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Biweekly Global Business Newsletter Issue 114, Tuesday, August 6, 2024

Posted on Aug 5th, 2024 in Asia Pacific, Europe, India, Miscellaneous, Predictions and Trends, Professional Development, World Culture, World Economy | Comments Off

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Commentary about the 114th Issue: Vistage CEO Confidence Index took a dip in Q2 2024 while U.S. consumer confidence was up in June. Three of every four employers globally reported difficulty finding the talent they need. The U.S. and Canada lead G7 country wage growth from 2020-2022. Singapore is the safest city in Asia. A Big Mac® costs US$5.69 in the U.S., US$8.17 in the Czech Republic and US$2.39 in Taiwan. U.S. importers are rushing goods in early ahead of shipping disruptions. 7 ways AI is changing business travel. A look at real GDP growth in European countries in 2023. Jamie Diamond says businesspeople need to travel more. The United Kingdom’s consumer inflation falls to 2%. And is Paris ready for Wingstop® restaurants?

Reports in this edition from Australia, Canada, China, Europe, Mexico, Turkey, the United Kingdom and the USA.

Edited and curated by: William (Bill) Edwards, CEO & Global Advisor, Edwards Global Services, Inc. (EGS), Irvine, California, USA. Contact Bill with any questions, comments and we welcome contributions.

Bedwards@edwardsglobal.com, +1 949 375 1896

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The mission of this newsletter is to use trusted global and regional information sources plus our network of 20+ in-country Associates to update our global readers on key global and local trends that can impact the success of their businesses at home and abroad. We subscribe to about 40 international information sources to keep our readers up to date on the world’s business. Some of the information sources that we provide links to require a paid subscription for our readers to access.

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First, A Few Words of Wisdom From Others For These Times

“The battleline between good and evil runs through the heart of every man.”, Alexander Solzhenitsyn

“For the only way in which a durable peace can be created is by worldwide restoration of economic activity and international trade.”, James Forrestal

“You must be the change you wish to see in the world.”, Mahatma Gandhi

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Highlights in issue #114:

Vistage Q2 2024 CEO Confidence Index Highlights
2024 Global Talent Shortage
JPMorgan CEO Jamie Dimon says travel is essential for business leaders
U.S. Importers Are Rushing Goods in Early Ahead of Shipping Disruptions
7 Ways AI Is Changing Business Travel
The 10 Busiest Ports in the World, by Cargo Traffic
This Asian City Was Crowned World’s Safest Destination For Travelers
Coal’s Asian Comeback
Is Paris ready for Wingstop?
Brand Global News Section: 7-11®, Carl’s Jr®, Guzman Y Gomez®, Luckin Coffee®, Taco Bell®, McDonalds® and Wingstop®

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Interesting Data, Articles and Studies

“Vistage Q2 2024 CEO Confidence Index Highlights – The Vistage Confidence Index provides a quarterly report on the outlook CEOs of SMB companies have about the economy, hiring, and profitability. CEO confidence takes a dip”, Vistage, August 2024

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“2024 Global Talent Shortage – Three of every four employers globally reported difficulty finding the talent they need, with the biggest impacts being felt in Japan. Employers in the Health Care and Life Sciences industry reported the most difficulty. IT & Data skills are the most challenging to find, regardless of industry and geography. Today, 75% of employers report difficultly in filling roles.”, The Manpower Group, July 31, 2024

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“Massive appropriation of labor from the Global South enables high consumption in rich countries – The high levels of consumption enjoyed by wealthy countries in the Global North are only possible because of mass appropriation of labor from the population of the Global South….. the Global North imported 906 billion hours of embodied labor from the South while exporting only 80 billion hours in return. In other words, for every hour of labor the Global South imports from the Global North, they must export 11 hours to “pay” for it. The wage value of this net-appropriated labor was equivalent to €16.9 trillion in 2021, in Northern prices. In other words, this is how much the appropriated labor would be worth if it was paid at prevailing Northern wages, with equal wages for equal work.”, Phys.org, July 29, 2024

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“WTO (World Trade Organization) Members Signal Progress on Draft E-Commerce Deal – Pact is designed to ban tariffs on fast-growing digital trade. List of participants doesn’t include India and South Africa. About half of the World Trade Organization’s members reached a preliminary deal on e-commerce to permanently ban tariffs on digital transactions that are zipping across borders at twice the growth rate of physical merchandise. Among the 91 participants were the US, China, Japan, the UK and the major economies of the European Union — although Washington also signaled a reluctance to fully endorse it.”, Bloomberg, July 27, 2024

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Global Supply Chain, Energy, Commodities, Inflation, Taxes & Trade Issues

“Wage Growth In G7 Countries – 2020-2022 – Average wage growth is a key sign of how well a country’s economy is doing. When wages rise, it typically signals that businesses are thriving and can afford to pay their employees more, which in turn boosts consumer spending and stimulates further economic growth. On the other hand, stagnant or declining wages can indicate economic challenges, such as high unemployment, low productivity, or weak business performance. This graph shows the average annual real wage growth for full-time workers of G7 countries from 2000 to 2022. The data comes from the OECD and is updated as of March 2024. Data is in U.S. dollars and adjusted for purchasing power parity (PPP), which equalizes the purchasing power of different currencies. Wages are adjusted for inflation to reflect 2021 prices.”, Visual Capitalist and OECD, July 15, 2024

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“The Price of a Big Mac Across the World – The Big Mac Index, created by The Economist in 1986, started out as a simple tool to make currency theory more digestible. Now, it’s a widely-known measure in popular economics to assess and compare currency valuations. In short, the Big Mac index compares the purchasing power parity (PPP) of currencies using the price of a Big Mac in the U.S. as the benchmark. It shows how much a Big Mac costs in various countries compared to the U.S., but it also works as a way to assess exchange rates. In this graphic, we visualize the price of a McDonald’s Big Mac in U.S. dollars between 13 different countries around the world, the eurozone, and the United States, using the latest January 2024 data from The Economist’s Big Mac Index dataset.”, The Economist, July 22, 2024

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“Coal’s Asian Comeback – Southeast Asia’s renewable energy potential is some of the greatest in the world. In bold pursuit of renewable energy, Vietnam is undertaking an unorthodox but promising green hydrogen strategy, Thailand’s Prime Minister has promised to explore the cutting edge of nuclear power, and the Philippines has received broad praise for its commitment to renewables and regional trend-setting. Indonesia and the Philippines, for example, are increasing their dependence on coal. The share of power generated by coal in both the Philippines and Indonesia both recently surpassed China, becoming some of the world’s most coal-dependent countries. According to the London-based think tank Ember, coal generation in the Philippines grew much faster than the rise in electricity demand in 2023 – coal generation grew by about 9.7%, while electricity demand grew by 4.6%. Both Indonesia and the Philippines reached over 61% coal generation.”, Forbes, July 28, 2024

