Dominos has started the construction on a 59,000 square foot facility in Texas that will be the source of creating pizza dough for hundreds of regional stores, and there's one major issue: the new high-tech supply chain center will be completely automated.
The new facility, located at 900 Igloo Road in Katy, Texas, will produce enough pizza dough for 300 stores across the region. The production of the dough will be entirely completed by robots and artificial intelligence systems for maximum productivity.
The company said because they will eliminate humans from the production line, the facility can create upwards of 20,000 trays of pizza dough balls per day.
The new facility will only create 85 jobs, as opposed to if there weren't any robots, it would have created hundreds of jobs for the local community.
Dominos, like many other businesses, is rapidly integrating automation into its supply chain to fend off soaring labor costs that are compressing margins. The company has found it hard to pass through increased costs to broke consumers, so it has opted to introduce automation and the elimination of humans from its supply chains to keep pizza prices low.
The new automated supply chain facility will open in late 2020.
We recently reported how a Walmart Supercenter in Salem, New Hampshire, has been testing robots to collect grocery items for online order fulfillment.
Millions of low-wage and low-skill jobs will be displaced because of automation by 2030. The new wave of investing in automation for supply chains is clear that middle- to low-income workers will be displaced the hardest. The government will be faced with market imbalances and expanding wealth inequality, this could push society to the brink, as it will likely be the Federal Reserve in the coming years to underwrite People's QE.