EGS Biweekly Global Business Newsletter Issue 50, Tuesday, February 22, 2022

First, A Few Words of Wisdom

“Run when you can, walk if you have to, crawl if you must, just never give up.”, Winston Churchill

“The ladder of success is never crowded at the top.”, Napoleon Hill

“Someone is sitting in the shade today because someone planted a tree a long time ago.”, Warren Buffett

Highlights in issue #50:

• The Big Mac Index: A Measure of Purchasing Power Parity

• Mapped: Inflation Forecasts by Country in 2022

• Fast food chains in Southeast Asia are running out of french fries

• Australia’s border reopens to international visitors

• U.S. Retail Sales Rise Most in 10 Months in Broad-Based Rebound.

• 2022 Franchising Outlook

• China Tries a Balancing Act as Economy Hits Cross-Currents

• Brand Global News Section: Grill’d®, McDonalds®, Pret-A-Manger®, Starbucks®, Taco Bell®, YUM Brands® and White Castle®

Interesting Data and Studies

“The Big Mac Index: A Measure of Purchasing Power Parity – The Big Mac was created in 1967 by Jim Delligati, a McDonald’s franchise owner in Pennsylvania. It was launched throughout the U.S. the following year, and today you can buy one in more than 70 countries. However, the price you pay will vary based on where you are, as evidenced by the Big Mac Index.”, The Economist and Visual Capitalist, February 16, 2022

“Mapped: Inflation Forecasts by Country in 2022 – Today, this is a question on many investors’ minds. Across several countries, inflation has hit its highest level in decades. Supply shortages and massive monetary stimulus have contributed to increasing consumer prices. Asset prices, including houses, have also risen significantly. In this Markets in a Minute from New York Life Investments we show inflation by country in 2022 according to IMF projections.”, Visual Capitalist, February 10, 2022

“Labor markets rebound – “Labor markets in advanced economies bounced back super-fast relative to pre-pandemic levels, but the U.S. is slightly behind. Why it matters: Consider it took years for jobs to come back after the 2008 financial crisis. This is like no other economic recovery in history, said Claire Li, an assistant vice president at Moody’s who helped put together this data. The United Kingdom and Euro area are ahead partly because of the way they headed off job losses at the start of COVID, using fiscal relief to keep workers attached to the job market — instead of paying unemployment benefits to workers.”, Axios, February 10, 2022

“Mapped: Corruption Around the World – For more than a decade, the Corruption Perceptions Index (CPI) by Transparency International has been the world’s most widely-used metric for scoring corruption. This infographic uses the 2021 CPI to visualize corruption in countries around the world, and the biggest 10-year changes.”, Visual Capitalist and Transparency International, February 10, 2022

“A Global Risk Assessment of 2022 and Beyond – Since the start of the global pandemic, we’ve been navigating through tumultuous waters, and this year is expected to be as unpredictable as ever. In the latest annual edition of the Global Risks Report by the World Economic Forum (WEF), it was found that a majority of global leaders feel worried or concerned about the outlook of the world, and only 3.7% feel optimistic.”, Visual Capitalist and World Economic Forum, January 31, 2022

Global Energy

“China’s Reliance on Foreign Oil Declines for First Time in 20 Years – China’s crude oil imports and reliance on foreign oil declined for the first time in two decades, reflecting rising global petroleum prices, expanding domestic production and strengthened supervision of local refiners.”, Caixing Global, February 18, 2022

“Here’s How Much You’ll Be Spending to Charge Your Electric Car by 2026 – Expect a 390% growth in electric-vehicle spending globally over the next five years. According to Juniper Research, the lower cost and convenience associated with home charging will lead to a 390% increase in global spend over the next five years. This means the $3.4 billion that was spent on EV charging at home in 2021 will rise to $16 billion by 2026.”, PC Magazine, February 18, 2022

“Battery Swapping Boosts Appeal for New-Energy Heavy Trucks – Almost every new-energy heavy truck sold in China last month had a swappable battery, in a sign Chinese fleet operators are embracing the technology to beat the traditional limits of electric vehicles and reduce their operating costs. All but 20 of the 2,283 new-energy heavy vehicles sold in January were equipped with a power replenishing system capable of replacing the exhausted battery with a fully charged one in just a few minutes.”, Caixing Global, February 21, 2022

Global Supply Chain & Trade Update

“Fast food chains in Southeast Asia are running out of french fries – Signs at some of Yum! Brands Inc.’s KFC outlets in Singapore informed customers that the company would replace side orders of fries with potato waffles due to a “global supply disruption.” McDonald’s Corp. stores in Malaysia and Indonesia halted sales of large-size portions of fries late last month for the same reason, according to company notices posted on Twitter.”, Fortune, February 18, 2022

“Asia rethinks ‘just-in-time’ strategy as pandemic upends logistics industry – Pandemic-era disruptions have upended distribution networks and exposed vulnerabilities in supply chains from Hong Kong to Singapore to Australia. Businesses are starting to stockpile more and diversify their suppliers, as regional governments look to shore up supplies of raw materials and essential goods.” South China Morning Post, February 19, 2022

“How Supply Chain Issues Continue To Impact The Restaurant Industry – As more independents and franchised QSR’s, Fast Casual and full service restaurants reopen to standard capacity, increasing supply chain issues and problems have made it challenging for business owners, dealers, and operators in the industry……In addition, did you know that continued demand for takeout has exacerbated shortages of items, such as coffee cups, plastic straws, and to-go containers?”, Forbes, February 14, 2022

Global, Regional & Local Travel Updates

“12 things to consider for international business travel – To help you prepare for an international business trip, we asked business leaders and travel professionals this question for their best insights. From updating your vaccinations to securing your devices, there are several considerations that may help you best prepare for your international business travels.”, AZ Big Media, February 20, 2022

“Australia’s border reopens to international visitors – Australia has reopened its international border for the first time in nearly two years, bringing joyful family reunions and a boost to tourism. The country imposed some of the world’s strictest travel bans after shutting itself off in March 2020 due to Covid.”, BBC News, February 19, 2022

“Air France to Introduce 200 New Direct Flights From the U.S. to Paris This Summer – Air France is restoring several flights between the U.S. and Paris this summer, the airline announced recently, as Europe heads into what the World Health Organization described as a “long period of tranquility” in the ongoing COVID-19 pandemic.”, Travel & Leisure, February 14, 2022

“Vietnam to Lift Curbs on Tourists March 15 – International tourists must have proof of being vaccinated or recovery from COVID-19 with a negative test result ahead of departure under the current plan, the website reported. They would be required purchase Covid-19 medical insurance coverage worth $10,000.”, Bloomberg, February 16, 2022

Global COVID & Vaccine Update

“62.3% of the world population has received at least one dose of a COVID-19 vaccine. 10.57 billion doses have been administered globally, and 31.82 million are now administered each day. Only 11.4% of people in low-income countries have received at least one dose.”, Our World In Data, February 20, 2022

Country & Regional Updates

European Union

“Eurozone economic activity rises at fastest pace since September – February PMI shows strong momentum in manufacturing and services while signalling concern over rising prices. The flash purchasing managers’ composite index for the eurozone, an important measure of the health of the manufacturing and services sectors, rose to 55.8 in February, up from 52.3 in January and the highest since September.”, The Financial Times, February 20, 2022

China

“China Tries a Balancing Act as Economy Hits Cross-Currents – As China’s property slump slows its economy, there’s increasing focus on how the central bank and government are going to support growth. As for government spending, that hasn’t ramped up as quickly as some had been expecting. While authorities have emphasized infrastructure investment, their actual spending hasn’t matched the rhetoric.”, Bloomberg, February 21, 2022

“Hershey officially denies withdrawing from China saying it is working with dealers to resolve supply issues – On February 11, in response to the rumors of withdrawing from the Chinese market, Hershey told Caijing.com today that China has always been one of the important markets for Hershey Company, and Hershey Company will still maintain an operation team . Continue to invest in the Chinese market and lead the continuous business promotion of distributors in China.”, Caijing (Chinese), February 11, 2022. Compliments of Paul Jones, Jones & Co., Toronto

Japan

“Japan’s Economy Recovered in Fourth Quarter – GDP expanded at annualized rate of 5.4% after Covid-19 restrictions were lifted, but the new year has brought a surge in infections. The growth was due largely to private spending, which increased 2.7% from the previous quarter. Spending on services recovered solidly after a state of emergency in Tokyo and other cities was lifted on Sept. 30. About 80% of the nation’s population was vaccinated by the end of 2021, making people feel safer to dine out or travel.”, The Wall Street Journal, February 14, 2022

Turkey

“Can Erdogan’s gamble keep the Turkish lira steady? Erdogan argues that his “new economic model” will attract foreign direct investment that will bring hard currency into the country. Even with rock bottom valuations, western investors who have traditionally been the strongest source of FDI into Turkey remain hesitant due to concerns about the country’s economic management and the rule of law.”, The Financial Times, February 19, 2022