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“U.S. Importers Are Rushing Goods in Early Ahead of Shipping Disruptions – The strategy comes as freight rates are rising and new tariffs are set to hit some goods from China. Import containers have been landing at American seaports in far bigger numbers than usual since the late spring, marking an early start to the annual peak shipping season leading into the fall. It also marks a big bet for importers who risk being stuck with excess inventories if consumers don’t pick up their spending. Paul Bingham, director of transportation consulting at S&P Global Market Intelligence, said U.S. retailers and manufacturers don’t want to risk lost sales, even though they are paying a steep price as shipping disruptions drive up container rates to levels not seen since the Covid pandemic. ‘A natural reaction of supply-chain managers in the face of potential further disruption, even though the rates are higher, has been to advance the shipping times,’ Bingham said. Supply-chain executives see warning signs flashing around the globe, from drought-triggered limitations at the Panama Canal to the threat of a strike by dockworkers at U.S. East Coast and Gulf Coast ports this fall.”, The Wall Street Journal, July 23, 2024

Editor’s Note: A TEU (twenty-foot equivalent unit) is a measure of volume in units of twenty-foot long shipping containers.

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“New Labor Unrest Hits U.S. Ports – The peak shipping season is getting underway with another threat of labor disruption at American ports. The union representing about 45,000 workers at ports from Maine to Texas and the seaport employers are in a standoff with no negotiations on the calendar and the current longshore contract due to expire in a little over two months. German port workers are considering a “final offer” from employers after staging several walkouts in recent weeks. (Maritime Executive). A vote at a Coventory warehouse to force Amazon to recognize a union for the first time in the U.K. fell just short of a majority. (Financial Times).”, The Wall Street Journal, July 2024

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“The 10 Busiest Ports in the World, by Cargo Traffic – In 2024, nine of the world’s 10 busiest ports are located in Asia, underscoring the eastward shift in global trade flows. Due to supply chain shifts and deeper integration, intraregional trade within Asia has grown significantly. In the 1990s, over 70% of Asian exports by value went beyond the region, with containers being shipped back mostly empty. By comparison, roughly 60% of exports in Asia are traded within the region today. As we can see, seven out of the 10 busiest ports in the world are located in China, illustrating its central role in global manufacturing and trade. Since 2009, the country has been the largest exporter of goods in the world.”, Visual Capitalist, July 26, 2024

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“In the U.S., the AI Revolution Could Create Localized Power Crunches – The growth of U.S. data centers will run into power availability issues and permitting bottlenecks, spurring more technology companies to secure access to electricity directly from renewable power generators, though any systemic risks to electrical grids will likely be localized. The ongoing surge of demand from data centers, as well as from the electrification of many sectors amid the energy transition and intermittent renewable energy sources, will aggravate the challenges for interconnection grids. Facing power availability and permitting bottlenecks risks, technology companies setting up large data centers will be increasingly creative in trying to buy on a long-term basis reliable renewable energy power, even if at a relatively high cost.”, Worldview Rane, July 26, 2024

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Global & Regional Travel & Living

“JPMorgan CEO Jamie Dimon says travel is essential for business leaders – Business travel, long a vital part of a CEO’s job, is rebounding to pre-pandemic norms despite the increased use of videoconferencing tools. And for good reason, says JPMorgan CEO Jamie Dimon, who admits he’s constantly on the road because executives must prioritize face-to-face interactions with their employees, customers, and clients. ‘Leaders have to get out. They have to get out all the time. They have to be curious; ask a million questions,’ he recently said on LinkedIn’s This is Working series. Corporate travel, according to Dimon, also allows leaders to identify and learn from competitors about their company’s market position, as well as client needs and criticisms. he CEO said he’s often amazed by how many leaders lack a realistic assessment of what’s going on beyond their limited scope in both the public and private sectors. This leads to the creation of poor policies.”, Fortune, July 29, 2024

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“7 Ways AI Is Changing Business Travel – Someday a computer-generated avatar may explain why you can’t fly business class to Dubai. In the meantime, travel management and travel tech companies are testing how to apply Gen AI to various parts of business travel. Travelport, a tech company that provides reservation software for travel agents, this month introduced a feature called the Content Curation Layer (CCL). This feature uses AI to improve travel searches by quickly sorting through billions of options to find the best matches for customers. Business travelers dread filing expense reports. When various tools sync, though, the process can be simpler. Tech integrations can enable suppliers, such as airlines and hotels, to send electronic receipts straight to the expense reports required by companies. Travelers can ideally just click to submit items via travel management software. Skift, July 26, 2024

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“This Asian City Was Crowned World’s Safest Destination For Travelers – According to a new Forbes Advisor survey, Singapore is the world’s safest tourist destination, a remarkable feat for the city-state. The comprehensive analysis evaluated 60 international destinations and placed Singapore at the top of the list, cementing its reputation as a secure location for global travelers. The research examined various safety parameters, including crime rates, healthcare quality, infrastructure, and risks related to natural disasters and digital security. It assigned safety rankings ranging from 0 to 100, with the safest cities earning the lowest scores. Singapore achieved a perfect score of 0 points in the study, indicating the lowest possible risk across all categories assessed.”, Travel & Noire, August 2, 2024

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Book Review

“Own the AI Revolution” by Neil Sahota and Michael Ashley is a guide for leveraging artificial intelligence to drive business growth and innovation. The book offers practical insights into integrating AI into various industries, emphasizing its potential to transform operations, enhance customer experiences, and create competitive advantages.

It includes real-world case studies, strategies for AI adoption, and discussions on ethical considerations and future trends. The authors aim to demystify AI, making it accessible for business leaders and entrepreneurs to harness its power effectively and responsibly in their organizations.

