EGS Biweekly Global Business Newsletter Issue 40, Monday, October 4, 2021

Words of Wisdom from Others

“Growth and comfort do not coexist.”, Ginni Rometty, former CEO of IBM

“Working hard for something we don’t care about is called STRESS. Working hard for something we love is called PASSION.”, Simon Sinek

“Unless you have courage, a courage that keeps you going, always going, there is no certainty of success. It is really an endurance race.”, Henry Ford

Highlights in issue #40:

• China hit by power cuts and factory closures as energy crisis bites –

• Why Global Shortages Won’t Ruin the (US) Holidays

• Report Measures The Economic Importance Of Franchise Operators

• 99.5% of United employees have now complied with the vaccine mandate

• Which countries have the fastest (mobile broadband) internet connection?

• China, one of the world’s few ‘COVID-zero’ holdouts, sets a loose timeline for easing virus measures

• Brand News Section: Denny’s®, Dickeys®, Five Guys®, FranConnect, Impossible Foods®, LEGO®, Subway®, Tortilla®

Our Mission and Information Sources

Bolded article titles are live links, if available without subscription

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 in 27 countries 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

“Report Measures The Economic Importance Of Franchise Operators – A first-of-its-kind report from the International Franchise Association (IFA) and Oxford Economics sheds light on the impact and importance of franchising in America. The report, The Value of Franchising, details how franchisees are local business leaders who contribute to economic growth, job creation, and charitable endeavors in their communities.”, Franchising.com, September 29, 2021

“Europe’s Energy Crisis Is Coming for the Rest of the World, Too – Millions of people around the globe will feel the impact of soaring natural gas prices this winter. Nations are more reliant than ever on natural gas to heat homes and power industries amid efforts to quit coal and increase the use of cleaner energy sources. But there isn’t enough gas to fuel the post-pandemic recovery and refill depleted stocks before the cold months.”, Bloomberg Businessweek, October 1, 2021

“Eurozone consumer activity returns to pre-pandemic levels, mobility data show – Europeans are leaving their houses to go shopping, eat out, travel and visit cinemas as much as they did before the pandemic, in a sign of returning consumer confidence which suggests that the eurozone’s economic rebound remains intact, for now.”, The Financial Times, September 28, 2021

“Societies that treat women badly are poorer and less stable – Oppressing women is not only bad for women; it hurts men, too. It makes societies poorer and less stable, argue Valerie Hudson of Texas A&M University and Donna Lee Bowen and Perpetua Lynne Nielsen of Brigham Young University. In “The First Political Order: How Sex Shapes Governance and National Security Worldwide”, Ms Hudson, Ms Bowen and Ms Nielsen rank 176 countries on a scale of 0 to 16 for what they call the ‘patrilineal/fraternal syndrome’.”, The Economist, September 11, 2021

Supply Chain & Energy – Worldwide Issues

“The World Braces for a Period of High Energy Prices – High global energy prices are likely to remain through the end of the Northern Hemisphere’s winter, which will undermine COVID-19 economic recoveries in energy-importing countries, hurting low-income population segments the hardest. The higher prices will also exacerbate the global manufacturing sector’s fragile recovery and ongoing supply chain challenges, while increasing pressure on governments’ energy transition plans.”, Stratfor, October 1, 2021

“Why Global Shortages Won’t Ruin the (US) Holidays – ‘You’ve heard it here first: Christmas will happen on Dec. 25,’ says Gene Seroka, executive director of the Port of Los Angeles. ‘Many of our savvy retailers and importers advanced their orders. We started seeing Christmas goods arrive on our shores back in June of this year. Normally, that arrival would take place at the end of August, beginning of September.’”, Barron’s, October 3, 2021

“Containers Piling Up at U.S. Rail Yards Add to Port Strains – To understand why more than 100 container ships are waiting to enter U.S. ports from Southern California to Savannah, Georgia, it helps to keep tabs on the congestion that’s building at another key junction of freight transportation: rail yards. The so-called dwell time for containers at 11 major railroad depots reached an average of 9.8 days this month, according to a tally of its own boxes maintained by Hapag-Lloyd AG, the world’s fifth-largest container carrier.”, Bloomberg, September 29, 2021

“In the first seven months of 2021, cargo volumes between Asia and North America were up by 27% compared with pre-pandemic levels, according to BIMCO, a shipowners’ association. Port throughput in America was 14% higher in the second quarter of 2021 than in 2019. There has been little growth elsewhere: throughput in northern Europe is 1% lower. Yet rates on all routes have rocketed, because ships have set sail to serve lucrative transpacific trade, starving others of capacity.”, The Economist, September 16, 2021

“Reality bites as supply chaos hits – Bosses scramble to keep firms afloat amid cargo delays and staff shortages. John Lyttle, chief executive of online fashion group Boohoo, said prices of container shipments from Asia have increased sixfold in recent months as freight companies jack up their rates. Air freight prices were also up two to three times’ normal levels, he said, as the lack of passenger flights usually used for cargo meant companies like his had to charter whole aircraft. “I don’t see the situation easing until some time in 2022.”, The Times of London, October 3, 2021

Global, Regional & Local Travel Updates

“Airlines Add Winter Flights Between U.S., Europe in Sign of Hope – The number of flights from Western Europe to North America is poised to jump by 7.5% between late October and early November, when the U.S. ban lifts on visits from most European countries, based on data from BloombergNEF. Traffic will then head for a peak in late December.”, Bloomberg, September 28, 2021

“Australia to Lift International Travel Ban in November – Australia is racing ever faster toward reopening its international borders, with Prime Minister Scott Morrison on Friday announcing that bans on international travel will be lifted in November, a month ahead of schedule. The shift will allow states that have reached the 80% vaccination rate to welcome immunized overseas visitors, while Australians will be able to travel abroad with no restrictions on destination.”, Bloomberg, September 30, 2021

“Qantas to Resume International Flights on November 14 – In a press release today, QF says it will have three weekly round-trip flights to both London (LHR) and Los Angeles (LAX) using its Boeing 787-9 Dreamliners. The airline will add more flights as demand returns.”, Airways Magazine, October 1, 2021

“Air New Zealand becomes latest airline to announce international passengers will need to be vaccinated. Many of the world’s airlines and governments require proof of a negative COVID-19 test before a person can board a flight, but very few have said they will require vaccination. The rule will affect international travellers aged 18 and over departing or arriving in New Zealand.”, Sky New, October 3, 2021

“COVID-19: UK’s travel rules are changing this week – what will be different and how will it work? The current traffic light system of red, amber and green countries will be replaced with one red list only. People who are fully vaccinated ‘won’t need a pre-departure test before arrival into England from a non-red country,’ said the transport secretary. And from later this month, the day two PCR test will be replaced ‘with a cheaper lateral flow’.”, Sky News, October 3, 2021

“Britain poised to join EU’s vaccine passport in a boost for travel – Joining the EU Digital Covid Certificate (EUDCC) — the biggest vaccine passport scheme in the world — could make travelling to Europe cheaper for British tourists as some countries, such as France, Portugal and the Netherlands, require non-EU residents to take tests even if they are double-jabbed. The scheme will reduce queues as it makes it easier to verify vaccine status.”, The Times of London, September 24, 2021

“Qatar Airways Backtracks on A380 Withdrawal, Cites A350 Issues – Qatar Airways has revealed that it will return at least five Airbus A380s to service from this November, a complete U-turn on the company’s decision to permanently withdraw the fleet due to the effects of the Covid-19 pandemic.”, Airline Geeks, September 29, 2021

Global Vaccine Update

“99.5% of United employees have now complied with the vaccine mandate – Of United’s 67,000 U.S.-based employees, only 320 of them haven’t complied with the airline’s vaccine mandate.”, The Points Guy, September 30, 2021

“Vaccine Dispensing Machine Deployed In COVID-19 Centers In Singapore – An automated vaccine dispenser developed in Singapore in just six weeks has been deployed to at least seven vaccination centers, eliminating the need for syringes to be loaded manually. The Automated Vaccine Inoculation Dispenser (Avid) system, the first of its kind in Singapore, weighs less than 25kg and can fill six vaccine syringes in less than five minutes.”, Business Times, September 30, 2021

“China, one of the world’s few ‘COVID-zero’ holdouts, sets a loose timeline for easing virus measures – On Sunday, Zhong Nanshan, one of China’s top epidemiologists and government advisers, suggested that the country may begin to loosen its “COVID-zero” restrictions by the end of the year and learn to live with the virus—a potential change in tack for a country that has not budged from its mission to eliminate every single case of COVID-19 since the pandemic began.”, Fortune, October 4, 2021

“45.7% of the world population has received at least one dose of a COVID-19 vaccine. 6.33 billion doses have been administered globally, and 26.6 million are now administered each day. Only 2.3% of people in low-income countries have received at least one dose.”, Our World In Data, October 3, 2021