United Kingdom

“U.K.’s Boris Johnson Ends Covid Rules in England in Major Policy Shift – U.K. premier says Covid restrictions in England to be lifted Plan welcome by ruling Tories key to his political survival. Boris Johnson said the U.K. must learn to live with coronavirus as he ended pandemic rules in England, becoming the first major Western government to do so even as his scientific advisers warned infections will rise.”, Bloomberg, February 20, 2022

“The (UK) economy has shaken off the effects of Omicron restrictions at the start of the year to rebound this month. The flash IHS Markit/CIPS composite purchasing managers’ index rose to 60.2 in February, from 54.2 in January, well above the consensus, 55.3. A figure above 50 indicates growth. A strong recovery in consumer spending on travel, leisure and entertainment boosted services companies. The flash services PMI increased to 60.8, from 54.1. Meanwhile, manufacturing PMI held steady at 57.3 as weaker employment growth offset a rise in the output balance.”, The Times of London, February 20, 2022

United States

“U.S. Retail Sales Rise Most in 10 Months in Broad-Based Rebound. Total value of receipts jumps 3.8% after dropping in December. Non-store retailers, furniture and autos among biggest gains. The value of overall purchases rose 3.8% in January after a downwardly revised 2.5% drop in the prior month, Commerce Department figures showed Wednesday. The advance was nearly double the median estimate of 2%.”, Bloomberg, February 16, 2022

Brand News

“Why Grill’d next move could put some customers off – Customers will have to shell out more money for some of their favourite items as burger chain Grill’d flagged increasing prices in the coming months. Grill’d co-founder and managing director Simon Crowe blamed rising supply chain costs and inflationary pressures as the reason for the rises, noting he hadn’t seen this level of pricing pressures from all angles for over 10 years. It’s turned two of its restaurants entirely plant-based, renaming the new venues which are based in Darlinghurst in Sydney and Collingwood in Melbourne, as Impossibly Grill’d.”, News.com.au, February 9, 2022. Compliments of Jason Gehrke, President, the Franchise Advisory Centre, Brisbane

“Get Ready to Order Your Big Mac from a Virtual McDonald’s in the Metaverse – Earlier this week, trademark attorney Josh Gerben reported that McDonald’s had filed 10 new trademark applications indicating that it is planning to open a virtual restaurant in the online metaverse.”, Food and Wine, February 11, 2022

“Why Pret-A-Manger’s UK Customers Are Seeing Red Over Its Coffee – It must have sounded like a good idea at the time for British chain Pret-a-Manger to offer guests five daily handcrafted beverages, covering choices that included “up to five organic coffees, teas, lattes, hot chocolates and more every day” if they paid a flat fee of 20 GBP ($27.22) monthly (via Pret-a-Manger).  But things don’t always go according to plan.”, Mashed, February 19, 2022

“Can Starbucks China s Price Increase for Some Products Win the Future? Starbucks has already taken the lead in raising prices in the US domestic market. CEO Kevin Johnson said at the earnings conference that some product price hikes were aimed at countering the impact on profits from wage hikes and other cost increases.”, Caixin.com (Chinese), February 2, 2022. Compliments of Paul Jones, Jones & Co., Toronto

“Taco Bell sets sights on reaching 1,000 units outside the U.S. – The brand’s largest international market surpassed the 100-unit milestone and others are soon to follow. As a member of the Yum portfolio, Taco Bell’s strength has come from domestic growth over the past few years. But now Taco Bell is standing out for its success with international locations. The Irvine, Calif.-based chain ended the year with 7,791 units, of which 789 were international — and that growth outside the U.S. is a 25% increase from the roughly 600 international units at the beginning of 2021.”, Nation’s Restaurant News, February 15, 2022

“White Castle to hire 100 robots to flip burgers – The robotics program will take place in nearly one-third of the company’s locations. The hamburger chain announced plans this week to install Miso Robotics’ “Flippy 2” in 100 locations. The Ohio-based chain has been experimenting with the robotic fry cook since September 2020, when the original “Flippy” was installed in a Chicago area restaurant.”, Today.com, February 18, 2022

“Yum China’s fourth quarter 2021 net profit drops 93 percent, plans to add 1,000 stores in 2022. Affected by the epidemic, same-store sales, an important indicator of chain restaurants, fell further in the fourth quarter of 2021, down 11% year-on-year, with KFC and Pizza Hut down 12% and 8% respectively.”, Caixin (Chinese), February 9, 2022. Compliments of Paul Jones, Jones & Co., Toronto

This Issue’s Cartoon

Articles & Studies For Today And Tomorrow

“2022 Franchising Outlook – Franchising had an exceptional year in 2021, and 2022 looks to be another strong year of recovery. Bolstered by both the strengthening labor market and steady consumer spending, franchising is expected to continue to expand, trending upwards with the United States’ overall economic progression, but the pace of the growth in 2022 is most likely to moderate, due to the current headwinds in the economy.”, The International Franchise Association and FRANdata, February 2022

“Coffee production and consumption have been consistently on the rise in the past 2 decades. Interestingly, there are some periods that production were surpassed by domestic consumption. Top 10 producing countries provide 83% of world coffee beans. Top 10 markets consumes 81% of world beans. Top market is European Union which consumes 40% of the world beans. United States as a single country consumes 22% of the world beans.”, Tableau Public, 2021

Our Mission, Information Sources & Who We Are

Our biweekly global business update newsletter focuses on what is happening around the worldthat impacts new trends, health, consumer spending, business investment, economic development and travel. We daily monitor 30+ countries, 40+ international information sources and six business sectors to keep up with what is going on in this ever-changing environment. Our GlobalTeam™ covers 43 countries and provides us with updates about what is happening in their specific countries.  Please feel free to send us your input for the biweekly report. bedwards@edwardsglobal.com

To sign up for our biweekly newsletter click on this link:   https://lnkd.in/d_XkTGN.

William (Bill) Edwards, Your Newsletter Editor, has a four-decade career successfully accelerating the international growth of more than 40 brands. Bill Edwards has a four-decade career successfully accelerating the international growth of more than 40 brands. Bill is known as an international Problem Solver and Advisor. Over the years, Bill has made and/or seen most of the mistakes companies make when going global. In Bill’s role as a Global Advisor to ‘C’ level executives, his objective is to impart the wisdom he has learned over time to help them minimize costly mistakes.

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.  He has lived in China, the Czech Republic, Hong Kong, Indonesia, Iran and Turkey and has worked on projects in over 50 countries.

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 around the world. Our Team on the ground overseas covers 40+ countries.  EGS has twice received the U.S. President’s Award for Export Excellence.

www.edwardsglobal.com

Download our latest chart ranking 40+ countries as places to do business at this link:

Our Latest GlobalVue™ Country Ranking

For advice on doing business successfully across 40+ countries, contact Bill Edwards at bedwards@edwardsglobal.com or +1 949 224 3896. 

EGS Biweekly Global Business Newsletter Issue 49, Tuesday, February 8, 2022

First, A Few Words of Wisdom

“If you don’t ask, the answer is always no.”, Nora Roberts

“Please think about your legacy, because you’re writing it every day.”, Gary Vaynerchuk

“Success usually comes to those who are too busy to be looking for it.”, Henry David Thoreau

Highlights in issue #49:

•  Europe entering Covid pandemic ‘ceasefire’, says WHO

• Australia and New Zealand finally reopening for travel

• A world shaped by supply

• The rise and rise of the global balance sheet –

• After two years of closed borders, Australia welcomes the world back –

• How Dunkin’ Changed Franchising Forever

• Brand Global News Section: Dunkin’ Donuts®, KFC®, Restaurant Brands NZ, Wingstop®

Interesting Data and Studies

“The global labor market faces a deficit of 52 million full-time jobs, and unemployment affects 207 million people. The global unemployment rate of 6.2 percent is the second highest since 2003 and isn’t expected to return to pre-pandemic levels this year.”, Geopolitical Futures, January 28, 2022

“The rise and rise of the global balance sheet – The market value of the global balance sheet tripled in the first two decades of this century. The world has never been wealthier, with large variations across countries, sectors, and households.”, McKinsey, November 2021

Global Supply Chain & Trade Update

“A world shaped by supply – We’ve entered an era where supply constraints are the driving force of inflation, rather than excess demand. This will likely bring more macro volatility and force policymakers to live with higher inflation. We are in a new and unusual market regime, underpinned by a new macro landscape where inflation is shaped by supply constraints.”, Blackrock, January 2022 study

“Why supply-chain problems aren’t going away – Results season shows the financial effects of supply-chain snarl-ups on industrial firms. Supply chains have seldom featured in companies’ earnings reports over the three decades since globalisation took off in earnest, save for the occasional mention of the benefits of low costs and lean inventories. This earnings season, though, covid-induced shortages are among the first problems mentioned by many firms.”, The Economist, January 29, 2022

“World Food Prices Are Climbing Closer Toward a Record High – UN’s index of global food costs advanced 1.1% last month Unfavorable weather, energy crisis threaten further increase. The United Nations’ index of prices rose 1.1% in January, pushed up by more expensive vegetable oils and dairy. The gauge is edging closer to 2011’s all-time high, and unfavorable weather for crops and the fallout from an energy crisis threaten to keep prices high going forward. Inflation has been running rampant across the globe, and the latest leg higher in the UN’s food index could further stretch household budgets.”, Bloomberg, February 3, 2022

