понедельник, 4 мая 2015 г.

uMcDonald’s Big Turnaround Solution: Sell More Restaurants To Franchiseesr


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  • When new McDonald’s CEO Steve Easterbrook said he would unveil turnaround plans for the sagging fast food giant on May 4, some people were expecting more than just a decision reorganize the company’s international business and sell off a bunch of company-owned stores to franchisees.

    But that seems to be the whole takeaway from this morning’s big announcement by Easterbrook, which turned out to be standard sort of streamlining and cost-cutting that any huge, global company could benefit from, but some say is lacking in any vision for how to change McDonald’s image, menu, or appeal to the franchisees that control most of the McDonald’s stores.

    In fact, franchisees already own some 81% of all the McDonald’s restaurants in the world. But under Easterbrook’s plan, McDonald’s corporate would refranchise around 3,500 company-owned stores to put them in the hands of franchisees. The goal is to reduce the corporate ownership of McDonald’s restaurants to only 10% worldwide.

    While that’s good in the short term for McDonald’s bottom line, letting the company continue to make money off of these locations without having to pay for their operation, it doesn’t do anything to deal with the recent complaints from franchisees.

    In a recent survey of franchise owners in the U.S., a number of them complained about the company’s allegedly self-defeating efforts to draw customers in.

    “They talk menu reduction to help our people, simplify our menu for customers, but add products to help sales and it does not work,” wrote one franchisee in that survey.

    Another owner said that “McDonald’s management does not know what it wants to be,” testing a slower, more customized sandwich option while simultaneously pushing the get-em-in-get-em-out bargain foods the chain is known for.

    In recent weeks, McDonald’s has announced certain menu changes intended to save restaurants the costs of offering too many items that don’t sell well. Nine menu items have been cut already this year.

    The controversial TasteCrafted test program (originally known as Create Your Taste), which allows customers to custom-order their sandwiches and includes new ingredients, has apparently been successful enough for McDonald’s to continue rolling it out. However, franchisees’ concerns about the higher costs and longer wait times recently led McDonald’s to simplify the program by including fewer options.

    It’s not just franchisees who are likely to be let down by today’s lukewarm turnaround plan. Analysts say that investors were expecting something more radical from the new CEO.

    “The market expected more,” one analyst tells Bloomberg. “Easterbrook set the expectation that he would present a novel solution to McDonald’s woes.” Instead, today’s refranchising decision “could have been announced on a quarterly earnings call.”



ribbi
  • by Chris Morran
  • via Consumerist


uFiat Chrysler Offers Employees Chance For Free College Education At A For-Profit Universityr


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  • Providing the opportunity for employees to obtain a college degree is a worthy intention. Just as Starbucks announced in 2014 that it would finance the college dreams of workers around the country, Fiat Chrysler has unveiled a similar program today. There’s only one slight difference: the university that Chrysler has partnered with is a for-profit college.

    Fiat Chrysler’s U.S. division announced Monday that it has teamed up with Strayer University (you know, the school with Steve Harvey in the commercials) to create the Degrees@Work program, allowing eligible employees to earn a college degree.

    Full- and part-time employees who have worked at one of Fiat Chrysler’s Dodge, Jeep, Ram and Fiat dealerships for 30 days are eligible to enroll in any of the more than 40 Strayer programs offered online or on-campus without spending a dime of their own money, Forbes reports.

    In order to offer the opportunity to employees, dealerships must pay a flat fee to Fiat Chrysler to cover part of the program, which will reportedly cover tuition, books and other expenses.

    The company did not provide information on the average cost of the dealerships’ fees. However, Forbes reports that the average bachelor’s degree from Strayer costs about $42,000.

    The program not only aims to educate employees, but to improve retention at Fiat Chrysler dealerships, the company said.

    “Many of our dealers have expressed concern over the availability of talent to fill open positions due to business growth and turnover in their stores, especially in metro markets,” Al Gardner, Head of Dealer Network Development, and President & CEO of the Chrysler Brand in the U.S., said in a statement. “Our goal is to position our dealer network as the ‘employers of choice.’

    Degrees@Work will first launch at Chrysler’s dealerships in Florida, Georgia, South Carolina, North Carolina, Alabama and Tennessee. Eligible employees at the more than 360 locations in those states can now enroll for summer and fall terms at Strayer.

    Employees can choose from more than 40 degree programs including business administration, accounting, education and information systems.

    Fiat Chrysler says that the 24/7 access to Strayer courses will allow the employees-turned-students the flexibly to design their education around their jobs.

