Business

It would seem as if we’re quickly reaching the end of another era. There are plenty of pizza delivery chains like Dominos and Papa Johns. Pizza Hut does well with delivery themselves, but one thing they had that separated them from everyone else was the sit-down format. Bring your family to Pizza Hut and sit down together and enjoy the meal.

But it seems as if things are rapidly changing. Pizza Hut now says that they plan to close hundreds of their dine-in restaurants to focus mainly on delivery. They want to provide a faster product to keep up with the demand. Less people are sitting down to eat, so the change is needed to save the company money.

Other establishments are also changing themselves to be more convenience oriented. We’re getting busier, so quick pizzas out the door are undoubtedly going to sell more. By moving away from the restaurant model, they hope to drive more sales, according to Yum! Brands CEO Greg Creed. Yum! Brands owns Pizza Hut among many other restaurants and fast food places.

“We plan to lean in to accelerate the transition of our Pizza Hut U.S. estate to a more modern delivery- and carryout-focused asset base,” he said. “This will ultimately position the Pizza Hut brand for many years of faster growth in the U.S. We view this as a positive move for the brand,” he said.

Pizza Hut Cost Cutting

Pizza Hut plans to cut around 500 restaurants across the country. It’s only a small number of the 7,496 stores they have, but most aren’t sit-in restaurants. This is a way for them to cut costs and staying relevant in a time when pizza delivery is trying to reinvent itself. There’s no doubt that pizza, while always popular, has been seeing slumping sales as of late.

With new apps like Grubhub and Doordash, you can order from just about any restaurant in your community. That means you no longer have to go and sit down in a restaurant to enjoy their food. This is a convenience that might do to dining restaurants was Netflix did to Blockbuster. You offer a new convenience and people move forward with what’s the easiest.

Just like Dominos did a few years ago, Pizza Hut has released a new recipe for their famous Original Pan Pizza. They’re also trying out new pick-up options much like Little Caesars is doing today. You can order online and pick up your hot-n-ready at your leisure or on the way home from work. It’s pizza made easy.

Dean Foods has been one of America’s largest dairy producers in the entire country. They’ve been around for 94 years, making a large supply of the milk we drink every day. Despite the company’s longevity, 2019 has been a particularly bad year for milk sales. Dean Foods has lost 7% of its sales in the first half of this year alone. Throughout the rest of the year, profits fell another 14% and their stock fell another 80%.

Surely, you’ve heard of several of the dairy brands under the Dean Foods banner. Land O’Lakes, Organic Valley, and Dairy Pure, make up its dairy industry. And where there’s milk, there’s also cheese and butter. The problem is, milk has been on a significant decline over the past few years. When that happens, companies often lose money and accumulate debt.

One of the biggest sources of their debt is their inability to keep up with their worker’s pensions.  That’s why this move works for Dean Foods. Declaring Chapter 11 bankruptcy allows them to keep their doors open for the time being. It allows keeps their worker’s pensions up today for a time until they can sell the company.

A New Dairy Deal for Dean Farms

In a recent statement, Dean Foods has said they’re currently in the middle of negotiating a new deal with the Dairy Farmers of America. They are a cooperative that would most likely buy most of the company. By doing that, they would significantly extend their cooperative and their market. It’s unknown if they would keep their brand names.

By declaring bankruptcy, it allowed Dean Foods to safe $850 million in financing. This allows them to keep the doors open and paying their workers until this new deal is signed. This is just another sign of how health-conscience we’ve become. More Americans are ditching white milk for more plant-based and less-sugary substitutes.

The sales for milk alternatives continue to grow. In 2019, the sale of milk alternatives looks to reach the $18 billion mark. This number is up 3.5% from last year. While these sales are growing, traditional milk sales still dominate the market at $120 billion globally. This is a lot of money, but all types of milk have been on a decline for several years.

It also hurts that Walmart dumped Dean Foods milk last year. They decided to create their own farms instead.

As the job market continues to improve, there are more jobs than ever. That means a lot of employers are facing a worker shortage. This is a stark contrast compared to a few short years ago when there were too many people looking for work. As a bid to attract new employees, companies are taking drastic measures…including buying up property and homes.

