EGS Biweekly Global Business Newsletter Issue 35, Monday, July 26, 2021
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
Key Trends This Issue
The good news this issue is excellent business growth in many countries. The not so good news is continued low vaccination rates in some parts of the world and the spread of the Delta variant. Despite the mixed signals, The USA, Canada, the European Union and the United Kingdom are seeing strong business recovery and significant levels of vaccinations. Getting workers to come back to city centers and work in high rise office buildings is seeing push back in many world business capitals.
“By working together, pooling our resources and building on our strengths, we can accomplish great things”, Ronald Reagan
“Don’t worry about being successful but work toward being significant and the success will naturally follow”, Oprah Winfrey
“Optimism means better than reality; pessimism means worse than reality.” –Margaret Atwood
Highlights in issue #35:
- Brand News Section: Biggby Coffee®, Burger King® UK, Denny’s®, F45®, Famous Dave’s®, Neighborly®, Propelled Brands, Tony Roma’s®, Xponential Fitness
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
“IMF to keep 2021 global growth forecast at 6% – The International Monetary Fund is estimating this month that global growth for 2021 will be about 6%, the same as forecast in April, but with some countries growing faster and others more slowly, IMF Managing Director Kristalina Georgieva said on Wednesday.”, Reuters, July 21, 2021
“Ranked: The Most Innovative Companies in 2021 – This year has been rife with pandemic-induced changes that have shifted corporate priorities—and yet, innovation has remained a top concern among corporations worldwide. Using data from the annual ranking done by Boston Consulting Group (BCG) using a poll of 1,600 global innovation professionals, this graphic ranks the top 50 most innovative companies in 2021.”, Boston Consulting Group, via Visual Capitalist, July 19, 2021
“The combined market cap of the world’s top 50 companies was proportional to 27.6% of global GDP in 2020, up from just 4.7% of global GDP in 1990. Tech’s role continues to grow, now accounting for 21 of the top 50 companies.”, Visual Capitalist, July 19, 2021
“The World’s Tech Giants, Compared to the Size of Economies – If Apple’s market capitalization was equal to a country’s annual GDP, it might just be in the G7. At a market cap of more than $2.1 trillion, Apple’s market capitalization is larger than 96% of country GDPs, a list that includes Italy, Brazil, Canada, and Russia. In fact, only seven countries in the world have a higher GDP than Apple’s market cap.”, Visual Capitalist, July 7, 2021
“‘Zero Covid’ economies like Hong Kong, Singapore, Australia risk being left behind – The Economist Intelligence Unit said Asia-Pacific’s coronavirus elimination strategies are likely to undercut rather than support economic activity. Rising vaccination rates in North America and Europe are driving a global recovery, while Asian countries struggle to reconnect with the outside world.”, South China Morning Post, July 23, 2021
“Port of Rotterdam freight volumes rise as trade recovers – Freight volumes in the port of Rotterdam rose 5.8% on a yearly basis in the first half of 2021, as international trade recovered from its coronavirus slump, Europe’s largest sea port said on Thursday. Traffic took a big hit from COVID-19 in the first half of 2020, and despite its recovery, throughput is still not back at levels seen before the outbreak of the pandemic, port authorities said.”, Reuters, July 22, 2021
“Global Franchise Supply Chain Management Is Critical for International Success – By: William Edwards (your newsletter editor) – The Lexico Oxford Dictionary defines supply chain as ‘the sequence of processes involved in the production and distribution of a commodity.’ Covid has interrupted and disrupted the global supply chain, adding new challenges for international franchise brands.”, Franchising.com, July 20, 2021
Global, Regional & Local Travel Updates
“Canada plans to reopen to American tourists by mid-August, other countries by September – The move to reopen Canada to Americans for leisure reasons would mark a major step in the reopening of the border between the two nations, which has largely remained shut since March 2020.”, The Points Guy, July 16, 2021
“Delta Air Lines Sticks With Sydney – For any international airline, flying into Australia these days is a tough business. While some airlines have cut their losses, suspending or axing flights to Australia, others have kept flying. Delta Air Lines is one of the stayers. Nearly a year and a half into the travel downturn, Delta continues to fly to Australia every day.”, Simple Flying, July 19, 2021
“Europe’s summer tourism outlook dimmed by variants, rules – Chaos and confusion over travel rules and measures to contain fresh virus outbreaks are contributing to another cruel summer for Europe’s battered tourism industry. Popular destination countries are grappling with surging COVID-19 variants, but the patchwork and last-minute nature of the efforts as the peak season gets underway threatens to derail another summer.”, ABC News, July 25, 2021
“Singapore is looking to allow quarantine-free travel by September – Singapore is planning to open its borders for international tourism later this year. The country said on Monday that it’s hoping to allow a quarantine-free travel option for fully vaccinated travelers as of September 2021. By September, the government hopes that 80% of the city-state’s population will be fully vaccinated against COVID-19.”, The Points Guy, July 26, 2021
“LATAM Resumes Flights from São Paulo to Paris, Bogotá – While domestic capacity in Brazil is rebounding strongly, with LATAM reaching 75% of pre-Covid-19 numbers in July, international figures are still very much lagging behind and surrounding the numbers seen at the start of the Covid-19 pandemic.”, Airline Geeks, July 21, 2021
“Qatar Airways was voted the best airline in the world for 2021, according to AirlineRatings.com. The Doha-based airline was awarded the top spot based on a host of criteria, including the age of its fleet, passenger reviews, and product offerings, as well as its “commitment to keeping the world’s critical long-haul air routes open during COVID-19,” according to the site. In addition to the No. 1 ranking, Qatar Airways also took the top spots for best business class …. and best catering.”, Travel and Leisure, July 22, 2021
“Emirates flights from India, Bangladesh, Pakistan and Sri Lanka suspended until July 28 – Passengers who have transited through any of these four countries in the past 14 days will also not be allowed to travel.”, The National News, July 23, 2021
“Thailand Limits Domestic Travel As COVID-19 Cases Surge – With COVID-19 cases rising in many parts of the country, Thailand is suspending most domestic flights, making it even more complicated to move about the southeast Asian nation, a favorite for digital nomads. This includes a ban on domestic flights to and from Bangkok, the Thai capital. International flights will still be permitted to land in Bangkok and other airports, as will emergency flights and flights related to special “sandbox” travel programs.”, Travel and Leisure, July 21, 2021
“Big-ship cruises to Alaska finally resume today after a nearly 2-year hiatus – In a watershed moment for the comeback of cruising, Royal Caribbean late Monday will kick off the first voyage to the “last frontier” state by a major cruise ship since the last week of September in 2019.”, The Points Guy, July 19, 2021
Global Vaccine Update
“Unequal Vaccine Distribution Hampers Global Recovery – Almost a quarter of the global population has received at least one jab. About 24 percent of the global population has received at least one dose of the COVID-19 vaccine, but distribution has been vastly unequal. In general, wealthier, more advanced economies have better access to vaccines and greater ability to administer them.”, Geopolitical Futures, July 23, 2021
“The Delta variant throws a wrench in companies’ return to the office plans – Yet amid this latest wave of COVID-19 cases, 74% of companies that still have employees working remotely are planning on returning to the office this fall, according to a survey conducted in June by staffing firm LaSalle Network…..But with cases on the rise, companies are bracing for changes and, in some cases, rethinking their timeline entirely. “, Fortune, July 26, 2021
“Big fall in (UK) Covid cases suggests third wave has peaked – Boris Johnson has said the recent fall in coronavirus cases is “encouraging” although he warned the public that “we are not out of the woods yet”. The prime minister has said that the government still expected to see a rise in case numbers given the relaxation of measures last week.”, The Times of London, July 26, 2021
“Italy Will Require COVID Passes for Restaurants, Museums, and More – With coronavirus cases rising again, Italy plans to require a “green pass” to visit its world-famous museums, take in sporting events, and dine inside its restaurants. The requirement, similar to a measure recently approved in France, is set to go into effect Aug. 6. To obtain the pass, people will need to have had at least one dose of a COVID vaccine in the previous nine months or be able to provide proof of a negative coronavirus test taken within 48 hours.”, Travel and Leisure, July 24, 2021
“Israel: Government to Reinstate Event Limits, Travel Bans as Delta Surges – Israel’s government will reinstate the “Green Pass” on July 29, which requires proof of vaccination or a negative COVID-19 test to access events with over 100 people, in response to an uptick in largely Delta variant cases in the country, The Times of Israel reported July 22. On July 30, travel bans will be also enacted for the United Kingdom, Georgia, Cyprus and Turkey.”, Stratfor, July 26, 2021
“Covid-19 Vaccine Holdouts Face Restrictions in Europe as Delta Variant Spreads – Proof of vaccination is increasingly required to enter restaurants and other public spaces. European governments worried about the rapid spread of the Delta coronavirus variant are nudging, and in some cases pushing, people to get a shot by introducing restrictions to daily life for those without a Covid-19 vaccination.”, Wall Street Journal, July 25, 2021
“Pfizer Strikes Deal To Produce Vaccines In Africa As Continent Falls Far Behind In Covid Fight – Pfizer has struck a deal with a South African drug manufacturer to begin producing and distributing its coronavirus vaccine in Africa for the first time, the company announced Wednesday, in a move that follows mounting pressure to address inequalities in the global vaccine rollout.”, Forbes, July 21, 2021