Editor’s Note: Neil Sahota was a keynote speaker at the May 23rd, 2024 Orange County World Trade Week conference in Irvine, California. Neil simpllfies AI for the audie

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Country & Regional Updates

Australia

“Small business confidence dips amid economic strain – Small businesses in Australia are feeling the pinch, with financial confidence significantly lagging behind their big business counterparts, according to CreditorWatch’s latest Business Sentiment Survey. The survey highlights the unique challenges faced by small businesses in the current economic climate. CreditorWatch’s survey results show that 82 per cent of decision-makers in large businesses feel confident about their financial health, rating it as ‘good’ or ‘very good’. This drops slightly to 76 per cent among medium-sized businesses but plummets to just 45 per cent among small businesses. This gap in financial sentiment highlights just how vulnerable small businesses are to the ups and downs of the economy.”, Australian Business Builders, July 30, 2024

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Canada

“American invasion: Why so many U.S. fast food chains are charging into Canada – Here are the chains making a run for the northern border and why they believe Canadians have a growing appetite for fast food. In relatively short order, Canada has become a hotbed for fast foodexpansion from the United States. Shake Shack opened its first Canadian location in Toronto last week, with plans for 34 more restaurants by 2035. Sandwich shops Jimmy John’s and Jersey Mike’s are also among the American chains with sights set on the Canadian market. The Canadian restaurant market is quite different than what Shake Shack is used to in the U.S., said Robert Carter, a food industry analyst with StratonHunter Group, in an interview held before Shake Shack revealed its first Toronto location. ‘They’re coming from a market that’s $800 billion in size to a market that’s $90 to $100 billion in size here in Canada,’ he said. ‘Too many times we’ll have a U.S. brand that’ll come into the market and think just because it’s a smaller market or they’re just close to the U.S., it’s going to be the same strategy or marketing plan, when in fact there’s nuances they’ll have to address.’”, The Financial Post, April 30, 2024

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China

“China’s non-financial debt growth slows with firms and households unwilling to leverage up – ‘China’s macro leverage ratio is now higher than other major economies, which is due to years of persistently weak price increase,’ the report published by the Beijing-based National Institute for Finance and Development said on Monday. ‘We need to crank up countercyclical adjustment to bring about inflation to counter the rising leverage trend, boost business confidence and tackle risks’. Growth of debt within China’s non-financial sectors fell to the lowest level in more than two decades in the second quarter as corporations and households remained reluctant to borrow, according to a Beijing-based think tank.”, South China Morning Post, July 23, 2024

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“China looks for new ways to boost spending on services, from senior care to tourism – China is pinning more hopes on the services sector to lift demand and breathe new life into the economy, with a raft of new measures to boost spending in areas ranging from tourism to care for the elderly. In a 20-point directive released on the weekend, the State Council, the country’s cabinet, said it would increase support for nursing care, consider extending visa-free policies to more countries, and encourage “low-altitude tourism” to spur spending on services, a sector that is growing faster than goods. In the first half of 2024, 14.64 million overseas visitors entered the country, roughly 2½ times the number for the same period last year, as authorities reinstated the 144-hour free transit visa to cover 54 countries and 37 entry points, according to the most recent official data. In addition, services related to basic home-based needs such as catering, elderly care, childcare and housekeeping should also be expanded, it said.”, South China Morning Post, August 4, 2024

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Europe

““Real GDP Growth Rate in European Countries – 2023 – The economic landscape in Europe during 2023 presented a fascinating mix of rapid growth and unexpected downturns, reflecting the continent’s complex and varied economies. In a surprising turn, Montenegro emerged as the fastest-growing economy in Europe in 2023. This small Balkan country’s gross domestic product (GDP) surged by 4.5%, outpacing other nations in the region. Montenegro’s growth was driven by a booming tourism sector, investments in infrastructure, and a strong rebound from the pandemic’s economic impacts. Turkey and Malta also posted impressive growth rates, with Turkey growing at 4% and Malta at 3.8%. Turkey’s economy benefited from robust export performance and a resilient domestic market, while Malta saw gains from its financial services sector and a recovering tourism industry. Estonia experienced the largest negative growth, with its economy shrinking by 2.3%. Germany, Europe’s largest economy, also faced challenges, experiencing slightly negative growth at -0.5%.”, Statista and World Bank, August 3, 2024

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Mexico

“Assessing Mexico’s Post-Election Economic Outlook – Mexican President-elect Claudia Sheinbaum’s pledge to pursue a constitutional reform that would overhaul the country’s judicial and institutional systems could diminish Mexico’s attractiveness as a destination for foreign investment at a time when the country stands to benefit from global supply chain restructuring. In recent weeks, president-elect Sheinbaun has promised to pass a wide-ranging constitutional reform that would affect labor rights, environmental issues, and independent government regulatory bodies, including the National Electoral Institute, among other agencies. Some of these proposals have heightened domestic and foreign investor concerns about Mexico’s institutional stability and predictability.”, Worldview Stratfor, August 1, 2024

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Turkey

“Corporate Turkey’s patience in economic reboot wanes – While a shift to a more rational strategy has support, the impact of moves to tame inflation are biting. Corporate Turkey is finally feeling the pinch of President Recep Tayyip Erdoğan’s radical departure from years of unconventional economic policies. Not everyone is happy with the new normal. The central bank, which is now run by former US Federal Reserve economist Fatih Karahan, has lifted its main interest rate from 8.5 per cent last June to 50 per cent in March. The mechanism for the transmission of monetary policy to the economy that was severed by the previous unorthodox measures appears now to be more functional, meaning once-easy financial conditions are tightening.”, The Financial Times, July 30, 2024

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United Kingdom

Economist Business Section – Britain’s headline annual rate of inflation stayed at 2% in June, slightly above analysts’ forecasts. Services inflation remained sticky at 5.7%. The figures caused some traders to reduce their bets that the Bank of England will cut interest rates in August.”, The Economist, July 18, 2024

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“Growth of UK economy upgraded but falls short of Labour’s target – Bank of England forecasts that GDP will expand by 1.25 per cent this year, while sterling and markets fell in response to the interest rate cut. Downward pressure on the pound was fuelled by the Bank of England’s monetary policy committee voting 5-4 in favour of reducing the UK base rate by 0.25 percentage points to 5 per cent from 5.25 per cent.

Andrew Bailey, the governor of the Bank, hinted that interest rates are unlikely to fall rapidly over the coming months. However, analysts doubted that assumption, intensifying the sterling sell-off.”, The Times of London, July 22, 2024

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United States

““(US) Consumer Confidence Jumps in June – Consumer confidence increased in June with households feeling more confident in their ability to make ends meet and more confident in the job market, according to the Numerator Consumer Sentiment Tracker. The report also showed an increased comfort with nonessential spending. The June Consumer Confidence Score was 57.1 (+0.3 vs. May), which is an average of how consumers feel about the job market, their household finances, and their spending comfort levels. 40% of consumers think it’s very or somewhat easy to find employment in the current job market. Meanwhile, 27% think it’s somewhat or very difficult. 49% of consumers say their household’s financial situation is currently good or very good. 41% of consumers are very or somewhat comfortable spending money on discretionary purchases right now. Consumers with spare cash say they’re putting it in savings (36.2%) and paying down debts (33.3%). 13.2% of consumers say they do not have any spare cash (-2.9 points vs. May).”, Franchising.com, August 2024

