The domino effect
Chipotle once reigned as one of the favorites in fast food. Now, the name conjures up feelings of negativity after a recent E. coli outbreak affected over 50 people throughout nine different states in October and November of 2015.
Now, the hits keep coming as the company tries to rectify what is, basically, the kiss of death for any restaurant. The chain has seen a decrease in sales following the outbreak and now suppliers are being hurt by the domino effect.
Low numbers and layoffs
Chipotle buys their paper bowls from Huhtamaki, a manufacturer located in Maine, and the dip in sales has spread. Huhtamaki has seen 25 to 30 layoffs since Chipotle’s demand has gone down.
The good news is that this is not expected to last long, according to an article by Bangor Daily News. Duane Lugdon, union representative for United Steelworkers, says he expects the layoffs to last no more than eight weeks.
“Obviously, Chipotle has lost some of its patronage and we think it’s a temporary thing,” Lugdon said told BDN. “We don’t see this lasting longer than perhaps four to six weeks — eight weeks at the most — and the folks will be recalled to begin making the Chipotle products again.”
“They will bounce back”
While Chipotle will likely bounce back from this, customers may still be weary about buying from the establishment. However, Wess Hudelson, a spokesman for Huhtamaki, is optimistic as everything is still up in the air.
Though he is unsure when the laid off employees will be asked to return to work, he does not expect the turmoil to last much longer. “We’re talking about Chipotle, not some mom and pop shop on the corner, and I think they’re strong and will bounce back.”
The number of working employees has fluctuated somewhere between 450 and 470, as some employees have temporarily returned during the cutbacks.
Back to normal by spring?
Following the outbreak, Chipotle was involved in a grand jury subpoena and a federal investigation from the U.S. Department of Justice and the U.S. Food and Drug Administration. The company will be closing all stores nationwide on February 8, as they work to alleviate the issue and bring employees up to speed.
Australia vs Facebook: A conflict of news distribution
(BUSINESS NEWS) Following a contentious battle for news aggregation, Australia works to find agreement with Facebook.
Australia has been locked in a legal war against technology giants Google and Facebook with regard to how news content can be consumed by either entity’s platforms.
At its core, the law states that news content being posted on social media is – in effect – stealing away the ability for news outlets to monetize their delivery and aggregate systems. A news organization may see their content shared on Facebook, which means users no longer have to visit their site to access that information. This harms the ability for news production companies – especially smaller ones – from being able to maintain revenue and profit, while also giving power to corporations such as Facebook by allowing them to capitalize on their substantial infrastructure.
This is a complex subject that can be viewed from a number of angles, but it essentially asks the question of who should be in control of information on a potentially global scale, and how the ability to share such data should be handled when it passes through a variety of mediums and avenues. Put shortly: Australia thinks royalties should be paid to those who supply the news.
Australia has maintained that under the proposed laws, corporations must reach content distribution deals in order to allow news to be spread through – as one example – posts on Facebook. In retaliation, Facebook completely removed the ability for users to post news articles and stories. This in turn led to a proliferation of false and misleading information to fill the void, magnifying the considerable confusion that Australian citizens were confronted with once the change had been made.
“In just a few days, we saw the damage that taking news out can cause,” said Sree Sreenivasan, a professor at the Stony Brook School of Communication and Journalism. “Misinformation and disinformation, already a problem on the platform, rushed to fill the vacuum.”
Facebook’s stance is that it provides value to the publishers because shared news content will drive users to their sites, thereby allowing them to provide advertising and thus leading to revenue.
Australia has been working on this bill since last year, and has said that it is meant to equalize the potential imbalance of content and who can display and benefit from it. This is meant to try and create conditions between publishers and the large technology platforms so that there is a clearer understanding of how payment should be done in exchange for news and information.
Google was initially defiant (threatening to go as far as to shut off their service entirely), but began to make deals recently in order to restore its own access. Facebook has been the strongest holdout, and has shown that it can leverage its considerable audience and reach to force a more amenable deal. Australia has since provided some amendments to give Facebook time to seek similar deals obtained by Google.
One large portion of the law is that Australia is reserving the right to allow final arbitration, which it says would allow a mediator to set prices if no deal could be reached. This might be considered the strongest piece of the law, as it means that Facebook cannot freely exercise its considerable weight with impunity. Facebook’s position is that this allows government interference between private companies.
In the last week – with the new agreements on the table – it’s difficult to say who blinked first. There is also the question of how this might have a ripple effect through the tech industry and between governments who might try to follow suit.
Plant-based milk company Oatly is going public in the U.S.
(BUSINESS NEWS) With the growing popularity of plant-based goods, it is unsurprising to see Oatly going to market, but how much the investment pays off remains to be seen.
On Tuesday, the plant-based milk company, Oatly, filed for an initial public offering (IPO) in the U.S., which could value the company between $5 billion and $10 billion.
The IPO will take place after the United States Securities and Exchange Commission (SEC) completes its review process and is subject to market conditions. Additional details of the planned sale were not offered in the confidential filing. The price and number of shares available to purchase are yet to be determined.