“Vietnam’s biggest cities tighten restrictions as COVID-19 cases surge – Vietnam will extend a lockdown in Ho Chi Minh City until Aug. 1 and impose stricter restrictions in the capital Hanoi from Saturday, as the Southeast Asian country battles its worst wave of COVID-19 infections. The country has so far received more than 10.2 million doses of coronavirus vaccine. Around 4.4 million doses have been administered in the country, but fewer than 335,000 people have been fully vaccinated…..”, Reuters, July 23, 2021
Country & Regional Updates
Australia
“Australia’s most populous state declares ‘national emergency’ over Covid outbreak – New South Wales announces 136 new local Delta cases with Sydney under the strictest lockdown measures it has experienced. More than 13 million Australians – approximately half the country’s population – are currently under some form of lockdown or restriction, including the states of Victoria and South Australia.”, The Guardian, July 23, 2021
“Olympics to return to Australia as Brisbane named host of 2032 Games – The International Olympic Committee awarded the 2032 Olympics to Brisbane, Australia, on Wednesday, capping a new one-city selection process meant to minimize costly bidding wars between countries. It will be the third time that Australia hosts the Olympics, following the popular 2000 Summer Games in Sydney and the 1956 Summer Games in Melbourne.”, Axios, July 21, 2021
China
“In the Chinese market, Coca-Cola’s overall sales growth exceeded the level of the same period in 2019. Zhan Kunjie, Chairman and CEO of Coca-Cola (China), said at the call that day: “Thanks to the growth of Coca-Cola’s sales and the optimization of its product portfolio, various categories in the Chinese market continue to maintain a strong growth momentum. Outdoor consumption channels and e-commerce channels The performance is very strong, andour business is recovering faster than the global economy.”, Caixing Global, July 22, 2021. Compliments of Paul Jones, Jones & Co., Toronto
“China’s Canton Fair to return with on-site exhibitions, but exporters bemoan the lack of overseas buyers – The biannual Canton Fair will allow exhibitors to return in person after holding the past three events online because of the coronavirus pandemic. But many private and small manufacturing exporters say they will not take part unless borders reopen to allow a sizeable number of international buyers.” South China Morning News, July 22, 2021
“China to Back Shanghai’s Trial of Free Use of Yuan – China’s central bank will support Shanghai to take the lead in testing the free use of the yuan, explore unrestricted inflows and outflows of capital for cross-border trade and investment, and unlimited currency exchange in the city’s new free trade zone, an official said Tuesday.”, Caixing Global, July 22, 2021
“China’s Tutoring Crackdown Sends Fortunes Of Education Billionaires Into Nosedive – Chinese authorities have ramped up their crackdown on after-school tutoring companies by unveiling a new set of sweeping regulations that bans the firms from making profits and raising capital from overseas markets.”, Forbes, July 25, 2021
India
“India’s capital city re-opens after crippling Covid-19 curbs devastate livelihoods – Authorities revised public rules as the capital posted 66 infections and two Covid deaths on Sunday in contrast to 28,395 coronavirus cases and 277 fatalities it reported in a single-day peak on 20 April. On Monday, theatres and multiplexes resumed business with 50 percent of their capacity.”, RFI, July 26, 2021
“Infosys reopens offices as India Inc eyes long road back to work – Indian outsourcing giant Infosys told employees last week they could resume work from offices, according to a memo seen by Reuters that offers an early sign of the country’s $190 billion technology services sector moving to get back on track. The Bengaluru-based IT services company stopped short of calling all employees back to work, reflecting wider caution across the sector as Indian officials warn about the looming threat of a third wave of COVID-19 infections.”, Reuters, July 21, 2021
Japan
“Tokyo Olympics Open Despite Covid-19 Worries, No Spectators – The Tokyo Olympics, delayed a year by the pandemic, officially open on Friday. Spectators are banned from most venues in a city under a state of emergency through Aug. 22. More than 50,000 visitors are converging on Tokyo, including 11,000 athletes from 200 countries (613 of them are U.S. athletes).”, Barron’s, July 23, 2021
Uganda
“Uganda, struggling to buy COVID-19 vaccines, splashes on new vehicles for lawmakers – Uganda has spent over $30.2 million on buying new vehicles for lawmakers, a move that has been slammed by critics who depict it as profligacy in a country struggling to buy vaccines to stem a second wave of the COVID-19 pandemic. The government has so far failed to purchase any vaccines, with officials saying the country had been priced out of the market by richer buyers like the West. Slightly over a million people have received a jab, all from donated shipments, out of a population of 41 million.”, Reuters, July 23, 2021
United Kingdom
“UK growth slows sharply in July as COVID ‘pingdemic’ hits – Britain’s rapid economic bounce-back from the coronavirus pandemic slowed sharply in July as a new wave of cases forced hundreds of thousands of workers to self-isolate under government rules to limit the spread of the disease….The IHS Markit/CIPS flash composite PMI dropped to 57.7 in July from 62.2 in June.”, Reuters, July 23, 2021
“Thousands more workers don’t have to isolate in Covid ‘pingdemic’ – The government announced on Thursday that from next week supermarket depot staff and suppliers at 500 sites will be exempt from quarantine to try to avoid food shortages, with people being allowed to go into work if they test negative.”, The Times of London, July 24, 2021
“England nightclubs reopen: Cheers and celebrations as clubbers return for first night out: Cheers and celebrations as clubbers return for first night out. Nightclubs are among the first venues to take advantage of the easing of Covid restrictions in England from Monday. With doors opening a minute past midnight, the BBC was at a nightclub in Leeds where revellers aren’t being asked to wear masks or socially distance.”, BBC News, July 19, 2021
“Pandemic support did not help, say a third of small (UK) firms – It also follows a period of significant public investment in businesses during the pandemic, with 1.7 million government-backed emergency loans, worth nearly £80 billion. In total more than £350 billion of financial support was provided to businesses through schemes such as furlough, reliefs on taxes and grants administered by local authorities.”, The Times London, July 23, 2021
United States
“U.S. Set to Push Global Economy Over the Recovery Line – With GDP in the second quarter likely having exceeded its pre-pandemic size, a landmark moment for the global recovery seems likely, analysts say. Economists surveyed by The Wall Street Journal estimate that figures to be released Thursday will show that the U.S. gross domestic product rose at an 8.5% seasonally adjusted annual rate in the second quarter.”, Wall Street Journal, July 25, 2021
“U.S. Small Business Optimism Shows Slight Increase – The NFIB Optimism Index increased 2.9 points in June to 102.5, the first time the Index exceeded 100 since November 2020. Seven of the 10 Index components improved and three declined. The NFIB Uncertainty Index increased four points to 83. ‘Small businesses optimism is rising as the economy opens up, yet a record number of employers continue to report that there are few or no qualified applicants for open positions,’ said NFIB Chief Economist Bill Dunkelberg.”, Franchising.com, July 21, 2021
“Personal savings in the United States spiked in April 2020 to 33.7 percent—the highest rate ever recorded. With stores and entertainment venues shut down across the country, what was there to spend money on? US household savings have more than doubled, to $3 trillion, since 2019…..(now) American consumers are spending again and eager to spend more…….In May 2021, the latest month for which data are available, the savings rate was 12.4 percent, down more than two points from April but still very high by historical standards.”, McKinsey, July 21, 2021
“Nearly half of (U.S.) remote workers ready to quit if forced to return in person – Is an employer’s decision to reopen offices pushing some workers to flee? To find out, Fortune teamed up with Momentive (formerly known as SurveyMonkey) to poll more than 2,000 U.S. adults between June 11 and 14.”, Fortune, July 14, 2021
Brand News
“Aussie fitness chain F45 eyeing $2b valuation for NY stock exchange – The Australian company, which prides itself on its high intensity interval training (HIIT) fitness regimes, is looking to list on the New York stock exchange…..The gym was founded in 2013 in Australia and now has more than 1,500 studios, with about 2,800 franchises in 63 countries.”, News.com.au, July 8, 2021. Compliments of Jason Gehrke, The Franchise Advisory Centre, Brisbane
“Drive-Thrus Boosting Sales At Rapidly Expanding Biggby Coffee® – Its growth stems from a shift in consumer behavior, explains Michael McFall, CEO of Biggby Coffee who is based in Lansing and Ann Arbor, Michigan. During the pandemic, “people would leave their house, do grocery shopping and drop in a local coffee shop, go through the drive-thru and have seven minutes of normalcy and love it.”, Forbes, July 16, 2021
“Burger King (UK) owner puts sale on the table – The private equity owner of Burger King UK is exploring a sale of the fast-food chain, days after itself raising £300 million in a rare listing…..Burger King UK holds the master franchise for the UK from New York-listed Restaurant Brands International and was bought in 2017 by Bridgepoint. It operates about 530 sites in the UK, the majority owned by franchisees — although it does also run its own stores.”, The Times of London, July 25, 2021
“Here’s How Denny’s Got Its Name – If someone suggests grabbing a meal at Denny’s, you can pretty much already taste the Grand Slam breakfast. But would a Denny’s diner by any other name taste so grand?”, Mashed, July 26, 2021
“Famous Dave’s parent BBQ Holdings said it plans to buy Village Inn and Bakers Square for $13.5 million after the two chains emerged from federal bankruptcy protection earlier this year. BBQ Holdings also acquired Granite City Food and Brewery out of bankruptcy early last year.