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Brand & Franchising News

““Carl’s Jr (Australia) franchisees set to meet with US parent – The parent of US burger chain Carl’s Jr is holding talks about directly licensing its brand to the 25 burger shops still trading in Australia, after the local master licensee and 24 restaurants entered voluntary administration. CJ’s QSR Group, which is the corporate entity that rules Carl’s Jr’s brand in Australia, appointed KPMG as voluntary administrators on Monday. A creditor meeting will be held next week and administrators said they will conduct an immediate sale process of the stores caught up in the administration. The move surprised other franchisees, said BKG Group’s Lindsay Brennan. The BKG Group…….opened Carl Jr’s first Australian store in Bateau Bay in 2016. It still owns two Carl Jr’s stores, Mr Brennan said.”, Australian Financial Review, July 30, 2024

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““Chicken chain Wingstop fires up sale of British operation – The trio of entrepreneurs behind the UK’s fastest-growing restaurant chain have hired Goldman Sachs to explore a sale after six years of rapid growth, Sky News learns. The sale is being launched as Wingstop prepares to launch its 50th outlet in the UK. It is aiming to have 57 sites open by the end of the year, with substantial room for further growth even in a market saturated by competitors. Sources said the company believed it could ultimately reach between 400 and 500 sites in Britain. Wingstop has also become one of the industry’s biggest employers in the UK, with a workforce of about 2,200 people.”, Sky News, August 3, 2024

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““Is Paris ready for Wingstop? – Piggybacking on the Olympics, the fast-casual chicken chain is opening a pop-up restaurant in the French capital, a teaser to what could become 200 restaurants in the country. Dallas-based chicken-wing slinger Wingstop will debut its Maison des Saveurs (that’s “House of Flavor” for the uncultured among us) in the heart of Paris, a pop-up restaurant tied to the opening of the Summer Olympics that also serves as an amuse bouche of sorts for the chain’s planned official entry into Paris later this year. The fast casual opened its first (and, so far, only) French location in 2019 in Toulon, more than 500 miles south of Paris. At that time, French franchisee Brescia Investissement SAS said it planned to open 75 Wingstops in France by 2029.”, Restaurant Business, July 24, 2024

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““We’re literally going to need a bigger burrito: can Guzman y Gomez crack the crowded US market? – The chain’s much-hyped expansion plan includes selling meatier burritos than in Australia for a lower price, but marketing Mexican-themed food in the Americas is a tough ask. When the Mexican-themed food chain Guzman y Gomez listed on the Australian stock market in June, its share price rocketed by more than one-third in a single day of trading, creating a $3bn company. One factor that won over investors was a pledge to aggressively expand in Australia and push deep into the lucrative US market.

GyG plans to increase the number of its Australian stories from less than 200 to more than 1,000, a figure chosen to rival McDonald’s, and build on its international network, which now includes four outlets in the Chicago area.”, The Guardian, August 2, 2024

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” “Competition differentiation in the (Mainland China) coffee market different approaches of Starbucks Luckin Coffee and Coodi – Luckin Coffee, Starbucks, and Kudi Coffee are the top three companies in terms of the number of coffee shops in China. Under the fierce market competition, each has chosen a different business path. Luckin Coffee’s revenue still exceeded that of Starbucks China, and Starbucks China’s operating profit margin was higher. While Starbucks cut its prices, Luckin Coffee also fell into the dilemma of price war. Luckin Coffee’s performance in the first quarter of this year turned from profit to loss, with a net loss of 71.42 million yuan, compared with a net profit of 564 million yuan in the same period last year. The drop in product prices did not bring an increase in transaction volume for Starbucks China. The financial report shows that during the reporting period, Starbucks China’s same-store sales fell by 14%. Kudi Coffee is positioned as a store opening platform, and its core lies in the conversion of store business. Kudi Coffee does not charge franchise fees, and the collection of service fees also adopts a gradient model.”, Economic Observor, August 2, 2024. English translation and article provided by Paul Jones, Jones & Company, Toronto

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““Taco Bell set to roll out automated drive-thru ordering at many restaurants – Taco Bell aims to complete its expansion by the end of the year. Taco Bell is set to add AI drive-thrus at many of its restaurants. it already has the system at eateries in 13 states. (Copyright 2019 The Associated Press. All rights reserved) Taco Bell is looking to roll out artificial technology at hundreds of drive-thrus across the country, parent company Yum! Brands announced Wednesday. Yum! Brands, which currently operates voice AI technology in over 100 Taco Bell drive-thrus across 13 states, aims to complete its expansion by the end of the year. The company said the rollout ‘is designed to enhance back-of-house operations for team members and elevate the order experience for consumers.’ The potential benefits, the company says, include easier workdays for employees, improved order accuracy, more consistent, friendly experience, reduced wait times and higher profit growth.”, The Independent, July 31, 2024

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“7-Eleven Philippines targets 450 new stores in two regions – 7-Eleven operator PSC (Philippine Seven Corp) is planning to open 450 new stores in Visayas and Mindanao as part of an aggressive expansion in the country. Since its establishment in the Philippines in 1984, the convenience store network has expanded to 3829 branches nationwide. 7-Eleven expects to reach its 4000th store milestone by the end of Q4 this year.”, Inside Retail (Australia), July 23, 2024

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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, the franchise sector, 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 business environment. And our GlobalTeam™ on the ground covering 25+ countries provide us with updates about what is actually happening in their specific countries. We do not get involved in or report on politics!

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William “Bill” Edwards: Global Advisor Is Uniquely Qualified to Steer Sr. Executives Successfully Through the Complex Waters of Going Global. With four decades of successful international business experience spanning virtually every corner of the world and many business sectors, Bill Edwards understands the global business landscape like no other. He has been a County Master Franchisee in five countries in Asia, Europe, and the Middle East; the Senior VP for a franchisor operating in 15 countries and a full-service consultant since 2001 taking 40+ franchisors global.

For a complimentary 30-minute consultation on how to take your business into new countries and make money doing it. For a complimentary call with Bill Edwards click on the QR code or contact Bill at bedwards@edwardsglobal.com and +1 949 375 1896

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Biweekly Global Business Newsletter Issue 113, Tuesday, July 23, 2024

Posted on Jul 22nd, 2024 in Asia Pacific, Europe, India, Miscellaneous, Predictions and Trends, Professional Development, World Culture, World Economy | Comments Off

Commentary about the 113th Issue: Average salaries in 30 countries. Regenerative AI and the world’s software market. Microsoft orders all China staff to use iPhones. U.S. fast food chains raise prices more then 50% in the last ten years. Canada set to be the fastest growing G7 country in 2025. How to stay healthy at 35,000 feet.Commentary about the 113th Issue: Average salaries in 30 countries. Regenerative AI and the world’s software market. Microsoft orders all China staff to use iPhones. U.S. fast food chains raise prices more than 50% in the last ten years.