Usually to attract workers, companies use a variety of perks. Maybe they offer free health insurance, daycare, and/or paid time off. In this instance, more are getting into the real estate game. Why are buying so many homes? To offer their potential employees affordable housing. This is becoming increasingly necessary as the price of rent continues to climb.

The Boston Globe recently looked at one company that decided to grab a bunch of properties. They had a difficult time finding good workers, so they offered affordable housing as a perk. Not only was it affordable, rent was offered well below current market prices. This did help the company attract and keep more workers.

It’s not just big companies doing this. Schools and other institutions are as well. In a lot of districts, teachers are vastly underpaid. As a means of attracting quality teachers, the district bought some homes to create a complex of affordable housing. So far, the tactic has worked. This allows the teachers to pay a little bit of rent while focusing on remaining productive.

Employers All Over the Country

Another big company also working with this idea is Facebook. They’re currently in the middle of developing 1,500 housing units, which they call Willow Village. These are for their workers who are having a tough time finding affordable housing. Washington State has a major housing crisis, especially as Silicon Valley continues to attract thousands of workers looking to make it big.

Willow Village isn’t just a complex of homes. They also plan to install everything you’d find in any ordinary town. Grocery, drug, and retail stores are all a part of the plan. Google is another employer looking to do the same. They’ve purchased hundreds of modular homes to serve as affordable housing.

This might be the start of the future when it comes to people being able to live more comfortably. If more employers did this, it would also force employees to stick with the company. No one wants to move into a home for a few short weeks. Instead, they would be compelled to stay and work for the company for the foreseeable future.

It’s time for Starbucks fans to get excited about the holiday season! The company announced today that they will be rolling out their holiday cups tomorrow! These red and green seasonal greetings are meant to generate buzz for the company. While they are beautiful, they have stirred controversy in the past. Despite that, they certainly boost sales and get people talking.

In fact, many customers look forward to the annual release of the holiday cups. It has become part of the Christmas tradition many fans love. Even as summer transitions into fall, Christmas is on the mind of their consumers. This is according to the company’s chief operating officer. He says fans are asking for the Christmas cups as soon as they release their pumpkin drinks.

“Customers have really let us know that tradition is important to them,” chief operating officer Roz Brewer told CNN Business. “Even when we introduce our pumpkin platform, they’re already asking about Christmas.”

For Starbucks, the holiday season isn’t just about the decorative cups. It’s also the variety of different seasonal flavors as well. This season, they’ve got five different flavors lined up: toasted white chocolate mocha, caramel brulee latte, eggnog latte, peppermint mocha, and chestnut praline latte.

Starbucks and Its Seasonal Lineup

Not only is Starbucks going to release those five drinks, they also have a few food items on the menu. These include a turkey and stuffing panini, a gingerbread loaf, sugar plum Danish, and others. They hope you’ll come in for the cups and stay for a festive lunch. They even plan to put a bit of extra time and money decorating their stores.

In fact, Starbucks has attempted to distance itself a little from the Christmas theme. They focused on general holiday cups, but there was a backlash. Now, they plan on going all out. Two of the cups have the phrase “Merry Coffee” and come in traditional red and green designs. They even looked to famous Christmas movies for designs.

“You’ll see our partners all in red aprons this year,” said Brewer, adding that in the past, red aprons have been worn “sort of infrequently.”

“We expect this momentum to continue as we move into the favorable holiday season,” he added.

In what is being considered a swift move for the fast food mega-giant, McDonald’s has fired their CEO Steve Easterbrook. Easterbrook was brought on as CEO in 2015. The reason for his untimely firing was due to a consensual relationship with an employee. Still, that’s a no-no in the company. It was ultimately the board who decided it was time to go.

The change was so sudden that investors didn’t know what to do. Easterbrook had done a good job in the position otherwise. He took over in 2015 when sales and stocks were slumping. But, in a few years with him at the helm, sales improved and stocks more than doubled. As of this latest announcement, stocks were down 3%.