“KKR Makes Winning Bid for Home-Services Franchisor Neighborly – Private equity giant KKR & Co. has agreed to buy Neighborly, the home-services franchisor with 28 brands under its umbrella and $3 billion in system sales—double the amount just three years after Harvest Partners’ purchase, in March 2018.”, Franchise Times, July 8, 2021
“Propelled Brands, franchisor of Fastsigns® and NerdsToGo®, has acquired Suite Management Franchising, the parent company of My Salon Suite® and Salon Plaza®.”, Franchise Times, July 13, 2021
“Ribs chain Tony Roma’s has new owner with plans for growth – Parent Romacorp Inc. was acquired by Equity Investors of New England; Ramon Bourgeois named COO and acting CEO.”, Nation’s Restaurants News, July 13, 2021
“Fitness Franchiser Xponential Gets $120 Million in Shrunken IPO – Xponential Fitness Inc., the franchise owner of boutique fitness brands including Club Pilates and CycleBar, downsized its initial public offering and priced it below a marketed range to raise $120 million. The Irvine, California-based company sold 10 million shares on Thursday for $12 each, according to a statement.”, Bloomberg, July 21, 2021
Articles & Studies About Doing Business Going Forward
“5 Technology Trends Changing The Game For Small Businesses – Technology is changing businesses across the board, no matter their size. If you’re a small business owner, you shouldn’t think that the latest tech developments are out of reach or irrelevant to you. In fact, they’re far from it. As new technological advancements become more and more accessible, they promise to boost the efficiency and output of even the smallest companies.”, Entrepreneur Magazine, July 20, 2021
“How executives can help sustain value creation for the long term – Ample evidence shows that when executives consistently make decisions and investments with long-term objectives in mind, their companies generate more shareholder value, create more jobs, and contribute more to economic growth than do peer companies that focus on the short term.”, McKinsey, July 22, 2021
“Achieving Supply Chain Resilience in a Volatile World – Global trade is expected to return to prepandemic levels by 2022 or 2023. But shifting geopolitical dynamics, industry-specific protective policies, ambitious new agreements, and a broader commitment to combating climate change means that businesses everywhere are headed into unfamiliar territory.”, Boston Consulting Group, July 2021
“How to run a meeting—rather than have meetings running us – To meet the more permanent nature of a hybrid work force, Accenture recently issued guidance for employees in North America. ‘There is a big cultural change component—as type-A consultants, we have a cultural hurdle to establishing work/life boundaries and being ok saying we’re not ok,’ said Jimmy Etheredge, CEO of North America at Accenture.”, Fortune, June 2, 2021
“Don’t Let Your Business Be Held Back By An Outdated Plan – Covid-19 impacted you, your business, your family, and your friends in some way. How many plans were forced to change, were delayed, or outright dismissed in the last 18 months? Have you found yourself frustrated, confused, anxious, stressed, or bewildered?, Franchising. Com, July 2021
We accelerate successful global development for our Clients
Edwards Global Services, Inc. (EGS) provides a complete International solution for companies Going Global. From initial global market research and country prioritization, to developing new international markets, providing in-country operations support and problem solving around the world. Our U.S. based executive team has experience living and working in many countries. Our Associate network on the ground overseas covers 40+ countries. EGS has twice received the U.S. President’s Award for Export Excellence.
Find out more about how we help companies Going Global successfully at:
Download our latest 40 country ranking chart at this link:
July 2021 GlobalVue™ Country Ranking Chart
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: “Digital Transformation: Global development adapts to a virtual world”, Franchising.com, June 13, 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.
View a brief video on Bill’s background and focus: imparting global wisdom
https://calendly.com/geowizard/30min Click here to schedule a call with Bill Edwards to discuss how to succeed in developing your company around the world.
EGS Biweekly Global Business Newsletter Issue 34, Monday, July 12, 2021
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
“It always seems impossible until it is done.”, Nelson Mandala
“Growth is the only evidence of life.”, Dee Hock
“Only those who will risk going too far can possibly find out how far one can go.”, T. S. Eliot
Highlights in issue #34:
- Download our just released July 2021 GlobalVue™ 44 country ranking chart
- China Commits to Raising Retirement Age as Pension Shortfall Looms
- The Geopolitics of Climate Change: The Race for New Energy –
- Coffee vs Tea vs Soft Drinks: What Caffeine Drinks Do Countries Prefer?
- (UK) Services sector grows at record rate but costs mount
- Ryanair Triples the Number of Passengers Carried in June
- Dairy Queen® reopens in SM Megamall in Manila
- Brand News Section: Au Bon Pain®, Benito’s Taco Shop (LA), Dairy Queen®, KFC®, Subway®, Taco Bell®
Key Trends This Issue
We have just released our July 2021 quarterly GlobalVue™ chart that ranks 44 countries on 11 key political, economic and operating factors. Not surprisingly, overall countries that have seen significant levels of COVID vaccinations are having faster economic recovery.
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
Download our just released July 2021 GlobalVue™ 44 country ranking chart
“Foreign Direct Investment Crashed in 2020 – Global FDI fell by 35 percent to a total of $1 trillion, with developed economies hit particularly hard. FDI flows to Europe fell by 80 percent, while flows to North America fell by 42 percent.’, Geopolitical Futures, July 2, 2021
“According to the United Nations, the global median age has increased by 7 years since 1950, from 24 to 31. That said, young people accounted for 33% of the global population in 2020, making them the largest demographic across the globe. In 2020, more than 147 million people around the world were between the ages of 80-99, accounting for 1.9% of the global population.”, Visual Capitalist, July 2021
“The Geopolitics of Climate Change: The Race for New Energy – Great power competition has long centered on critical resources and routes, whether they be spices from the East, silver and gold from the New World, or oil from the Middle East. Changing perceptions of the value of particular commodities, often shaped by technological developments, fundamentally alter the perceived value of place, at least in the sense of power competition. Resource-rich areas fought over in one generation may be backwaters in the next.”, Stratfor Worldview, July 9, 2021
Global, Regional & Local Travel Updates
“Ryanair Triples the Number of Passengers Carried in June – The benefits of robust vaccination programs and a consolidated approach to the easing of travel restrictions are beginning to see positive effects for the European aviation industry. On Friday, the Ryanair Group announced that 5.3 million passengers were carried across the consortium’s network of airlines in the month of June.”, Airline Geeks, July 3, 2021
“European Travel Forecast Shows Desired Destinations For U.S. Travelers This Summer – Americans are now able to visit the European Union, vaccinated or not. The European Council has updated its list of countries whose citizens and residents should be allowed to travel freely to the bloc’s 27 member nations, and the United States is finally on it.”, Forbes, July 8, 2021
“Foreign bosses exempt from (UK) Covid quarantine ‘to boost business – The decision prompted suggestions that the government was pursuing “one rule for the rich and another for the rest”. It follows controversy over a decision to exempt from quarantine an estimated 2,500 VIPs, Uefa officials, politicians and sponsors to allow them to attend the semi-finals and final of Euro 2020.”, The Times of London, May 25, 2021
“Aeroméxico Resumes International Routes, Starts Flying 737 MAX – Little by little, the airline is returning to operate at pre-pandemic levels. Currently, both airlines offer more than 40 routes between Mexico and the U.S. from their main operations centers, and in July they will operate more than 4,500 flights, a 91% recovery compared to the same period two years ago.”, Airline Geeks, July 4, 2021
Global Vaccine Update
25.3% of the world population has received at least one dose of a COVID-19 vaccine. 3.44 billion doses have been administered globally, and 29.58 million are now administered each day. Only 1% of people in low-income countries have received at least one dose.”, Our World In Data, July 11, 2021
Country & Regional Updates
Argentina
“IATA Cautions Argentina about Barring International Flights – Airlines are reportedly considering resuming service to Argentina after the government decided to limit the number of passengers through international airports to 600 per day, ostensibly to combat the Delta coronavirus strain. The move has resulted in numerous flights being denied landing privileges.”, Airways Magazine, July 3, 2021
Australia
“Aussie fitness chain F45 eyeing $2b valuation for NY stock exchange – The Australian company, which prides itself on its high intensity interval training (HIIT) fitness regimes, is looking to list on the New York stock exchange. The gym was founded in 2013 in Australia and now has more than 1,500 studios, with about 2,800 franchises in 63 countries.”, News.com.au, July 8, 2021. Compliments of Jason Gehrke, Founder and Director, Franchise Advisory Centre, Brisbane
Canada
