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Hooters opens fast-casual chain, Hoots because reasons

(BUSINESS NEWS) Hoots is Hooters with more clothes but the same wings, which doesn’t really make sense. Or does it?

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Food comes first

If you’re in the select group of humans that goes to Hooters just for the food, Hoots might be the place for you. Hoots is a new fast-casual restaurant opening in Chicago this week. It’s really just Hooters without the tight tops and cleavage. While it will provide wings, burgers, and beer, Hoots is cutting out the factor that Hooters is most famous for, which is strange, potentially risky business move.

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The business-strategy is to open smaller restaurants with smaller menus that can therefore operate in smaller markets. A fundamental flaw seems to be that right now Hooters is primarily visited because of the scantily-clad waitresses, and without that element it seems unclear why their target demographic would choose the new chain.

Maybe there are people who do go to Hooters for the food, but that seems about equivalent to people “reading Playboy for the articles.”

One other change at Hoots is that rather than table service, you will order food and drinks at a counter. The cashiers will be clothed just like other fast food workers – in full.

What’s the point?

As someone who has only been to Hooters once, I am perhaps not qualified to say this new concept will be a complete flop, but it does seem like the chain is taking their primary selling point and scrapping it for this new concept.

It’s like if Taco Bell started a new chain of restaurants that aren’t open at midnight. It just doesn’t make sense.

In addition to reaching new, smaller markets Hoots aims to also be a more family-friend, less risque establishment. They’ll now be competing against Buffalo Wild Wings, Chili’s and more, which is a tough place to be in. While Hooters was also a competitor of these chains with a different selling point, Hoots is just a competitor without the name recognition.

“The Hoots smaller footprint lets us bring America’s favorite wings to more and smaller neighborhoods,” Hooters Management Corp.’s President and CEO Neil Kiefer, said in a post on Facebook.

Placing bets

Smaller neighborhoods is certainly an exciting opportunity for the company, but I don’t understand why they would change the concept to reach these new markets.

I suppose the deeper root of the new move is that Hooters is sexist and degrading, and for moving beyond that I commend Hoots.

However, perhaps even bigger than the problems with the fact that Hooters calls their staff “girls” regardless of age and consistently markets itself on cheap, hacky ideas, I just don’t think Hooters’ food is that good.

America has proved that it doesn’t necessarily care about sexism, but we do consistently take a stand against sub-par dining.Click To Tweet

I shouldn’t bet against Hoots – I’m not their target demographic – but I wouldn’t encourage you to bet on it, either.

#okayhooters

Brian is a staff writer at The American Genius who lives in Brooklyn, New York. He is a graduate of Washington University in St. Louis, and majored in American Culture Studies and Writing. Originally from California, Brian has a podcast, "Revolves Around Me," and enjoys public transportation, bicycles, the beach.

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2 Comments

2 Comments

  1. Harry The Genius

    February 17, 2017 at 10:42 pm

    Brian.
    You seem to be a bit odd. Very strange that you write for the
    “American Genius”.
    You criticize the food of an American Brand the has $1 Billion in annual sales, but have only “…. been to Hooters once…”. I guess the rest of us who have been patronizing Hooters for years are just not qualified to write for the “American Genius”

    Hey Goofball – food tastes are very subjective. Just because you
    Have only been to the place once, makes you about as qualified to write for the “American Genius” as The Donald is to be President!

  2. Pingback: Popeyes acquisition means you can have it your way - The American Genius

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Business News

Big retailers are opting for refunds instead of returns

(BUSINESS NEWS) Due to increased shipping costs, big companies like Amazon and Walmart are opting to give out a refund rather than accepting small items returned.

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Package delivery people holding deliveries. Refund instead of returns are common now.

The holidays are over, and now some people are ready to return an item that didn’t quite work out or wasn’t on their Christmas list. Whatever the reason, some retailers are giving customers a refund and letting them keep the product, too.

When Vancouver, Washington resident, Lorie Anderson, tried returning makeup from Target and batteries from Walmart she had purchased online, the retailers told her she could keep or donate the products. “They were inexpensive, and it wouldn’t make much financial sense to return them by mail,” said Ms. Anderson, 38. “It’s a hassle to pack up the box and drop it at the post office or UPS. This was one less thing I had to worry about.”

Amazon.com Inc., Walmart Inc., and other companies are changing the way they handle returns this year, according to a report by The Wall Street Journal (WSJ). The companies are using artificial intelligence (AI) to weigh the costs of processing physical returns versus just issuing a refund and having customers keep the item.

For instance, if it costs more to ship an inexpensive or larger item than it is to refund the purchase price, companies are giving customers a refund and telling them to keep the products also. Due to an increase in online shopping, it makes sense for companies to change how they manage returns.

Locus Robotics chief executive Rick Faulk told the Journal that the biggest expense when it comes to processing returns is shipping costs. “Returning to a store is significantly cheaper because the retailer can save the freight, which can run 15% to 20% of the cost,” Faulk said.

But, returning products to physical stores isn’t something a lot of people are wanting to do. According to the return processing firm Narvar, online returns increased by 70% in 2020. With people still hunkered down because of the pandemic, changing how to handle returns is a good thing for companies to consider to reduce shipping expenses.