Country & Regional Updates

Argentina

“Argentine Economy Grew More Than Expected Amid Reopening – The economy grew 11.7% in July from a year ago, faster than the 8.5% median estimate of analysts surveyed by Bloomberg. Activity in July expanded 0.8% on a monthly basis, a slower pace from June, according to government data published Tuesday. Argentina’s hotels and restaurants saw activity grow 55%, while construction and manufacturing also recorded double-digit gains.”, Bloomberg, September 28, 2021

China

“China hit by power cuts and factory closures as energy crisis bites – The world’s top coal consumer implements power rationing as supplies dwindle ahead of winter. China has told railway companies and local authorities to expedite vital coal supplies to utilities as the world’s second largest economy grapples with extensive power cuts that have crippled industrial output in key regions. As many as 20 provinces are believed to be experiencing the crisis to some degree, with factories temporarily shuttered or working on short hours.”, The Guardian, September 29, 2021

“Beijing Olympics to Allow Spectators But Only Those in China – China is limiting spectators for the Beijing Winter Olympics to those residing within the country, as the nation applies its zero-tolerance Covid-19 strategy to the upcoming winter games. Tickets for the 2022 winter games will be sold exclusively to residents in mainland China who meet the requirements of Covid-19 countermeasures, the International Olympic Committee said Wednesday in a statement listing the steps planned by Beijing.”, Bloomberg, September 29, 2021

“China’s population could halve within the next 45 years, new study warns – Researchers say previous estimates may have severely underestimated the pace of demographic decline. Census data says the birth rate was 1.3 children for each woman last year – well below the level needed to stop the population from falling”, South China Morning Post, September 30, 2021

France

“How France Overcame Covid-19 Vaccine Hesitancy – The French have long been wary of vaccines, but a mixture of mandates and inducements encouraged millions to get the shot as the Delta variant spread. When France started vaccinating its population at the start of the year, it had one of the highest rates of hesitancy in the world (66%). Today, it has one of the highest vaccination rates among larger Western countries, after a mix of enticements and government pressure pushed millions of French to receive the shot this summer.”, The Wall Street Journal, September 27, 2021

Japan

“Japan to lift nationwide COVID-19 emergency restrictions – The Japanese government announced Tuesday that the country’s coronavirus state of emergency will end this week. Japanese economic minister Yasutoshi Nishimura said ‘[m]easures will be gradually eased out to prevent early re-infection.’ The government will create more temporary coronavirus treatment facilities, as well as introduce vaccine passports and testing.”, Axios, September 28, 2021

New Zealand

“New Zealand to End ‘Zero Covid-19’ Strategy – Prime Minister Jacinda Ardern says the government is aiming to ‘actively control the virus’ as it prepares to ease restrictions. Pandemic restrictions in the country’s largest city, Auckland—in place after a Covid-19 outbreak in mid-August—will be eased in stages starting this week, New Zealand Prime Minister Jacinda Ardern said Monday.”, The Wall Street Journal, October 4, 2021

“Brand aid – lockdown solution for franchisees – When one franchise had too much work and the other had too little, two well-known franchise brands worked together. Green Acres home cleaning and lawnmowing franchisees weren’t allowed to work during Level 4 lockdown­, but a number of them kept busy and earning thanks to an innovative partnership with courier franchise Aramex. The arrangement saw the familiar Green Acres-branded vehicles delivering parcels around the country – a clever solution to the problem of one franchise having too little work while the other was run off its feet.”, Franchise New Zealand magazine, compliments of Simon Lord, Publisher

Thailand

“World Bank cuts Thai GDP growth outlook to 1% this year – Thailand’s economy is forecast to grow 1% this year, down from the 2.2% projected in July, hit by a spike in COVID-19 cases and a delayed reopening to visitors, the World Bank said on Tuesday, as the country fights its biggest virus outbreak to date…..The economy is now expected to return to its pre-pandemic level in 2023, Kiatipong Ariyapruchya, senior World Bank economist for Thailand, told a virtual briefing.”, Reuters, September 27, 2021

United Arab Emirates

“Dubai economy to grow 3.1% this year on Covid-mitigation measures and Expo 2020 – The emirate’s gross domestic product is expected to grow by 3.4% in 2022. The economy of Dubai, the commercial and tourism hub of the Middle East, has bounced back strongly from a pandemic-driven slowdown that disrupted global trade flows and severely affected travel and tourism sectors last year, tipping the world economy into its worst recession since the 1930s.”, The National News, September 21, 2021

United Kingdom

“London’s mojo is rising . . . but it’s still not quite like the old times – Drinkers rub shoulders. Glasses clink. Chatter rises to the rafters. It’s Thursday night in the City of London and Leadenhall Market looks more like its old self. Just weeks earlier, during the summer lull, the City retained the sleepy air of lockdown, with workers staying away for good parts of the week. Now there are signs that workers are finally returning to their offices on a regular basis.”, The Times of London, October 3, 2021

“Fuel crisis: Shoppers warned of Christmas nightmare – Kwasi Kwarteng, the business secretary, admitted yesterday that the fuel crisis could affect Christmas as he announced the deployment of the government’s reserve tanker fleet. He said that the tankers would be on the road this afternoon, driven initially by civilians, but that the public may see soldiers driving some vehicles in the next day or so.”,  The Times of London, September 29, 2021

United States

“Small Businesses Continue to be Challenged by Labor Shortages and Supply Chain Disruption – Fifty percent are significantly impacted by supply chain disruptions and another 27% by significant staffing shortages. In a survey of small business owners published last week by the NFIB Research Center, two major headwinds facing small businesses as they fight to recover from the pandemic and business restrictions, remain staffing shortages and supply chain disruptions.”, NFIB, September 27, 2021

“PwC to let US employees in client services work remote full-time – The pandemic has forced more companies to reconcile with employees preferring to work from home…..A company spokesperson told FOX Business PwC is the first professional services firm in the U.S. to offer employees the option to work virtually and live anywhere in the country.”, Fox Business, September 30, 2021

“Freelance Professionals Find That Answering Consumer’s Questions On ‘Expert’ Sites Can Be Lucrative In An Era Of Online Everything – When Billy Wills, a heating and cooling professional from Battle Creek, Michigan, had trouble with a lawnmower repair he was doing, he started hunting online for information that would help him finish the repair. He came across JustAnswer, a site where it’s possible to hire experts for a small flat fee or under a subscription program and sent his question to one of the experts.”, Forbes, September 30, 2021

Vietnam

“HSBC: Two scenarios for Viet Nam’s economy in 2021 – Viet Nam’s economic outlook by year end very much depends on the effectiveness of the vaccine rollout together with the effective and timely re-opening of the economy, said Tim Evans, CEO of HSBC Viet Nam on September 13.”, VF Franchising, September 25, 2021

Brand News

“Denny’s modernizes consumer digital offerings – Family-dining brand refreshes website, on-demand and mobile app components. The Spartanburg, S.C.-based family-dining brand said it was working to make its digital platforms as personalized as the customers’ experience in the company’s more than 1,500 Denny’s locations.”, Nation’s Restaurant News, September 23, 2021

“Dickey’s (Barbecue Pit US) Signs Master Franchise Agreement for Africa – Dickey’s announced today that the company signed a Master agreement with exclusive rights to grow its Africa presence by opening eight locations in Botswana over the span of a decade.”, World Franchise Associates, September 7, 2021

“Five Guys’ first Australian restaurant opening on September 20 – The 500 square metre outlet in Penrith, Sydney will initially offer takeaway. Last year, QSR Media first reported that the American fast casual chain entered into a master franchise agreement with Seagrass Boutique Hospitality Group, the parent company of the Ribs & Burgers, Italian Street Kitchen and Butcher and the Farmer restaurant brands to expand in Australia and New Zealand.”, QSR Media AU, September 16, 2021. Compliments of Jason Gehrke, Franchise Advisory Centre, Brisbane

“Impossible Foods to launch meatless pork in U.S., Hong Kong and Singapore – The ground pork product will first be available in restaurants, with plans for retail expansion in those markets in the coming months. In a first-on interview, Impossible Foods’ president Dennis Woodside told CNBC that the pork alternative could beat the real deal in both taste and nutritional value.”, CNBC, September 23, 2021

“Lego Profit Doubles as Consumers Turn to Toys During Lockdown – Lego A/S’s first half-profit more than doubled as consumers turned to its well-known building blocks to entertain stuck-at-home children. Families across the globe have increased spending on consumer goods while staying at home and Lego emerged last year as a pandemic winner, booking record profits and sales.”, Bloomberg, September 28, 2021

“Sandwich Chain Subway to Reappear in Indonesia through Franchising Agreement with Sari Sandwich Indonesia – Sari Sandwich Indonesia (SSI) will be the operator of Subway stores in Indonesia. SSI is owned by publicly listed MAP Boga Adiperkasa which already holds exclusive licenses to operate seven premium brands (aside many other brands) in Indonesia: Starbucks, Pizza Marzano, Cold Stone Creamery, Krispy Kreme, Godiva Chocolatier, Genki Sushi, and Paul.”, VF Franchising, September 25, 2021