“Canada is starting to slowly reopen — but Americans still can’t visit for tourism – 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. But on July 5, the two countries eased restrictions for the first time — a move before eventually reopening the border entirely over the next few weeks.”, The Points Guy, July 6, 2021
China
“China’s manufacturing PMI edges down to 50.9 in June, indicating growth moderation in the manufacturing sector. 7 of the 13 sub-indices were lower than their respective levels in the previous month.”, Fung Business Intelligence, June 30, 2021
“Cargo glut at key Chinese shipping port loosens after global delays – A key shipping port in Yantian, in southern China, is nearly back to full capacity after a recent COVID outbreak partially shut down operations.”, Axios, July 7, 2021
“China Commits to Raising Retirement Age as Pension Shortfall Looms – The government will further expand the coverage of the basic state pension insurance system managed by provincial-level governments, encourage the growth of the occupational pension and private pension sectors, and delay the legal retirement age….”, Caixing Global, July 6, 2021
Japan
“Japanese fax fans rally to defence of much-maligned machine – Ministers back down after hundreds of government offices insist banishing fax would be impossible. The backlash has forced the government to abandon its mission to turn officialdom into a digital-only operation, the newspaper said on Wednesday.”, The Guardian, July 7, 2021
Singapore
“Singapore inches toward reopening divided by vaccine status – Dine-in at food outlets increases to five people next week. Once at least 50% of Singapore residents are fully vaccinated, expected around the end of the month, the government is looking to relax rules around dining, office work and events even more, especially for those who’ve been fully vaccinated.”, Houston Chronicle, July 7, 2021
Turkey
“Turkey hikes electricity prices by 15%, natural gas prices by up to 20% – The country’s natural gas distributor BOTAŞ said it had raised natural gas prices for residential use by 12%, industrial use by 20% and for electricity production by 20.2%. This marked the seventh increase in natural gas prices since January, according to the tariff released by BOTAŞ.”, The Daily Sabah, July 1, 2021
United Kingdom
“Half of UK to get Covid booster with flu jab to avoid further lockdowns – All over-50s urged to ‘protect freedom’ during busy winter for NHS. The JCVI issued interim advice that boosters should begin with offers to health and care workers, the extremely vulnerable and the over-70s. The programme will then move on to all over-50s and younger people with underlying conditions, with a total of 32 million people eligible in the UK.”, The Times of London, July 1, 2021
“UK relaxes trucking rules to ease shortage of drivers – Britain’s government said on Wednesday it would relax rules this month for how long truck drivers can work, as a temporary fix for a severe shortage of qualified heavy goods vehicle (HGV) operators as the economy reopens from its coronavirus lockdowns.”, Reuters, July 7, 2021
“Covid passports planned in time for England’s autumn wave– PM hopes to increase vaccination among young with compulsory certificates in pubs, clubs and restaurants. by mid-September ministers say all over-18s will have had the chance to have both jabs and officials believe that vaccination passports could be mandated for use in premises where social distancing is not possible.”, The Times of London, July 10, 2021
“(UK) Services sector grows at record rate but costs mount – IHS Markit said that capacity constraints caused prices in the sector to rise at the fastest pace on record as businesses passed on some of the extra costs to consumers. Businesses in the eurozone came up against similar challenges and the composite input prices index rose from 66.8 to 69.8. This was the highest reading in nearly 21 years.”, The Times of London, July 5, 2021
United States
“Fast-food franchises are getting desperate to hire workers – Hourly workers are hard to find, just as people are starting to venture out to restaurants and take vacations that should include lots of fast food stops. Chains are offering higher salaries and other perks to compete for food service workers.”, Axios, June 30, 2021
Brand News
Dairy Queen® reopens in SM Megamall in Manila, LinkedIn post, July 5, 2021
“KFC, Taco Bell fans rejoice: Dozens of new stores to open, delivery to expand – The company behind American fast food giants KFC and Taco Bell in Australia has aggressive plans to open many more restaurants, saying the fried chicken icon continues to be its big earner. “, News.com.au, June 29, 2021. Compliments of Jason Gehrke, Founder and Director, Franchise Advisory Centre, Brisbane
“Subway grasps for a lifeline as Americans shun ageing brand – The closely held company on Tuesday announced what it calls the biggest changes ever in its more than half-a-century history. Dubbed the “Eat Fresh Refresh”, Subway is rolling out two new bread recipes, several on-trend premium ingredients and a handful of new sandwiches, plus nationwide delivery service. It is hoping those changes will lure diners back to its stores after five straight years of declines.”, Australian Financial Review, July 7, 2021. Compliments of Jason Gehrke, Founder and Director, Franchise Advisory Centre, Brisbane
“Yum Brands franchisee Ampex Brands acquires Au Bon Pain – The purchase from Panera Bread includes $60 million in assets and was finalized June 29. Yum Brands and 7-Eleven franchisee Ampex Brands announced Wednesday the acquisition of bakery-café chain Au Bon Pain from JAB Holding-owned Panera Bread.”, Nation’s Restaurant News, July 9, 2021
“Virtual restaurants and the ghost of California burritos past – For the last decade or so, Benito’s Taco Shop on Santa Monica Boulevard has been my favorite California burrito spot on the west side. A few weeks ago I called and placed my regular order, a California burrito and three rolled tacos. But when I drove down Santa Monica Boulevard, the familiar yellow and orange Benito’s sign was nowhere to be found.”, Los Angeles Times, July 2, 2021
“Some restaurant chains deal with supply shortages by trying to pivot – At least nine fast-food chains and restaurants surveyed by Reuters. acknowledge some of their locations are dealing with shortages of key ingredients and menu items, as companies deal with end-of-lockdown distortions in supply chains.”, Marketplace, June 29, 2021
“These “French Tacos” Were a Sensation In Europe, But Flopped in the U.S. What Went Wrong? The French franchise O’Tacos is rapidly expanding across Europe, but failed to find its footing with its first outpost in the U.S. What should its fellow foreign companies know about coming to the U.S.? And how can American partners profit from their unique ideas?’, An article in Entrepreneur magazine by Ray Hays.
Articles & Studies About Doing Business Going Forward
“Long waves: The History of Innovation Cycles – Creative destruction plays a key role in entrepreneurship and economic development. Coined by economist Joseph Schumpeter in 1942, the theory of “creative destruction” suggests that business cycles operate under long waves of innovation. Specifically, as markets are disrupted, key clusters of industries have outsized effects on the economy.”, Visual Capitalist, June 30, 2021
“Over the last 50 years, the energy mix of G20 countries has changed drastically in some ways. With many countries and regions pledging to move away from fossil fuels and towards cleaner sources of energy, the overall energy mix is becoming more diversified. But shutting down plants and replacing them with new sources takes time, and most countries are still incredibly reliant on fossil fuels.”, British Petroleum Statistical review of World Energy, via Visual Capitalist, June 29, 2021
“This series of map pulls data from the World Happiness Report to uncover the average scores of 149 countries between 2018-2020, and which ones emerged the happiest or unhappiest. The report also looks at more intangible aspects, collecting survey responses around: Social support; Freedom to make life choices; Generosity; Perceptions of government/ business corruption; and Positive or negative effects (Recent experience of emotions).”, Visual Capitalist, June 2021
“Coffee vs Tea vs Soft Drinks: What Caffeine Drinks Do Countries Prefer? It might be the world’s most widely consumed psychoactive substance, but your preferred caffeine drink of choice might come down to where you live. A study into caffeine consumption of 57 countries examined the role it plays in our diets, using the volume sales of caffeine-containing beverages from Euromonitor to see what caffeine source each country prefers.”, Visual Capitalist, July 12, 2021
We accelerate successful global development for our Clients
Edwards Global Services, Inc. (EGS) provides a complete International solution for companies Going Global. From initial global market research and country prioritization, to developing new international markets, providing in-country operations support and problem solving around the world. Our U.S. based executive team has experience living and working in many countries. Our Associate network on the ground overseas covers 40+ countries. EGS has twice received the U.S. President’s Award for Export Excellence.
Find out more about how we help companies Going Global successfully at:
Download our latest 40 country ranking chart at this link:
July 2021 GlobalVue™ Country Ranking Chart
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: “Digital Transformation: Global development adapts to a virtual world”, Franchising.com, June 13, 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.
View a brief video on Bill’s background and focus: imparting global wisdom
https://calendly.com/geowizard/30min Click here to schedule a call with Bill Edwards to discuss how to succeed in developing your company around the world.