How to stay healthy at 35,000 feet. Saudi Arabia allows first sale of alcohol (really!). U.S. must add 290 terawatt hours of electricity by 2030. Olive Garden® parent buys Chuy’s®. McDonald s plans to have more than 10,000 restaurants in mainland China by 2028. Fossil fuels made up 81% of global energy consumption in 2023. India projects growth of 6.5%-7% vs 8.2% last year. And the United States and China combine for a massive 43.2% share of the global economy.

Edited and curated by: William (Bill) Edwards, CEO & Global Advisor, Edwards Global Services, Inc. (EGS), Irvine, California, USA. Contact Bill with any questions, comments and contributions.

Bedwards@edwardsglobal.com, +1 949 375 1896

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First, A Few Words of Wisdom From Others For These Times

“Train people well enough so they can leave, treat them well enough so they don’t want to.”, Richard Branson, business magnate and founder of Virgin Group

“Get the right people. Then no matter what all else you might do wrong after that, the people will save you. That’s what management is all about.”, Tom DeMarco, software engineer

“Of all the things I’ve done, the most vital is coordinating the talents of those who work for us and pointing them toward a certain goal.”, Walt Disney

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Highlights in issue #113:

Average Annual Salaries by Country
Economic conditions outlook, June 2024
Microsoft Orders China Staff to Use iPhones for Work and Drop Android
Inflation Across U.S. Fast Food Chains (2014-2024)
Small Businesses Still Struggling
Staying Healthy at 35,000 Feet
Brand Global News Section: Chuy’s®, Dominos®, Herbalife®, McDonalds®, Olive Garden® and Sol Bowl®

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Interesting Data, Articles and Studies

“Software’s byte of the gen AI apple – Generative AI’s (gen AI’s) quick adoption over the past year suggests that the global software sector will undergo a major change, senior partner Jeremy Schneider and coauthors note. But based on a McKinsey survey of software leaders and executives, it is anticipated that gen AI will affect each software category to a different degree. Content creation is one of three areas expected to see a very high level of disruption, while system infrastructure is on the other end of the disruption spectrum. Overall, gen AI could spark almost $300 billion in new software spending over the next few years.”, McKinsey & Co., July 9, 2024

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“Economic conditions outlook, June 2024 – Executives’ views on the world economy remain more positive than negative, though they believe a recession is increasingly likely. In their own economies, concerns over unemployment are growing. So far in 2024, survey respondents seem more sanguine about the economy than they were for much of 2023. In our newest McKinsey Global Survey on economic conditions,¹ respondents tend to say that conditions in their countries and globally are improving rather than declining and will continue to improve in the months ahead. Yet they also foresee a few clouds gathering on the horizon.”, McKinsey & Co., June 27, 2024

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“Help wanted: Charting the challenge of tight labor markets in advanced economies – Labor markets in advanced economies today are among the tightest in two decades, not merely a pandemic-induced blip but rather a long-term trend that may continue as workforces age. Tightness means forgone economic output. We estimate that GDP in 2023 could have been 0.5 percent to 1.5 percent higher across these economies if employers had been able to fill their excess job vacancies. Companies and economies will need to boost productivity and find new ways to expand the workforce. Otherwise, they will struggle to exceed—or even match—the relatively muted economic growth of the past decade.”, McKinsey & Co., June 28, 2024

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“WORLD ECONOMIC OUTLOOK UPDATE – Global growth is projected to be in line with the April 2024 World Economic Outlook (WEO) forecast, at 3.2 percent in 2024 and 3.3 percent in 2025. However, varied momentum in activity at the turn of the year has somewhat narrowed the output divergence across economies as cyclical factors wane and activity becomes better aligned with its potential. Services price inflation is holding up progress on disinflation, which is complicating monetary policy normalization. Upside risks to inflation have thus increased, raising the prospect of higher-for-even-longer interest rates, in the context of escalating trade tensions and increased policy uncertainty. To manage these risks and preserve growth, the policy mix should be sequenced carefully to achieve price stability and replenish diminished buffers.”, International Monetary Fund, July 2024

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Global Supply Chain, Energy, Commodities, Inflation, Taxes & Trade Issues

“Average Annual Salaries by Country – There are many reasons for why salaries vary between countries: economic development, cost of living, labor laws, and a variety of other factors. Because of these variables, it can be difficult to gauge the general level of income around the world. With this in mind, we’ve visualized the average annual salaries of 30 OECD countries, adjusted for purchasing power parity (PPP). This means that the values listed have taken into account the differences in cost of living and inflation between countries. This data was sourced from the OECD (Organisation for Economic Co-operation and Development), an international organization that promotes policies to improve economic and social well-being. It has 38 member countries, though in this instance, data for all of them was not available.”, OECD & Visual Capitalist, July 17, 2024

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“The world population is projected to peak slightly earlier than in previous projections – The United Nations doesn’t only publish historical estimates of how population and demographic trends have changed in the past; it also makes projections for what the future might look like. To be clear, these are projections, not predictions of changes in the future. In its 2022 publication, the UN estimated that, in its medium scenario, the global population would peak in 2086 at around 10.4 billion people. This year’s edition brings this peak forward slightly to 2084, with the population topping at just under 10.3 billion.”. Our World In Data, July 11, 2024

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Global Supply Chain, Energy, Commodities, Inflation, Taxes & Trade Issues

“Inflation Across U.S. Fast Food Chains (2014-2024) – Fast food joints were once the go-to option for quick, cost-friendly meals, but now, they’re starting to pinch the budget.

Inflation has hit fast food chains hard in the past decade, with many restaurants seeing an average price increase on menu items of more than 50%. This graphic visualizes the average price increase of 10 core menu items from select American fast food chains, as well as the change in the consumer price index (U.S. city average) for food away from home, from 2014 to 2024.”, FianceBuzz and the Federal Reserve, July 12, 2024

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“Maersk says Red Sea shipping disruption having global effects – DENMARK’S AP Moller-Maersk said on Wednesday (Jul 17) that disruption to its container shipping via the Red Sea had extended beyond trade routes in the far east of Europe to its entire global network. Shipping groups have diverted vessels around Africa’s Cape of Good Hope since December to avoid attacks by Iran-aligned Houthi militants in the Red Sea, with the longer voyage times pushing freight rates higher. “Ports across Asia, including Singapore, Australia, and Shanghai, are experiencing delays as ships reroute and schedules are disrupted, caused by ripple effects from the Red Sea,” it said in a statement.”, The Business Times, July 17, 2024