“Mexican chain Tortilla floats to feed dozens of new sites – Tortilla, which claims to be Britain’s biggest “fast-casual” Mexican chain, has hired Liberum as its adviser and is looking to raise £5 million of new funds to finance its expansion plans, along with a £10 million debt facility from Santander. In addition to the new money, existing shareholders in the chain are expected to raise between £20 million and £25 million from the sale of shares.”, The Times Of London, September 24, 2021

Articles & Studies About Doing Business Going Forward

“How subscriptions became quick service restaurants’ hottest marketing trend – This month, Taco Bell became the latest restaurant chain to launch a subscription service, by testing a “Netflix for Tacos” pass.  The pilot program, which launched at Tucson, Arizona locations, allows customers to get one taco a day for a monthly fee. The Taco Lover’s Pass pilot will run between September 9 and November 24, and costs between $5 and $10 for a 30-day pass.”, Modern Retail, September 24, 2021

“What 200 Operations Executives Told Us About Operations Today – FranConnect ‘polled our audience of 200 franchise operations executives about how the current labor shortage is affecting their business, and whether in-person visits have gone up or stayed the same since vaccine rollouts began. three quarters of respondents are moderately or severely affected by the labor shortage.”, Franchising.com, September 24, 2021

“3 Hot Retail Tech Trends to Watch in 2022 – Smart shopping carts and headless tech tools are will be on the minds of retailers looking to get out from under the logistics woes that dominated the last two years. In addition to the automation advancements, here are three tech trends she says retailers should watch heading into 2022: 1. Pricing Technology; 2. Headless Tools; and 3. Smart Carts.”, INC., September 27, 2021

“Which countries have the fastest (mobile broadband) internet connection? Using data from the Speedtest Global Index™, this map ranks the fastest (and slowest) internet speeds worldwide…. The United Arab Emirates (UAE) is first on the list, with a download speed of 195.5 mbps. Not only is mobile data fast in the UAE, it’s also relatively cheap, compared to other countries on the ranking. The average cost of 1 GB of data in the UAE is around $3.78, while in South Korea (#2 on the list) it’s $10.94.”, Visual Capitalist, September 2021

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William (Bill) Edwards, CFE, is CEO and Global Advisor of Edwards Global Services (EGS). He has 4 decades 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.

Bill recently was published on Franchising.com in an article about how global franchise supply chain management is critical for international success. Read the full article here: https://bit.ly/3io0BuK

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.

www.edwardsglobal.com

Download our latest 40 country ranking chart at this link:

July 2021 GlobalVue™ Country Ranking Chart

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 succeed in developing your company around the world.

EGS Biweekly Global Business Newsletter Issue 39, Monday, September 20, 2021

Words of Wisdom from Others

“You are braver than you believe, stronger than you seem, and smarter than you think.:, A. A. Milne

“The future belongs to those who believe in the beauty of their dreams.”, Eleanor Roosevelt

“’Grit’ – Possessing the indomitable spirit, having a drive for achievement regardless of upbringing or situation. Earning success in the trenches through hard work.”, Etsy

Highlights in issue #39:

• Which Vaccine Passport App Should I Use?
• Italy Braces for Pasta Inflation Amid Soaring Durum Wheat Prices
• The rise of eastern Europe is a forgotten economic success story
• Costa Coffee dishes out 5% pay rise to 14,500 staff in return for pandemic hard work
• The 20 Fastest Growing Jobs in the Next Decade
• China Stumbles –  China’s economy is in the midst of a mid-year stumble
• Brand News Section: Baskin Robbins®, Costa Coffee®, Del Taco®, Pizza Inn®

Our Mission and Information Sources

Bolded article titles are live links, if available without subscription

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 in 27 countries 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.

My First International Business Trip Since February 2020

Over the past ten days, I have travelled on business through Germany, Italy, the Netherlands, Spain and the United Kingdom. This meant taking 6 separate COVID tests and completing 10+ separate COVID-19 related forms for the four countries. The company we visited in the Netherlands even wrote a special letter stating that our visit was ‘essential business’ to ensure we did not have to quarantine in Amsterdam before we could meet. The multiple forms – mostly completed online – were needed not only to enter a country but to not have to quarantine because we come from a country with a fully vaccinated population of 53% (USA!) versus most EU countries and the UK which are 60-75% vaccinated. Despite higher vaccination levels, as of this date, none of the people from these countries are allowed to enter the USA!

On the positive side, everyone we met in the various countries were very positive about the future of their businesses, their economies and making new investments. Typical is a comment by EGS’ Spain Associate that Europeans are “learning to live with Covid-19 like the seasonal flu”.

Over my 4+ decades of doing international business and living in other countries I have seen numerous natural, economic and political disasters across all regions. But businesses tend to be forward thinking and opportunistic. That is certainly the case in much of the world we survey today. Having said that, certain parts of the world are recovering at different rates. Asia is still largely shutdown and/or suffering from pandemic challenges either real or caused by government inaction or mistakes. Vaccination rates in Asia Pacific countries average 15-30% including developed countries like Australia, Japan and New Zealand. Business shutdowns remain frequent, travel is very limited.

The Americas have also been slow to recover due to low vaccination rates and/or choosing the wrong ‘free’ vaccines to start with. Fully vaccinated populations are overall at a low level so far in this region. Middle Eastern countries are at 50+% vaccination levels and are reopening at an increasing rate. The winner so far in 2021 – and probably into 2022 – have been the European Union countries and the United Kingdom with higher vaccination rates and progressive business reopening policies. But even in this region airport traffic is between 30-50% of 2019 levels. As stated above, country entry policies and requirements are high.

Bottom Line: After my trip and as a result of communication with our Team around the world I am very optimistic about business recovery in 2022.

Interesting Data and Studies

“Mapping The Biggest Companies By Market Cap in 60 Countries – Tech giants are increasingly making up more of the Fortune 500, but the world’s biggest companies by market cap aren’t so cut and dry…..The world has 60+ stock exchanges, and each one has a top company. We looked at the largest local company, since many of the world’s largest firms trade on multiple exchanges, and converted market cap to USD.”, Visual Capitalist, September 16, 2021

Supply Chain – Worldwide Issues

“Supply chain crisis will leave permanent scar, UPS warns – Delivery group’s international head says manufacturing and assembly will become more regional. multinational retailers and manufacturers were making a “big push” towards regionalising their supply chains, said Scott Price, president of UPS International.”, The Financial Times, September 13, 2021

“Ikea (UK) struggles with supply problems due to driver shortage – Furniture giant Ikea is struggling to supply about 1,000 product lines as a shortage of HGV drivers continues to hit businesses. The company said the shortage of products, including mattresses at some stores, was down to Covid and Brexit. Businesses ranging from flu vaccine suppliers to food and drink firms have also been suffering from supply issues.”, BBC News, September 5, 2021

“‘Just Get Me a Box’: Inside the Brutal Realities of Supply Chain Hell – Logistics managers are battling the pandemic, a labor shortage, and huge demand to get goods to your front door. It’s mid-August, and logistics manager RoxAnne Thomas’s phone won’t stop pinging. Her faucets, sinks, and toilets are waylaid near Shanghai, snagged in Vancouver, and buried under a pile of shipping containers in a rail yard outside Chicago. As U.S. transportation manager for Gerber Plumbing Fixtures LLC, a unit of Taiwan’s Globe Union Industrial Corp. that’s based in Woodridge, Ill., Thomas is trying to overcome the biggest shock wave to unsettle global trade since the dawn of container shipping almost seven decades ago.”, Bloomberg, September 16, 2021

“Why skippers aren’t scuppered. Supply chains are adapting, not failing…..firms are neither twiddling their thumbs nor abandoning global supply chains. Instead, they are improvising. Some retailers, like Walmart, have taken to chartering entire ships exclusively for their own cargo. Passenger aircraft are being refitted for freight…..Soaring shipping fees themselves help adjust the flow of goods. Higher freight costs scarcely affect the price of expensive electronics which can be crammed into containers, but matter more for bulky, low-value goods like garden furniture.”, The Economist, September 18, 2021

“M&S closes French stores over supply chain concerns – The company has a further nine franchised stores in partnership with Lagardère Travel Retail in airports and stations, which it said would continue to trade pending discussions over ‘a sustainable future business model’. At its full-year results in May it confirmed that the “lengthy and complex export processes” after Brexit were “significantly constraining” supplies from the UK to Europe, with a knock-on effect on performance.”, The Times of London, August 24, 2021

Global, Regional & Local Travel Updates

“UK Aviation Industry Welcomes Revision of International Travel Restrictions –  The U.K. government will abolish its much-maligned “traffic light system” for international travel to England starting in early October. In an announcement released on Friday, the government said it will replace the current system that has been in effect since May 17 with “a single red list of countries and territories and simplified travel measures for arrivals from the rest of the world.” In recognition of the vaccination rollout around the world, travellers who meet the U.K. definition of “fully vaccinated” will not be required to undertake expensive PCR tests upon arrival and in some cases departure to destinations.”, Airline Geeks, September 19, 2021

“Which Vaccine Passport App Should I Use? While you might have first heard of coronavirus vaccination apps for international travel, like the European Union’s Green Pass or airline-favorite VeriFly, the United States has not designated any one technological standard for proof of vaccination. While many destinations and businesses are accepting Centers for Disease Control (CDC) vaccination cards as proof of vaccination, it can be unnerving to walk around with your original coronavirus vaccine certificate. For those who want a digital option instead of always whipping out their vaccine card, there are plenty to choose from.”, Conde Nast  Traveler, September 2, 2021

“Emirates Airlines: 3,500 New Employees for Operations Ramp Up – If you are looking for a job in the air transport sector Dubai (DXB) is the place to go as Emirates Airlines (EK) is offering 3,000 positions to future cabin crew and 500 to frontline personnel to be employed in its DBX hub.”, Airways Magazine, September 19, 2021. (Editor’s note: I saw an Emirates 380 take off from Heathrow on September 19.)