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
We accelerate successful global development for our Clients
Edwards Global Services, Inc. (EGS) provides a complete International solution for companies Going Global. From initial global market research and country prioritization, to developing new international markets, providing in-country operations support and problem solving around the world. Our U.S. based executive team has experience living and working in many countries. Our Associate network on the ground overseas covers 40+ countries. EGS has twice received the U.S. President’s Award for Export Excellence.
Find out more about how we help companies Going Global successfully at:
Download our latest 40 country ranking chart at this link:
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.
View a brief video on Bill’s background and focus: imparting global wisdom
https://calendly.com/geowizard/30min Click here to schedule a call with Bill Edwards to discuss how to succeed in developing your company around the world.
EGS Biweekly Global Business Newsletter Issue 32, Monday, June 14, 2021
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
“It’s choice, not chance that determines your destiny”, Jean Nidetch, compliments of Rafik Farouk on LinkedIn
“The ones who are crazy enough to think they can. Change the world are the ones who do.”, Steve Jobs
“Today is your opportunity to build the tomorrow you want.”, Ken Poirot
Highlights in issue #32:
- OECD: Global prospects are improving but performance diverges strongly across countries
- COVID-19’s Impact on Employment Worldwide
- Report Says Half Of Small Businesses Unable To Fill Job Openings
- CDC Travel Guidelines Relax for More than 100 Countries
- Worldwide food costs hit decade high
- E-commerce has grown two to five times faster than before the pandemic and Pandemic drove small businesses online — and they’re staying
- Brand News Section: Capriotti’s Sandwich Shop®, Chuck E. Cheese®, Del Taco®, Denny’s®, Hilton®, Jack in the Box®, Krispy Kreme®, Nathan’s Famous, Pizza In®, Urban Air Adventure Parks®, Wendy’s®
First, a few Personal Comments
This issue covers 18 countries, highlights global employment issues, international travel as well as updates the level of vaccinations that are collectively leading to businesses reopening and high GDP growth in many countries.
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
“World Bank boosts growth forecasts as U.S. stimulus, vaccines stoke demand – The World Bank on Tuesday raised its global growth forecast to 5.6% for 2021, marking the strongest recovery from a recession since 1940 due to U.S. stimulus spending and faster growth in China but held back by “highly unequal” access to COVID-19 vaccines.”, June 8, 2021
“As the number of vaccinated people increases, so does optimism about the economic recovery. But despite the general positive trends, the defining characteristic of the recovery will be its unevenness. The success or failure of the recovery in a given country depends on the government’s vaccination program and public health policies, according to the Organization for Economic Cooperation and Development.”, Geoploitical Futures, June 4, 2021
“OECD: Global prospects are improving but performance diverges strongly across countries – Prospects for the world economy have brightened but this is no ordinary recovery. It is likely to remain uneven and dependent on the effectiveness of vaccination programmes and public health policies. Some countries are recovering much faster than others. Korea and the United States are reaching pre-pandemic per capita income levels after about 18 months. Much of Europe is expected to take nearly 3 years to recover. In Mexico and South Africa, it could take between 3 and 5 years.”, OECD, June 2021
“COVID-19’s Impact on Employment Worldwide – In 2020, some 114 million workers around the world lost their jobs or withdrew from the labor force. An estimated 30 million jobs were never created because of the disruption caused by the pandemic. It will take months or, in some sectors or locations, years for the labor force to recover. The International Labor Organization projects a shortfall of 23 million jobs even through 2022.”, Geopolitical Futures, June 11, 2021
“Worldwide food costs hit decade high – A UN index of food prices “has reached its highest since September 2011, climbing almost 5% last month,” reports Bloomberg. Another tracker of ‘prices from grains to sugar and coffee is up 70% in the past year.’”, Axios, June 4, 2021
“PwC ranked the largest publicly-traded companies by their market capitalization in U.S. dollars – The 100 biggest companies in the world were worth a record-breaking $31.7 trillion as of March 31 2021, up 48% year-over-year. As a point of comparison, the combined GDP of the U.S. and China was $35.7 trillion in 2020.”, Visual Capitalist, June 10, 2021
Global Vaccine Update
“Uneven vaccination rates are creating a new economic divide – The global economy should grow briskly this year: by 5.6%, according to the World Bank, which updated its forecasts this month. But where vaccination has lagged, especially in the poorest countries, some economies seem to be going directly the other way.”, The Economist, June 13, 2011
“Share of people partially or fully vaccinated against COVID-19. 12.5% of the world population has received at least one dose of a COVID-19 vaccine. 2.4 billion doses have been administered globally, and 33.3 million are now administered each day. Only 0.8% of people in low-income countries have received at least one dose.”, Our World in Data, June 12, 2021.
“Growth Projections After the Pandemic – Getting shots in arms gives the economy a shot in the arm. The success or failure of the recovery in a given country depends on the government’s vaccination program and public health policies, according to the Organization for Economic Cooperation and Development. Other key factors include the degree of state support for businesses and workers as well as the country’s dependence
“Canada Set to Ease Quarantine Rules for Vaccinated Travelers – The government is crafting plans to loosen the current 14-day isolation period for border-crossers who’ve had two vaccine doses, said the people, speaking on condition they not be identified. Travelers entering Canada would still be tested for the virus and may be required to quarantine for a shorter period.”, Bloomberg, June 8, 2021
“Mexico, Brazil: Vaccine Progress and Resilience – In Brazil and Mexico the vaccine rollout will likely pick up pace in the rest of the year, but to receive a vaccine some eligible people will have to wait until 2022 (H1 2022 in Brazil and H2 2022 in Mexico). However, the economies have proved resilient as they adapted better than expected to restrictions.”, Continuum Economics, May 27, 2021
Global, Regional & Local Travel Updates
“(U.S.) TSA screened more than 2 million flyers for the first time since March 2020 – The Transportation Security Administration (TSA) said it screened 2,028,961 travelers, the highest number since Sunday, March 8, when 2,119,867 passed through checkpoints at U.S. airports.”, The Points Guy, June 14, 2021
“(U.K.) June 21 easing of Covid lockdown rules delayed by four weeks – A government source said that (Prime Minister Boris) Johnson views a delay as the “final stretch”. He has repeatedly argued that the end of lockdown restrictions must be ‘irreversible’.”, The Times of London, June 14, 2021
“CDC Travel Guidelines Relax for More than 100 Countries – On Monday the U.S. Centers for Disease Control and Prevention (CDC) revised its coronavirus travel guidelines for over 100 countries “to better differentiate countries with severe outbreak situations from countries with sustained, but controlled, COVID-19 spread,” the agency said on its website. The new CDC travel guidelines now include specific recommendations for both vaccinated and unvaccinated travelers.”, CNN Traveler, June 9, 2021
“Americans May Be Able to Obtain the EU’s Digital COVID Certificate for Travel – The European Union’s COVID-19 digital certificate could be extended to non-EU citizens, including from the United States, an EU Commission spokesperson said in an interview this week.”, Travel And Leisure, June 3, 2021
“Air Canada Launches COVID-tested Flights Between Canada and Italy – Air Canada’s COVID-tested flights to Italy are scheduled to take off starting July 2. Travelers will need to provide proof of a negative COVID-19 test taken within 48 hours of their departure from Canada. They’ll also have to take another test upon landing in Italy, but will not be required to isolate or participate in health monitoring programs if they test negative.”, Travel And Leisure, June 3, 2021
“Iberia Restores Latin American Services as Spain Reopens to More Tourists – Iberia’s 2021 summer flight program will total more than 90 flights per week to Latin America. The schedule includes 18 destinations in 16 countries.”, Airline Geeks, June 9, 2021
“Thai Airways (TG) will commence direct flights from Phuket to Zurich, Paris, Copenhagen, London, and Frankfurt, starting July 2, 2021, as the country prepares to revive its tourism. The decision came right after the government confirmed to reopen Phuket to fully vaccinated tourists. The airline, through its wholly-owned subsidiary – Thai Smile, has increased its frequency on the Hong Kong (HKG) – Phuket route to four weekly flights starting 02 July as well. The flag carrier also plans two routes from Asian cities – Seoul (ICN) and Taipei (TPE) — to Phuket from July, while a route to Tokyo still awaits confirmation.”, Airways Magazine, June 8, 2021
Country & Regional Updates
Canada
“Ontario patios, retail to open Friday as province speeds up COVID-19 reopening plan – The staged reopening plan was originally scheduled to kick in next Monday. But the province says it has exceeded its goal for administering first doses of COVID-19 vaccinations, while new cases and hospitalization continue to drop. The changes, approved in a Monday morning cabinet meeting, take effect Friday at 12:01 a.m.”, The Globe And Mail, June 7, 2021
“‘This is 100 per cent the worst thing we’ve ever seen’: How Canadian companies are adjusting to supply chain chaos – Today, unrelenting demand from cash-flush shoppers for certain goods, restocking by companies scrambling to satisfy them as regions emerge from lockdowns, and ever-changing COVID-19 protocols – resulting in more checks and labour shortages at each step of the transportation chain – have created an unprecedented slowdown of goods that is testing the global economy and its distribution networks.”, The Global and Mail, June 14, 2021
China
“China’s Factory Inflation Jumps Most in Almost 13 Years as Commodity Prices Surge – Surging commodity prices fueled inflation in China in May, with factory-gate prices jumping the most in almost 13 years and consumer prices accelerating at the fastest pace since September, government data released Wednesday show.”, Caixing Global, June 9, 2021
“China’s Manufacturing Expands at Fastest Pace in Five Months, The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which gives an independent snapshot of the country’s manufacturing sector, rose slightly to 52 in May from 51.9 the previous month, according to a report released Tuesday.”, Caixing Global, June 01, 2021