From a Private Director’s Association webinar, “Supply Chain Structure: Future Risks and Opportunities”, January 27, 2022

“Supply Chain Surges & Shortages, Exiger Trends Report, January 2022

““Asia Sourcing Update – South and West Asia – Bangladesh, India, Pakistan and Turkey.”, FUNG Business Intelligence, January 30, 2022

Global, Regional & Local Travel Updates

“Travel & Tourism’s Contribution to Global Economy Could Reach $8.6 Trillion in 2022 – In 2019 the travel and tourism industry’s contribution to the global economy was almost $9.2 trillion, it said. The institution added that the sector’s contribution to global employment could reach over 330 million jobs, just 1% below pre-pandemic levels and 22% above 2020.”, The Wall Street Journal, February 2, 2022

“Chinese State-Owned Airlines Took Heavy Losses in 2021 – Over the past year, the aviation market in China has still been heavily impacted by the pandemic. The authority maintained the zero-tolerance policy against the virus, and one of the consequences was low travel demands from both domestic and international markets. All three airlines attributed the main reasons for heavy losses to the influence of the pandemic. During the traditional peak travel seasons in China, heavy restrictions were put in place to reduce traffic, especially in and out of areas that had Covid-19 cases.”, Airline Geeks, February 3, 2022

“The Best and Worst U.S. Airlines of 2021 – As Omicron infections and weather challenges hampered operations, some carriers struggled more than others to return to some version of pre-pandemic normal. The good news: Flying is more like it used to be. The bad news: Flying is more like it used to be. Leisure travel came roaring back in 2021. So did cancellations, delays and other flight problems. Airlines began to resemble their pre-pandemic selves, even if they still flew less overall than they did in 2019.”, The Wall Street Journal, January 28, 2022

Global COVID & Vaccine Update

“Europe entering Covid pandemic ‘ceasefire’, says WHO – The World Health Organization’s (WHO) Europe director says the continent could soon enter a ‘long period of tranquillity’ in the Covid-19 pandemic. Dr Hans Kluge cited high vaccination rates, the end of winter and the less severe nature of the Omicron variant. It comes as a number of European nations end Covid-19 restrictions. Speaking to reporters, he said: ‘This period of higher protection should be seen as a ‘ceasefire’ that could bring us enduring peace.’”, BBC News, February 3, 2022

“Information is beautiful chart, February 7, 2022

New cases of COVID-19 begin to decline in most of the European Union countries and in the United Kingdom coming out of the latest variant. The Financial times, February 7, 2022

Country & Regional Updates

European Union

“The French national statistics office said average growth in 2021 was its fastest rate since 1969, at the peak of the postwar period known as “les trente glorieuses”. The economy has bounced back sharply from its 8 per cent contraction in 2020. The eurozone’s second-largest economy returned to its pre-pandemic level of GDP in the third quarter, it said.”, The Financial Times, January 28, 2022

Southeast Asia

Australia

“After two years of closed borders, Australia welcomes the world back – Australia said on Monday it will reopen its borders to vaccinated travellers this month, ending two years of misery for the tourism sector, reviving migration and injecting billions of dollars into the world No. 13 economy. The move effectively calls time on the last main component of Australia’s response to the COVID-19 pandemic, which it has attributed to relatively low death and infection rates.”, Reuters, February 7, 2022

China

“It was in China, specifically the city of Wuhan, where the first cases of COVID-19 were detected in early 2020 before quickly spreading worldwide. China is now pushing a zero COVID policy using contact tracing, mass testing, a special app and lockdowns to try to eliminate the virus completely. Similar strategies have been adopted in other countries but were eventually abandoned in the recognition that COVID-19 is here to stay. But China is holding firm, imposing regulations very similar to the ones adopted at the beginning of the outbreak”, Geopolitical Futures, February 5, 2022

“China Manufacturing Slips in Latest Sign of Slowing Economy – PMI surveys signal slowdown in factories, services sector. Small businesses under pressure, Caixin survey shows. The official purchasing managers’ surveys released on Sunday showed a moderation in factory production and services in January. Small businesses bore the brunt of the pain, with a separate private index dropping to its lowest in almost two years.”, Bloomberg, January 30, 2022

Japan

“Japan Quarterly Output Gain Signals Growth Return Before Omicron – Auto production led fourth quarter rebound in manufacturing Supply chain problems persist and omicron now clouds outlook. Japan’s industrial production rebounded last quarter, with the recovery in manufacturing likely helping restore economic growth at the end of 2021 before the omicron variant started its rapid spread.”, Bloomberg, January 30, 2022

New Zealand

“New Zealand will finally start to reopen its borders this month – New Zealand is putting an end to its quarantine requirements for incoming travelers and will start reopening its borders with a five-phase plan in March. The island nation, which has implemented some of the toughest border restrictions in the world since the start of the COVID-19 pandemic, announced Thursday it’s going to begin a phased reopening of its borders, the AP reported. New Zealand is putting an end to its quarantine requirements for incoming travelers and will start reopening its borders with a five-phase plan in March.”, The Points Guy, February 3, 2022

United States

“A Record 50% of U.S. Small Businesses Raised Wages in January to Lure Workers – A record 50% of U.S. small-business owners said they raised compensation in January amid still-elevated job openings, the National Federation of Independent Business said Thursday. With some 47% of small businesses reporting job openings last month that they could not fill, employers have been raising wages to attract skilled candidates — a trend that doesn’t appear to be reversing any time soon.”, Bloomberg, February 3, 2022

“With Omicron Waning, Americans Are Ready for the Reopening – A transition to a new pandemic normal holds major implications for the U.S. economy, and particularly for the hard-hit services sector, where recovery so far has been stunted even as spending elsewhere has soared. Even the perception of a pandemic lull this time around could have a significant effect. “People are going to, I think, have an even more euphoric attitude toward this if we do feel like this is really the actual end of the pandemic,” says Jefferies economist Tom Simons. ‘That will feel like a boom.’”, Barron’s, February 7, 2022

“California finally reopens: Mammoth and Tahoe ski resorts reopen lodgings after rollback of state’s COVID order. Mammoth and Lake Tahoe area ski resorts and mountain towns are reopening hotels and lodges to leisure visitors after California’s governor on Monday lifted statewide regional orders that had closed lodging to most travelers.”, Los Angeles Times, January 25, 2022

Brand News

“New research shows 84% of franchise companies report revenues are now equal to or higher than pre-pandemic levels –  Franchise Business Review today announced the release of its 2022 Franchising Outlook Report.  The report is based on research from over 31,000 franchise owners across 350 brands, 6,000 employees at both the corporate office and unit-level, and 200 franchise executives.”, Franchise Business Review, February 2, 2022

“How Dunkin’ Changed Franchising Forever – The first Dunkin’ was opened back in 1948, in Quincy, Massachusetts, after William Rosenberg had the idea to start selling donuts and coffee for just $0.05 and $0.10 each, respectively. Because of his dream and drive to make it a reality, Rosenberg remains a key pioneer of the fast food industry. In 2000, The LA Times reports, he was honored by the Nation’s Restaurant News as one of the top 100 people who ‘changed retailing and food service in the 20th century.’”, Mashed, January 30, 2022

“KFC Australia makes its drone delivery debut – CMO says the pilot of drone food delivery was prompted by dramatic changes to consumer behaviours during the pandemic. KFC Australia has teamed up with drone service provider, Wing, to pilot a delivery service of both hot and fresh menu items in Australia.”, CMO Australia, February 4, 2022

“Restaurant Brands lifts NZ sales by $51m; Covid closures cost it $26m – The fast-food company that owns the local franchises for KFC, Pizza Hut, Taco Bell and Carl’s Jr, made an extra $51 million in sales in New Zealand last year, but estimates it lost about $26m of sales as a result of Covid-19.”,  Stuff New Zealand, January 27, 2022. Compliments of Jason Gehrke, Franchise Advisory Centre, Brisbane, Australia

“Wingstop creates digital-only, cashless storefront unit – Dallas prototype serves as testing ground for innovations — from sustainable uniforms and cashless transactions to a kitchen display system and grease extraction for bio-fuels. Wingstop Inc. in December opened a “Restaurant of the Future” in a Dallas strip mall, featuring cashless 100% digital transactions and serving as testing ground for new ideas, from new layouts and uniforms to a kitchen display system.”, Nation’s Restaurant News, February 3, 2022

Cartoon Of The Issue: Leadership!

Articles & Studies For Today And Tomorrow

“AI in Restaurants? The Possibilities are Limitless – The global AI market as a whole is expected to grow to a value of $190.61 billion by 2025. It looks like 2022 is shaping up to be a very interesting year in restaurant technology, especially in the quick-serve and fast-casual spaces. For example, we learned in December that TikTok was teaming up with a ghost-kitchen company to open 300 virtual kitchens in March, aiming to reach 1,000 by the end of the year. On the menu? Recipes that have gone viral on the video-sharing app.”, QSR Magazine, January 28, 2022

Our Mission, Information Sources & Who We Are

Our biweekly global business update newsletter focuses on what is happening around the worldthat impacts new trends, health, consumer spending, business investment, economic development and travel. We daily monitor 30+ countries, 40+ international information sources and six business sectors to keep up with what is going on in this ever-changing environment. Our GlobalTeam™ covers 43 countries and provides us with updates about what is happening in their specific countries.  Please feel free to send us your input for the biweekly report. bedwards@edwardsglobal.com

To sign up for our biweekly newsletter click on this link:   https://lnkd.in/d_XkTGN.