“Indian Recovery Continues With Domestic Capacity Increase – The Government of India provided some relief to Indian airlines, announcing that domestic flight capacity has been increased to 85% of pre-COVID levels. The decision comes as COVID cases in India fall and demand for air travel grows steadily.”, Simple Flying, September 20, 2021

Global Vaccine Update

“Asia’s Covid-19 Success Stories Warily Ponder Post-Vaccination Moves – As vaccination rates climb, countries such as Singapore and South Korea consider how fast to ease strategies that have minimized infections and deaths. Widespread vaccination was meant to usher in a long-awaited march back to normal. But for Asia-Pacific countries that tamed Covid-19 by enforcing tight controls, entering a post-vaccination world is complicated.”, The Wall Street Journal, September 14, 2021

“43.3% of the world population has received at least one dose of a COVID-19 vaccine. 5.95 billion doses have been administered globally, and 28.87 million are now administered each day. Only 1.9% of people in low-income countries have received at least one dose.”, Our World In Data, September 20, 2021

“Tracking EU Vaccination – The European Union recently announced that 70% of adults in the bloc were fully vaccinated against COVID-19, thus achieving the goal Brussels established at the beginning of this year. This milestone makes the European Union one of the most successful political entities in the world in terms of rolling out COVID-19 vaccines…..vaccination rates are well below the average in some member states, especially in Eastern Europe.”, Stratfor, September 6, 2021

Country & Regional Updates

Argentina

“Argentina 2021 economic growth forecast raised to 7.2% – central bank survey – inflation in 2021 is seen at 48.4%, 0.2 points percentage above last month’s estimate, according to 42 respondents to the Market Expectations Survey (REM) by the Argentine central bank on Aug. 27-31.  Latin America’s third-largest economy has suffered from high inflation for several years and has been in recession for three years. These economic woes deepened since the 2020 COVID-19 pandemic.”, Reuters, September 4, 2021

Australia

“Australians urged to plan ahead for Christmas shopping amid ‘dramatically bad’ global supply chain crisis. Covid shutdowns of major international ports are putting extreme pressure on retailers to fill orders and keep shelves stocked. The “dramatically bad” global supply chain situation in Asia could also see major Australian retailers dumping Black Friday sales as they are left with limited stock.”, The Guardian, September 4, 2021

“Jim’s Group gives free merchandise to fully vaccinated Australians – Iconic franchising company Jim’s Group has some special freebies lined up for all Australians who get themselves double vaccinated against Covid-19. Chief executive Jim Penman announced via the company’s TikTok account on Monday that the company would be distributing a one-of-a-kind shirt and bucket hat for fully vaccinated Aussies.”, New.au.com, September 7, 2021. Compliments of Jason Gehrke, Franchiseadvice.com.au

China

“China Stumbles –  China’s economy is in the midst of a mid-year stumble.  That was confirmed Wednesday when data showed retail sales growth slumped in August and both industrial output and investment also slowed. The big question: Is this a hiccup for an otherwise healthy economic recovery, or is the unrelenting regulatory crackdown taking a toll? The answer: It’s a bit of both.”, Bloomberg, September 15, 2021

“UBS: China’s consumer spending to grow by US$5.3 trillion in the next decade, driven by female consumers. A recent UBS report suggests that consumer spending in China is expected to grow by US$5.3 trillion in the next 10 years. As the income of women continues to increase, they will become the key driver of the consumption boom. UBS predicts that the jump in China’s household consumption in the next decade means that China will contribute about 27% of global consumption growth by 2030, compared with 19% for the US.”, Fung Business Intelligence, September 16, 2021

Eastern Europe

“The rise of eastern Europe is a forgotten economic success story – While the west focuses on political backsliding, manufacturing prowess is propelling the region forward. Today eastern Europe shares with east Asia the one proven key to long-term growth: manufacturing prowess. Because it can generate regular export income, which can be reinvested in new factories and roads, manufacturing can become a self-sustaining growth engine.”, The Wall Street Journal, September 13, 2021

India

“Foreign direct investment into India to stay robust – Deloitte survey – International investors remain confident of India’s short- and long-term growth prospects and are readying plans to make additional and new investments in the country, according to a survey of 1200 business leaders released by Deloitte. The survey conducted at the peak of the second wave of the pandemic showed 44% of the respondents across the United States, UK, Japan, and Singapore said they were planning additional or first-time investments in India.”, Reuters, September 14, 2021

Italy

“Italy’s economy could grow this year by more than 5.8% and post better than estimated deficit and debt ratios, Economy Minister Daniele Franco said on Sunday. Since April, the outlook has gradually improved and Italy’s parliamentary budget watchdog (UPB) said last month it expected the country’s economy to grow by 5.8% in 2021. ‘A strong recovery is underway and we cannot exclude that the GDP growth will be stronger than estimated by UPB,’ Franco said. ‘It is important that the recovery is quick, but the most important challenge is achieving a structural stronger growth.’”, Reuters, September 5, 2021

“Italy Braces for Pasta Inflation Amid Soaring Durum Wheat Prices – ‘Our family has been in this business for 110 years, but we have never experienced a situation like this’, Giuseppe Ferro, chief executive officer of La Molisana SpA, one of the country’s biggest pasta producers, said in an interview with Il Sole 24 Ore on Friday. According to Ferro, big pasta producers are already rushing to stock grain, which can be stored for up to two years. Still, he says, wheat semolina, which is essential for pasta making, cannot last longer than a month.”, Bloomberg, September 10, 2021

New Zealand

“Vaccinate, vaccinate, vaccinate – With more than 53,000 doses of the Pfizer vaccine administered on Saturday, 73.1 per cent of eligible Kiwis have now had at least one jab. In Auckland, 78 per cent of those eligible have had their first dose. Director-General of Health Dr Ashley Bloomfield was the first to publicly voice a vaccination target of 90 per cent and NZME – publisher of the NZ Herald – has thrown the weight of its print and radio offerings behind this cause with The 90% Project.”, NZ Herald, September 19, 2021

Singapore

“As Singapore pauses reopening, experts suggest ‘bolder’ COVID-19 strategy –  Singapore is ramping up COVID-19 testing and has warned it would not rule out reimposing tighter curbs as infections rise – moves some experts see as too cautious for the vaccine frontrunner that is preparing to live with the virus as an endemic disease.”, Reuters, September 9, 2021

United Kingdom

“Appetite for eating out hits retail sales in August – Martin Beck, senior economic adviser to the EY Item Club, the forecasting body, said that the decline in retail sales was a sign that “spending patterns continue to normalise” after most restrictions were removed on July 19. People holidaying in Britain over the summer made the most of being able to eat out and spend their money on experiences again.”, The Sunday Times of London, September 18, 2021

“UK inflation posts record jump to hit 9-year peak in August – Britain’s inflation rate hit its highest in almost a decade last month after a record jump that was largely fuelled by a rebound in restaurant prices which were artificially pushed down a year ago by government subsidies.”, Reuters, September 15, 2021

“Two in five British businesses are struggling to find workers – Almost a third, 30 per cent, of hospitality businesses said that vacancies were proving more difficult to fill than normal. Official estimates suggest that about 100,000 EU citizens left the UK during the pandemic and the migrant workforce has not recovered to its pre-pandemic size. This has constrained the supply of labour, as has the absence of almost 2 million people who are still on furlough and high levels of economic inactivity among young people, who are disproportionately represented in hospitality jobs.”, The Times of London, September 13, 2021

“Factories remain optimistic despite supply disruptions – Supply chain issues continue to drive up input prices for Britain’s manufacturers but factories remain optimistic about their prospects and the outlook for jobs. The manufacturing purchasing managers index for August dipped to 60.3 from 60.4 in July, dropping to its lowest level in five months, but was well above the 50 mark that separates expansion from contraction.”, The London Sunday Times, September 1, 2021