“China’s Services Expansion Slows, The Caixin China General Services Business Activity Index, which gives an independent snapshot of operating conditions in the services sector, fell to 55.1 in May from 56.3 the previous month.”, Caixing Global, June 3, 2021
Colombia
“Colombia to restart large events as COVID-19 deaths climb past 90,000 – Colombia on Thursday approved the reopening of most large events it had banned to contain the pandemic, even with intensive care units likely to be full until the end of June and more than 90,000 dead from COVID-19.”, Reuters, June 3, 2021
India
“New Delhi and Mumbai loosen lockdowns as India’s Covid-19 crisis eases in cities – India’s capital New Delhi and financial hub Mumbai began a gradual easing of restrictions on Monday as coronavirus infections in the country fell to a two-month low.”, France 24, June 7, 2021
New Zealand
“The world’s most livable cities in 2021 – Auckland came out on top on The Economist Intelligence Unit’s Global Liveability Index of 140 cities around the world thanks to its success in containing the pandemic quickly, enabling restrictions to be lifted early on.”, CNN, June 9, 2021
Philippines
“World Bank slashes GDP growth forecasts for the Philippines – The World Bank has slashed its Philippine growth projection for this year due to a deeper-than-expected contraction in the first quarter and the reimposition of stricter quarantine measures in the capital region to contain a surge in COVID-19 cases. While growth in the Philippines remains on track for recovery, the bounce back this year will likely be lower than previously expected at 4.7%…”, Reuters. June 7, 2021
Russia
“Every third coffee (in Russia) comes from McDonald’s – The CEO of the chain in Russia spoke about the food preferences of Russians. The coronavirus pandemic has made adjustments even in the preferences of Russians in the food they order at McDonald’s . Mark Karena , general director of McDonald’s in Russia , told Lente.ru how the network will develop in Russia, what they will do with security and what new products to expect in the menu.”, Lente.ru, June 7, 2021. Website translated compliments of Paul Jones, Jones & Co., Toronto
“Russia raises key rate to 5.5%, flags more hikes to curb inflation – After slashing the rate to a record low of 4.25% last year during the COVID-19 pandemic, the central bank has now raised it three times in 2021 to slow inflation that shot above its target in November and is on track to accelerate further. ‘Our main task is to normalise the price growth rates,’ Governor Elvira Nabiullina said.”, Reuters, June 11, 2021
Singapore
“Singapore to start easing Covid restrictions as daily infections fall – Starting Monday, Singapore will allow social gatherings of five people — an increase from the current two-person limit. Limits on event attendees and operating capacity at venues such as public libraries and museums will also be relaxed, the government said.”, CNBC, June 11, 2021
United Kingdom
“Housing boom drives biggest rise in construction for seven years – The IHS Markit/CIPS construction purchasing managers’ index rose from 61.6 to 64.2, its highest level since September 2014 and above economists’ forecasts of 62.3.”, The Sunday Times of London, June 5, 2021
“New car sales rose sharply in May, the first full month that showrooms have been open this year. Registrations rose to 156,737, up from the 20,247 in the same month last year when dealerships were closed. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said: ‘With dealerships back open and a brighter, sunnier, economic outlook, May’s registrations are as good as could reasonably be expected.’”, The Times of London, June 4, 2021
United States
“US inflation hits 5% for first time since 2008 – Policymakers continue to insist that inflation’s ascent will be transitory as Covid-19 restrictions are loosened, but apprehension that a sustained rise would inevitably twist their arms — leading them to tighten the monetary policy that has helped to fuel markets’ record run during the pandemic — has rattled equities and bonds in recent months.”, The Times of London, June 4, 2021
“Small business optimism slips on hiring, inflation worries – U.S. small-business confidence edged lower last month, the first decline in four months, as a nationwide labor shortage and inflation worries weighed on business owners’ economic outlook, according to a survey released on Tuesday. The National Federation of Independent Business (NFIB) Optimism Index fell 0.2 point to a reading of 99.6 in May after three straight monthly increases.”, Reuters, June 8, 2021
“The (U.S.) restaurant industry achieved stronger two-year sales for the second consecutive month in April. Same-store sales growth was 6.8% on a two-year basis in April, an improvement of 4.6 percentage points from the 2.3% two-year growth reported for March. This is optimistic news for the industry as April became the best month for restaurants based on sales growth in over three years.”, Nation’s Restaurant News, May 19, 2021
“Report Says Half Of Small Businesses Unable To Fill Job Openings – A record-high 48% of small business owners in May reported unfilled job openings (seasonally adjusted). That makes May the fourth month in a row of record-high readings for unfilled job openings and is 26 points higher than the 48-year historical reading of 22%. ‘Small business owners are struggling at record levels trying to get workers back in open positions,’ said NFIB Chief Economist Bill Dunkelberg.”, Franchising.com, June 10, 2021
Brand News
“Chuck E. Cheese expanding franchise footprint to Europe – Chuck. E Cheese, the family entertainment restaurant franchisor with 556 franchised locations open in 47 states and 17 countries, has signed an agreement with EWAS Management Solutions to bring the brand to Romania for the first time.”, Global Franchise, June 11, 2021
“’Ahora en Denny’s Vista Hermosa estamos atendiendo 24 horas,’ read one social media post announcing the newest Denny’s restaurant on Vista Hermosa Boulevard in Guatemala City is open and serving 24 hours a day. That 24/7 presence is central to the identity of Denny’s in Guatemala and elsewhere in Central America, where the brand now has 11 locations after franchisee Grupo Comidas opened its third in Guatemala in February.”, Franchise Times, May 27, 2021
“Krispy Kreme goes public with IPO filing, looking to raise $100 million. The JAB Holding brand will be trading on the Nasdaq under the ticker symbol ‘DNUT’. The company made $321.8 million in revenue for the first quarter of 2021, ended April 4, up 23% from $261.2 million the same quarter the year prior. The filing also noted that Krispy Kreme achieved its highest level of sales — $1.1 billion — in the company’s history in 2020 during the COVID-19 pandemic.”, Nation’s Restaurant News, June 1, 2021
“How Hilton’s CEO moved the company forward by focusing on the past – Though the COVID-19 pandemic is expected to result in more deaths globally in 2021 than in 2020, summer travel bookings are on the rise. Many people around the world—and nearly 52% of American adults—are fully vaccinated, and polls show that people are excited to get back out into the world.”, Fortune, June 3, 2021
“Jack In The Box Jumps Into The Virtual Restaurant Space With Jason Derulo Collaboration – The chain today announced a partnership with award-winning singer/songwriter Jason Derulo to launch the One in a Milli Virtual Restaurant out of 10 Los Angeles Jack in the Box locations.”, Forbes, June 14, 2021
“Nathan’s Famous is relaunching Arthur Treacher’s as ghost kitchens. Nathan’s is adding the famous fried seafood restaurant to its portfolio and helping to evolve their menu. Nathan’s Famous is bringing back the iconic 1970s quick-service brand.”, Nation’s Restaurant News, May 27, 2021
“Covid Accelerates Franchising’s Adoption of Marketing Technologies, Part 1 – Del Taco®, Capriotti’s Sandwich Shop®, Pizza In®.”, Franchising.com, June 9, 2021
“How Data Transformed Urban Air From A Trampoline Park To Adventure Park – When Michael Browning started Urban Air, the business was a trampoline park for kids like many others in the industry. But with a background in data science and analytics, Browning was able to see the opportunity to create a more innovative model that was centered around the needs of parents and kids both.”, Forbes, June 8, 2021
“Brits Queue Up for New Wendy’s as American Fast Food Invades U.K. – Brands with expansion plans benefit from glut of available sites. Wendy’s Co. is returning to the U.K. two decades after it left, part of an American fast-food-chain invasion that has been a rare bright spot for restaurant property owners during the pandemic.”, The Wall Street Journal, June 8, 2021
Articles & Studies About Doing Business Going Forward
“Global trade set for strong 2021 rebound after proving resilient during pandemic – Global trade was more resilient during the pandemic than expected and will rebound strongly in 2021, according to the Dubai Multi Commodities Centre, though the recovery will be uneven and dependent on the roll out of vaccines and easing geopolitical tensions. However, the future of global trade is dependent on the global vaccine drive and governments’ ability to respond quickly to new waves and variants of Covid-19, according to DMCC’s The Future of Trade report.”, The National News, June 9, 2021
“What’s next for consumers, workers, and companies in the post-COVID-19 recovery – COVID-19 changed how we live and work in ways that will alter our behavior long after the pandemic subsides. Companies moved rapidly to deploy digital and automation technologies, dramatically accelerating trends that were unfolding at a much slower pace before the crisis. Work went remote, shopping, entertainment, and even medicine went online, and businesses everywhere scrambled to deploy digital systems to accommodate the shifts.”, McKinsey, May 18, 2021
“Pandemic drove small businesses online — and they’re staying – Small businesses are the engines of the economy. While many did not survive the last 15 months, new businesses have popped up and found ways to find customers in the new, all-online-all-the-time environment.”, Axios, June 4, 2021
“Understanding who we have become – Change accelerates under pressure, as illustrated by the last year and a quarter. This week, McKinsey drilled into numerous changes that have reset the context for companies, employees, and societies. McKinsey experts analyzed changes to consumer profiles in Asia, the consequences of women’s exodus from the workforce, and why more than 70 HR leaders believe this is a new era for their profession.”, McKinsey, June 9, 2021
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EGS Biweekly Global Business Newsletter Issue 31, Monday, June 1, 2021
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
“It’s choice, not chance that determines your destiny.”, Jean Nidetch, compliments of Rafik Farouk on LinkedIn
“The ones who are crazy enough to think they can. Change the world are the ones who do.”, Steve Jobs
“Today is your opportunity to build the tomorrow you want.”, Ken Poirot
Highlights in issue #31:
- Brand News Section: Hyatt®, IHOP®, KFC®, McDonald’s®, Panera®, Popeyes®, YUM Brands®
First, a few Personal Comments
Just a typical day for a world coming out of COVID-19.