William (Bill) Edwards, Your Newsletter Editor, has a four-decade career successfully accelerating the international growth of more than 40 brands. Bill Edwards has a four-decade career successfully accelerating the international growth of more than 40 brands. Bill is known as an international Problem Solver and Advisor. Over the years, Bill has made and/or seen most of the mistakes companies make when going global. In Bill’s role as a Global Advisor to ‘C’ level executives, his objective is to impart the wisdom he has learned over time to help them minimize costly mistakes.

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.  He has lived in China, the Czech Republic, Hong Kong, Indonesia, Iran and Turkey and has worked on projects in over 50 countries.

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 around the world. Our Team on the ground overseas covers 40+ countries.  EGS has twice received the U.S. President’s Award for Export Excellence.

www.edwardsglobal.com

Download our latest chart ranking 40+ countries as places to do business at this link:

Our Latest GlobalVue™ Country RankingFor advice on doing business successfully across 40+ countries, contact Bill Edwards at bedwards@edwardsglobal.com or +1 949 224 3896. 

EGS Biweekly Global Business Newsletter Issue 48, Tuesday, January 25, 2022

First, A Few Words of Wisdom

“Try to be a rainbow in someone’s cloud.”, Maya Angelou

“Your success in life isn’t based on your ability to simply change. It is based on your ability to change faster than your competition, customers and business.”, Mark Sanborn

“People begin to be successful the minute they decide to be.”, Harvey Mackay

Highlights in issue #48:

• 2022 Global Talent Trends – The Reinvention of Company Culture

• 2021 Reflections, 2022 Predictions for Franchising

• The flip side of the ‘great resignation’ — a small-business boom.

• Europe Slowly Starts to Consider Treating Covid Like the Flu

• How Much Are You Willing to Pay for a Burrito?

• Brand Global News Section: Checkers & Rally’s®, Denny’s®, KFC China, McDonalds®, Phenix Salon Suites®, Starbucks®, TGI Friday’s®,  Tropical Smoothie®

Bolded article titles are live links, if the article is available without subscription

Interesting Data and Studies

“State Of Venture 2021 Report – It was a record year for global & US venture funding, exits, unicorns, and more. Global venture deals and dollars reached record highs in 2021. Funding more than doubled year-over-year as startup investment soared across sectors and geographies.”, CB Insights, January 12, 2022

“GDP is growing fastest in these countries – what it means – Countries including India and Turkey saw strong GDP growth in the third quarter of 2021. While other countries, including China, Australia and Japan, saw their GDP slow or fall. The OECD says GDP growth in half the G20 major economies is still below pre-pandemic levels.”, World Economic Forum, January 17, 2022

“Inflation: Seven reasons the cost of living is going up around the world – From buying groceries to heating our homes, the cost of living is rising sharply – not just in the UK but around the world. Global inflation – the rate at which prices rise – is at its highest since 2008. Here are some of the reasons why.”, BBC News, January 20, 2022

“The knot around the global economy from intractable supply networks is still holding tight at the start of the new year as the omicron variant complicates recovery efforts. According to fresh IHS Markit data, U.S. supplier delivery times lengthened slightly in early January. Still, there’s reason for optimism. Europe’s factories were able to lift output as shipping delays and materials shortages eased somewhat. German businesses expectations for the coming months improved recently. In the U.S., the ISM’s index of future manufacturing output climbed to the highest level in more than a year.”, Bloomberg, January 25, 2022

“The Global Risks Report 2022, 17th Edition – In some societies, rapid progress on vaccination, leaps forward on digitalization and a return to pre-pandemic growth rates herald better prospects for 2022 and beyond. Others could be weighed down for years by struggles to apply even initial vaccine doses, combat digital divides and find new sources of economic growth.”, World Economic Forum, January 2022

Global Supply Chain & Trade Update

“Omicron, Supply-Chain Troubles to Slow Growth, World Bank Says – Bank forecasts 4.1% growth in 2022, down from 5.5% last year. The global economy is poised to slow down in 2022, the World Bank forecast Tuesday, citing the effects of the Omicron variant, supply-chain disruptions, labor shortages and the winding down of government economic support. Japan, Indonesia, Thailand, Malaysia and Vietnam are among countries expected to strengthen in 2022. The report projects growth to slow further, to 3.2%, in 2023.”, Wall Street Journal, January 11, 2022

“Falling shipping rates point to end of the great supply chain crisis – The Baltic Dry Index……….measures the price of shipping bulk materials around the world and as such is used as a proxy to measure the stability and efficiency of worldwide supply chains. In times of market dislocation, it rises sharply to reflect the difficulties in transporting goods — and during the pandemic it has done little else but rise, peaking at more than 5,700. That peak in the Baltic Dry was hit on October 7. Since then, the index has fallen sharply, halving within a month. Though it jumped in the run-up to Christmas, it has dropped back again since. Yesterday it fell further, its tenth consecutive daily decline, to 1,570.”, The Times of London, January 21, 2022

“ Race to Measure Supply Chain Snarls Draws a Crowded Field – Jumping in this month were logistics giant Kuehne+Nagel, economists at Citigroup and Morgan Stanley, and researchers at the New York Fed.  Analysts at Bloomberg, Flexport and the White House have already launched such data points and are making refinements as the crisis drags on.”, Bloomberg, January 24, 2022

“Challenges at ports, bad weather conditions or vessel issues can impact your shipments and cause disruptions in your supply chain. Currently, more than 561 vessels of the major carriers are anchored off ports, as many ports on every continent are facing disruptions in their operations.”, Sea Explorer, January 25, 2022

“Canada Faces Empty Shelves as Trucking Snarls Hit Food Supplies – About $45 billion worth of goods crosses the border every month, and Canada is the top export market for 32 U.S. states, according to the Department of Commerce. Most trade between Canada and the U.S. travels by truck.”, Bloomberg, January 21, 2022

Global Energy

“Europe’s Energy Shock Rattles Consumers – Wholesale gas prices are up almost 300% in the past year because of unusually low storage levels, increased demand from economies emerging from the pandemic and capped flows from Russia. That has driven inflation higher, and analysts at Bank of America estimate that household energy costs will rise 50% this year, and aid from governments to shield households will only offset about a quarter of that.”, Bloomberg, January 12, 2022

Global, Regional & Local Travel Updates

“A Brighter Outlook For Airlines In 2022? – Airlines are on the cusp of facing their third year dealing with the Coronavirus pandemic. The challenges have continued relentlessly, ranging from new variants of the virus, to shifting government policies on travel restrictions and testing. The impact on customer confidence and on airlines’ ability to plan and operate predictable schedules has hit revenues and finances severely.  However, compared with the outlook when I reviewed the landscape 12 months ago, there are reasons for cautious optimism for 2022.”, Forbes, January 23, 2022

“When will international travel return? A country-by-country guide to coronavirus recovery. The emergence of the omicron variant of the COVID-19 virus created upheaval on an international scale……Many countries also changed their entry requirements over the last weeks of 2021, with some decreasing the number of days allowed for pre-travel testing and others once again requiring fully vaccinated travelers to present pre-travel negative test results.”, The Points Guy, January 22, 2022

“The biggest travel trend of 2022: Go big, spend big – If 2021 was about domestic travel, 2022 may be the year of the ‘bucket list’ trip. This is one of the biggest trends that travel insiders expect this year, despite 2022’s tumultuous start as the omicron Covid-19 variant snarled the industry.”, CNBC, January 20, 2022

“How China’s Zero-COVID Goal Is Impacting The Aviation Industry – Inbound international flights to China are operating at a fraction of comparable 2020 numbers and don’t look like recovering any time soon. If anything, capacity may further tighten. Among many industries, the aviation industry is a casualty of China’s zero-COVID policy. China closed its international borders to nearly all foreigners in March 2020, shutting down the inbound tourism and business markets. China has not relaxed that policy since. If anything, they’ve become tougher on who they award the few visas they grant to.”, Simple Flying, January 14, 2022

Global COVID & Vaccine Update

“Europe Slowly Starts to Consider Treating Covid Like the Flu – New metrics are needed as Covid becomes endemic, Spain PM says Hospitalization rates remain manageable despite surging cases. Spain is calling for Covid-19 to be treated as an endemic disease, like the flu, becoming the first major European nation to explicitly suggest that people live with it.”, Bloomberg, January 11, 2022

Country & Regional Updates

Australia

“Chicken shortage to continue for weeks to come, Australian Chicken Meat Federation warns – The continued supply chain strain of Omicron and a national shortage means Australia’s most popular protein will remain off the menu for weeks yet to come.”, News.com.au, January 20, 2022

