Friday, July 31, 2015
Any time the subject of raising the minimum wage comes up, the narratives seem to split between workers and management. The narratives are so set that you can nearly predict the conversations before they happen. But now one national chain is breaking the mold. Starbucks just reported a massive jump in profits, even while wage hikes are hitting it hard in multiple major cities including Los Angeles, San Francisco, and Starbuck’s home city of Seattle. New York may soon follow.
That’s not to say operating expenses are minor. According to reports, Starbuck’s operating costs have jumped 18% in the past year. Why? Well, according to Starbucks executives the biggest reason for the increase was, quote, “Investments in our store partners.” Translation – wage increases for employees. They had to pony up the cash and increased their expenses 18%.
While Starbucks CEO Howard Schultz has been adamantly against a wage hike to $15 per hour, the company seems to be doing okay. Some are saying this example should put to bed the notion that doubling the minimum wage wouldn’t “really” hurt companies. Leaders such as Schultz and Dunkin’ Brands CEO Nigel Travis, continue to argue that the problems will come.
But there’s no doubt that the PR narrative has shifted. While CEOs and business owners are still saying doubling the minimum wage will mean huge cuts for their businesses, proponents are already beginning to point to Starbucks’ recent quarters as proof that businesses can take the increase.
To successfully counter this narrative, the companies must prove to people these conclusions are preliminary. It may also work to do something the larger companies have been reluctant to do – reach out to small businesses. If the idea of a $15 minimum wage catches on it will be the smaller mom and pop shops that face the biggest hurdle. They could close their doors, providing a wider customer base for the big brands that can more easily absorb the loss. But if they don’t want the sky to continue falling, the big brands will have to take control of the national narrative before they can reap those rewards.
Monday, July 20, 2015
Oil change places charging for services they don’t actually perform. It’s a rumor that has reached urban legend status. Now, a California news station has documented it happening, stunning consumers and blasting a major national chain.
The headline alone creates a palpable PR crisis: “Jiffy Lube Scam Caught on Tape!”
Thursday, July 16, 2015
There was a time when Jared Fogle was not only the face of Subway, he was a dream come true for an also-ran brand desperately trying to find its place in the crowded fast food marketplace. They found a PR savior in Fogle, a formerly massively obese man who claimed eating Subway twice a day helped him shed hundreds of pounds and lead a healthier lifestyle. Suddenly, eat fresh was also “eat healthy.” That match made in Madison Avenue Heaven lasted more than a decade. Now, though, the marriage is on the rocks.
Friday, July 10, 2015
These days an increasing number of casual dining restaurants are choosing to ride the “all natural” menu train. While this choice used to be relegated to boutique restaurants, bistros, and high-end dining establishments, many “fast and casual” eateries are beginning to chase the trend. Next on the list? Panera Bread. Thanks in part to the efforts of head chef Dan Kish, who grew up visiting his grandparents’ Pennsylvania farm.
Friday, June 26, 2015
Korean cars are getting top marks for quality The recent J.D. Powers survey shows South Korean cars have the highest quality reports for new purchases. This big change from past reports is good news and becomes the best kind of PR for Kia and Hyundai. Usually the Japanese cars top the list, but this year the Korean cars (as a country group) blew everyone else out of the water with an average of only 90 problems reported per 100 vehicles.
Thursday, June 18, 2015
When the tide of public opinion has turned, sooner or later there comes a time when you have to stop swimming against the stream. Generally, this comes at the tipping point when fighting the trend becomes less profitable than going with the flow. Such is the case with a recent announcement from Tyson chicken.
Tuesday, June 09, 2015
Hewlett-Packard (HP) is in the news again, and, once again, things are not going well for the computer giant. Shortly after arriving at HP in 2011, Meg Whitman wasted no time in whipping out her pink slip machine gun, She downsized tens of thousands of workers at what was once one of the go-to names in American tech.