While it might be nice to keep the makeup or batteries for free, don’t expect to return that new PS5 and get to keep it for free, too. According to WSJ, a Walmart spokesperson said the company lets someone keep a refunded item only if the company doesn’t plan on reselling it. And, besides taking the economic costs into consideration, the companies look at the customer’s purchase history as well.

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Google workers have formed company’s first labor union

(BUSINESS NEWS) A number of Google employees have agreed to commit 1% of their salary to labor union dues to support employee activism and fight workplace discrimination.

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Google complex with human sized chessboard, where a labor union has been formed.

On Monday morning, Google workers announced that they have formed a union with the support of the Communications Workers of America (CWA), the largest communications and media labor union in the U.S.

The new union, Alphabet Workers Union (AWU) was organized in secret for about a year and formed to support employee activism, and fight discrimination and unfairness in the workplace.

“From fighting the ‘real names’ policy, to opposing Project Maven, to protesting the egregious, multi-million dollar payouts that have been given to executives who’ve committed sexual harassment, we’ve seen first-hand that Alphabet responds when we act collectively. Our new union provides a sustainable structure to ensure that our shared values as Alphabet employees are respected even after the headlines fade,” stated Program Manager Nicki Anselmo in a press release.

AWU is the first union in the company’s history, and it is open to all employees and contractors at any Alphabet company in the United States and Canada. The cost of membership is 1% of an employee’s total compensation, and the money collected will be used to fund the union organization.

In a response to the announcement, Google’s Director of People Operations, Kara Silverstein, said, “We’ve always worked hard to create a supportive and rewarding workplace for our workforce. Of course, our employees have protected labor rights that we support. But as we’ve always done, we’ll continue engaging directly with all our employees.”

Unlike other labor unions, the AWU is considered a “Minority Union”. This means it doesn’t need formal recognition from the National Labor Relations Board. However, it also means Alphabet can’t be forced to meet the union’s demands until a majority of employees support it.

So far, the number of members in the union represents a very small portion of Google’s workforce, but it’s growing every day. When the news of the union was first announced on Monday, roughly 230 employees made up the union. Less than 24 hours later, there were 400 employees in the union, and now that number jumped to over 500 employees.

Unions among Silicon Valley’s tech giants are rare, but labor activism is slowly picking up speed, especially with more workers speaking out and organizing.

“The Alphabet Workers Union will be the structure that ensures Google workers can actively push for real changes at the company, from the kinds of contracts Google accepts to employee classification to wage and compensation issues. All issues relevant to Google as a workplace will be the purview of the union and its members,” stated the AWU in a press release.

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Business News

Ticketmaster caught red-handed hacking, hit with major fines

(BUSINESS NEWS) Ticketmaster has agreed to pay $10 million to resolve criminal charges after hacking into a competitor’s network specifically to sabotage.

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Person open on hacking computer screen, typing on keyboard.

Live Nation’s Ticketmaster agreed to pay $10 million to resolve criminal charges after admitting to hacking into a competitor’s network and scheming to “choke off” the ticket seller company and “cut [victim company] off at the knees”.

Ticketmaster admitted hiring former employee, Stephen Mead, from startup rival CrowdSurge (which merged with Songkick) in 2013. In 2012, Mead signed a separation agreement to keep his previous company’s information confidential. When he joined Live Nation, Mead provided that confidential information to the former head of the Artist Services division, Zeeshan Zaidi, and other Ticketmaster employees. The hacking information shared with the company included usernames, passwords, data analytics, and other insider secrets.

“When employees walk out of one company and into another, it’s illegal for them to take proprietary information with them. Ticketmaster used stolen information to gain an advantage over its competition, and then promoted the employees who broke the law. This investigation is a perfect example of why these laws exist – to protect consumers from being cheated in what should be a fair market place,” said FBI Assistant Director-in-Charge Sweeney.

In January 2014, Mead gave a Ticketmaster executive multiple sets of login information to Toolboxes, the competitor’s password-protected app that provides real-time data about tickets sold through the company. Later, at an Artists Services Summit, Mead logged into a Toolbox and demonstrated the product to Live Nation and Ticketmaster employees. Information collected from the Toolboxes were used to “benchmark” Ticketmaster’s offerings against the competitor.

“Ticketmaster employees repeatedly – and illegally – accessed a competitor’s computers without authorization using stolen passwords to unlawfully collect business intelligence,” said Acting U.S. Attorney DuCharme in a statement. “Further, Ticketmaster’s employees brazenly held a division-wide ‘summit’ at which the stolen passwords were used to access the victim company’s computers, as if that were an appropriate business tactic.”

The hacking violations were first reported in 2017 when CrowdSurge sued Live Nation for antitrust violations. A spokesperson told The Verge, “Ticketmaster terminated both Zaidi and Mead in 2017, after their conduct came to light. Their actions violated our corporate policies and were inconsistent with our values. We are pleased that this matter is now resolved.”

To resolve the case, Ticketmaster will pay a $10 million criminal penalty, create a compliance and ethics program, and report to the United States Attorney’s Office annually during a three-year term. If the agreement is breached, Ticketmaster will be charged with: “One count of conspiracy to commit computer intrusions, one count of computer intrusion for commercial advantage, one count of computer intrusion in furtherance of fraud, one count of wire fraud conspiracy and one count of wire fraud.”

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