Canada

“Ontario restaurants take pragmatic approach as they come out of yet another lockdown – As restaurants in Ontario prepare to reopen from the fifth wave of the pandemic, business owners say they’re going to be more cautious this time by bringing in measures such as smaller menus and limited operating hours to ensure they don’t suffer large losses in the case of another lockdown.”, The Globe and Mail, January 23, 2022

China

“Beijing Winter Olympics Will Spotlight a Richer, More Confident China – The country is richer, more confident, and more assertive than it was when the 2008 Summer Games were held in Beijing.”, Bloomberg, January 21, 2022

“Starbucks to widen online reach in China through new alliance with Meituan ending coffeehouse chains partnership with Alibaba – Seattle-based Starbucks said the collaboration with Meituan, which operates China’s largest online food delivery platform, will enable more consumers across the mainland to make reservations at its stores and get their coffee delivered, according to a statement published on Tuesday on the American firm’s official WeChat account.”, South China Morning Post, January 19, 2022. Compliments of Paul Jones, Jones & Co., Toronto

The Philippines

“Philippines Sets Vaccination Mandate For Unrestricted Air Travel – As of January 17th, only fully vaccinated individuals will be allowed to take public transportation to, from, and within the national capital region of the Philippines. While there are exceptions to this policy provided, the blanket policy will apply to air travel as well, which would appear to cover a large portion of flights since Manilla is the country’s largest air hub.”, Simple Flying, January 15, 2022

Poland

“Poland’s Biggest Convenience Chain Overtakes Amazon In European Race For Autonomous Stores – Using contactless, AI-powered computer vision technology from U.S. tech player AiFi—a system similar to Amazon’s Just Walk Out set-up—the concept enables shopping to be checkout-free and fast.”, Forbes, January 18, 2022

Spain

“Spain’s tourist sector seen reaching 88% of pre-pandemic size in 2022 – Spain was the world’s second most visited country before the pandemic. Holidaymakers flocked to its beaches and historic buildings while trendy cities like Barcelona and Madrid were popular for short breaks. Industry association Exceltur expects Spain’s tourism gross domestic product to be worth 135 billion euros ($155 billion) in 2022, 88% of pre-pandemic levels, versus 57% in 2021, when a partial recovery of domestic tourism didn’t offset a contraction in international travellers.”, Reuters, January 13, 2022

United Kingdom

“Britain ‘will be among first’ to emerge from Covid pandemic – Hospital admissions have stopped rising across most of England. The northeast and Yorkshire is the only part of England where admissions are still clearly rising, with London seeing falls and the rest of the country broadly level or starting to decline, adding to confidence in weathering the Omicron wave.”, The Times of London, January 11, 2022

United States

“How Much Are You Willing to Pay for a Burrito? The pandemic has led to the largest price spikes at fast-food restaurants in two decades. The pandemic has led to price spikes in everything from pizza slices in Manhattan to sides of beef in Colorado. And it has led to more expensive items on the menus at fast-food chains, traditionally establishments where people are used to grabbing a quick bite that doesn’t hurt their wallet.”, New York Times, January 21, 2022

“The flip side of the ‘great resignation’ — a small-business boom. From January through November, just under 5 million new businesses were launched, a jump of 55 percent over the same period in 2019. “This time has been really fertile. We’ve seen a huge increase in new businesses since the pandemic started,” said Julia Pollak, the chief economist at ZipRecruiter. ‘There are more opportunities out there.’”, NBC News, December 30, 2022

“Starbucks, McDonald’s, more are cutting hours due to staffing shortages – Starbucks reached out to customers about shortened hours, halt on features and products as omicron cases surge; McDonald’s also announces shorter hours. With a double whammy of surging omicron cases and continued labor shortages, several major restaurant chains are cutting back on hours and services to deal with the challenges, including Starbucks, and Chipotle.”, Nation’s Restaurant News, January 14, 2022

Brand News

“2021 Reflections, 2022 Predictions for Franchising – Naturally, hiring and retention will be crucial in 2022, as will all relationship “soft skills,” from development teams nurturing candidates to FBCs supporting franchisees to being attuned to customer desires. So what else does the future hold for 2022? See what these franchising pros are predicting.”, Franchising.com, January 2022

“Checkers and Rally’s hope to serve up turnaround and debt refinancing – Checkers and Rally’s, backed by private equity firm Oak Hill Capital Partners, “hopes” to refinance its debt within a year, conditioned upon stable markets, CEO Frances Allen told Axios. Why it matters: The beleaguered burger chain is making headway under Allen, who was brought in to turn around the business in early 2020.”, Axios, January 13, 2022

“Denny’s Fuels Growth with Innovative Development Initiatives – The chain is rolling out an upfront cash incentive development program to help domestic franchisees capitalize on market opportunities. The incentive ranges from $50,000 to $400,000, with more money going toward underpenetrated markets.”, FSR Magazine, January 14, 2022

“Phenix Salon Suites Signs 8-Unit Development Deal in Sweden – Phenix Salon Suites, the nation’s leading salon suite brand turned international trailblazer, has announced another global development deal. Randa Shebly-Cobb, who opened the brand’s 300th salon location in Atlanta earlier this year, will soon bring Phenix Salon Suites’ brand to Sweden.”, Franchising.com, January 22, 2022

“TGI Fridays launching new format – TGI Fridays is launching Fridays on the Fly, a small-format restaurant concept that is designed to meet rising consumer demand for delivery and takeout. At approximately 2,500-sq. ft., the new format will be focused on filling delivery and takeout orders.  It will also offer in-door dining, but with a smaller dining space than a traditional TGI Fridays.”, Chain Store Age, January 21, 2022

“Tropical Smoothie Cafe Considers Going Public – Coming off a record year, Tropical Smoothie Cafe is reportedly planning to go public later in 2022, according to Bloomberg. The red-hot fast casual could be valued at at least $1 billion, sourced told the media outlet. Tropical Smoothie is said to be working with Morgan Stanley and Jefferies Financial Group.”, QSR Magazine, January 11, 2022

Cartoon Of The Week: Recent Zoom Call!

Articles & Studies For Today And Tomorrow

“European sales of electric cars overtake diesel models for first time – Switch to battery-powered vehicles enjoys record growth on back of government subsidies and emissions regulations.  More than a fifth of new cars sold across 18 European markets, including the UK, were powered exclusively by batteries, according to data compiled for the Financial Times by independent auto analyst Matthias Schmidt, while diesel cars, including diesel hybrids, accounted for less than 19 per cent of sales.”, The Financial Times, January 16, 2022

“Work From Home Is Becoming a Permanent Part of How Jobs Are Done – Data show we can expect 30% to 40% of workdays to be remote, long after the pandemic is over. In the second-to-last week of December, 42.4% of U.S. workdays were worked from home. Before the pandemic, WFH accounted for about 5% of U.S. paid full workdays.”, Bloomberg, January 18, 2022

“79% of baby boomers want to keep working, but with more flexibility. Is this the end of retirement? Baby boomers nearing retirement age don’t want to kick up their feet and relax through their sunset years. Instead, most of them want to continue working, but just fewer hours or in less demanding roles, according to a new survey.”, Fortune, January 12, 2022

“2022 Global Talent Trends – The Reinvention of Company Culture. Because of the pandemic, employees are rethinking their priorities and their relationships with employers. They’re seeking flexible work arrangements and more work-life balance. They want to work for employers who value their physical and emotional well-being. And they’re ready to walk away from those who don’t.”, LinkedIn Talent Solutions, January 2022

Our Mission, Information Sources & Who We Are

Our biweekly global business update newsletter focuses on what is happening around the world that 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™ covers 43 countries and provides us with updates about what is happening in their specific countries.  Please feel free to send us your input for the biweekly report. bedwards@edwardsglobal.com

To sign up for our biweekly newsletter click on this link:   https://lnkd.in/d_XkTGN.

William (Bill) Edwards, Your Newsletter Editor, has a four-decade career successfully accelerating the international growth of more than 40 brands. Bill Edwards has a four-decade career successfully accelerating the international growth of more than 40 brands. Bill is known as an international Problem Solver and Advisor. Over the years, Bill has made and/or seen most of the mistakes companies make when going global. In Bill’s role as a Global Advisor to ‘C’ level executives, his objective is to impart the wisdom he has learned over time to help them minimize costly mistakes.

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.  He has lived in China, the Czech Republic, Hong Kong, Indonesia, Iran and Turkey and has worked on projects in over 50 countries.

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 around the world. Our Team on the ground overseas covers 40+ countries.  EGS has twice received the U.S. President’s Award for Export Excellence.

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EGS Biweekly Global Business Newsletter Issue 47, Monday, January 11, 2022

First, A Few Words of Wisdom

“Always remember, your focus determines your reality.”,  George Lucas

“The bad news is time flies. The good news is you’re the pilot.”, Michael Altshuler

“To improve is to change; to be perfect is to change often.”, Winston Churchill

Highlights in issue #47:

• Prediction Consensus: What the Experts See Coming in 2022

• Global supply pressures may be nearing peak, New York Fed index shows

• European Energy Bills to Rise 54% From 2020 Level, BofA Says

• Goldman Says China Border Curbs Likely to Last Most of 2022 –

• The pandemic delivered a surprise to Nordic countries: a baby boom

• Which economies have done best and worst during the pandemic?