United States

“(US) Retail Sales Rebound in August With 0.7% Gain – Consumers delivered an unexpected increase in sales despite the delta variant and supply-chain bottlenecks that have hurt auto production. The Commerce Department reported Thursday that retail sales rose 0.7% last month after a revised decline of 1.8% in July.   Sales rebounded even though purchases of motor vehicles fell 3.6% amid a global semiconductor shortage that has slowed production. Online retail sales surged 5.3% after tumbling 4.6% in July.”, CFO.com, September 16, 2021

“Sentiment Index Shows Record High (USA) Startup Intentions Within Six Months – Entrepreneurs who agree or strongly agree that “now is a good time to start a business” were 67.9% in August, up slightly from July, but down from the record level of 76.9% reached in June 2021. Nonetheless, a record 78.2% aspiring owners anticipate starting their businesses within six months. FranchiseInsights.com compiles monthly the Small Business Startup Sentiment Index™ (SSI) of individuals who have recently inquired about businesses for sale.”, Franchiseinsights.com, September 8, 2021

“Where Americans Live – Everyone gets a dot. You get a dot. And you get a dot. And you. – Each dot represents a person — 331,449,281 of them — and is randomly placed within their block. So you get a highly granular map of population density.”, Flowingdata.com, September 19, 2021

“SpaceX Launch of Inspiration4 Is a Giant Leap for Space Tourism – SpaceX successfully launched four civilians into space Wednesday evening in the first spaceflight staffed wholly by commercial astronauts—that is, not a government-backed crew—to orbit Earth.”, Barron’s, September 16, 2021

Vietnam

“Covid restrictions force some retailers to rethink Vietnam as a manufacturing hub – Prolonged shutdowns in Vietnam because of the coronavirus pandemic are becoming a bigger headache for retailers. The worries led Wall Street research firm BTIG to downgrade shares of Nike last week, citing serious production issues since the sneaker maker last reported earnings.”, CNBC, September 16, 2021

Brand News

“Baskin-Robbins Opens in Casablanca, Its First Restaurant in Morocco –  Baskin-Robbins has opened its first-ever restaurant in Morocco, in Casablanca City. Galadari Ice Cream Company, one of the brand’s largest franchisees, will own and operate the new restaurant, adding to their portfolio of nearly 1,000 Baskin-Robbins locations around the world.”, Franchising.com. September 17, 2021

“Costa Coffee dishes out 5% pay rise to 14,500 staff in return for pandemic hard work – The company also says it will hire a further 2,000 staff to cope with rising demand for coffee following the end of lockdown restrictions in July. The changes will not affect staff working at Costa’s 1,200 franchised coffee shops. The company also said it would hire a further 2,000 staff to cope with rising demand for coffee following the end of lockdown restrictions in July – and a raft of new locations that are slated to open in the coming months.”, Sky News, September 9, 2021

“Leading Mexican QSR+ Chain Leaps Forward with Advanced Consumer Focused Technology – Del Taco®, the nation’s second largest Mexican quick service restaurant, has introduced its new loyalty app, Del Yeah! Rewards, in partnership with Cheetah Digital. The new app will offer an engaging reward platform where guests can earn more free food, experiences and more and level up in the app’s new tiered system. The new Del Yeah! Rewards loyalty program features four tiers that unlock exciting offers, rewards and experiences, which increase along with usage of the app.”, Franchising.com, September 16, 2021

“Pizza Inn Inks Multi-Unit Franchise Agreement in Palestine – Pizza Inn has announced an international development agreement with Principal Partners Ziad Suwan and Ibrahim Sawan of Z.I.S. General Trading Company, who will open three new locations in Palestine. The first store is projected to open in the city of Ramallah/Nablus in March 2022.”, Franchising.com, September 18, 2021

Articles & Studies About Doing Business Going Forward

“Creating Healthy Boundaries Between Family And Business –  Whether directly or indirectly, a family has an impact on the business’ ability to be successful, profitable, and very importantly, scalable…..We get a lot of questions about how to create boundaries between family and business.  What we usually get asked first is if there is a way to create a separation between family and business.”, Franchising.com, September 2021

“The 20 Fastest Growing Jobs in the Next Decade – The U.S. Bureau of Labor Statistics (BLS) projects there will be 11.9 million new jobs created from 2020 to 2030, an overall growth rate of 7.7%. However, some jobs have a growth rate that far exceeds this level. In this graphic, we use BLS data to show the fastest growing jobs—and fastest declining jobs—and how much they each pay.”, Visual Capitalist, September 13, 2021

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William (Bill) Edwards, CFE, is CEO and Global Advisor of Edwards Global Services (EGS). He has 4 decades 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.

Bill recently was published on Franchising.com in an article about how global franchise supply chain management is critical for international success. Read the full article here: https://bit.ly/3io0BuK

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.

www.edwardsglobal.com

Download our latest 40 country ranking chart at this link:

July 2021 GlobalVue™ Country Ranking Chart

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 succeed in developing your company around the world.

EGS Biweekly Global Business Newsletter Issue 37, Monday, August 23, 2021

By William (Bill) Edwards, CFE, CEO of Edwards Global Services, Inc. (EGS)

Key Trends This Issue

By Mid-October, Emirates Airlines plans to be operating at 90% of the level pre-pandemic.  This issue starts a new section on supply chain. How to sell your products and services in China today. A few rembrances of a business trip to Kabul.

Words of Wisdom from Others

“You will either step forward into growth or you will step back into safety.”, Abraham Maslow

“Let go of what’s gone. Be grateful for what remains. Look forward to what’s coming.” Compliments of Pinterest.

“Your business is the body. Your brand is the soul.”, Ashley Chymiy

Highlights in issue #37:

• “Surging shipping prices and bottlenecks threaten global recovery

• This is what people think about trade and globalization

• Why US business expansion is powering ahead in China despite tensions

• You can sell in China – 5 ways – Selling in China, It’s an adventure

• “(U.S.) MENU PRICES MAKE THEIR BIGGEST MONTHLY JUMP SINCE 1981”

• Just 1 in 5 (U.S.) companies plans to work fully in person this fall

• U.S. small business optimism drops as labor shortages persist

• Brand News Section: Checker & Rally’s®, IHOP®, KFC®, Nando’s®, On The Border®, Papa John’s®, Pieology®, Pret a Manger®, Taco Bell®, Tim Horton’s, Wendy’s®

Our Mission and Information Sources

Please note: Article titles are live links depending on non-subscription availability.

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™ on the ground in 27 countries 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.

First, Remembrances of Kabul

In December 2012, I was asked by the U.S. Agency for International Development (USAID) to join other four international franchise executives for a 3 day trip into Afghanistan. The goal of our trip was to assess the potential to bring U.S. franchise businesses to the country to create much needed new infrastructure and many trained new jobs for the young, educated population.

In a Blomberg article after our trip, here is how I characterized what we found: “There’s a need for Western business. There’s a market, there’s consumers, there’s funding, there’s capital. But there’s all the other challenges, of course. Let’s not be too Pollyannaish. This is going to be a challenge, but it’s definitely an opportunity.”    https://bit.ly/EdwardsKabul

The many young people we met were very impressive. Half of them were women. Almost all had university degrees. All of them were entrepreneurs who wanted to stay in their country to build up their diverse society. The government officials we met from several provinces wanted to find a way to grow their country through structured businesses that offered a proven structure and training.

Over the past few weeks, I have often thought about those young men and women and the potential their country had.

Interesting Data and Studies

“Optimism about the global economy has moderated but remains the predominant sentiment among executives, according to the latest McKinsey Global Survey on economic conditions. 1 Seventy-one percent expect improvement in the next six months, down from 81 percent in June, breaking the streak of increasingly positive views that began at the start of 2021”, McKinsey, July 28, 2021

“This is what people think about trade and globalization – A recent Ipsos survey has measured support for globalization and trade in 25 countries around the world. A majority think that expanding trade is a good thing, but more also agreed than disagreed that more trade barriers were needed. The survey also showed that support for the benefits of globalization had fallen since 2019., “ World Economic Forum, August 19, 2021

“By 2025, the world’s population will reach over 8.1 billion people. Most of that population growth will be concentrated in cities across Africa and Asia. To help paint a detailed picture, this map uses data from the United Nations to rank the top 20 fastest growing cities in the world in terms of average annual growth rate from 2020 to 2025. The majority of the world’s fastest growing cities are located in Africa—in fact, 17 of the 20 are located on the continent, with four of the 20 cities being located in Nigeria specifically.”, United Nations / Visual Capitalist, August 13, 2021

Supply Chain and Blockchain

William Edwards’ comment: The world’s supply chain is moving away from ‘just in time’ shipping and inventory due to the pandemic among numerous innovations. Blockchain has the potential to streamline shipping as we come out of a time of disruption.  