Not all is lost for McDonald’s. Chris Kempczinski was elected the next CEO. He was seen as the heir apparent anyway. Kempczinski has been credited for helping to make a lot of the decisions that helped turn the company around. One of those was using fresh quarter pounder meat instead of frozen. Still, leadership changes often bring a lot of uncertainty. You never know the type of leadership they’ll provide.

“Chris Kempczinski is such an unknown factor,” Hottovy said. “Any time you have an abrupt leadership change and an unknown quantity …. it is going to make investors uneasy.” He’s going to have his own vision that may be different from Easterbrook’s.

McDonald’s Aggressive Growth Strategy

Yet, one of the biggest questions regarding this change is how Kempczinski will continue to pursue the Velocity Growth Plan. This plan is very aggressive and Kempczinski has been known to be tough on the franchisees. They haven’t been as progressive on all the advancements corporate is proposing. He wants them to update store designs and the technology in their restaurants.

“There’s been some friction with Chris,” said Hottovy. “He had a reputation for being hard on the franchisees, at times.” The company has a lot of working parts. In fact, the company is seen as a three-legged stool. The legs represent employees, suppliers, and franchisees. Without all the working parts together, the stool wobbles.

“Mr. Kempczinski’s legacy will hinge on his ability to generate traffic growth in the US, which neither of his two predecessors were able to achieve,” Saleh wrote in a note on Monday.

For a brief moment this summer, the country was transfixed in a war. A chicken sandwich war. Everyone knew Chic-fil-A had the best sandwich around. Popeyes, known for their chicken as well, wanted put brand loyalty to the test. They released their own top-notch chicken sandwich. In fact, many people were claiming it was better than Chic-fil-A! The war was on.

Popeyes could’ve won the war, which was no easy task. The problem? They completely ran out of chicken sandwiches across the country. The demand was huge, the establishments had to put signs up on their doors. They simply didn’t expect the massive demand. As such, workers were overwhelmed. Lines would form out the building. Many waited half an hour or even longer for their chicken sandwich.

Popeyes must’ve felt defeated that they had some great press, but couldn’t keep up. They decided to put their chicken sandwich on hold for a time and regroup. In fact, starting in early November, they plan on making a return. In fact, they have decided to hire on 400 new employees, about two per store, dedicated to making these wonderful sandwiches.

In a statement, Popeyes said: “We have been working diligently to bring the sandwich back to our restaurants soon, as we know our guests are anxiously anticipating its return.” The exact date of the relaunch hasn’t been released yet. Are you eager to jump back in line for your Popeyes chicken sandwich?

The Chicken Sandwich Wars

Chic-fil-A and Popeyes faced off this past summer. While many fans are brand-loyal, there’s no shame in admitting Popeyes was definitely the larger sandwich. Yet, many still say Chic-fil-A tastes better. When you pull apart the ingredients, a simpler version might be best overall.

Of course, they’ve been in the chicken game a long time. Popeyes also is known for the Louisiana-style dishes, including fried chicken.

The iconic Whopper has been around for just over 6 decades! Recently, Burger King has been trying new ways to get their brand more attention. Over the past few months, it was the Impossible Whopper, with patties made of plants. Now, as we cruise through fall, they are updating their famous burger again. This time, it’s the Ghost Whopper.

There are not too many differences this time around. It’s the same burger, but they use a white, cheddar cheese bun. It will be released on October 24^th in a few select restaurants, so you might have to do a bit of searching to find one. What’s interested are the advertisements for the Ghost Whopper. Burger King hired a psychic to do a ‘spirit taste test.’

“‘It’s beyond belief to experience this taste,’ said one of the spirits,” Burger King said in a press release. “Another one affirmed, ‘It’s filth!’ Others just didn’t know what they were holding in their hands because they’ve never seen a hamburger in their lifetime.”

Burger King and Their Connection to Halloween

This isn’t the first time Burger King revealed a new Whopper in time for Halloween. Last year, they sold a Nightmare King, which was a twist on their popular chicken sandwich. That time the bun was green. You might remember a few years back when the flavor of the season was the blackened bun made with A-1 sauce.