• Brand Global News Section: Little Caesars®, Papa John’s®, Popeyes®, Sweetgreen®

Interesting Data and Studies

“5 Reasons to Be Optimistic About 2022 – Start the new year on a bright note: Here are five things to be excited about. There was a lot of hope at the start of 2021: COVID-19 vaccines had just arrived, an end to the pandemic seemed on the horizon, and a fresh start for the global economy was ahead. By now, it feels like much of January’s optimism was as inflated as today’s prices. But in the spirit of starting the new year on a bright and positive note, here are five things to look forward to in 2022 that prove it’s not all doom and gloom.”, Foreign Policy, December 27, 2021

“Has Inflation Peaked? At the risk of being premature so early in 2022, some are starting to wonder if the worst of inflation is now behind the world economy.”, Bloomberg, January 7, 2022

“Bulls, Bears And Buffaloes: What Investment Strategists Are Telling Advisors And Investors To Expect In 2022. As 2022 approaches, markets continue to be powered by strong earnings growth as advisors and investors price in inflation and expected interest rate hikes from the Federal Reserve. Forbes spoke with several investment strategists about what to expect from 2022.”, Forbes, January 3, 2022

“Prediction Consensus: What the Experts See Coming in 2022 – Even at the best of times, it’s human nature to want to decode the future. During times of uncertainty though, we’re even more eager to predict what’s to come. To satisfy this demand, thousands of prognosticators share their views publicly as one year closes and another begins. In hindsight, we see varying levels of success at predicting the future.”, Visual Capitalist, January 6, 2022

“We are entering a new market regime unlike any in the past half century. What will this mean for markets? Learn more in our 2022 Global Outlook. We see another year of positive equity returns coupled with a down year for bonds. The powerful restart of economic activity will be delayed – but not derailed – due to new virus strains, in our view. Central banks will start to raise rates but remain more tolerant of inflation. We see inflation settling above pre-Covid trends – we’re going to be living with inflation. We favor equities over fixed income as a result, but have dialed back our risk-taking given the wide range of potential outcomes in 2022.”, Blackrock, January 6, 2022

“The global normalcy index – Is the world returning to pre-pandemic life? Find out with our interactive tracker. The Economist has devised a “normalcy index” to track how behaviour has changed, and continues to change, because of the pandemic. Our index comprises eight indicators, split into three domains. Our index covers 50 of the world’s largest economies which together account for 90% of global GDP and 76% of the world’s population.”, The Economist, December 16, 2021

Global Supply Chain & Trade Update

“Ningbo port clogged by lockdown measures – Truck entry into the port area remains restricted while some container freight stations have halted operations due to blocked roads and other lockdown measures. World’s third-busiest box port is trying to unclog the cargo traffic by establishing a whitelist for truck drivers and increasing barge and rail services among other efforts.”, Lloyd’s List, January 4, 2022

“U.S. on Sidelines as China and Other Asia-Pacific Nations Launch Trade Pact – The Regional Comprehensive Economic Partnership will eventually eliminate more than 90% of tariffs on commerce among 15 member countries. China joins U.S. allies including Japan and Australia in a new Asia-Pacific trade agreement that launches Saturday—with the U.S. watching from the sidelines. It will also give China a more prominent role in setting rules of trade in the Asia-Pacific region at the expense of the U.S., according to some analysts.”, The Wall Street Journal, January 1, 2022

“Global supply pressures may be nearing peak, New York Fed index shows – The Global Supply Chain Pressure Index (GSCPI) surged early in the pandemic when China imposed lockdown measures. Pressures eased as production resumed but picked back up during the winter of 2020 as COVID-19 infections jumped. ‘More recently, the [index] seems to suggest that global supply chain pressures, while still historically high, have peaked and might start to moderate somewhat going forward….’”, Reuters, January 4, 2022

“U.S. manufacturing cools but globally factories take Omicron risks in their stride for now – Elsewhere, manufacturing activity in the euro zone remained resilient at the end of 2021 as factories took advantage of some easing in supply chain bottlenecks and stocked up on raw materials at a record pace, a survey showed on Monday. In Britain, manufacturing activity grew slightly faster than originally thought last month, another survey showed on Tuesday.”, Reuters, January 4, 2022

Global Energy – New Section!

“European Energy Bills to Rise 54% From 2020 Level, BofA Says – Households in Europe are set to pay an average of 54% more for energy than they did two years ago, due to soaring natural gas and power prices across the region, according to Bank of America Corp. The average residential consumer will spend 1,850 euros ($2,095) on energy this year, up from 1,200 euros in 2020, analysts at the bank said in a research note. The biggest increases will be in Italy and the U.K., where bills will jump by about 950 euros.”, Bloomberg, January 5, 2022

“Global flow of liquefied natural gas – Biggest exporters and importers. Tons (m), 2020.  Mapping Europe’s gas network also enabled us to show readers the physical complexity of the “connected world” — a reminder that supply chains, trade routes and pipelines remain vital to maintaining the global economy regardless of technological advancements.”, The Financial Times, December 29, 2021

“Opec and its allies roll out more barrels for new year – The planned increase from February will mean that the alliance is still withholding about three million barrels per day from the market, which is due to be restored by September. RBC Capital Markets said: ‘Though Omicron cases continue to climb in key geographies, the absence of widespread lockdown restrictions will likely keep near-term demand concerns in check.’”, The Times of London, January 5, 2022

“China Overtakes Japan as Top LNG Importer – China imported 81.4 million tons of LNG in 2021, up 17.8% from a year earlier. Japan’s imports rose 0.2% to 75 million tons. Japan lost its crown as largest LNG importer for the first time since early 1970s, according to the report. South Korea ranked third with 46.4 million tons. Australia was the world’s largest LNG exporter in 2021, selling 83 million tons of the clean energy. But the United States is likely to jump to the top place in 2022, surpassing Qatar and Australia, according to IHS Markit.”, Caixing Global, January 7, 2022

Global, Regional & Local Travel Updates

“The world’s safest airline for 2022 revealed, and it’s largely influenced by COVID safety – When people are traveling, the safest airline – according to the annual list – is Air New Zealand. AirlineRatings.com monitors 385 airlines from across the world, measuring factors that include crash and serious incidents, age of aircraft and, most notably, COVID-19 protocols.”, USA Today, January 5, 2022

“Airbus keeps top planemaker spot with 8% delivery rise – The numbers gave Airbus an unassailable lead on revenue-generating deliveries – the industry’s main yardstick – after Boeing handed over 302 jets in the first 11 months. After slashing production due mainly to the pandemic, planemakers are seeing more demand for medium-haul passenger jets and freighters, despite global concern over Omicron.”, Reuters, January 10, 2022

“Goldman Says China Border Curbs Likely to Last Most of 2022 – China could retain its tight border restrictions for the whole of the year as it prepares to host the Winter Olympics and a series of political events in 2022, Goldman Sachs Group Inc. said. Reports that vaccines made by domestic firm Sinovac Biotech Ltd. offer limited protection against the omicron variant will likely reinforce China’s resolve to stick with its Covid Zero strategy, analysts led by Andrew Tilton wrote in a note Tuesday.”, Bloomberg, January 3, 2022

“Aeromexico passenger traffic reaches highest post-pandemic level –  Passenger traffic at Grupo Aeromexico (AEROMEX.MX) in December reached its highest level since the start of the COVID-19 pandemic, the Mexican airline said on Thursday. Aeromexico transported 1.74 million passengers last month, or 98.9% of the 1.76 million people it moved in December 2019, the company said in a statement.”, Reuters, January 6, 2022

“Israel reopening to all vaccinated, recovered international travelers next week – Shortly after announcing plans to reopen its borders to most countries, Israel announced Thursday that it would allow all international travelers – including those from the United States – to enter next week. The new rules go into effect Sunday and will allow fully vaccinated and recovered travelers to enter so long as meet pre-departure and post-arrival testing requirements.”, USA Today, January 6, 2022

“How Short-Haul Flight Bans Are Transforming European Travel – A growing number of E.U. countries have proposed bans on regional flights where a train route exists to reduce carbon emissions. Short-haul flights between European cities have become increasingly common over the last few decades, popularized by the cheap, quick, and convenient offerings from low-cost regional carriers like EasyJet and Ryanair. But that will start to change this year. In an effort to shrink the region’s carbon output, governments across the European Union are imposing bans on short-haul flights, with new legislation taking effect as early as this spring.”, CNN Traveler, January 6, 2022

Global COVID & Vaccine Update

“Vaccine Access and the Recovery – Access to COVID-19 vaccines is critical for economic recovery. We’re two years into the pandemic, but in many ways the start of 2022 feels very similar to the start of 2021. A holiday-induced wave of COVID-19 is picking up across the globe; restrictions on social activity are in place in many places to varying degrees; and supply chains are suffering from missing or damaged links. One notable difference, however, is the global administration of vaccines against the virus.”, Geopolitical Futures, January 7, 2022

