EGS Biweekly Global Business Newsletter Issue 70, Tuesday, November 29, 2022
Edited and curated by: William (Bill) Edwards, CFE, CEO of Edwards Global Services, Inc. (EGS)
China begins to loosen Zero COVID travel Well so much for China relaxing zero COVID rules. Fall out needs to be watched closely for global impact. Mixed signals on global and country inflation and growth. McDonald’s reopens in the Ukraine, sort of. Who knew the Airbus 380 would come back into service so fast post pandemic? A look at the world’s most livable cities and the cost of gasoline worldwide.
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First, A Few Words of Wisdom From Others
“The miracle of gratitude is that it shifts your perception to such an extent that it changes the world you see.”, Dr. Robert Holden
“Whether you think you can, or you think you can’t, you’re right.”, Henry Ford
“Success is the sum of small efforts, repeated day in and day out.”, Robert Collier
Highlights in issue #70:
- Brand Global News Section: California Pizza Kitchen®, Dominos®, FATB Brands, Nando’s®, Taco Bell®, Tim Horton’s®, Title Boxing® and Wendy’s®
NOTE: Bolded headlines in this newsletter are live links where the article is available without a subscription.
Interesting Data and Studies
“World Population Hits 8 Billion, U.N. Says – The planet reached the milestone about a year later than expected because of the Covid-19 pandemic. U.N. officials said the milestone was an indicator of humanity’s achievements in medicine, nutrition, public health and personal hygiene. The world’s population has grown rapidly since 1900 largely thanks to soaring birthrates in some regions and healthcare advancements, according to the U.N.”, The Wall Street Journal, November 15, 2022
“Visualizing the World’s Top Social Media and Messaging Apps – In 2022, the social universe is looking more crowded than in previous years. The scale of Meta’s platforms still dominate thanks to their global reach, but there are a number of smaller networks fighting for market share. Here’s a look at popular platforms, organized from largest to smallest active userbase…..”, Visual Capitalist, November 18, 2022
“The world’s most liveable cities – Life is getting back to normal, if not quite everywhere. For the third time in the past five years, Vienna has come top of the EIU’s ranking. Originally designed as a tool to help companies assign hardship allowances as part of expatriates’ relocation packages, the EIU’s (Economist Intelligence Unit) index rates living conditions in 172 cities (up from 140 last year) based on more than 30 factors. These are grouped into five categories: stability, health care, culture and environment, education and infrastructure.”, The Economist, June 22, 2022
Global Supply Chain, Energy, Commodities, Inflation & Trade Issues
“Global inflation likely to have peaked, key data indicators suggest – Factory gate prices, shipping rates and expectations suggest headline price growth will slow. According to economists, the figures suggest that price pressures on global supply chains are easing, making it likely that headline inflation will fall from the historically high rates that hit household finances and business activity in recent months.”, The Financial Times, November 27, 2022
“Global Energy Prices, by Country in 2022 – For some countries, energy prices hit historic levels in 2022. Gasoline, electricity, and natural gas prices skyrocketed as Russia’s invasion of Ukraine ruptured global energy supply chains. Households and businesses are facing higher energy bills amid extreme price volatility. Uncertainty surrounding the war looms large, and winter heating costs are projected to soar.”, Visual Capitalist and New York Life, November 17, 2022
Global & Regional Travel Updates
“The world’s biggest plane is back – Here’s why – Covid nearly killed the popular Airbus A380, but now the double-decker plane is making a comeback. But the A380’s days were numbered, even before Covid. Airlines got their passenger predictions wrong. Demand for air travel post pandemic has recovered so fast that carriers cannot get their hands on enough jets to satisfy it. Global supply chain snarl-ups and shortages of everything from microchips to labour that have delayed production of new long-haul jets have made matters worse.”, The Times of London, November 18, 2022
“Japan to Welcome Cruise Ships Back after More than 2 Years – Japan will once again welcome cruise ships back to the country for the first time since the pandemic began. The country, which captured the world’s attention at the start of the pandemic with the outbreak of COVID-19 on the Diamond Princess ship, will now look to lift a more than 2 1/2-year ban on international cruise ships, The Associated Press reported.”, Travel and Leisure, November 17, 2022
Country & Regional Updates
Asia
“Asia Embraces Work from Home But Bosses Say No to Four-Day Week – A survey found that remote work is likely here to stay. Attitudes about work from home vary across the region. The number of Asian businesses expecting employees to spend their entire working life operating from an office has plummeted during the pandemic, in a pivot to hybrid working that looks here to stay. Though over half of companies in Asia expected their staff to work in the office full time before the pandemic, the number has now fallen to 13%, according to a questionnaire conducted by the Center for Creative Leadership, a US-based education nonprofit.”, Bloomberg, November 18, 2022