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“2024 Statistical Review of World Energy – What Powered the World in 2023 – Fossil fuels continue to power the world. While a lot of spotlight in the energy industry is on the clean energy transition to renewable sources, fossil fuels continue to reign supreme when it comes to the world’s production and consumption of energy. Global production and consumption of coal, oil, and natural gas all increased in 2023, and as a result fossil fuels made up 81% of global energy consumption as shown above.”, Visual Capitalist & Energy Institute, July 2024

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Global & Regional Travel & Living

“Staying Healthy at 35,000 Feet – With the summer travel season in full swing, board-certified infectious disease physician Carl Abraham, M.D., assistant professor at the College of Osteopathic Medicine’s Jonesboro location (NYITCOM-Arkansas), arms passengers with information to stay healthy at 35,000 feet. Abraham notes that some people may be surprised about the risk of germ spread on most airplanes. ‘Disinfecting touched objects, like seatbelts or trays, won’t hurt, although airlines are supposed to make sure areas are cleaned thoroughly between flights,’ he adds. But, the real hotspot might be the airplane lavatory.”, New York Tech news, July 2, 2024

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Book Review – New Section

“The Fast Future Blur: Discover Transformative Interconnections Shaping the Future – Fast Future Blur provides invaluable insights and strategic frameworks to navigate the complexity of our current period of rapid and radical transformation (‘Fast Future’ phase). Focused on the interconnected nature of the evolution underway, the book serves as an eye-opener for business leaders, providing guidance in understanding this dynamic and complex landscape. Fast Future Blur delves into 12 key areas of change, including platform businesses, regenerative innovation, artificial intelligence, the future of healthcare, the future of work, the future of mobility, blockchain, metaverse, virtual & augmented reality, leadership, agility, fintech, and the impact from 6 inter-connections. With compelling, powerful, and timely insights from the Fast Future Executive faculty ― a global consortium of experts and industry leaders, many of whom are associated with the World Economic Forum, top business and technology schools and leading global companies.”, Amazon, July 2024

Editor’s Note: I attended a session of The Fast Future Blur 2024 Summit on June 11^th at the Executive Next Practices event at the University of California, Irvine, Beall Center for Innovation. We had 19 speakers from the Fast Future Executive faculty who came in from around the world. Wow!

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Book Review – New Section

Editor’s Note: I attended a session of The Fast Future Blur 2024 Summit on June 11^th at the Executive Next Practices event at the University of California, Irvine, Beall Center for Innovation. We had 19 speakers from the Fast Future Executive faculty who came in from around the world. Wow!

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Country & Regional Updates

Canada

“Canada set to be fastest growing economy in G7 in 2025, IMF forecasts – Latest outlook puts this country ahead of United States and United Kingdom. The IMF predicts the global economy is headed toward a “soft landing,” but warns risks remain for the inflation outlook, especially in advanced economies. ‘The good news is that, as headline shocks receded, inflation came down without a recession’, wrote Pierre-Olivier Gourinchas, economic counsellor and the director of research at the IMF, in a blog post accompanying the release. “The bad news is that energy and food price inflation are now almost back to pre-pandemic levels in many countries, while overall inflation is not.”, International Monetary Fund, July 2024

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China

“Microsoft Orders China Staff to Use iPhones for Work and Drop Android – Company will block corporate access from Android in China Microsoft has been tightening cybersecurity following attacks. Microsoft has been ramping up security worldwide after incurring repeat attacks from state-sponsored hackers. Microsoft Corp. told employees in China that starting in September they’ll only be able to use iPhones for work, effectively cutting off Android-powered devices from the workplace. The US company will soon require employees based there to use Apple Inc. devices to verify their identities when logging in, according to an internal memo reviewed by Bloomberg News.”, Bloomberg, July 8, 2024

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“Comparing the Economies of U.S. and China in 3 Key Metrics – Starting with GDP, we used 2024 estimates from the latest edition of the IMF’s World Economic Outlook (April 2024). Based on these figures, the United States and China combine for a massive 43.2% share of the global economy. It’s also interesting to note that America’s share of global GDP has actually been increasing in recent years, from a low of 21.1% in 2011. This is partly due to its relatively strong recovery from the COVID-19 pandemic. The U.S. dominates when it comes to stock market valuation, accounting for 61% of the global total as of Feb. 29, 2024.”, Visual Capitalist & International Monetary Fund, June 3, 2024

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India

“India Sets Subdued Economic Growth Forecast as Risks Mount – Government projects growth of 6.5%-7% vs 8.2% last year Finance minister to give annual budget speech on Tuesday. India’s government set a fairly conservative economic growth forecast for the current fiscal year, concerned about mounting global risks. The economy will likely expand 6.5%-7% in the year through March 2025, the Ministry of Finance said its Economic Survey report released Monday. That compares with 8.2% in the past financial year and the central bank’s projection of 7.2% for the current year. Modi must also balance demands from his coalition allies to spend billions of dollars in their states, with pressure from credit rating companies to curb government debt.”, Bloomberg, July 22, 2024

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Japan

“More than 40% of Japanese companies have no plan to make use of AI – The survey, conducted for Reuters by Nikkei Research, pitched a range of questions to 506 companies over July 3-12 with roughly 250 firms responding, on condition of anonymity. About 24% of respondents said they have already introduced AI in their businesses and 35% are planning to do so, while the remaining 41% have no such plans, illustrating varying degrees of embracing the technological innovation in corporate Japan. Asked for objectives when adopting AI in a question allowing multiple answers, 60% of respondents said they were trying to cope with a shortage of workers, while 53% aimed to cut labour costs and 36% cited acceleration in research and development.”, Reuter, July 17, 2024

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Saudi Arabia

“Saudi Arabia takes first step towards relaxing alcohol laws – Saudi Arabia has opened an off-licence in the diplomatic quarter of its capital, Riyadh, which is the kingdom’s first commercial outlet for the sale of alcohol beverages since a ban on the public sale and consumption of alcohol was imposed in 1952. We expect further relaxation of alcohol laws, together with the implementation of other social reforms and initiatives, in the years ahead as the government pushes ahead with its transformative Vision 2030 development plan, which includes the creation of a tourism offering that boasts major hotels, resorts, entertainment venues, sporting locations and (currently alcohol-free) restaurants and bars.”, Economist Intelligence Unit, February 23, 2024

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“One crucial piece of advise for business in Saudi – Landing that lucrative contract or big deal in Saudi Arabia requires much more than an impressive pitch deck and competitive pricing. One of the most crucial pieces of advice for doing business in the Kingdom is this: take the time to deeply understand the culture and build strong relationships before ever pitching your products or services. Why is this so important? Saudi Arabian culture places an extremely high value on personal connections, trust, and commitment. Saudis want to work with those they know and have established a bond with. Attempting to jump straight into business negotiations without first investing in relationship building is a surefire way to be met with skepticism and difficulty gaining traction.”, Middle East Sunday Pages by Corina Goetz, July 21, 2024