Incentives to get vaccinated and to come back to work, very high consumer product demand, supply chain disruptions, staffing shortages, European stocks end week at record high, record iron ore prices, tin prices hit 10 year high, Italian economic sentiment index up 11 points to 115.8 in May, labor shortages hit German reopening, foreign investment firms cleared to offer wealth management services in China, US air passenger level back to March 2020 level, hybrid office and home working plans announced, US CDC clears cruise ships to resume sailing out of US ports.
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
“Most companies expected employees to come into the office before the pandemic. Now more accustomed to working via video calls, most C-suite executives expect a hybrid work model to be the norm in the future.”, McKinsey, May 27, 2021
“Supply chain worries loom over global economy – Cycles of shortages may lead to speculative binges and then deeper recessions spurred by inventory liquidation. At the moment, people across the globe are experiencing many more idiosyncratic shortages, from oxygen in Indian hospitals to gasoline on the US East Coast to automobile semiconductors pretty much everywhere.”, The Financial Times, May 14, 2021
“Global economy will return to pre-pandemic level by 2022, says OECD – The Paris-based organisation said global output would rise 5.8 per cent this year, a significant upgrade from the forecast of 4.2 per cent made in December. Growth of 4.4 per cent the following year would bring most of the world back to pre-pandemic levels of activity, it added. However, the OECD also warned that the recovery would be uneven and living standards in many developed economies will still fall well short of the levels expected before the pandemic.”, The Financial Times, May 31, 2021
“What the soaring cost of breakfast may signal for global food price inflation – The prices of raw materials that go into morning staples have surged since the start of the pandemic. Prices for bulk contracts of coffee, milk, sugar, wheat, oats and orange juice have jumped 28 per cent on average from 2019 levels, according to trading on US futures markets, where companies lock in supplies or hedge their exposure to commodities costs. For meat-eaters, adding pork to that list pushes the average price rise to 32 per cent.”, The Financial Times, May 27, 2021
“10 Ways to Cash In on the Shortage of Just About Everything – America’s chicken-sandwich war has the combatants scrambling for supplies. Breast prices have doubled this year. Chick-fil-A has run low on sauce. Burger King has had pickle problems—jars, not cucumbers, are hard to come by. An isolated supply squeeze? Anyone who is building or remodeling a home, or buying or renting a car, or stocking up on pool chlorine or dog food, knows better. In the land of plenty, there suddenly seems to be an everything shortage.”, Barron’s, May 28, 2021
Global Vaccine Update
The more a country is vaccinated, the more open business seems to be. Israel, the United Kingdom and USA are largely open. Europe is seeing an encouraging ramp up in vaccinations. Much of the Asia Pacific region have been slow to vaccinate for various reasons. China says it is vaccinating 14 million people a day.
“Share of people partially or fully vaccinated against COVID-19. This data is only available for countries which report the breakdown of doses administered by first and second doses.”, Our World in Data, May 30, 2021. (Note: China does not report partly vaccinated people.)
“Airlines Encourage Staff to Vaccinate – After being hit by the coronavirus for more than a year, airlines are telling their staff to be vaccinated against Covid-19. Delta Air Lines has announced that newly-hired staff have to be vaccinated. Earlier, Cathay Pacific Airways encouraged its staff to get vaccinated.”, Airline Geeks, May 18, 2021
“Latin America poised to benefit as U.S. raises exports of COVID-19 shots – Latin America is poised to receive millions of U.S.-made COVID-19 shots in the coming weeks as the United States emerges as a top exporter of vaccines against the novel coronavirus.” Reuters, May 20, 2021
“Delhi announces ‘very slow’ easing of lockdown – Indian authorities Friday announced a “very very slow” easing of the lockdown in the capital New Delhi as coronavirus infections fall in major cities after weeks of lockdown.”, Asia Times, May 28, 2021
“EU Negotiators Reach Deal on COVID-19 Travel Certificates – Negotiators from the European Parliament and European Council reached an agreement to create an EU-wide COVID-19 certificate designed to facilitate travel and revive tourism, Euractiv reported May 20. The pass will allow authorities to determine whether travelers have been vaccinated, recently tested or have antibodies from a previous COVID-19 infection, based on records from their home country.”, Stratfor, May 21, 2021
Global and Regional Travel Updates
“EU executive urges reopening in summer to vaccinated tourists – The European Commission proposed on Monday that vaccinated people should be exempt from testing or quarantines when travelling from one EU country to another, and urged a gradual easing of travel measures as COVID-19 inoculations accelerate.”, Reuters, May 31, 2021
“Dubai targets over 5.5 million overseas tourists this year – Dubai expects to attract over 5.5 million overseas visitors this year, hopeful that new markets can help make up for the loss of visitors from key places where travel is restricted.”, Reuters, May 18, 2021
“U.S. Airline Flyers Creep Up Toward 2 Million in Travel Rebound – U.S. airlines carried the most passengers in almost 15 months on Friday, rebounding from the pandemic as travelers took advantage of relaxed restrictions and expanding vaccinations to take off for Memorial Day weekend. The Transportation Security Administration reported that it screened almost 1.96 million people at airports, compared with 1.85 million on Thursday. That’s the most since March 7, 2020, when the Covid-19 pandemic was in its early stages.”, Bloomberg, May 29, 2021
“Americans Can Travel to Spain Starting June 7 – Spain’s borders will reopen to vaccinated travelers, including Americans, from outside the European Union on June 7. Travelers who have been fully vaccinated with an approved vaccine are allowed to enter Spain, no matter their origin country, Reuters reported Friday.”, Travel and Leisure, May 21, 2021
“Mexico eyes easing U.S. border curbs from June 22, depending on COVID – Mexico and the United States are discussing relaxing curbs on non-essential land border crossings from June 22, depending on the spread of COVID-19 and how many people in both countries have been vaccinated, Mexico’s foreign ministry said on Tuesday.”, Reuters, May 18, 2021
“Hawaii Lifts Outdoor Mask Mandate – Visitors can now enjoy Hawaii’s beaches, hiking trails, and majestic outdoor vistas mask-free, regardless of their vaccination status. The state lifted its outdoor mask mandate on Tuesday and has paved the way for its world-famous surfing competitions to restart in June.”, Travel and Leisure, May 26, 2021
“Celebrity Cruises Will Be the First (USA) Line to Sail With Ticketed Passengers in June – The cruise line’s Celebrity Edge ship will make its grand re-debut from Ft. Lauderdale on June 26, as the Centers for Disease Control and Prevention’s guidelines allow ships to either complete a series of test cruises or agree to have 98% of crew and 95% of passengers onboard vaccinated.”, Travel and Leisure, May 27, 2021
“Canada Urged to Relax Entry Rules for Fully Vaccinated Travelers – A Canadian advisory body said Justin Trudeau’s government should relax its stringent border rules for vaccinated travelers and drop a requirement that international air passengers quarantine in a hotel when they arrive.”, Bloomberg, May 27, 2021
“Qantas offers unlimited flights for a year as incentive to get COVID-19 jab – Company announces plans to offer 10 ‘mega prizes’ of unlimited flights for one year for vaccinated customers.”, Fox Business, May 31, 2021
“Delta says domestic travel demand recovered, hits pre-pandemic levels – United and Delta said bookings have recovered better than expected. Delta Air Lines announced that bookings for domestic travel this summer have fully recovered and will even surpass pre-pandemic levels further into the season.”, Fox Business, May 27, 2021
“How To Travel To France This Summer, What’s Open And What To Expect – The country is widely believed to be opening on 9 June to international travelers for non-essential travel…..If the country opens on 9 June, it is not a given that it will be open to everyone.”, Forbes, May 26, 2021
Country & Regional Updates
China
“Manufacturing production expands at a faster pace – The output index rises from 52.2 in April to 52.7 in May. The new export orders index drops by 2.1 pts and returns to the contractionary zone, indicating a fall in external demand. The input prices index rises to a 10-year high, suggesting severe cost pressures on manufacturers.”, Fung Business Intelligence, May 31, 2021