China
“Chinese lenders to pump $162bn of credit into property developers – Injection is most direct move yet by Beijing to counter a real estate crisis. ‘The move is unprecedented,’ said Yan Yuejin, research director of E-house China Research and Development Institute in Shanghai. Yan said the rare disclosure of the loan details by Chinese commercial banks indicated authorities want to shore up confidence.”, The Financial Times, November 24, 2022
“Will Unrest In China Spook Markets? China has been hit by twin shocks. First of all the rate of COVID infections has spiked dramatically higher, pushing above levels seen at the last peak and this suggests that China following its very strict COVID policy we’ll have to lock down further and greater parts of its economy. The second shock which many did not expect, is the reaction of ordinary Chinese to the COVID shutdowns. There have been riots and unrest reported across China and this is relatively unusual.”, Forbes, November 27, 2022
Czech Republic
“Prague Christmas market returns after COVID but with fewer lights – Thousands of people poured into Prague’s medieval Old Town Square at the weekend for the lighting of a 25-metre (80-foot) Christmas tree and the reopening of the annual market after a two-year COVID-19 shutdown, but the energy crisis meant fewer lights than usual. The market, which is popular with Czechs and foreign tourists alike thanks to its mulled wine, sausages, sweets and gifts, was set up with more energy-efficient bulbs to both save money and send a seasonal message of energy efficiency.”, Reuters, November 27, 2022
European Union
“Euro-Area Consumer Confidence Increases to 5-Month High – Consumer sentiment in the euro area rose to a five-month high, a sign of resilience among households at a time when the region is probably in recession. The gauge of confidence increased to -23.9 in November, according to the European Commission. The (European) Commission observed that consumer confidence still ‘remains at a very low level, well below its long-term average.’”, Bloomberg, November 22, 2022
Germany
“German manufacturing PMI rises for first time since outbreak of Ukraine war – Activity in Europe’s largest manufacturing economy improved in November for the first time since Russia’s invasion of Ukraine, according to a closely-watched business survey. The manufacturing purchasing managers index compiled by S&P Global rose to 46.7 from 45.1 in October……The comparable index for the services sector also improved surprisingly, leading the composite PMI to rebound to 46.4 from 45.1.”, Investing.com, November 23, 2022
Thailand
“Tourism revival likely boosted Thailand’s GDP growth in Q3 – Thailand’s economy grew at its fastest pace in more than a year last quarter, boosted by a rebound in tourism and private consumption, but the outlook was clouded by risks of a global economic slowdown, a Reuters poll predicted. Growth in Southeast Asia’s second-largest economy was estimated at 4.5% year-on-year in the third quarter, according to the median forecast of 13 economists polled on Nov. 11-16, up from 2.5% growth in the previous quarter.”, Reuters, November 16, 2022
Ukraine
“The McDonalds restaurant has resumed work in Khmelnytskyi (Ukraine) – ‘In accordance with the enhanced safety regulations, during the air raid alert, the facilities will be closed to allow employees and patrons to move to the nearest shelter. In doing so, the team will promptly issue pre-paid orders while halting production processes and turning off equipment before closing. The restaurant will resume work approximately one hour after the alarm is canceled: this time is needed to turn on and set up the equipment and to prepare the employees for work.”, Epravda, November 17, 2022. Translation and article compliments of Paul Jones, Jones & Co., Toronto
United Kingdom
“UK doubles coal imports to head off winter energy crisis – The increasing use of coal-generated power in the UK comes after years of the country shifting to cleaner electricity from gas-fired power plants and renewables, but is deemed vital as Russian president Vladimir Putin crimps gas supplies to Europe. Figures from Kpler, a commodity analytics firm, show that last month more than 560,000 tonnes of coal came into British ports, compared to the 291,089 tonnes that arrived in October 2021, a 93 per cent increase.”, The Times of London, November 27, 2022
United States
“Black Friday Traffic Up 2.9% As Shoppers Return To Stores – The foot traffic to non-indoor mall locations, including lifestyle centers, open-air malls, neighborhood centers, and stand-alones, increased by 4.7%. ‘The strong traffic numbers for Black Friday show that shoppers are returning to stores and enjoying the socialization the holiday brings,’ said Brian Field, global leader of retail consulting and analytics at Sensormatic Solutions.”, Forbes, November 26, 2022
Brand & Franchising News
“Why the (US) Pet Industry Is a Recession-Resistant Franchise Sector – More than 23 million American households — nearly 1 in 5 nationwide — adopted a pet during the pandemic, according to the ASPCA. The pet market grew 14% in 2021— an increase over the 10% growth the industry experienced in 2020. The industry is evolving to meet the needs of modern pet ownership, resulting in a shift toward more convenient and tech-forward services, as well as more sustainable and environmentally friendly products.”, Franchising.com, November 27, 2022
