EGS Biweekly Global Business Newsletter Issue 33, Monday, June 28, 2021
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
“Strength and growth come only through continuous effort and struggle.”, Napoleon Hill, author.
“Motivation is the catalyzing ingredient for every successful innovation.”, Clayton Christensen
“Everyone wants to live on top of the mountain, but all the happiness & growth occurs while you’re climbing it.”, PakWired.com
Highlights in issue #33:
- The biggest business risks in 2021
- State of the Global Workplace – A global pandemic. And its impact on global engagement, stress and the workforce.
- Americans are quitting their jobs in droves
- How China’s dual circulation strategy heralds a new era for global trade and business
- Ready For Lift-Off: Looking to launch into your new future? Here are 10 good reasons why now is a good time to buy a franchise
- A little restaurant fun: Elephant in the room: visitor crashes through kitchen wall in Thailand
- Brand News Section: Denny’s®, Fuddruckers®, Krispy Kreme®, McDonald’s® UK, Olive Garden®, Schlotzsky’s®, School of Rock®, Texas Roadhouse®, Walk-On’s®
Key Trends This Issue
The increased lifting of international travel restrictions (!!!!!!), the future of work post-COVID, the acceleration of EU vaccinations and the continued slow growth of Asia Pacific country vaccinations are the trends we see in the 33rd edition of the EGS biweekly global business update newsletter. And a bit of fun with a late night restaurant visiting elephant in Thailand.
Our Mission and Information Sources
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™ on the ground covers 43 countries and provides us with updates about what is happening in their specific countries. Please feel free to send us your input and sources of information. Our contact information is at the bottom of this newsletter.
Interesting Data and Studies
“The post-pandemic future of work – according to 3,000 CEOs from around the world – Agility, technology and regulation are key priorities for chief executives post-pandemic, IBM finds in its survey of 3,000 global CEOs. The report also identifies five key factors that set outperforming CEOs apart. Employment and livelihood crises are one of the top risks for 2021, according to the World Economic Forum.”, Weforum.com, February 2021. Compliments of Patrick McClure, Sales Performance Consultant, Multi-Generational Expert, Professional Speaker, Trainer, and Coach, Southern California
“The biggest business risks in 2021 – Business Interruption tops the charts consistently as the biggest business risk. This risk has slotted into the #1 spot seven times in the last decade of the survey, showing it has been on the minds of business leaders well before the pandemic began. However, that is not to say that the pandemic hasn’t made awareness of this risk more acute. In fact, 94% of surveyed companies reported a COVID-19 related supply chain disruption in 2020.”, Visual Capitalist, June 14, 2021
“State of the Global Workplace – A global pandemic. And its impact on global engagement, stress and the workforce. 45% of people say their own life has been affected “a lot” by the coronavirus situation. Although not surprising, leaders need to focus on employee engagement and wellbeing to build organizational resilience for tomorrow’s workplace.”, Gallup, June 2021
A Little Release From The Stress of COVID-19 Recovery
“Elephant in the room: visitor crashes through kitchen wall in Thailand – Woman finds hungry elephant rummaging for late-night snack – and it’s not the first time he’s stopped by. It’s not the first time Boonchuay, who lives in Thailand’s Kaeng Krachan national park, has visited Chalermkiatpattana village. ‘They come to visit quite often. They always come when there is the local market because they can smell food,’ said Itthipon Thaimonkol, the park’s superintendent.”, The Guardian, June 21, 2021
Global, Regional & Local Travel Updates
“Business travel likely to resume in the fall, Hyatt Hotels CEO says – With more workers now returning to offices, it won’t be long until business travel also resumes, according to Hyatt Hotels CEO Mark Hoplamazian. ‘We are already seeing the signs of people starting to travel for work in a more affirmative way, a more significant way,’ Hoplamazian said in an interview during CNBC’s Evolve Global Summit on Wednesday. ‘Most of the bankers, consultants and lawyers that I’m talking to are gearing up to be back on the road, so I think that will really take hold in a more affirmative way in the fall,’ he said.”, CNBC, June 19, 2021
“Why Canada remains closed to travelers even as other parts of the world reopen – Since March of 2020, Canada — our neighbor to the north and closest ally — has kept its border closed. Leaders in Canada and the United States have extended the nonessential travel ban on a near-monthly basis since the onset of the COVID-19 pandemic. And, though some thought the ban might be relaxed this month, the two countries agreed to extend it again through at least July 21, 2021.”, The Points Guy, June 28, 2021