    To expedite employee’s education, the company says that Strayer will offer the new students credit for training and work experience already obtained through their work at the dealership.

    The company expects to rollout the program national later this year.

    FCA US Dealers to Offer Employees No-Cost, No-Debt College Education [Fiat Chrysler Automobiles]
    Chrysler to offer free college tuition to all dealership employees [Forbes]



ribbi
  • by Ashlee Kieler
  • via Consumerist


uSally Beauty Looking Into “Unusual Activity” On Payment Cards At Some U.S. Storesr


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  • In what has become an unfortunately familiar experience, yet another retailer is announcing that it might’ve been the victim of a potential data breach: Sally Beauty confirms that it’s investigating “unusual activity” involving payment cards at some of its U.S. stores. This, a year after a breach that affected tens of thousands of customers.

    The company says it’s working with law enforcement and its credit-card processor as well as a third-party forensics expert to determine the scope of any potential breach, but there won’t be any numbers until the investigation is done, as “it is difficult to determine with certainty the scope or nature of any potential incident,” the company says in a statement.

    The company adds that it “will continue to work vigilantly to address any potential issues that may affect our customers.”

    Sally Beauty says concerned customers can call its customer service hotline at 1-866-234-9442, and that the company will provide updates as appropriate as the investigation continues.

    The company confirmed that this investigation is separate from last year’s incident, the Wall Street Journal reports, which reportedly hit about 25,000 customers — but may in fact have affected more than 280,000 credit card numbers, security researchers later said.



ribbi
  • by Mary Beth Quirk
  • via Consumerist


uComcast Is About To Have More Internet Subscribers Than Cable Customersr


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  • comcastcustomersCable companies can try to downplay cord-cutting all they want, but even if consumers aren’t rushing to get rid of pay-TV plans, the fact is that the Internet has quickly become more important than cable and is likely to become the dominant business for cable providers.

    Comcast has released its quarterly earnings report [PDF] and once again the pay-TV customer numbers have slipped while the company’s broadband growth continues.

    The company lost only 8,000 net cable TV subscribers during the last quarter, but is down more than 225,000 customers over the same quarter a year ago. Meanwhile, Comcast added a whopping net 407,000 broadband subscribers in just the last quarter. Since a year ago, this part of the company’s business has grown by 1.3 million.

    As things stand now, Comcast’s pay-TV customer base is only 6,000 subscribers larger than its number of broadband subscribers. It seems inevitable that the number of Internet customers will finally pass cable during the next quarter.

    The good news for the pay-TV industry might be that the decrease in cable subscribers was smaller than in some recent quarters. For example, in the second quarter of 2014, Comcast had a net loss of 144,000 pay-TV customers. A year before that, the company’s net cable loss was 162,000 subscribers. As recently as the third quarter of 2014, Comcast lost a net 81,000 pay-TV customers. With today’s report, cable customer growth has remained reasonably flat for two quarters.

    However, cable still remains as the primary revenue source for Comcast, bringing in $5.3 billion last quarter, compared to the $3.04 billion in revenue earned from broadband.



ribbi
  • by Chris Morran
  • via Consumerist


uReport: DOJ Has An Eye On Apple As It Makes Moves To Push Free Streaming Music Rivals Out Of The Wayr


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  • Let’s be honest: It would be ideal for a business if it could somehow snap up every customer looking for a certain service. But because we (thankfully) live in a world filled with choices, companies instead must compete with rivals to get our hard-earned dollars. A new report says Apple is preparing to debut its new streaming music service by trying to put the squeeze on competitors like Spotify that offer content for free.

    The Verge cites multiple sources who say the Department of Justice is keeping tabs on Apple while it reportedly tries to narrow the playing field ahead of its upcoming release of its Beats Music service, by pushing major music labels to put the kibosh on free music offered by Spotify and the like. This seems to be in tune with earlier reports that Apple will not offer a similar, ad-supported free tier of its own.

    While Spotify boasts 60 million listeners, 45 million of those use its free service, which is supported by ads that play every few songs or so. Getting a company like that to give up all those free listeners means some of those customers might find their way to Apple by the time it unleashes its new service, likely in June.

    Sources also say that Apple is willing to pony up the music licensing fee YouTube pays to Universal Music Group if the label will stop allowing its songs for free on YouTube.

    According to The Verge, DOJ officials have been talking to the big industry executives about Apple’s business methods.

    “All the way up to Tim Cook, these guys are cutthroat,” one music industry source told The Verge.