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Southeast Asia

“Southeast Asia’s economies continue to sustain their growth momentum in the first quarter 2024. GDP grew in all economies, with growth in Indonesia, Malaysia, the Philippines, and Singapore increasing during this period, while Thailand and Vietnam recorded slower growth. Southeast Asia’s economies continue to sustain their growth momentum in the first quarter 2024. GDP grew in all economies, with growth in Indonesia, Malaysia, the Philippines, and Singapore increasing during this period, while Thailand and Vietnam recorded slower growth.”, McKinsey & Co., June, 2024

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Turkey

This country has seen its wealth growth explode since 2008. It’s not the U.S. – Individual wealth has been soaring since 2008 in places some might find surprising, such as Turkey. That’s according to UBS’s 2024 Global Wealth Report, released on Wednesday. The report shows that globally, people have been getting progressively wealthier, with dramatic rises in some places. This chart shows average wealth growth from 2022 to 2023 in local currencies. On this metric, Turkey has surged above the rest at more than 157% (in dollar terms, that growth is 63%).”, MarketWatch, July 10, 2024

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United States

“U.S. will fall behind in the AI race without natural gas, Williams Companies CEO says – ‘The only way we’re going to be able to keep up with the kind of power demand and the electrification that’s already afoot is natural gas,’ Williams Companies CEO Alan Armstrong said in an interview Thursday. ‘If we deny ourselves that we’re going to fall behind in the AI race.’ The tech sector’s expansion of data centers to support AI and the adoption of electric vehicles is projected to add 290 terawatt hours of electricity demand by the end of the decade in the U.S., according to a recent report by the energy consulting firm Rystad. This load growth is equivalent to the entire electricity demand of Turkey, the world’s 18th largest economy.”, CNBC, July 19, 2024

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“Small Businesses Still Struggling – Small business (SMB) owners continue to face economic headwinds, including rent delinquency and revenue loss and stress around high interest rates and spiking labor costs. That’s according to Alignable’s June Revenue & Rent Report. The report was based on 3,690 responses to a poll of randomly selected small business owners in June. It also drew information from past survey responses. 72% of SMBs are earning less now monthly than pre-Covid, a slight increase from May’s 71%, breaking a 2024 record. Post-pandemic businesses are also struggling with 72% earning less than last year. Cumulative inflation—35% of SMB owners cite this as their top worry, up from 33% in May. Rising labor costs—79% of SMB employers are paying more for labor, up nine percentage points from May. Cash crisis—38% of SMBs have one month or less of cash on hand.”, Franchising.com, July 18, 2024

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Brand & Franchising News

“Olive Garden parent Darden Restaurants is buying Chuy’s for $605M – It will be the second acquisition for Darden in as many years and brings Mexican cuisine to its portfolio for the first time. Chuy’s has 101 restaurants and specializes in Tex-Mex cuisine. Darden Restaurants, the parent of Olive Garden, LongHorn Steakhouse and other casual-dining brands, is acquiring Chuy’s Tex-Mex for $605 million in cash, the company announced Wednesday. The 101-unit, Austin-based Chuy’s is known for its scratch-made Tex-Mex cuisine and the funky, eclectic atmosphere of its restaurants.”, Restaurant Business, July 17, 2024

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“China Isn’t Done Tormenting Nike or Starbucks – Global Brands Hit Local Competition. China has become a more challenging market for global consumer brands like Nike and Starbucks, and investors are beginning to rethink the value of their Chinese business, according to a new report from TD Cowen analysts. Chinese consumers still like global brands like Nike, Adidas, Skechers andLululemon, which each generate a midteen share of their sales from China. But investors are beginning to discount the cash flows that companies generate from China as domestic competition and geopolitical risks intensify, TD Cowen analyst John Kernan, who co-wrote the report, tells Barron’s. Shares of some of these companies have already taken a hit as China’s economic recovery has sputtered, making consumers reluctant to spend as the property market—a major store of household wealth—is still struggling.”, Barron’s, July 18, 2024

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“Aussie boxing franchise UBX to enter United Arab Emirates – Brisbane-based boxing franchise UBX has announced its eighth international expansion with 18 locations planned in the United Arab Emirates (UAE), adding to an existing 100-plus gyms globally and hot on the heels of its recent campaign launch “Boxing is for Everyone” with adidas.

The company has appointed Mohsan Bari as the master franchisor for UBX UAE with initial sites being sourced in Dubai and Abu Dhabi. ‘In recent years, the Middle East has become a hotspot for combat sports, and the UAE’s enthusiasm for boxing makes it the perfect next step for UBX as interest in the sport is followed by participation,’ says UBX co-founder and managing director Tim West.”, Business New Australia, July 17, 2024

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“Domino’s to shutter 100 stores – The board of Domino’s Pizza Enterprises (Australia) waited until after the market closed yesterday to announce store closures in two of its largest markets, Japan and France, which will almost entirely offset the net effect of planned store growth globally over the course of FY25.”, Business News Australia, July 18, 2024

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“Herbalife expects China to become its largest market – China is expected to double the size of Herbalife’s India market in about five years, which is currently its largest in terms of sales, Herbalife President Stephan Gratziani said in Shanghai. The United States-based nutrition product manufacturer is confident in the Chinese market given the growth potential in the country’s health and well-being sector. ‘In 5-7 years, China is expected to double the size of our India market, which is currently its largest market in terms of sales followed by the US and Mexico,’ Gratziani said in a recent interview. Currently, Herballife service providers operate about 3,200 community health-care and nutritional advisory clubs in China, and the number could grow significantly in the coming years given the potential, especially in lower tier cities.”, Shine, July 17, 2024. Compliments of Paul Jones, Jones & Co., Toronto

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“McDonald s plans to have more than 10,000 restaurants in mainland China by 2028 with more than 60 percent of employees born after 1995 – McDonald’s entered the Chinese mainland market in 1990. In 2017, McDonald’s China became McDonald’s largest international franchise market in the world, and CITIC Consortium became the controlling shareholder. Before the “Golden Arches” era, McDonald’s focused more on market development in first- and second-tier cities. Now, about 50% of McDonald’s restaurants are located in third-, fourth- and fifth-tier cities.”, Yicai, July 17, 2024

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“Piccolo Me parent plans 100 stores for Sol Bowl acquisition – Piccolo Me parent company FABE (Food and Beverage Enterprises) has added Sydney-based Sol Bowl to its portfolio of food brands. FABE has big goals for its newest addition: 100 stores, international expansion and co-branding with Piccolo Me. There are another five Sol Bowl sites planned for New South Wales and ACT before FABE takes the brand interstate. Sol Bowl founder Lilly Semaan launched the healthy-fast-food business as Soul Bowl in Parramatta in 2017. She has since refined the branding and added locations in Baulkham Hills and Rosehill.”, Inside Retail (Australia), July 17, 2024

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Working with US Commercial Service (USCS) to Succeed in Taking Your US Franchise into New Countries

Posted on Jul 22nd, 2014 in Professional Development | Comments Off

According to an International Franchise Association (IFA) early 2014 survey of its franchisor members, 82% now think that taking their franchise international is important to the future success of their franchise. Five years ago, 54% thought going international was important.