“Delta CEO expects business travel to return to pre-pandemic levels July 1 – Ed Bastian reveals domestic travel could see a full recovery by end of summer. “I think if you take the period from July 1 forward, we’re going to see business travel at levels that were consistent with where we were pre-pandemic,” he said. “There are so many businesses that need to get back out to their customers that have created new contacts they haven’t been able to serve during the pandemic period while they couldn’t travel that need to be back out with their teams.’”, Fox Business, June 17, 2021
“Europe Opens To Americans With And Without Covid Passport: Pack Your Bags As Amsterdam, Lisbon, Paris Await You – On June 18, the European Council added the U.S. to the list of Covid-19 safe countries due to its low infection rates and broadly successful vaccine rollout campaign. Since then, as explained by schengenvisainfo, ‘one by one the European Union member countries have been removing border restrictions for each other’s citizens and for third-country nationals — including arrivals from the United States.’”, Forbes, June 27, 2021
“Dubai Airport Reopens Terminal 1, Concourse D – In a move that shows confidence in a rapid return to normal activity, Dubai International Airport (DXB) is re-opening Terminal 1 and Concourse D effective June 24. The two facilities have been closed to all operations since March 2020 following the pandemic-driven crisis and the consequent dramatic reduction of air travel.”, Airways Magazine, June 22, 2021
“Emirates Airlines’ Aggressive Expansion – Middle East giant Emirates (EK) is on a spree to ramp up operations to cover 90% of its pre-pandemic network by the end of July. The airline plans to operate 880 weekly flights to 124 cities in its network as travel restrictions ease in most parts of the world.”, Airways Magazine, June 20, 2021
“UK to publish plans to lift travel curbs for fully vaccinated – Britain will next month publish plans to allow fully vaccinated people to travel unrestricted to all countries except those with the highest COVID-19 risk, in a boost for a travel industry wrecked by the pandemic.”, Reuters, June 24, 2021
“Thailand says it will reopen to travelers in October – The plan is to reopen the popular Southeast Asia country to fully vaccinated travelers “without quarantine or other inconvenient restrictions,” said Prime Minister Prayuth Chan-ocha on June 17, according to the Associated Press.”, The Points Guy, June 17, 2021
“Copa Airlines Expanding Network with Increased Frequencies to the United States – After a year and a half of COVID-related challenges, Copa Airlines is starting to ramp up its operations in the United States. Beginning this June, the airline will offer new flight frequencies to six major cities along the East Coast and West Coast, expanding its network to over 55 destinations throughout the Americas via Panama.”, Airline Geeks, June 16, 2021
“Cathay Pacific plans to increase flight schedule in October, marking start of ambitious Covid-19 recovery bid – Airline says it expects to lose less money in first half of this year than it did in same period in 2020. In a stock exchange filing, Cathay said it expected to fly 30 per cent of its pre-Covid-19 passenger flight schedule from October onwards, marking its biggest step forward to recover from the virus. The airline is currently operating just 3.5 per cent of its pre-pandemic schedule.”, South China Morning Post, June 18, 2021
“A major cruise line will sail from a US port this weekend for the first time in 15 months – In a milestone moment for the cruise industry that surely will have cruise fans celebrating, Celebrity Cruises on Saturday will kick off the first big-ship voyage out of a U.S. port since the start of the coronavirus pandemic.”, The Points Guy, June 25, 2021
“U.S. Tourists Can Now Travel to Italy without Quarantining – As of Monday, American tourists can travel to Italy for the first time in over a year. That means U.S. travelers who can provide proof of vaccination, a certificate of recovery from COVID-19, or a negative PCR- or rapid-antigen test taken within 48 hours of arrival can travel to Italy without observing an isolation period on arrival.”, CNN Traveler, June 21, 2021
“The Netherlands Has Reopened Its Border to American Travelers – The Netherlands officially reopened its border to U.S. travelers on Thursday without having to present proof of COVID-19 vaccination or take a COVID-19 test prior to their departure. There also are no requirements for travelers to quarantine once they arrive in the Netherlands.”, Travel and Leisure, June 25, 2021
“European Airlines Increase Flying Capacity – According to FlightGlobal, the number of aircraft parked for more than a week on the continent has more than halved between May and June as airlines prepare to take people on holiday. According to the European Travel Commission, 56% of Europeans expect to travel this summer.”, Airline Geeks, June 23, 2021
