increased their minimum wages on January 1, 2025, fundamentally altering the economics of QSR kitchen operations and accelerating demand for automation solutions that offer predictable cost structures. For operators in high-wage markets, the math has become unavoidable: at $20/hour minimum wage, a single fry station costs more than $7,300 per month in labor costs alone-before factoring in turnover, training, overtime, or worker injuries.

At $20 an hour, a single fry station can cost upwards of $7,300 a month to operate.

The wage increases hit major QSR markets hardest. California's minimum wage increased to $16.50 per hour, with fast-food workers at $20/hour. New York increased to $16.50 per hour in NYC, Long Island, and Westchester CountyFingercheck. Washington state now mandates $16.66 per hourOnPay-the highest state minimum wage in the nation. When payroll taxes, benefits, and scheduling inefficiencies are factored in, traditional fry station operations cost operators approximately $86,870 annually per location-a permanent expense that compounds with turnover.

"When minimum wage hits $20/hour, the math isn't subtle anymore," said Rich Hull, CEO of Miso Robotics. "Operators can't afford NOT to automate. A single fry station costs over $7,300 per month in labor alone-before you factor in turnover, training, injuries, or inconsistency. This isn't about replacing workers; it's about operating profitably in the new wage reality while elevating team members to higher-value roles."

The contrast with kitchen automation is stark. Most operators see ROI within 12 to 24 months through labor savings and improved efficiencyToast POS. Automated fry stations provide 24/7 operation with zero turnover, no call-outs, and consistent execution on every order. More importantly, the technology eliminates the industry's most dangerous kitchen position: 12,000 food service employees suffer burn injuries annuallyMylegalneeds, with fry cooks representing the highest-risk category.

"The economics changed overnight on January 1," Hull added. "Operators who made automation decisions in Q4 are now six months away from full deployment-operational by summer with a completely different cost structure than their competitors who are still hiring, training, and replacing fry cooks at $20/hour."

Twenty-eight percent of restaurant operators plan to invest further in AI integration in 2025Kiosk Industry, with kitchen automation representing the highest-ROI application. Multi-unit operators are prioritizing enterprise-wide deployments that deliver consistency across portfolios while insulating operations from continued wage inflation. White Castle's expansion of Flippy across additional locations validates the technology's performance at scale.

The wage increases represent an inflection point for the industry. QSR operators in affected states face an immediate choice: absorb higher labor costs through reduced margins or menu price increases that risk customer traffic, or transform kitchen operations to operate profitably under the new wage floor.

Budget decisions made in January and February will determine competitive positioning for the remainder of 2026.

About Miso Robotics

Miso Robotics is a leader in kitchen automation, developing AI-powered solutions that address the restaurant industry's most pressing operational challenges. The company's Flippy platform provides 24/7 fry station operation, delivering consistent quality, improved worker safety, and predictable economics for QSR operators. Major customers include White Castle and other leading QSR brands.

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Miso Robotics

Delivering AI-powered technology that elevates human potential in the kitchen.

Through the AI-powered 'Flippy' fry station, Miso deploys proven AI automation that solves the fry station staffing crisis for high-volume restaurant chains. Flippy automates your entire fried menu operations end-to-end, the industry's most dangerous and hardest-to-staff position.

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