When Stranger Things came out earlier in the year, they promoted the “Upside-Down Whopper.” It wasn’t anything fancy. Just the regular whopper with the bottom bun on top and the top bun on the bottom. It’s interesting how they make a few small changes to the sandwich and are then able to promote it.

While most of these changes are obviously temporary and limited, one change will be permanent. The Impossible Whopper, made entirely of plants, including the meat patties, will remain a fixture. Burger King said that the rollout was a massive success and has brought new customers to their restaurant. There’s a growing group of people in the country who are moving away from eating meat.

Burger King operates in what’s considered a hyper-competitive industry. You won’t find too many fast food fans who are loyal to a single establishment. They’ll eat whatever their mood strikes. With many fast food joints in every town and city to choose from, attracting customers is difficult. That’s why the King, Taco Bell, McDonalds, Wendy’s, Sonic, and others are always looking to create new interest in their product.

On Wednesday, the United Auto Workers made a huge announcement that a new agreement has been made with General Motors. This strike is potentially strike-ending, but that is to be decided later today. The details of the new deal have yet to be shared. Yet, it’s said to bring about many of the changes the autoworkers felt was necessary enough to strike in the first place.

Many at the UAW were concerned about several of GM’s plants potentially going offline. The demands of the strikers include investment in new jobs, better health insurance, and increased pay. They also wanted to make it easier for someone to go from being a temp to full-time worker. Temps make up about 7% of GM’s workforce. They often use temp workers to avoid having to give them the same benefits and pay as full-time workers.

Healthcare was another major concern. General Motors was starting to put a larger burden of the cost of healthcare on the workers. They still have to pay a little bit of their health insurance costs, which totals around 3%. That number has been growing. GM wanted to bump it up to workers paying 15%, which they effectively were not interested in doing.

Another issue UAW took up is GM increasing production in Mexico. The company wants to keep investing plants and jobs in Mexico due to lower wages. This decision often comes with the closing of factories in the U.S., killing jobs here in the process. This has been a battle for several decades. Flint and Detroit are two examples of what happens GM pulls up stakes and moves production to a different country.

A New GM Deal

After about a month of picketing, it appears as if a new deal has been struck between GM and the UAW. The negotiations appeared to be close, as several times both sides seemed willing. The workers wanted to get back to work, but GM had the upper hand. They claimed to have several months’ worth of cars and trucks lined up, so they would be okay for a while.

Still, strikes are bad for business. Almost no one takes up for the company in this instance. Even presidential candidates came out for the workers and implored GM to give in to their demands. Now, it appears as if a deal has come. More details will be revealed soon about what was agreed upon.

The strike still isn’t officially over. The National Council and other ranked members of the UAW still have to agree to GM’s terms. Then comes the official vote. The strikers will remain on the picket lines until the vote happens.

Imagine starting a restaurant that’s closed to diners. That’s exactly what DoorDash is doing. They’re looking to start up what they call a ‘virtual kitchen’ and it might be all the rage. The place they open will be a shared kitchen area where many businesses can come together and make the food that DoorDash then delivers to customers. No patrons will be allowed to dine in there, as no seats are available.

Redwood City, California looks to be the first virtual kitchen site. They have several businesses already looking to take part. They include The Halal Guys, Nation’s Giant Hamburgers, Rooster & Rice, and Humphry Slocombe. This venture is meant to be a win-win for both DoorDash and the restaurants themselves. Therefore, restaurants save money on providing dining space and DoorDash gets a cut of the delivery.

The delivery company currently offers service in 4,000 U.S. cities and in Canada and Australia. “We are constantly working on innovations that help merchants find new, meaningful ways to reach customers and run their businesses more efficiently,” Fuad Hannon, head of new business verticals at DoorDash, said in a statement. “We launched DoorDash over six years ago in the Peninsula, and can’t wait to bring even more selection to the local community we know and admire.”