“How I Tackled International Flight Requirements without Getting Overwhelmed – These are the best resources for getting organized without feeling overwhelmed. Here are three easy steps to make sure you know all the requirements and have all the documents you need before you head to the airport for an international flight.”, Conde Nast Traveler, June 25, 2021
“Hawaii to end testing requirements if you are vaccinated – Good news for those who want to visit Hawaii but have been put off by the stringent testing requirements. As of July 8, if you are vaccinated, you will no longer be required to get a test prior to visiting Hawaii. You will also not have to quarantine.”, The Points Guy, June 24, 2021
“New Zealand Halts Travel Bubble With Australia – For the first time, New Zealand halts the trans-Tasman bubble to all of Australia, possibly resuming with negative COVID test results.”, Airways Magazine, June 27, 2021
Global Vaccine Update
“South Korea vaccination surge adds impetus to Asia push – Region’s slow rollout has hobbled economic recovery but officials are making up lost ground. South Korea is on track to inoculate three-quarters of its 52m people against Covid-19 over the next three months as the vaccine rollouts of east Asian governments gather momentum after early delays.”, The Financial Times, June 17, 2021
“China’s Covid-19 vaccination drive hits one billion mark – Milestone follows significant increase in number of jabs delivered in recent weeks, with the country accounting for over a third of the global total. More than 20 million doses have been delivered on some days, but medical experts warn that significant challenges remain.”, South China Morning Post, June 20, 2021
“At least 16 million people in England are likely to be offered a third dose of the virus alongside a flu jab this autumn. Everyone over 50 is to be offered a third Covid vaccine and a flu jab at the same time as part of an autumn booster campaign using high street pharmacies. Next week NHS executives will outline a “one in each arm” programme from September to shore up the country’s “immunity wall” against a winter surge in infections.”, The Times of London, June 26, 2021
This chart shows “the breakdown of vaccinations by those that have been partly or fully vaccinated. A person is considered fully vaccinated if they have received a single-dose vaccine or both doses of a two-dose vaccine. This data is only available for countries which report the breakdown of doses administered by first and second doses.”, Our World In Data, June 27, 2021
“Shenzhen Airport on COVID Red Alert, Cancels 400 Flights – Shenzhen International Airport (SZX) is on maximum alert after discovering one case of the COVID Delta variant among one of its workers. The Guangdong province has recently reported six cases while millions of SZX residents were tested during the past months after a small outbreak took place in the city’s port.”, Airways Magazine, June 21, 2021
Country & Regional Updates
Australia
“Sydney put into two-week hard lockdown – state premier – More than a million people in downtown Sydney and the city’s eastern suburbs were already under lockdown due to the outbreak, but health authorities said they needed to expand that after more COVID-19 cases were recorded, with exposure sites increasing beyond the initial areas of concern.”, Reuters, June 26, 2021
China
“How China’s dual circulation strategy heralds a new era for global trade and business – The implications of China’s strategy need to be clearly understood by foreign governments and companies. Expect trade frictions to worsen and a more demanding business environment as Beijing seeks greater economic independence while maximising the world’s dependence on China.”, South China Morning Post, June 25, 2021
“Foreign Businesses Hope China Tax Relief Will Curb Expected Expat Exodus – Foreign business in China this month are hoping city and provincial governments will announce new incentives to ameliorate an expected exodus of expats in connection with changes in tax rules. China’s central government decided two years ago to end tax-free status for rent, tuition and other “benefits in kind” for foreign residents at the end of 2021, exposing more of their pre-tax income to the country’s 45% top income tax rate.”, Forbes, June 21, 2021
Germany
“Germany to ramp up vaccinations in race with Delta variant – Germany will soon have so many doses of COVID-19 vaccine on hand that it will be able offer shots to passers-by in city centres or at places of worship as it seeks to vaccinate at least 80% of the population, health officials said on Saturday.”, Reuters, June 26, 2021
India
“Why India is poised to lead in post-pandemic growth – India has struggled mightily with a second wave of the COVID-19 pandemic that has overwhelmed its health care system and reduced its economy to a crawl in the past few months. But the world’s largest democracy is gradually rebounding and should still turn in a 2021 growth rate that is among the best in the global economy. India’s government is sticking with a gross domestic product (GDP) forecast of 10.5 per cent growth in the fiscal year that started on April 1.”, The Globe and Mail, June 22, 2021