The Times of London cartoon, December 27, 2021

Country & Regional Updates

China

“China’s Economic Recovery Hits Road Bump in 2021 Amid Policy Tightening – As it stuck to its zero-infection policy, China kept new Covid-19 cases to a relatively low level, so manufacturers were able to smoothly deliver overseas orders amid strong global demand. But strict measures subdued domestic consumer spending, especially in the services sector. Meanwhile, rapidly increasing factory-gate inflation had an impact on some businesses’ profits. In addition, China launched a series of regulatory actions this year against industries including property, private tutoring, big tech, and high carbon-emission factories and mines, which piled pressure on supply and demand as well as on market entities’ confidence.”, Caixing Global, December 31, 2022

“China’s Services Industry Growth Accelerates, Caixin PMI Shows – Activity in China’s services sector expanded at a faster pace in December as total new business orders continued to grow, a Caixin-sponsored survey showed. The Caixin China General Services Business Activity Index, which gives an independent snapshot of operating conditions in the sector, rose to 53.1 from 52.1 the previous month, according to the survey report released Thursday.”, Caixing Global, January 6, 2022

“China Launches Digital Yuan App in Pilot Cities Nationwide – China has launched a smartphone app for making payments and transfers with the digital yuan, as the country plows ahead with tests of its central bank digital currency. The e-CNY app became available on app distribution platforms for Android and iOS users in China on Tuesday. The app is now open to users in 12 cities and regions including Shenzhen, Suzhou, Chengdu, and Shanghai, as well as the hosts for the upcoming Winter Olympic Games, Beijing and Zhangjiakou.:, Caixing Global, January 5, 2022

Nordic Countries

“The pandemic delivered a surprise to Nordic countries: a baby boom – The long, dark winters may be great for making babies, but financial incentives play a bigger role. the Nordic countries—Denmark, Norway, Sweden, Finland, and Iceland—all have maintained their birthrates, and some are puzzled to find themselves in the midst of a pandemic baby boom.”, National Geographic, December 27, 2021

“Electric cars hit 65% of Norway sales as Tesla grabs overall pole – While Norway, with a population of 5.4 million, has the world’s highest proportion of electric vehicles, China with its 1.4 billion people is by far the biggest overall car market. Oil-producing Norway has encouraged the switch to zero emission cars by exempting battery electric vehicles (BEVs) from taxes imposed on internal combustion engines (ICE).”, Reuters, January 6, 2022

United Kingdom

“Jobs that offer hybrid working and flexible hours are on the rise – The government is being urged to change the law so large companies make all vacancies available on a part-time, job-share and flexible basis. Research from the Recruitment and Employment Confederation and labour market analysts Emsi Burning Glass show that 25% of jobs advertised in December last year mentioned hybrid or flexible working, which also includes job shares and working irregular hours. That’s up from 19% before the pandemic.” , Sky News, January 7, 2022

“Manufacturing activity rises as supply bottlenecks ease – Output and jobs in the manufacturing sector continued to grow at the end of last year as supply chain disruptions began to ease. The rise in the output index to 53.6 in December, from 52.7 in November, showed that the spread of the Omicron coronavirus variant had not yet hit the sector’s recovery. The IHS Markit/CIPS purchasing managers’ index for UK manufacturing measured 57.9 in December. The figure, a slight drop from a three-month high of 58.1 in November but above the flash estimate at 57.6, is thought to have been weighed down by a clearing of production backlogs.”, The Times of London, January 5, 2022

United States

“Small businesses growing more optimistic, survey finds – 83% of midsize businesses and 71% of small businesses “are optimistic about their own performance in 2022,” according to JPMorgan Chase’s 2022 Business Leaders Outlook Survey out today. That’s up from 77% and 63% at the dawn of 2021, respectively.”, Axios, January 5, 2022

“Record 4.5 Million Americans Quit Jobs In November As Employers Struggle To Retain Workers – The quit rate increased to 3%, matching the series high in September, with large upticks in several industries, including food services (up 159,000), healthcare (up 52,000) and transportation (up 33,000). Meanwhile, there were about 10.6 million open jobs at the end of November, down 529,000 from a month prior, when openings nearly matched the record 11.1 million set in July.”, Forbes, January 5, 2022

Brand News

“Interview: Arthur McColl, CEO of Express Employment Professionals Australia and New Zealand – Employers the world over have struggled to retain talent as the pandemic has brought about a shift in consciousness, but employment professionals have seen all kinds of shifts in thinking and are well-placed to advise companies on how to negotiate this issue.”, Global Franchise, January 10, 2022

“American pizzeria chain Little Caesars opens in Moscow – The company plans to open over 50 points in Russia.  The first Russian establishments of the American Little Caesars pizza chain will start operating in Moscow at the end of December, the company’s development director Jeremy Vitaro told Vedomosti.”, Vedomosti.ru, December 24, 2021. Compliments of Paul Jones, Jones & Co., Toronto

“Papa Johns in Deal With FountainVest Partners to Expand China Footprint – Papa John’s International Inc. said Friday it has struck a deal with private-equity firm FountainVest Partners to open more than 1,350 new stores across China by 2040. The franchise development agreement is the largest in Papa Johns history as it accelerates store openings across its markets, the Louisville, Ky.-based pizza company said.”, Market Watch, January 7, 2022

“Popeyes Will Open Hundreds of Restaurants In This Country – RBI International, the parent company of Popeyes, will be partnering with franchisor Silla Group to bring hundreds of the chain’s locations to Korea in the coming years. The first one, according to the press release, is slated to open later this year.”, Eat This, Not That!, January 5, 2022

“Will customers subscribe to Sweetgreen’s plan to make pricey salads less pricey? With the company’s new Sweetpass program, customers can buy a $10 pass which rewards them with a $3 credit daily for 30 days. There is a minimum order requirement of $9.95. The offer is available for customers at the chain’s 140 stores who place orders on its website or through its mobile app. Discounts are not available for orders placed on DoorDash, Uber Eats or other third-party apps.”, Retail Wire, January 5, 2022

“Fast food chains adopt subscription models – The subscription economy is expanding into the drive-thru lane….Subscriptions offer a source of dependable revenue, loyalty and data — the same elixir that fuels streaming services like Netflix and exercise powerhouses like Peloton. The subscription economy grew nearly sixfold from 2012 to 2021, according to subscription management company Zuora’s Subscription Economy Index.”, Axios, January 9, 2022

Articles & Studies For Today And Tomorrow

“Which economies have done best and worst during the pandemic? We rank 23 rich countries along five measures. THE SPEED of the economic bounce-back from the enormous recession of 2020 has taken many forecasters by surprise. Output across the 38 mostly rich OECD countries combined probably surpassed its pre-pandemic level a few months ago. The average unemployment rate across the club, at 5.7%, is in line with the post-war average. And aggregate household income, adjusted for inflation, is above its pre-covid level.”, The Economist,  January 1, 2022

“How Tech Will Help Restaurants Offset Labor Shortages, Reduce Inefficiencies and Tackle Other Challenges in 2022 – Restaurant operators once again find themselves refocusing priorities and altering their plans for 2022. A pandemic-induced and tumultuous 2020 for restaurants was followed by a puzzling 2021. Although sales are up from this time last year, so too, is the scramble to adequately staff restaurants and retain those workers. While many restaurants are offering hiring incentives like higher pay or signing bonuses, some are forced to reduce the number of hours they’re open to the public because of lack of staff. In 2022, restaurants are turning to technology for help.”, Restaurant Technology News, December 17, 2021

“The 50 Most Visited Websites in the World – Together, the top three websites (Google, YouTube and FaceBook) rake in 152 billion visits monthly, outpacing the next 47 websites combined. What’s more, as the pandemic transformed everything from the way we work, learn, communicate, and shop—a majority of these activities migrated online. In this new visualization, we look at the most visited websites around the world, drawing data from SimilarWeb (as of November 2020).”, Visual Capitalist, 2021

Our Information Sources & Who We Are

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Our biweekly global business update newsletter focuses on what is happening around the world that 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™ 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. bedwards@edwardsglobal.com

To sign up for our biweekly newsletter click on this link:   https://lnkd.in/d_XkTGN.

William (Bill) Edwards, Your Newsletter Editor, has a four-decade career successfully accelerating the international growth of more than 40 companies. Bill is known as an international problem solver, Advisor, Mentor, brand developer and start-up specialist. 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.  He has lived in China, the Czech Republic, Hong Kong, Indonesia, Iran and Turkey and has worked on projects in over 50 countries. Mr. Edwards is known for his extensive knowledge and understanding of business cultures. Mr. Edwards advises a wide range of companies on early to long term global development of their brands. 

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 around the world. Our Team on the ground overseas covers 40+ countries.  EGS has twice received the U.S. President’s Award for Export Excellence.

www.edwardsglobal.com

Download our December 2021 chart ranking 40+ countries as places to do business at this link:

Our Latest GlobalVue™ Country Ranking

Our global business update blog can be found at:

www.staging.geowizard.biz

For advice on doing business across 40 countries, contact Mr. Edwards at bedwards@edwardsglobal.com or +1 949 224 3896.   

https://calendly.com/geowizard/30min  Click here to schedule a call with Bill Edwards to discuss how to solve challenges as you grow your company around the world.