Based on 25 years of international franchise experience as a franchisor, master franchisee and, most recently helping over 20 US franchisors go international, I know the most difficult task is finding the right country and the right licensee for your particular franchise.

One solution for US franchises can be working with the U.S. Commercial Service (USCS), the international-focused arm of the U.S. Department of Commerce. The USCS has experts on the ground in over 100 countries whose job is to help US companies sell their products and services.

There are several ways the USCS can help a franchisor go global:

Country and Sector Reports
Gold Keys – in-country meetings with pre-qualified licensee candidates
Franchise Trade Missions – to the Philippines, Mexico and India in 2014
Background checks on licensee candidates
Meeting arrangements and local advertising
Local business and cultural knowledge
Follow-up after your in-country meetings

But this is not magic where you get on the airplane, land in the new country, meet your new licensee, sign an agreement, get back on the plane for home, and the new licensee sends you the initial license fee. To have a chance at success using the USCS team in any particular country, the franchisor must know and clearly communicate the following:

Why do you want to enter this particular country?
What is the profile of whom you want as a licensee?
How is your brand different than what is already in their country?
Detailed, clear information on your franchise
Clear steps and terms for acquiring your franchise
A financial model that shows how your franchise will succeed in their country
What training, support and marketing help your franchise will give the licensee

And the franchisor needs to clearly define what they want in an international licensee or master franchisee in a country, such as:

A passion for and understanding of your business
A successful business with knowledge in your sector
Good reputation in the country
Experienced management to put into your franchise
Access to suitable real estate
Marketing oriented company
The capital to start and grow your franchise in their country

Our company, EGS, has successfully worked with the USCS in over 20 countries around the world since 2001. Here are a few of the successes we have had in recent years working with the USCS:

Central America – Fuddruckers®
Chile – Denny’s® and Fuddruckers®
China – Right At Home Senior Care® and Rita’s Italian Ice®
Dominican Republic – Denny’s®
Indonesia – The Melting Pot®
Ireland – Mr. Handyman® and Two Men And A Truck®
Mexico – Build-A-Bear Workshop®, Denny’s® and The Melting Pot®
Mongolia – Round Table Pizza®
Singapore and Malaysia – Abrakadoodle®
Viet Nam – Carl’s Jr.®

Not all USCS posts in all countries are able to help find area licensees and master franchisees. To find out whether the local office has a specialist for franchising, go to the following website for specific countries: www.export.gov/country

Or you can contact Ms. Jennifer Loffredo, the U.S. Commercial Service Officer based in the US who manages the USCS Global Franchise Team: (248)452-2254, Jennifer.Loffredo@trade.gov

A close working relationship with the USCS people on the ground in the country, plus patience in finding and signing the right licensee for your specific franchise, are critical to success in using this valuable resource for US franchisors. At the end of the day, you have to help the USCS post help you find your licensee in a country.

The Certified Franchise Executive (CFE) Designation – A Global Standard

Posted on Mar 7th, 2014 in Professional Development | Comments Off

The global franchise industry covers 75 sectors and over 100 countries where the franchise business model is active. Millions of people around the world are employed in the franchise industry. A very high number of consumers around the world shop at franchised businesses.

Up until the early 1990s one of the major challenges to success in the franchise community was a lack of structured, best practices training for people at all levels in the global franchise community. It was difficult for franchise companies to quantify the experience of the people they hired to help grow their businesses.

Then the International Franchise Association (IFA) began developing certified courses in all aspects of franchise development, operations and management. From this came the professional Certified Franchise Executive designation. Today, many global franchise executives look for the CFE designation before hiring key members of their franchise team. We know their background and education. Many franchisors prefer to hire industry suppliers who have completed this certification.

At the just completed 54^th annual IFA convention in New Orleans, the 1,000^th Certified Franchise Executive received this now cherished industry recognition. Franchise industry members from Australia, Brazil, Canada, Indonesia, Saudi Arabia, Singapore, the Philippines and the USA received their CFE pins last month at the IFA convention. The IFA Educational Foundation has cooperative agreements with franchise associations and educational institutions in Australia, India, the Philippines, Singapore and Thailand to offer the CFE program to their members.

The now global CFE program is administered by the Institute of Certified Franchise Executives (ICFE), whose mission is to enhance the professionalism of franchising by certifying the highest standards of quality training and education. The ICFE offers a wide range of continuing education programs for professional development. Meeting the requirements of the program and completing the course of study leads to the Certified Franchise Executive (CFE) designation.

Certified Franchise Executives are bound by a strong code of ethics, have completed a significant number of state-of-the-industry courses and attended many industry meetings. Industry experience is critical to obtaining the CFE award. Each CFE must recertify every three years.

The International Franchise Association website has a special and detailed section on the CFE value, program and process:

www.franchise.org/cfe.aspx

Here are some quotes from highly experienced and successful franchise executives on the value of the CFE program:

“The CFE program provides a forum that supports continued professional development and adherence to the highest standards in franchising. It is also a wonderful way to form valuable relationships and generate new ideas from different perspectives.” Rosemarie Hartnett, CFE, President, Abrakadoodle®

“CFE is a commitment to oneself and your company to be the best that you can be and to share that with others within the franchise community. I have not only learned important information to bring back to my organization, I have also developed important relationships that have assisted me in developing Decor & You. Through this process I have also been able to share what I know with others and add value. It is a great thing to receive but also to be able to give back.” Karen Powell, CFE, Chief Relationship Officer/Franchise Source Brands International CEO/Decor&You

“At Snap-On, we believe in being a great franchisor, as well as a great tool company. Developing the management team that supports our franchisees is key to this endeavor. The CFE program facilitates this learning, and not only ensures our compliance to the principles of franchising, but also the critical nature of our relationship with our franchisees.” Barrie Young, CFE, President, Sales & Franchising, Snap-On-Tools Company, LLC

To download a brochure on the Certified Franchise Executive program, please go to the following link:

www.franchise.org/uploadedFiles/Franchise_Industry/Resources/Education_Foundation/CFEBrochure2014.pdf

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