“Surging shipping prices and bottlenecks threaten global recovery – The price of sending a container from China to the US west coast jumps tenfold.  The anguish of one UK freight company highlights the pain felt by exporters and importers as soaring shipping costs throw global supply chains into turmoil. As we report today, the price of moving a 40ft container from China to the US west coast has jumped to almost $16,000 — a tenfold increase on pre-pandemic levels and up by half on last month. The rise in costs and bottlenecks at ports — made worse by Covid-based closures of key Chinese facilities — have added to existing problems such as the global semiconductor shortage and rising prices of raw materials.”, The Financial Times, August 16, 2021

“What have we learned about supply-chain disaster-preparedness? When covid-19 hit in 2020, many businesses and their globally interconnected supply chains were underprepared. As the crisis exposed the fragility of such complex and interdependent systems, executives wondered how resilience could be improved against further shocks. As part of The Economist Events’ Global Trade Virtual Week, a panel of business leaders gathered in June 2021 to discuss disaster-preparedness in supply chains and what businesses fear could be next.”, The London ‘Economist” and Ernst & Young, June 28, 2021

“Real-World Supply Chain Resilience – The COVID-19 crisis has been a wake-up call for supply chain managers. For years, companies have focused on eliminating redundancy in sourcing to reduce fixed costs and promote efficiency. Greater efficiency, however, came at the expense of diminished flexibility and effectiveness—a tradeoff the pandemic-induced supply chain disruptions have made painfully clear. Now, leading companies are seeking to avoid that tradeoff, using innovative capabilities such as risk-focused analytics engines, simulation, and end-to-end transparency to design supply chains that are both cost effective and resilient.”, Boston Consulting Group

“Obsolete tech is clogging up global trade. Here’s how to unblock it – Outdated logistics systems are unable to keep up with increased demand for goods in the pandemic recovery. Both trade’s physical infrastructure and software systems are lagging behind. Digital technology can increase freight efficiency in a myriad of ways.”, World Economic Forum, August 9, 2021

“An Overview of Blockchain in Supply Chain: What’s the Link? Forward-thinking companies are now investigating blockchain as a technology that could potentially revolutionize supply chain as we know it.  Analysts predict that blockchain technology is capable of improving the contemporary supply chain structure by increasing supply chain trust, efficiency, and transparency.”, Foley & Lardner LLP, August 11, 2021

For supply chain issues related to China, see the China country section below.

Global, Regional & Local Travel Updates

“Heathrow records busiest month since before the pandemic as 1.5M travelers pass through airport – A bustling Heathrow is an encouraging sign that the travel recovery is taking shape, but the airport still has a ways to go. Consider this: Heathrow’s July numbers are still down 81 percent from the passenger traffic it experienced in July 2019. The airport is also back to using all four terminals again as Virgin Atlantic and Delta are back in their Terminal 3 space.”, The Points Guy, August 15, 2021

“Emirates ramps up flights from Dubai to 29 cities including UK and US – By mid-October, Emirates plans to restore capacity across 29 cities and be flying to more than 120 destinations worldwide. This will mean the airline is operating at nearly 90 per cent of its pre-pandemic network.”, The Nation’s News, August 11, 2021

“Qatar’s Hamad Airport Dethrones Singapore’s Changi to Be Named World’s Best, Survey Says. Qatar’s Hamad International Airport has been named the world’s best airport, snatching the crown from Singapore’s Changi Airport, which had held the top spot for eight years, according to the 2021 Skytrax World Airport Awards. Guangzhou Baiyun International Airport ranked highest among the Chinese mainland’s airports, jumping 16 spots from last year to 14th while also earning the title of the world’s most outstanding in the 35 million-to-45 million passenger category, according to Skytrax.”, Caixing Global, August 11, 2021

“Aeroméxico Launches Routes to Europe, South America – Aeroméxico announced its new route between the Monterrey, Mexico and Madrid, which will begin on Dec. 16 with three weekly frequencies…….Aeroméxico will also be launching non-stop flights to Madrid from its secondary hub in Guadalajara, Mexico beginning December 15. Aeromexico will fly its Boeing 787 Dreamliner jets three times weekly from Mexico’s second-largest city to the Spanish capital.”, Airline Geeks, August 19, 2021

“British Airways Doubles India Flights Amid Strong Demand – Starting this Monday, BA is flying 20 weekly flights from five cities: New Delhi, Mumbai, Bangalore, Chennai, and Hyderabad. The Indian government has offered British carriers 34 weekly flights from India, with the remaining 14 going to Virgin Atlantic.”, Simple Flying, August 19, 2021

“U.S. Slashes Inbound Chinese Passenger Flights to 40% Capacity – U.S. aviation authorities have forced four Chinese carriers that fly to the country to slash their passenger capacity by 60%, after Beijing imposed a similar restriction on four United Airlines routes to China.”, Caixing Global, August 19, 2021

“Norwegian Cruise Line extends 100% vaccination requirement through year’s end – Norwegian is the only line that has committed to 100% vaccination of both passengers and crew for all sailings from the United States.”, The Points Guy, August 18, 2021

Global Vaccine Update

“When Will Your Country Recover from the Pandemic? This chart (below uses) data from the OECD anticipates when countries will economically recover from the global pandemic, based on getting back to pre-pandemic levels of GDP per capita….At the top, China and the U.S. are recovering at breakneck speed. In fact, recovering is the wrong word for China, as they reached pre-pandemic GDP per capita levels just after Q2’2020. On the other end, some countries are looking at years—not months—when it comes to their recovery date. Saudi Arabia isn’t expected to recover until after Q1’2024, and Argentina is estimated to have an even slower recovery, occurring only after Q2’2026.”, OECD / Visual Capitalist, August 17, 2021

“32.4% of the world population has received at least one dose of a COVID-19 vaccine, and 24.4% is fully vaccinated. 4.93 billion doses have been administered globally, and 34.25 million are now administered each day.  Only 1.4% of people in low-income countries have received at least one dose.”, Our World in Data, August 21, 2021

“In Covid-19 Vaccination Push, Latin American Nations Are Catching Up to the U.S. – There is less vaccine hesitancy in the region, which has been hit hard during the pandemic. The progress in Latin America is built on two factors that have gotten little attention: In many countries, people are eager to get vaccinated and largely trust vaccines, more so than in many richer countries, including the U.S. At the same time, vaccine supply problems are being slowly overcome. Far greater numbers of vaccines are now arriving from the U.S., U.K., Russia and China, allowing local health officials to pick up the pace.”, The Wall Street Journal, August 17, 2021

Country & Regional Updates

Australia

“‘What gets measured gets done’: Domino’s boss backs vaccination targets – (Australia)Domino’s Pizza boss Don Meij has backed the federal government’s vaccination targets and the path out of lockdowns as the pizza seller’s growth continues to soar off the back of the pandemic. Defying a downbeat retail market caused by continued COVID lockdowns, the pizza chain said its total sales for the 2021 financial year rose 14.6 per cent to $3.7 billion, with earnings jumping 30 per cent to $188 million. The results were largely in line with market expectations as Domino’s is seen as less affected by the pandemic than many of its retail peers, thanks to delivery and online being a core part of its business.”, The Brisbane Times, August 18, 2021. Compliments of Jason Gehrke, Founder, The Franchise Advisory Centre, Brisbane

Canada

“Canadian Government To Require All Airline Employees To Be Vaccinated – The government of Canada has announced that significant measures will be enacted from as early as the end of September requiring all federal employees to be vaccinated against Covid-19.”. Airline Geeks, August 15, 2021

China

“You can sell in China – 5 ways – Selling in China, It’s an adventure – Ten years ago, just showing up, a company at least had a chance to sell something in China. Now, however, China is far savvier, more competitive, and, in many ways, less predictable. So today, more than ever, selling in China comes with risk – But when chasing the world’s fastest-growing market, you cannot expect something for nothing. Instead, know that the potential benefits of selling in China can outweigh the risks, at least for many companies.”, Chris Wingo, Founder and CEO, China Sage Consultants, LinkedIn, August 11, 2021

“China-U.S. Container Shipping Rates Surge – Container shipping rates from China and Southeast Asia to the U.S. exceeded $20,000 per twenty-foot equivalent unit, according to state broadcaster CCTV, citing the global container freight index. The surge in shipping rates was driven by multiple factors including changes in the calculation method, increasing surcharge fees by major global shipping companies such as Maersk and Mediterranean Shipping, and expansion of China-U.S. trade.”, Caixing Global, August 14, 2021

“China Port Congestion Worsens at World’s Third-Busiest Container Terminal – The partial closure of the world’s third-busiest container port is worsening congestion at other major Chinese ports, as ships divert away from Ningbo amid uncertainty over how long virus control measures in the city will last. In nearby Shanghai and in Hong Kong, congestion is once again increasing after dropping due to the reopening of Yantian port in Shenzhen, which shut in May for a separate outbreak.”, Caixing Global, August 18, 2021

“Why US business expansion is powering ahead in China despite tensions – Major US financial institutions are expanding in China, despite strained US-China relations and Beijing’s tightened control over the economy. And, whatever their differences, both Washington and Beijing seem to welcome the expansion efforts.”. South China Morning Post, August 17, 2021. Compliments of Paul Jones, Jones & Co., Toronto

