Freshii, the Canadian food franchise, has announced its decision to eliminate its controversial virtual cashier system, known as “Percy,” from its establishments in the coming weeks.
This move comes after public outrage stemming from a Toronto Star investigation that revealed the company’s practice of outsourcing cashier responsibilities to employees in Central America through a third-party entity named Percy.
At the time of its launch, the company touted the “innovation” as a way to tackle the post-pandemic staffing crunch that plagued the restaurant industry.
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“Unlike a kiosk or a pre-ordering app, which removes human jobs entirely, Percy allows for the face-to-face customer experience, that restaurant owners and operators want to provide their guests, by mobilizing a global and eager workforce,” the company said in a statement in April last year.
The system involved attaching video-calling devices to cash registers in several Freshii locations across Canada. When customers approached the cash register, the device displayed the face of a remote cashier located thousands of kilometers away, who was reportedly earning a mere $3.75 per hour.
In a recent post on X, the platform FKA Twitter, user @PeterofRecord highlighted the issue by sharing a photo of the virtual cashier in action at a Freshii outlet, expressing skepticism about the cashier’s wage compliance with Ontario’s minimum wage laws.
Freshii responded to the tweet, acknowledging the controversy and explaining that the change is being implemented following the company’s acquisition by Foodtastic, a Canadian corporation that owns well-known brands such as Milestones, Pita Pit, and Second Cup.
Terry Faulconbridge, Senior Vice President of Foodtastic, confirmed to Daily Hive that they have advised the Freshii franchises to discontinue the use of virtual cashiers in favor of actual over-the-counter service. While the directive was recently issued, the implementation timeline may vary across independently operated Freshii locations.
Information for this story was found via X/Twitter, Daily Hive, Toronto Star, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