“Given our founders’ Bay Area roots, we are always interested in how technology can change the way food is delivered and shared,” Min Park, chief financial officer of Rooster & Rice, said. “We were impressed by the overall partnership and scale DoorDash could reach with this concept, and we found the notion of a delivery-only kitchen in Redwood City very appealing as it helps us test out demand in new markets, reaching new customers and areas quickly.”

The DoorDash Virtual Kitchen Idea is Expanding

Companies like DoorDash really look to improve the convenience they offer customers. They’re locked in a battle with GrubHub and UberEats as other food delivery services. They’re also not the first company to come up with the virtual kitchen concept. Bon Appetit and Rachael Ray also want to jump into the game. It’s unknown if the virtual kitchen will spread to other large markets. Still, it seems like a promising way to give customers what they want. You make an order for what you want to eat and it comes to your door freshly cooked. This may change the way we eat forever

As you begin your franchising venture, your success depends on you making as few mistakes as possible.  Becoming a franchisee may seem like a safe opportunity to invest in, but that’s not always the case. It’s possible to choose a thriving business, but make the wrong decisions that lead you into failure.  In this piece, we will look at 7 common mistakes made by potential franchisees.  

1) Not Doing Enough Research on the Market

Potential franchisees are often lured into thinking they are buying into a name or product that will ultimately be successful and choose a location without even considering if it’s desirable and/or promising.  Do you know how the market will react in that particular area? Is there tough enough competition that you’ll have a difficult time breaking through?  

Do they dominate the landscape?  If so, you may be required to invest more capital on advertising and find yourself in the midst of a struggle for the competitive edge.  Your franchisor may have market research available, but don’t rely on that solely. Do your own research and consider all the possible weaknesses of the area.  

2) Not Looking at Why Other Franchisee Have Failed

In the research phase, you need to take the time to contact the owners of failed franchisees and find out why those outlets closed or why they sold out.  This is especially important if you know of a failed business in your particular area. It may be economy related, but if you find common stories, they may be issues you can correct and do better.  At the same time, remember there are two versions of the same story, so take the time to contact the franchisor. Take a look at the big picture before investing.

3) Not Having Enough Starting Money

Another big mistake potential franchisees make is assuming a big name will lead to a financial windfall.  You pay all the fees and are ready to get started, thinking that in a few months you should reach even. But that’s not the case at all. It may take up to a year or longer to hit even on your investment.  It might not even happen at all, especially if you shorted yourself to begin with. There are a lot of pre-opening costs you may not be considering as well as operating cash and your living budget for your family.  As with anything involving money, it’s often more expensive than you think.

4) Not Understanding the Franchisee Agreement

One of the first moves you need to make is hiring an attorney to help you understand and interpret any of the legal documents and paperwork that comes with becoming a franchisee.  There will be other contracts as well, including real estate agreements and the franchise agreement. If you have any questions or concerns, contact the franchisor and get your responses in writing.  If you don’t understand every part of the franchise agreement, there is no going back after you sign on the dotted line, which can spell trouble for you.

5) Not Establishing a Good Working Relationship with the Franchise Personnel

It’s incredibly important for the success of your franchise, that you have a great working relationship with your franchisor.  You are in partnership together, so it’s only natural you go out of your way to meet and become involved with the franchise network.  Not only is a good idea, it’s vital for your long-term success. Be sure to meet everyone before you sign the paperwork. It’s also helpful for you to see if the potential is there you won’t get along with the franchisor.  It would be prudent to know.  

6) Not Contacting Current Franchisees 

Who better to ask about a franchise than someone who is already franchising?  There’s no better way to learn than to sit down and discuss potential issues, share questions and concerns, how things turned out financially, and what you can expect in that first year.  Have them give you a tour of the facility. Learning from the successes and mistakes of others is invaluable to your own success.

7) Not Seeking Advice from an Attorney

Part of this was covered previously, but it’s imperative that you seek advice from an attorney.  The franchisor is looking to make the best deal possible that looks out for his end. You need to look out for your bottom line, but if you’re not in tune with their demands, you will be left in the cold.  Make yourself aware of all the legal issues and concerns of the franchise. Even if you have a good idea of what everything is saying, you still need to hire help as assurance.