“California Pizza Kitchen Announces Franchise Opening in Costa Rica – This newest CPK franchise builds on a momentous year for the brand, which opened new restaurants in Canada, India, and Chile earlier this year. CPK’s latest franchise location will be owned and operated by Byron Mora Porras, Chairman of Conceptos Gastronomicos, part of a larger company that currently operates restaurants and retail stores in eleven countries throughout Central and South America.”, Franchising.com, November 18, 2022
“Domino’s is building a fleet of GM Chevy Bolt EVs for the future of pizza delivery – Domino’s will roll out 800 custom-branded 2023 Chevy Bolt electric vehicles at locations across the U.S. in the coming months. The pizza chain restaurant has previously set a goal of net-zero carbon emissions by 2050, and CEO Russell Weiner said optimizing how it delivers pizza is key.”, CNBC, November 26, 2022
“FAT Brands reaches new milestone with 100th store opening this year. FAT Brands, the global franchising company that owns restaurants including Johnny Rockets, Fatburger, Round Table Pizza, Twin Peaks and 13 other concepts, announced that it has opened a record-breaking 100 new franchised locations so far this year and is poised for further growth, with approximately 25 additional stores slated to open by year-end. This is the first year since the company’s inception in 2017 that it has surpassed 100 openings in a year.”, VF Franchising, November 24, 2022
“Nando’s (UK) defies costs to serve up recovery – Pre-tax losses fell to £99.5 million compared with £241.8 million in the previous year. However, like many other businesses, the chain has been saddled with costs stemming from high inflation and global supply chain disruption, forestalling a return to profitability. The company’s wage bill increased from £243 million last year to £363 million. Rob Papps, chief executive, ……said: ‘The 2022 financial year saw a significant bounceback in customer demand following a return to eating out since the peak of the pandemic.’”, The Times of London, November 28, 2022
“What Does The Taco Bell Menu Look Like In India? In 2010, according to QSR, Taco Bell opened its first outlet in India, and in the 12 years since then, millions of people on the subcontinent have eaten tacos, burritos, and other specialties, adapted or invented for the market. There’s no beef at Taco Bell India.”, The Daily Meal, November 17, 2022
“Tim Hortons teams up with Alibaba to woo Chinese coffee drinkers – The operator of Canadian coffee chain Tim Hortons in China said on Thursday it had forged a two-year partnership with Alibaba Group’s (9988.HK) grocery chain that will see the two launch co-branded products. E-commerce giant Alibaba’s Freshippo will begin sales next month at its stores, of which it has more than 300, as well as through its official app, it said in a statement. Products will include drinks such as Velvet Cocoa Coffee.”, Reuters, November 17, 2022. Compliments of Paul Jones, Jones & Co., Toronto
“TITLE Boxing Club Announces International Deal Across Nine Countries – The nine countries being added to TITLE Boxing Club’s roster are: Bangladesh, Cambodia, Indonesia, Nepal, New Zealand, Philippines, Singapore, South Korea and Thailand.”, Franchising.com, November 18, 2022
“Burger chain Wendy’s cooks up plans for Ireland – The Dublin, Ohio-headquartered company announced on Monday that it plans to continue its expansion into the European market following on from the success of its return to the UK in 2021. Wendy’s, which has around 7,000 restaurants worldwide, currently owns 25 in the UK, ten of which are operated by the main company behind the brand and 15 of which are franchised out. The chain said that it is seeking ‘well-established franchisee candidates in Ireland that have strong operations experienced, local development expertise, ambition to grow quickly and a proven track record of growing brands in Ireland.’”, The Irish Times, November 28, 2022
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Our Mission, Information Sources & Who We Are
Our biweekly global business update newsletter focuses on what is happening around the worldthat impacts new trends, health, consumer spending, business investment, economic development and travel. We daily monitor 30+ countries, 40+ international information sources and six business sectors to keep up with what is going on in this ever-changing environment. Our GlobalTeam™ covering 25+ countries provides us with updates about what is happening in their specific countries.
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William (Bill) Edwards has a four-decade career successfully accelerating the growth of more than 40 brands worldwide. He has directed projects on-site in Alaska, Asia, Europe and the Middle and Near East and has lived in China, the Czech Republic, Hong Kong, Indonesia, Iran and Turkey. Edwards Global Services, Inc. (EGS) provides a complete International solution for companies Going Global. From initial global market research and country prioritization, to developing new international markets, providing in-country operations support and problem solving around the world. EGS has twice received the U.S. President’s Award for Export Excellence. For advice on doing business successfully across 40+ countries, contact Bill Edwards at bedwards@edwardsglobal.com or +1 949 224 3896.
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