    Though there’s a DOJ antitrust monitor hanging around on Apple’s campus after Apple was found guilty in last year’s e-book antitrust case — which it’s still appealing — it’s unclear if the monitor would be involved in a situation like this or is strictly on the e-book case.

    Another report from the New York Post says officials across the pond in the European Union’s Competition Commission are also looking into whether Apple is working with labels to push out freemium services.

    Apple did not comment to The Verge.

    Apple pushing music labels to kill free Spotify streaming ahead of Beats relaunch [The Verge]



ribbi
  • by Mary Beth Quirk
  • via Consumerist


uCorinthian Colleges Inc. Files For Bankruptcyr


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  • healdheaderA week after embattled for-profit college chain Corinthian Colleges Inc. closed its remaining Everest University, Heald College and WyoTech campuses, the company filed for bankruptcy, essentially closing the book on the company’s long downward spiral. 

    The Wall Street Journal reports that CCI filed for Chapter 11 protection in U.S. Bankruptcy Court in Delaware on Monday, listing assets of $19.2 million and debt of $143.1 million.

    CCI’s prolonged collapse began last July when it entered into an agreement with the Department of Education to sell or close a majority of its campuses. Prior to the agreement CCI enrolled 72,000 students and received $1.4 billion in federal student aid.

    Since that time, Corinthian completed the sale of some 56 campuses to Education Credit Management Corporation in early February. In order to close that deal, ECMC agreed to provide $480 million in forgiveness for current and former students who took out CCI’s high-cost private student loans.

    Last week CCI published a notification on its website declaring it would cease all operations and discontinue instruction at its remaining 28 campuses effective April 27.

    Officials with CCI say that the company has been part of advanced negotiations to sell its Heald College branch and to arrange teach-out programs that would allow its Everest College and WyoTech students in California to continue their education.

    However, the company says those efforts proved to be unsuccessful because of a number of state and federal investigations into the college chain. Ultimately it was determined the only option was closing the remaining campuses.

    Corinthian’s decision to file for bankruptcy comes after a sting of recent issues for the company.

    Two weeks ago, California Department of Consumer Affairs announced it issued an Emergency Decision demanding that CCI stop new enrollments at several California campuses.

    The Bureau issued the order after determining that the CCI schools did not meet the minimum state standards for financial resources. Among the findings was the confirmation that Everest and WyoTech failed to provide the Bureau with current financial statements as part of their annual reports.

    Additionally, inspections of the two schools found they were unable to produce the required financial statements after repeated requests by the Bureau.

    Before that the Dept. of Education imposed a $30 million fine against CCI over the use of misstated and inaccurate job placement rates to recruit students at its Heald College campuses. As part of that order, the company was required to stop enrollment at Heald campuses nationwide.

    Other issues the company has faced include being delisted from Nasdaq and notice from the California Student Aid Commission that it would halt grants to CCI students. Both of those moves came after the company failed to submit required financial statements to both the Securities and Exchange Commission and the student aid commission.

    CCI’s obstacles haven’t just been relegated to the U.S.: the company’s Canadian operations closed with little warning to students and filed for bankruptcy in February.

    Corinthian Colleges files for chapter 11 bankruptcy [The Wall Street Journal]



ribbi
  • by Ashlee Kieler
  • via Consumerist


uKentucky Fried Chicken Started With An Iron Pan, Dining Room Table & A Gas Stationr


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  • When we imagine Colonel Sanders of Kentucky Fried Chicken fame, we see an older man with a white beard and neatly pressed suit. But that’s not really how the foray into feeding the masses started for Harland Sanders. Instead, things began on a much smaller scale for the entrepreneur, who was in his 60s by the time he started letting others sell his chicken recipe.

    The Colonel’s journey into creating the “finger lickin’ good” chicken served at KFC started at the age of six in 1896 when he was put in charge of feeding the family shortly after his father died, according to a company historical account.

    WAITING FOR THE RIGHT TIME

    Although the Sanders quickly mastered his way around the kitchen, his passion for food wouldn’t turn into a business venture for another 30 years.

    What we know as KFC began in the early 1930, when Sanders – by now in his 40s and not yet a Colonel – started offering dinner to hungry travelers at his service station in the southeastern Kentucky town of Corbin.

    Because Sanders didn’t technically have a restaurant yet, the “home meal replacements” were served at his own dining room table. Shortly thereafter, he began selling travelers and busy families what he called “Sunday Dinner, Seven Days a Week.” Soon business was outgrowing the capacity of his station, and Saunders purchased a location across the street.