The Sweden-based vegan food and drink maker was founded in the 1990s by brothers Rickard and Björn Öste. The company sells its products online and in more than 50,000 retail stores in 20 countries across Europe and Asia. The company entered the U.S. in 2017 and has also partnered with cafes, such as Starbucks.
Last July, Oatly raised $200 million in investment equity. The company is backed by former Starbucks CEO Howard Schultz and celebrity investors like Oprah Winfrey, Natalie Portman, and Jay-Z. According to PitchBook, the company was valued at around $2 billion at that time.
In 2019, the company generated about $200 million in revenue, which is almost double the year before. Figures for 2020 haven’t been released yet, but the company planned on doubling them again.
Although the numbers haven’t been made public, it isn’t a far-off stretch to say the company could have done just that. Demand for plant-based products has been high. In just the first week of March last year, Nielsen statistics showed the sales of oat milk were up 347.3%.
This rise is due to consumers seeking alternatives to animal products and healthier food options. Already, fast-food chains, casual, and upscale restaurants have entered the plant-based food sector by adding new plant-based items to their menus.
Burger King has its Impossible Whopper with a plant-based patty. Baskin-Robbins offers three vegan ice cream flavors. Starbucks also announced in December that it would now serve oat milk at all its locations nationwide starting in the spring.
Oatly already has a large following. As more health and environment-conscious consumers are willing to seek and pay for these types of products, it seems like their following will only continue to grow.
Fake news? Well, what about fake reviews?
(BUSINESS NEWS) Amazon is swamped with fake reviews, making it harder than ever to trust whether or not a product is legit. How can you spot them and avoid falling victim to this shady practice?
These days, most of us have turned to online shopping in lieu of brick-and-mortar establishments to get our favorite items shipped directly to our front door. With many retailers still closed, and many more of us understandably wary of exposing ourselves to the risk of COVID-19, it’s easier to just click “buy” and then spend the next two days with our noses pressed to our windows in anticipation of the arrival of our new toy or garment. But are we at risk of being tricked by fake reviews?
If you’re like most people, you probably depend on product reviews to make a purchasing decision. Honestly, it’s perfectly reasonable to see what others thought of the item before you buy it. These online reviews are almost like your neighbor, who whipped out his lawnmower and bragged how it goes from 0 to 4 mph in less than thirty seconds. Obviously — obviously — you had to run out to your nearest garden center to pick up one of your own after his glowing review of it, right?
That’s kinda like online reviews, too. You can’t just knock on the purchaser’s door and ask them what they thought of it, which is why you carefully peruse those reviews and weigh those pros and cons. Okay, this shirt fits loose. Fine, these kitchen shears broke after three uses. Whoa, this brand of potato chips puts hair on your chest…? Sweet! And you also probably looked at those 3-star reviews, too, to see what was merely “meh” about the product. With this assortment of mixed reviews, you can be confident that you’re making a rock-solid choice.
Uh, sadly, nope.
Unfortunately, Amazon (as well as other major retailers, such as Walmart) are often fraught with a glut of fake reviews. In fact, there are numerous Facebook pages dedicated to the purchase of these reviews, and many of the reviewers are compensated with a monetary reward (usually the cost of the item, plus a few extra dollars for their work) for posting the glowing 5-star rave.
So what can you do to help protect yourself for falling for these seemingly harmless lies?
Well, first and foremost — a fake review isn’t necessarily harmless. If a defective or dangerous product is boosted by a false review, it can seriously harm you. Sure, there’s a good chance the fake reviews are benign, and the worst you’ll be in for it is losing a few bucks on a crap item. But if something is using counterfeit or unsafe ingredients (such as minoxidil in potato chips because, real talk, chips aren’t supposed to put hair on your chest), then yes, you need to be informed of it so you can make an educated decision about whether or not that item is coming home with you.
So, the question remains: How can you, intrepid shopper extraordinaire, avoid purchasing a lemon? (Unless, of course, your goal was to buy an actual lemon in the first place. Margaritas, anyone?) The good news is that there are a couple things you can do. For starters, common sense goes a long way. Do the reviews offer any context, or is it just line after line of, “Loved it!” without any actual feedback on the item? That’s why those 3-star reviews are so priceless. Usually the reviewer actually used the item and had a valid reason for their tepid review, allowing you to make an educated decision about it.
Finally, there are a couple of websites you can use to help you out. First, there’s Fakespot. This web extension will cull out all the fake reviews, allowing you to see at-a-glance the remaining genuine reviews. It then reviews the item for its credibility, letting you know if the seller was trying to pull a fast one on you. Then there’s ReviewMeta. Unlike Fakespot, this website goes through the views and instead of grading the seller, it actually grades the item based on the average score of the remaining real reviews. And by using both of these websites together to check those reviews? You’ve now got yourself a pretty decent idea if the product is actually worth your hard-earned dollars.
It’s far too easy to get scammed these days. However, by staying alert and remaining mindful about your online purchases (and avoiding the temptation to give into those stress-motivated impulse buys), you can avoid being bilked, too. And hey, instead of looking at online reviews, maybe you should go back to the old-fashioned way of doing it: By asking your neighbor for their opinions of items. Just, y’know, do it from at least six feet away, while wearing a face mask.
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