India

“With the second wave behind them, Indians are back to thinking about international travel – With several countries easing travel restrictions for Indians, people in the country are gearing up to fly. ‘Search inquiries for travel to international destinations have seen an average increase of 45-50% in the first week of August 2021 as compared to the same time last month,’ said Aloke Bajpai, co-founder and group CEO of Gurugram-based ixigo.”, Quartz India, August 19, 2021

Italy

“Japan – Japan’s economy rebounds in Q2, COVID clouds outlook – The world’s third-largest economy grew an annualised 1.3% in April-June after a revised 3.7% slump in the first quarter, preliminary gross domestic product (GDP) data showed on Monday, beating a median market forecast for a 0.7% gain.”, Reuters, August 15, 2021

South Korea

“South Korea to get more Moderna COVID shots in boost to vaccination effort – South Korea’s health ministry said on Sunday that Moderna Inc (MRNA.O) will supply the country with 7.01 million doses of coronavirus vaccines by the first week of September, following a government request to speed up delivery. As of Saturday midnight, 50.4% of the 52 million population have had at least one dose of vaccine, while just 22.5% have been fully vaccinated, government data showed.”, Reuters, August 22, 2021

Singapore

“With 70% of its population fully vaccinated, this country is starting to ease its COVID restrictions – Singapore today began easing some of its COVID rules, allowing dining in to resume and raising group sizes to five for those who’ve been fully vaccinated. Work from home rules are expected to ease next week. Singapore will also ‘very soon’ be able to offer vaccinations to short-term visa holders who have been living in Singapore, Health Minister Ong Ye Kung said in a Facebook post.”, Fortune, August 9, 2021

“Singapore Based Carriers Mandate Employee Vaccinations – Singapore Airlines, Scoot, & Jetstar Asia singing from the same vaccination songbook. “All Singapore-based Singapore Airlines frontline staff, including pilots and cabin crew, need to be fully vaccinated against COVID-19 by 1 September 2021,” Singapore Airlines spokesperson Karl Schubert told Simple Flying.”, Simple Flying, August 20, 2021

South Africa

“South Africans form long queues as COVID-19 jabs opened to all adults – South Africans formed queues hundreds of metres long to get their COVID-19 shots on Friday, after the government made vaccinations available to all adults in order to hasten a rollout beset by challenges and delays. About 8% of South Africa’s population of 60 million is fully vaccinated, and 14% have received one shot.”, Reuters, August 20, 2021

United Kingdom

“Businesses will get help from army of trade experts to seize post-Brexit opportunities in new deals – An army of international trade experts is being bolstered to help small businesses seize the post-Brexit opportunities offered by new trade deals. Fifty-four ‘export champions’ from across England will help businesses boom by looking to new markets, Liz Truss (U.K. Secretary of State for International Trade )said. (S)he wants to encourage more British firms to export – with just one in ten currently selling overseas.”, The London Daily Mail, August 16, 2021

“(U.K.) Inflation slows to 2% – The figures will be a boost to economists who claim rising inflation this year will be “transitory” and will pass as the impact of the Covid-19 crisis eases. However, it also emphasises how volatile the data could be. The Bank of England has warned that inflation could hit 4 per cent later this year, double its 2 per cent target.”, The Times of London, August 18, 2021

“UK employers have strongest hiring plans in over 8 years, survey shows – British employers plan to increase staff numbers by the most in more than eight years over the coming months and few intend to make staff redundant when government furlough support ends next month, a survey showed on Monday.”, Reuters, August 15, 2021

United States

“Restaurant sales rebound to pre-pandemic levels in June, with service setting apart top performers – While check growth is high, industry faces declining guest counts, according to Black Box Intelligence. Restaurants posted a fourth consecutive month of same-store sales growth, primarily fueled by unusually high check growth, and are performing much better than they were in 2019. But while sales are solid, the industry’s challenge is declining guest counts. Traffic results for June highlight the significant gap between current performance and full recovery.”, Nation’s Restaurant News, July 26, 2021

“(U.S.) MENU PRICES MAKE THEIR BIGGEST MONTHLY JUMP SINCE 1981 – Quick-service restaurants took the largest price hike of all segments, according to new data from the Bureau of Labor Statistics. Restaurants continue to raise prices at levels not seen in decades as operators face mounting pressures from labor, commodities and more. Restaurant menu prices rose 0.8% on a month-to-month basis in July—the largest monthly increase since February 1981, according to data released Wednesday by the Bureau of Labor Statistics.}, Restaurant Business, August 11, 2021

“Apple Delays Return to Work Until 2022 Due to Covid Spread – The tech giant was one of the first companies to delay its return to work, telling employees in July they won’t be asked to return until October, initially planning an early September return. Apple has now further pushed back the return, reportedly telling staff in a memo Thursday they won’t be required to return until 2022.  The company doesn’t expect to close offices or retail stores, the report added.”, Barron’s, August 20, 2021

“U.S. small business optimism drops as labor shortages persist – Small business owners across the United States grew less confident in the economic recovery in July as labor shortages remained an issue, according to a survey released on Tuesday. The National Federation of Independent Business (NFIB) Optimism Index fell 2.8 points to a reading of 99.7 in July, almost erasing all of June’s gain. Six of the 10 index components declined, three improved and one was left unchanged.”, Reuters, August 10, 2021

Brand News

“Checkers & Rally’s Attracting Franchisees, Experiencing Growth, and Maximizing Technology – Iconic burger brand Checkers & Rally’s is coming off a banner year and racing through the new one. The drive-thru chain known for its “craveable” food, famous fries, and exceptional value was virtually unaffected by the Covid-19 pandemic and, in fact, saw an uptick in business thanks to its drive-thru lanes, walk-up windows, and e-commerce capabilities.”. Franchising.com, August 11, 2021

“Boozy Brunch at IHOP May Finally Be in Your Future – The chain is testing mimosas and other alcoholic beverages at three locations. The International House of Pancakes recently announced that alcoholic beverages will now be a part of the chain’s menus nationwide. The libations are courtesy of IHOP’s new “Bubbles, Wine & Brews” menu, which is packed with several different types of drinks.”, Food Network, August 12, 2021

“KFC U.S. Expects To Achieve Net Growth This Year And It Will Do So With A More Diversified Portfolio Of Restaurants – KFC’s cylinders seem to be in overdrive. Consumers stuck at home have been gravitating toward its family-friendly buckets and heavy drive-thru portfolio, while the brand’s new native digital channels have created a major tailwind. On a two-year basis, versus that “normal” 2019, the chain’s sales increased 11% and 19% in the first and second quarter, respectively.”, Forbes, August 16, 2021

“Nando’s forced to close 50 (U.K.) restaurants due to supply chain disruptions – The maker of peri-peri chicken said that the UK’s supply chain was struggling to cope. The peri-peri chicken maker, which operates some 400 sites around the country, also said it would lend some of its staff to its suppliers to help “get things moving” again after its business was rocked by shortages.”, Sky News, August 17, 2021

“On The Border Signs 60-Unit Master Deal for South Korea – On The Border Mexican Grill & Cantina has signed a 60-store master franchise agreement with JRW Inc., making the Korea-based franchisee its master franchisor across South Korea. JRW has 12 operating locations in South Korea and is expanding its brand presence with On The Border under a corporate franchise agreement to grow that number to 28 JRW-operated stores, in addition to the upcoming 60 sub-franchised locations.”, Franchising.com, August 22, 2021

“Papa John’s To Open 220+ New Restaurants in Latin America, Spain, Portugal, & the U.K. – Papa John’s International has announced an expanded partnership with its largest franchisee, Drake Food Service International (DFSI), to open more than 220 Papa John’s restaurants by 2025. The agreement encompasses more than 170 restaurants across Latin America, Spain, and Portugal, where DFSI already operates more than 280 locations.”, Franchising.com, August 19, 2021

“Pieology Enters the U.K. as Fast Casual Dining Returns – Tustin, California-based Pieology Pizzeria has opened its first location in the U.K. and is eyeing further expansion on the region. The new owners are Kim Nagpal and Gavin Sutharmasellan of Camyabco Ltd. ‘Pieology boasts a strong franchising team, a huge fan base, and a creative product for sale,’ said Sutharmasellan, who also cited the positive attractions of the brand’s personalized pizzas, salads, beverages, sides, and sweets.”, Franchising.com, August 2021

“Pret a Manger (U.K.) in post-pandemic plan to expand beyond big city centres  – Restaurant to open about 100 outlets and 100 franchises, as branches in regional towns ‘busier than ever’. Pret a Manger is plotting to expand outside London and other big city centres as large numbers of office workers continue to work from home, with plans to open 100 franchised shops, plus about 100 of its own outlets.”, The London Guardian, August 15, 2021