    “Pretty soon I built three homemade family-style tables in the new place,” Sanders says in his autobiography [PDF] of Sanders Court & Café. “I painted them green and I took my big dining room table across and put it in my new restaurant. What with the little lunch counter that was already there, I really thought I was in the restaurant business.”

    Over the next several years, Sanders’s meals became famous in Kentucky, and he was dubbed a Colonel of the state in 1935, added a motel to his small restaurant and continued his mission to perfect fried chicken.

    PERFECTING THE RECIPE

    Harland Sanders patented his adapted pressure cooker in 1962, it was finalized ing 1966.

    Harland Sanders patented his adapted pressure cooker in 1962, it was finalized in 1966.

    He says in his autobiography that at first he fried the chicken like his mother had: in an iron skillet. While the method was tried and true, it didn’t take long before it proved too slow for the number of orders coming in.

    For the next several years, he used a Dutch oven and tediously made fresh vegetables to go with the meals. That is until he attended a demonstration in 1939 on a new invention that would forever change his recipe and set the course for the KFC empire: the pressure cooker.

    While the pressure cookers that the Colonel bought were designed for quickly cooking vegetables, it wasn’t long before inspiration hit.

    “Next I got to thinking about frying chicken with one of those things,” he says in his autobiography. “Here I was frying chicken and trying to keep pressure on it in my Dutch oven. Now that I had a pressure instrument one, I wondered why I couldn’t fry chicken in it.”

    After making a few modifications and snatching up a larger pressure cooker a few years later, the Colonel had perfected a new, faster method of cooking his chicken. He eventually patented the process in 1962.

    HITTING THE ROAD

    But it was in 1952, when the Colonel has reached his 60s, that he took his recipe and his new cooking method on the road to develop a chicken franchising business.

    The first franchisee turned out to be a friend of the Colonel’s, Pete Harman, who owned a drive-in restaurant, but didn’t serve chicken. The two men reached an agreement where Harman would sell what was now called “Kentucky Fried Chicken” in the state of Utah and pay Saunders a nickel per chicken sold.

    After closing his own restaurant in 1955, the Colonel hit the road selling his recipe and pressure cookers to small restaurant owners. (Vintage Ad Browser)

    After closing his own restaurant in 1955, the Colonel hit the road selling his recipe and pressure cookers to small restaurant owners. (Vintage Ad Browser)

    Four or five other franchisees then signed up, each paying the Colonel $10 or $12 a month for using the recipe and pressure cooker method.

    “I hadn’t really been out to franchise regularly, but after that highway change in 1956 I had to choose a new direction, so I went into the franchising business in earnest,” he says of KFC after selling his original restaurant in 1955.

    From there, Sanders traveled around Ohio and Indiana making his special fried chicken for small restaurant owners in the hope they would buy his recipe and pressure cookers.

    Living off a $105 Social Security check, Sanders said he stayed many nights sleeping in his car to ensure he had enough money to buy his pressure cookers. But the traveling paid off and by 1960, Sanders had more than 190 KFC franchisees and 400 locations in the U.S. and Canada.

    We’d be remiss not to mention that along his journey, Sanders met a man named Dave Thomas — better known as the founder of Wendy’s (we’ll get to the story of that restaurant’s birth in another post). He eventually managed four KFC restaurants before selling them back to the Colonel in the late 1960s.

    “I must admit that I never thought the project I began so late in my life would get as big as it did,” the Colonel says in his autobiography. “However, the fried chicken business multiplied and got bigger and bigger until at last I put myself on a salary of $30,000 a year and dropped my Social Security check.”

    SELLING THE BUSINESS

    In 1964, seven years after the first bucket of KFC was sold, the company counted 600 franchised locations in the U.S. and Canada. It was that same year, that Sanders sold his interest in the company for $2 million to a group of investors. However, he remained the public spokesperson for the brand.

    Under the new ownership, the company went public in 1966 and continued a rapid growth, reaching more than 3,500 franchised and company-owned restaurants worldwide by 1971.

    Eight years later, the company had sold 2.7 billion pieces of chicken and opened 6,000 KFC restaurants worldwide.

    The early and mid-’80s proved to be a time of change for the company. In 1982, KFC became a subsidiary of R.J. Reynolds Industries. It was once again sold in 1986 to PepsiCo, Inc. – the same company that scooped up the Taco Bell brand – and eventually spun its fast-food business into Tricon Global and then what we know now as YUM! Brands, Inc.



ribbi
  • by Ashlee Kieler
  • via Consumerist