“China’s Census 2021: 5 Takeaways for Foreign Investors – China’s census 2021 data reveal anticipated trends, such as slowing population growth…..China’s demographic profile is distinct from any other country due to its historically rapid economic development and unique population management strategies. A combination of factors that include population size, education trends, and accumulation of personal wealth make China an unmatched consumption market.”, AmCham China, May 27, 2021
“Goldman Forms Wealth Venture With China’s Largest Bank – Goldman Sachs Group Inc. received approval from Chinese regulators to set up a wealth management joint venture in the world’s second-largest economy to go after an asset pool it estimated will surpass $70 trillion by the end of this decade.”, Caixing Global, May 26, 2021
Egypt
“Egypt lifts coronavirus restrictions from June 1 – Egypt will lift restrictions imposed to curb the spread of the coronavirus, including easing the early closure of shops and restaurants, from Tuesday, the cabinet said.”, Reuters, May 30, 2021
France
“COVID-weary French cafes, stores impatient for new lockdown easing – From Wednesday, non-essential retail outlets will be able to reopen to customers for the first time in six weeks as France gradually winds down its third national lockdown in little more than a year.”, Reuters, May 18, 2021
Germany
“Supply bottlenecks could delay German recovery, institute warns – According to the report by the respected German Economic Institute, reported by Handelsblatt newspaper on Wednesday, 40% of industry groups surveyed reported severe short-term supply disruption. A further third were seeing more modest disruption.”, Reuters, May 18, 2021
Ireland
“Ireland’s PM sets out roadmap for easing restrictions – including return of foreign travel – Micheal Martin says the end of the pandemic is “within our grasp”, urging people to ‘remain vigilant against the terrible virus’. The Irish government has set out its plans for re-opening the country over the summer – including the adoption of a COVID-19 certificate so that people can travel abroad more freely.”, Sky News, May 28, 2021
Japan
“Covid drags down Japan’s first-quarter growth – Output in Asia’s largest rich economy dropped 1.3%, more than analysts expected. Japan’s economic output fell 1.3 per cent in the first quarter of 2021, a drop of 5.1 per cent at an annualised rate, as a renewed Covid-19 state of emergency bit into consumer spending., The Financial Times, May 17, 2021
“IOC reassures anxious Japan that Olympics will be safe – The International Olympic Committee (IOC) reassured an anxious Japan on Wednesday that the Tokyo Olympics would be safe for athletes as well as the host community, amid mounting opposition to the Games and fears it will fuel a spike in COVID-19 cases.”, Reuters, May 18, 2021
United Kingdom
“Crowds hit the beach on the hottest day of the year – Britons flocked to parks and beaches across the country on Bank Holiday Monday to enjoy the hottest day of the year.”, The Times of London, May 31, 2021
“UK set for stronger post-Covid recovery, says OECD – The Organisation for Economic Co-operation and Development says the UK is likely to grow 7.2% in 2021, up from its March projection of 5.1%. The UK’s growth is set to be the fastest among the large rich countries, the OECD says.”, BBC News, May 31, 2021
United States
“U.S. core capital goods orders, shipments increase strongly in April – New orders for key U.S.-made capital goods increased more than expected in April and shipments rose solidly, suggesting strong momentum in business spending on equipment growth persisted early in the second quarter. Economists polled by Reuters had forecast core capital goods orders rising 1.0%. Orders shot up 14.7% year-on-year in April.”, Reuters, May 27, 2021
“California theme parks cleared to return to full capacity in June – The revised guidance will run from June 15 through Oct. 1 and will be reassessed and updated on Sept. 1 as needed.”, Fox Business, May 23, 2021
“Staffing Shortages Pose a Threat to Hotels’ Budding Recovery – Hotels say they are struggling to hire enough housekeepers, kitchen staff and other hourly workers—including those laid off early in the pandemic. Travelers this summer could notice something they may not have seen before: The person who checked them in is the same person who helps clean their room.”, The Wall Street Journal, May 18, 2021
Vietnam
“Vietnam to test all 9 million residents in largest city – Vietnam will test all residents of Ho Chi Minh City — the country’s economic hub and largest city. Vietnam’s government also said on Monday that it would suspend incoming international flights to the capital, Hanoi. Ho Chi Minh City took a similar step for its airport late last week.”, DW, May 31, 2021
Brand News
“Hyatt CEO: The pandemic taught us that experimentation is good for business – While some organizations were stopped in their tracks by the onset of the pandemic, those that welcomed experimentation were a step ahead in their ability to manage through it.”, Fortune, May 30, 2021
“IHOP to launch new restaurant, Flip’d by IHOP, after rethinking pilot during pandemic – After pausing the launch because of the coronavirus pandemic, IHOP plans to open its first Flip’d by IHOP location this summer. Flip’d is a fast-casual spinoff of the pancake chain, with a menu formulated to appeal to on-the-go consumers.”, CNBC, May 20, 2021
“KFC sees potential to triple in size, predicting “Buckets of Growth” in the long-term – In a Yum brands global investor day, KFC also unveiled driver tracking system technology and augmented reality training. This growth trajectory could yield more than the projected 4% annual unit growth for Yum. According to Yum investor day, 90% of the company’s growth in the last five years has been from overseas markets, with 70% of growth coming from outside of the US and China. Much of the unit growth has also been in emerging markets like India.”, Nation’s Restaurant News, May 25, 2021
“Want an iPhone with that? McDonald’s tries to lure staff – In Illinois, a branch of McDonald’s has begun offering a free iPhone to employees who stay for more than six months. Another, in Florida, has offered people $50 to attend an interview. The giveaways come as restaurants dealing with a rush of diners struggle to find the employees to serve them.”, The Times of London, May 25, 2021
“Panera Bread’s new café redesign features a double drive-thru and a new brand logo – The next generation Panera Bread store design will feature a double drive-thru with a pickup lane, contactless ordering and dine-in, and a new look on the inside.”, Nation’s Restaurant News, May 20, 2021
“Popeyes (US) to Develop its Brand in Saudi Arabia – Popeyes and Gulf First Fast Food Company (“Gulf First”) are excited to announce a plan to develop and grow the Popeyes brand in the Kingdom of Saudi Arabia. Gulf First entered into an exclusive Master Franchise and Development Agreement for the territory.”, Compliments of World Franchise Associates, April 28, 2021
“’A new era of convenience’: how delivery platforms are doubling down on new verticals, wider coverage to capitalise on projected growth….With consumers still spending on delivery even as in-store dining slowly returns, technology platforms say they are looking to take it a step further by adding new ways and times for both chain and customer to engage within the channel.”, QSR Media Australia, May 10, 2021. Compliments of Jason Gehrke, Franchise Advisory Centre, Brisbane
“Yum! Brands buys Australian tech startup Dragontail – Yum! Brands’ acquisition of Dragontail will take the startup’s emerging technologies in-house in addition to its kitchen order management and delivery software.”, Inside FMCG (Australia), May 27, 2021. Compliments of Jason Gehrke, Franchise Advisory Centre, Brisbane
Articles & Studies About Doing Business Going Forward
“Franchise Businesses Sell At Higher Price Point – When it comes to resale value, franchises beat non-franchise businesses, according to a new study from Palm Beach Atlantic University’s (PBA) Rinker School of Business. After examining 2,159 business resales over a ten year period, the researchers found that franchise businesses sold at a 1.5 times higher price than non-franchise businesses.”, Franchising.com, May 26, 2021
“What’s next for consumers, workers, and companies in the post-COVID-19 recovery – COVID-19 changed how we live and work in ways that will alter our behavior long after the pandemic subsides.”, McKinsey, May 18, 2021
“Retailers as ‘experience designers – Only if retailers stop thinking like retailers will they truly innovate. So says Brian Solis, a self-described “digital anthropologist and futurist” who joined Salesforce.com in March 2020 as its global innovation evangelist. The author of several books including X: The Experience When Business Meets Design (John Wiley & Sons, 2015), Solis recently shared his views on the future of shopping with McKinsey’s Cindy Van Horne.”, McKinsey, Match 31, 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
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