Japan
“Up to 10,000 fans at Tokyo Olympic venues despite advice for behind-closed-doors Games – The Tokyo organising committee officials and the IOC said there will be a limit of 50 per cent of capacity up to a maximum of 10,000 fans for all Olympic venues. That limit will be confirmed or reduced — possibly to zero — after July 12 when the Japanese government will make a decision based on any state of emergency or other anti-Covid infection measures.”, The Times of London, June 19, 2021
Russia
“Cafes and restaurants with revenues below 2 billion rubles will be exempted from VAT – ‘According to the law, the provision of catering services in restaurants, cafes, bars, fast food outlets, buffets, cafeterias, canteens, snack bars, culinary departments, including catering services are exempted from taxation on the territory of the Russian Federation … Enterprises will be exempted from VAT if for the previous calendar year, the total income did not exceed 2 billion rubles,’ the State Duma said in a statement.”, RAPSI – Russian Legal Information Agnecy, June 16, 2021. Compliments of Paul Jones, Paul Jones & Co., Toronto
“Singapore Plans To Reopen Travel With Bold Strategy – Singapore is making an increasingly impressive case for its handling of the covid-19 global pandemic, as the city state looks forward. After bold early measures kept “worst case” scenarios largely out of play, and offered time to focus and learn, Singapore is actively looking to reboot its economy, with travel leading the way.”, God Save The Points, June 28, 2021
United States
“Capital-Spending Surge Further Lifts Economic Recovery – Businesses are pouring money into equipment and technology, a boon to economic growth. Nonresidential fixed investment, a proxy for business spending, rose at a seasonally adjusted annual rate of 11.7% in the first quarter, led by growth in software and tech-equipment spending, according to the Commerce Department.”, The Wall Street Journal, June 27, 2021
“U.S. Producer Prices Rose Strongly in May, Adding to Inflation Pressures. Prices that suppliers charge businesses and other customers jumped 0.8%. Most of the increase in overall producer prices came from a rise in goods prices, which leapt 1.5% in May from April. Price increases were broad-based.”, The Wall Street Journal, June 15, 2021
“Americans are quitting their jobs in droves – It is a subtle indication of optimism about the economy. Workers are quitting jobs at rates not seen this century. In April, according to preliminary data from the Department of Labour, 2.7% of the workforce quit their jobs—well above the previous peaks of 2.4%, briefly reached in 2001 and 2019.”, The London Economist, June 21, 2021
Brand News
“Denny’s hitting the road to recruit 20,000 employees – Denny’s is launching an unusual initiative to find employees amid a labor shortage that is hitting restaurant chains particularly hard. The fast-casual eatery is looking to hire 20,000 restaurant-level employees at both company-owned and franchise-operated restaurants across the United States. To aid in the effort, Denny’s is launching ‘America’s Diner Hiring Tour’…..”, Chain Store Age, June 24, 2021
“This Near-Extinct Burger Chain Has Just Been Saved – According to Restaurant Business, Luby’s Inc. announced an $18.5 million buyout deal with Black Titan Franchise Systems, which already owns and operates 13 Fuddruckers units and plans to acquire two more. The new owner will also acquire master worldwide ownership of the Fuddruckers brand, which will allow it to grow the franchise business both domestically and internationally. Fuddruckers currently has 92 locations across the United States, and chances are good most of those locations will remain open for business.”, Eat This, Not That!, June 21, 2021
“Fat Brands to acquire Hot Dog on a Stick and Marble Slab Creamery parent company Global Franchise Group – Fat Brands announces imminent acquisition of Global Franchise Group for $442.5 million. With the acquisition, Fat Brands will own 2,000+ company and franchise-owned restaurants globally with annual total sales of $1.4 billion.”, Nation’s Restaurant News, June 28, 2021
“Krispy Kreme among 17 companies set to IPO in the U.S. this week – Chinese ride-hail company Didi is expected to be the week’s top float, with plans to raise nearly $4 billion. Other big issuers should be cybersecurity company SentinelOne, Turkish e-commerce platform D-Market and doughnut chain Krispy Kreme.”, Axios, June 28, 2021
“This Steakhouse Chain Is Exploding in Popularity – As the dining sector rebounds, one particular type of restaurant is seeing major demand: the steakhouse. America’s largest steakhouse chain, Texas Roadhouse, recently reported soaring sales numbers in the first quarter of the year, while even smaller, higher-end steakhouse brands reported record sales this spring.”, Eat This, Not That, June 28, 2021