EGS Biweekly Global Business Newsletter Issue 46, Monday, December 27, 2021

Global Business Predictions for 2022, Year of the Tiger

“World economy to top $100 trillion in 2022 for first time – The world’s economic output will exceed $100 trillion for the first time next year and it will take China a little longer than previously thought to overtake the United States as the No.1 economy, a report showed on Sunday.”, Reuters, December 25, 2021

“2022 Market Outlook: More Upside For Stocks, Economic Growth To Rebound – ‘Our view is that 2022 will be the year of a full global recovery, an end of the global pandemic and a return to normal conditions we had prior to the COVID-19 outbreak. We believe this will produce a strong cyclical recovery, a return of global mobility and strong growth in consumer and corporate spending, within the backdrop of still-easy monetary policy. For this reason, we remain positive on equities, commodities and emerging markets and negative on bonds.’”, J.P. Morgan, December 15, 2021

“Corporate predictions for 2022: what the business schools say – Academics share their thoughts on what’s to come — and how to thrive. With demand and supply in many sectors pitching like ships in a hurricane so that the twain hardly ever seem to meet, leaders need resilient people and systems that can cope with the oscillation and not become prostrated by organisational seasickness. Julian Birkinshaw, professor of strategy and entrepreneurship at London Business School, identified the three key areas — finance, people and operations — where that resilience lies.”, The Times of London, December 22, 2021

“2022 Annual Forecast: A Global Overview – The global economy will continue its uneven recovery amid progress in COVID-19 vaccinations in most developed countries, lagging vaccinations in much of the rest of the world and the threat of new outbreaks. While global growth will be relatively strong, it is likely to slow from 2021 due to setbacks from the pandemic, persistent supply chain disruptions, higher inflation and tightening financial conditions, as well as constraints on public spending in many countries as they cope with high levels of debt and increased interest rates.”, Stratfor Worldview, December 20, 2021

“Five areas will shape the global operating environment for business in 2022 –  Embedded in this year’s predictions are increased demand for virtual healthcare, continued pressures on the availability of critical raw materials and advanced manufacturing products, and lingering social and economic pressures. All have been magnified by the festering pandemic.”, Kearney Global Business Policy Council, December 2021

“Wall Street’s 2022 Outlook – New Challenges And Opportunities – Growth through easy money and deficit spending is being replaced by realistic expectations, planning and actions. Add in the Federal Reserve move to market-determined interest rates, and the 2022 outlook necessarily includes shifts in the financial markets. Among the shifts will be serious valuation adjustments of all assets, not just bonds.”, Forbes, December 22, 2021

“Global Airline Capacity Is Seen Rising in 2022, Along With Fares – Carriers poised to return to 2015 level, U.K. consultancy says Ticket prices to be affected by labor, debt, other factors. Bloomberg, December 22, 2-21

“Japan govt weighs raising FY22 growth forecast to +3.0% or more – The projection would be an upgrade from a forecast for 2.2% real GDP growth for the fiscal year starting in April 2022 released at a mid-year review in July. ‘The projected growth figure is not that overly bullish, considering the continued growth thanks to eased restrictions and a high vaccination rate,’ said Saisuke Sakai, senior economist at Mizuho Research and Technologies.”, Reuters, December 20, 2021

“What to Expect of China’s Economy in 2022 – After a bumpy ride in 2021, China enters a politically important year ahead…..one thing that’s certain is that growth will become the top priority in 2022. The readout from the Central Economic Work Conference (CEWC) that concluded on Dec. 10 became the most widely dissected document of this economically turbulent year. ‘Stability,’ mentioned 25 times in the CEWC readout this time, is the paramount goal before the party’s 20th National Congress later in 2022.”, Caixing Global, December 23, 2021

“Wall Street’s 2022 Outlook – New Challenges And Opportunities – Growth through easy money and deficit spending is being replaced by realistic expectations, planning and actions. Add in the Federal Reserve move to market-determined interest rates, and the 2022 outlook necessarily includes shifts in the financial markets. Among the shifts will be serious valuation adjustments of all assets, not just bonds.”, Forbes, December 22, 2021

“2022 Projected to Be Another Record Year For New Business Starts – A recent survey reveals that almost three out of five U.S. employees (57%) want to start a business and one in five (20%) will make the leap in 2022. After two record-breaking years of new business creation, there’s no sign of the trend slowing down as QuickBooks projects as many as 17 million new small businesses could be set up in 2022. The prediction comes from a recent survey of 8,000 U.S. employees, commissioned by QuickBooks in November 2021.”, The Street, December 22, 2021

“The business builders – The more new businesses you build, the better you get at building them. That’s the lesson from the companies that do it best. Business building helps companies diversify their revenues and keep pace with shifting customers and markets.” McKinsey & Co., December 25, 2021

“What major themes will we see in global media in 2022? What should we see more of? 0McKinsey Global Publishing’s Raju Narisetti asked dozens of journalists and media leaders around the world for their own perspectives on what’s to come—their personal lens on what’s likely to be covered heavily in 2022, and what issues might fly under the radar.”, McKinsey & Co., December 26, 2021

“Technomic Releases 2022 Foodservice Predictions – 2022 Global Restaurant Trends Forecast…….read ahead for Technomic’s take on six major trends poised to make a global impact on foodservice in 2022, plus some up-and-comers likely to break out.”, Technomic, via Franchising.com, December 21, 2021

“India Is on a Tear – Massive modernization presents opportunities for investors. ‘Adventures do occur, but not punctually,’ writes E.M. Forster in A Passage to India. In other words, exciting things happen in India, but a little patience is required. In recent years, however, it seems events have sped up in the Asian subcontinent, and that’s fueling a stock market rally.”, Kiplinger.com, December 21, 2021

“Global demand for coal could hit all-time high in 2022 – Electricity from coal plants has risen by 9% this year to fuel economic recovery from Covid, says watchdog. Coal power is on track to hit a new global record this year after an economic rebound that could drive worldwide coal demand to an all-time high in 2022, according to the International Energy Agency.”, The London Guardian, December 17, 2021

“2022 Global Public Real Estate Outlook – We expect 2022 to be another solid year for the global economy with consensus forecasts calling for global real GDP growth of +4.4%. Job growth is anticipated to be strong in 2022. Segments we believe are exceptionally well positioned to outperform in 2022 include: Industrial Facilities in North America; Data Centers in Asia; U.S. Residential Sector; European Office REITs; and Cell Towers.”, Hazelview Securities Inc., December 2021

A Look Back at 2021 Predictions

“Who Got It Right? A Look Back at Expert Predictions For 2021 – Last year, the editorial team at Visual Capitalist scoured through 200+ reports, articles, podcasts, and more, to create our 2021 Prediction Consensus—a big picture and aggregated look at the key trends that experts predict for the year ahead. If 2021 taught us anything, it’s that things can change at the drop of the hat. Amidst all this uncertainty, how many of the highlighted predictions came to fruition, and which ones didn’t pan out exactly as expected?”, Visual Capitalist, December 13, 2021

“2021: The year in (McKinsey & Co.) charts – While the quick arrival of vaccines buoyed optimism, the persistence of COVID-19 and the rise of variants continue to pose stumbling blocks toward achieving herd immunity. In this new normal, people are learning to live with an endemic disease. The future of work is at a pivotal crossroad—with many workers reassessing their options. During the pandemic, people grappled with finding meaning and purpose in their work. Will the future of work be hybrid, purposeful, inclusive, and built for balance?”, McKinsey & Co., December 17, 2021

“What Happened to Supply Chains in 2021? Pandemic-related disruptions threw a wrench into global supply chains this year, causing shortages of goods. Significantly, the pandemic-induced increase in demand for goods persisted even as demand for services (such as dining out, entertainment, and travel) largely returned to pre-pandemic levels.”, Council on Foreign Relations, December 13, 2021

“How 2021 became the year of ESG investing – Investors concerned about climate change and social justice had a bumper year in 2021, successfully pushing companies and regulators to make changes amid record inflows to funds focused on environmental, social and corporate governance (ESG) issues.”, Reuters, December 23, 2021

Our Information Sources & Who We Are

We constantly monitor 30+ countries, 40+ international information sources and ten 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.

William (Bill) Edwards, CFE and CEO and Global Advisor, Edwards Global Services, Inc. (EGS) has 4 decades of international operations, development, executive and entrepreneurial experience and has lived in 7 countries. Over the years, Bill has solved global challenges in the franchise, oil and gas, information technology and management consulting sectors. Along the way, 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.  

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 around the world. Our Team on the ground overseas covers 40+ countries.  EGS has twice received the U.S. President’s Award for Export Excellence.

www.edwardsglobal.com

Download our December 2021 chart ranking 40+ countries as places to do business at this link:

Our Latest GlobalVue™ Country Ranking

Our global business update blog can be found at:

www.staging.geowizard.biz

For global market research, operations and development support across 40 countries, contact Mr. Edwards at bedwards@edwardsglobal.com or +1 949 224 3896.  

https://calendly.com/geowizard/30min  Click here to schedule a call with Bill Edwards to discuss how to solve challenges as you grow your company around the world.