“McDonald’s has been lovin’ it during lockdown – When things got bad, Britain hit the Big Macs. It has been a golden period for the golden arches. Maccy D’s is supersizing itself. It is recruiting at least 20,000 workers and opening 50 new restaurants in Britain and Ireland.”, The Times of London, June 27, 2021
“OIive Garden parent’s same-store sales near pre-pandemic levels as Covid restrictions ease – Darden Restaurants on Thursday reported that its fiscal fourth quarter same-store sales nearly returned to 2019 levels as states rolled back dining restrictions. The company also released an outlook for fiscal 2022, predicting that that its total sales for the year will top pre-pandemic revenue.”, CNBC, June 24, 2021
“A Schlotzsky’s Family: From busboy to 18-unit franchisee – JJ Ramsey remembers being a 14-year-old teenager in the mid-1990s when his parents bought their first Schlotzsky’s. ‘I was a busboy,” he recalls. “The job really taught me how to be successful regardless of what you choose to do in life.’”, Franchising.com, June 2021
“School of Rock Expands in South Africa with New Master Agreement – School of Rock currently has 291 existing locations open and operating across 11 countries: the United States, Canada, Mexico, Brazil, Peru, Chile, South Africa, Australia, Philippines, Paraguay, and Spain. In the coming year, the brand plans to open schools in Taiwan, Ireland, Colombia, and Portugal.”, Franchising.com. June 23, 2021
“Reopening strategies at Walk-Ons – Scott Taylor, president and COO of Walk-Ons Sports Bistreaux, takes us on the restaurants’ road to reopening. The chain, started in 2003, has more than 100 locations across 15 states. Taylor says with additional money flowing into the economy, consumers are ready to get back to dining in restaurants, and that he’s definitely seeing an uptick in sales at his units.”, National Restaurant Association, June 10, 2021
Articles & Studies About Doing Business Going Forward
“Ready For Lift-Off: Looking to launch into your new future? Here are 10 good reasons why now is a good time to buy a franchise.”, Franchise New Zealand magazine, compliments of Simon Lord, Publisher
“Covid Accelerates Franchising’s Adoption of Marketing Technologies, Part 2 – In part 2, we hear from Twist Brands (Painting with a Twist, Color Me Mine), the Moran Family of Brands; link to the 3rd Annual Localized Benchmark Marketing Report from SOCi and Localogy; and take a look at what’s ahead for marketing technologies.”, Franchising.com, June 23, 2021
“The next normal arrives: Trends that will define 2021—and beyond – 2021 will be the year of transition. Barring any unexpected catastrophes, individuals, businesses, and society can start to look forward to shaping their futures rather than just grinding through the present. The next normal is going to be different.”, McKinsey, January 2021
“Figure Out the Right Hybrid Work Strategy for Your Company – As leaders grapple with how to return their teams to the office, they face an additional challenge when discussing hybridity: What they think is a single discussion is in fact three different discussions in disguise, each with different objectives. It’s a bit like trying to declare a winner among three teams that are each playing a different sport. In this case, the three conversations are about productivity, staffing, and culture, and each has its own objectives, arguments, and proponents.”, Harvard Business Review, June 15, 2021
“Today in Aviation: Delta Air Service Maiden Flight – Delta Air Service operates its first passenger flight from Dallas, Texas, to Jackson, Mississippi, US, in 1929. Delta’s history begins with a crop-dusting adventure in the US and Peru. Huff Daland Dusters, the predecessor of Delta, was the first commercial agricultural flying company, and Huff Daland’s 18 planes became the largest privately-owned fleet in the world.”, Airways Magazine, June 17, 2021
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William (Bill) Edwards, CFE, is CEO and Global Advisor of Edwards Global Services (EGS). He has 46 years of international operations, development, executive and entrepreneurial experience and has lived in 7 countries. With experience in the franchise, oil and gas, information technology and management consulting sectors, he has directed projects on-site in Alaska, Asia, Europe and the Middle and Near East. Mr. Edwards advises a wide range of companies on early to long term global development of their brands.
My latest article: “LEADERSHIP – We Spoke to William (Bill) Edwards of Edwards Global Services on Being an Effective Leader During Turbulent Times.”, Authority magazine, April 22, 2021
For truly global market research, operations and development support across 40 countries, contact Mr. Edwards at bedwards@edwardsglobal.com or +1 949 224 3896.
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