“Forget the double drive-thru. Meet the new Taco Bell Defy – With four drive-thru lanes, this new prototype promises to solve the bottleneck problem. Dubbed the Taco Bell Defy — because it will “defy norms and define the future” — the new design set to break ground in Brooklyn Park, Minn., later this month will be a 3,000-square-foot, two story restaurant with four drive-thru lanes. Three of those lanes will be dedicated to mobile or delivery order pickups, the company said.”, Nation’s Restaurant News, August 20, 2021

“Iconic Canadian coffee chain Tim Hortons’ China business set for U.S. SPAC debut – Tims China now boasts 200 outlets in ten Chinese cities including Beijing, Hangzhou and Chongqing…….Its backers…..hope to increase store count to 2,750 by 2026, making China the franchise’s largest market outside of Canada. To get there, says Tim Hortons China CEO Lu Yongchen, the chain plans to open a new store every 36 hours.”, Fortune, August 19, 2021

“Britain to get a greater taste of Wendy’s – The American fast-food chain, which opened the first of up to 400 burger restaurants in Britain this summer, has announced plans for 700 delivery kitchens across the UK, Canada and the United States by 2025.”, The Times of London, August 12, 2021

Articles & Studies About Doing Business Going Forward

“Just 1 in 5 (U.S.) companies plans to work fully in person this fall – The most popular office plan? A mix of options. About a third of the over 700 executives surveyed by PwC reported their companies are planning to have a mixed model that includes in person, fully remote, and a hybrid format with some days in the office and others remote.”, Fortune, August 20, 2021

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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:  

www.edwardsglobal.com

Download our latest 40 country ranking chart at this link:

July 2021 GlobalVue™ Country Ranking Chart

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 36, Monday, August 9, 2021

By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)

Key Trends This Issue

Once again, countries with fairly high levels of vaccinations are seeing excellent economic recovery despite the Delta variant impact. Business in the European Union countries, the USA and the United Kingdom are mostly open and their GDP growth is high. Air travel in these countries is accelerating. Africa, Asia and the Americas remain largely unvaccinated and businesses heavily impacted. Australia is seeing large city shutdowns due to 17% of its population being vaccinated.

Global shipping remains uneven and is very expensive per container. Restaurant businesses are using hard learned pandemic lessons to innovate to improve their bottom lines. Employers and employees are seeking remote working solutions.

Words of Wisdom from Others

“Hopefully, as companies give more attention to the importance of work-life balance, more and more people will be in a better position to decide and act more holistically on what’s important to them.”,  Mohamed El-Erian

“The secret of change is to focus all of your energy, not on fighting the old, but on building the new.”,  Socrates

“Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less.”, Marie Curie

Highlights in issue #36:

• How has Covid affected global trade?

• How the pandemic has reshaped the future of restaurants

• Q2 Growth Ends EU’s Economic Recession

• It’s time for leaders to get real about hybrid (work)

• Airlines Are Restoring Routes in Hopes Business Travelers Will Return

• Brand News Section: The Boiling Crab® Australia, Caribou Coffee®, Church’s Chicken®, Domino’s®, Einstein Bros.®, Home Instead Senior Care®, KFC®, Panera Bread®, Papa John’s®, Starbucks® Korea, Taco Bell®, Wingstop

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

“Industrial activity strengthens and consumer demand returns while inflation accelerates; the pandemic wave worsens significantly Greater vaccine availability in some Western countries has raised hopes that renewed restrictions can be avoided. However, health authorities and governments are struggling to gain the cooperation of the willfully unvaccinated. Meanwhile, in poorer countries, vaccines are scarce and most populations are little protected.”, McKinsey, August 9, 2021

“Fault Lines Widen in the Global Recovery – The global economy is projected to grow 6.0 percent in 2021 and 4.9 percent in 2022.The 2021 global forecast is unchanged from the April 2021 WEO, but with offsetting revisions. Prospects for emerging market and developing economies have been marked down for 2021, especially for Emerging Asia. By contrast, the forecast for advanced economies is revised up.”, The International Monetary Fund, July 2021

“How has Covid affected global trade? – First, the pandemic affected services trade more than goods trade. Services trade fell by more than 20% in 2020, almost four times the decline in goods trade. Second, the impact of the Covid shock on trade was different across countries. In particular, the fall in Chinese trade was much smaller than in other regions. Finally, the pandemic has had a significant impact on shipping costs, which have increased by around 350% since May 2020.”, Bank of England, July 23, 2021

“Grinding Gears of Global Shipping – The COVID-19 pandemic exposed widespread structural fragilities in the global trading system, first through production slowdowns and then, almost as quickly, a slingshot recovery in demand. This, along with labor shortages, left finely tuned logistics networks overwhelmed and off-balance. This is illustrated through unprecedented congestion at Western ports, where ships and (just as important) shipping containers have been stuck in pileups. Ships are waiting for berths. Shipping containers are waiting for truckers (facing a deep labor shortage) or space on railways (which are at capacity).”, Geopolitical Futures, August 6, 2021

“Visualizing GDP per Capita Worldwide – GDP (Gross Domestic Product) per capita has steadily risen globally over time, and in tandem, the standard of living worldwide has increased immensely. GDP per capita is one of the best measures of a country’s wealth as it provides an understanding of how each country’s citizens live on average, showing a representation of the quantity of goods and services created per person.”, IMF/Visual Capitalist, July 26, 2021

“Which Country is the Cheapest for Starting a Business? This graphic from BusinessFinancing.co.uk use data from the World Bank’s Doing Business 2020 report to examine the startup cost for a small-to-medium-size LLC in the largest business cities across 190 countries.”, World Bank/Visual Capitalist, August 3, 2021

Global, Regional & Local Travel Updates

“Airlines Are Restoring Routes in Hopes Business Travelers Will Return – Airlines including Delta Air Lines and American Airlines are restoring some of their business routes in anticipation that lucrative corporate customers will return this fall, despite fresh worries about another spike in coronavirus cases. Airlines say business travel is back to 40% of what it was before the pandemic.”, Barrons, August 5, 2021

“International Airlines Group Aims for 75% of Pre-Pandemic Capacity by End of 2021 – The parent company of the U.K. and European airlines including British Airways, Iberia, Vueling, Aer Lingus and LEVEL revealed an operating loss of €967 million ($1,148 million) that compares to a restated loss of €2,182 million ($2,592 million) for the same period in 2020.”, Airline Geeks, July 31, 2021

“World’s 20 best airlines are named by air safety website – The airline safety website AirlineRatings.com published its list of “Top Airlines in the World,” which traditionally ranks carriers by safety, in-flight service, passenger comfort and flight routes. But this year, new judging criteria are shaking up the rankings. For the first time, airlines are being judged in part by how they responded to the Covid-19 global pandemic.”, CNBC, July 27, 2021

“England to allow fully vaccinated Americans and EU travelers without quarantine from next week – England will allow fully vaccinated travellers from the United States and European Union to enter its borders without the need to quarantine as of 4 a.m. on Aug. 2. In a move expected to boost the tourism industry in England travelers who have received a full vaccine regimen in the U.S. or any of the EU countries will be permitted to enter England without the need to quarantine for 10 days.”, The Points Guy, July 28, 2021

“U.S. Faces Growing Pressure to Allow European Travelers – Americans could be blocked from travel to the EU after top official said the U.S. has weeks to open borders to visitors from the bloc. The European Union’s top official called on the U.S. to reverse its ban on travelers from the bloc, urging the Biden administration to act within weeks to match Europe’s opening to Americans.”, The Wall Street Journal, August 4, 2021

“Delta Readies For Canada Reopening With Increased Flights – Starting in September, Delta will have 19 daily flights from U.S. cities to Canada, up from the eight previously scheduled flights. Delta will fly from a variety of U.S. locations to Vancouver, Calgary, Montreal, Winnipeg, and Toronto.”, Travel Awaits, July 28, 2021

“Air Canada Resumes UK, Ireland Flights – Despite concerns about Covid variants, Canada’s largest airline has resumed operations between Montreal (YUL) and London’s Heathrow airport (LHR) four times weekly. This week AC also resumed service to Dublin, Ireland (DUB) three times a week, continuing a slow but steady resumption of international service. Other European routes – including Calgary-Frankfurt, have also resumed.”, Airways Magazine, August 5, 2021

“What is the IATA Travel Pass? Several airlines over the past few months have made headlines with the launch of the IATA Travel Pass, a step for a gradual uniform revival of air travel. To solve this, the International Air Transport Association (IATA) the global trade association for airlines came up with a program called the ‘IATA Travel Pass’ with an objective to revive air travel in an orderly manner by following a certain set of uniform methods that brings peace of mind to traveling passengers.”, Airways Magazine, August 6, 2021

Global Vaccine Update

“29.9% of the world population has received at least one dose of a COVID-19 vaccine, and 15.4% is fully vaccinated. 4.43 billion doses have been administered globally, and 39.99 million are now administered each day.  Only 1.1% of people in low-income countries have received at least one dose.”, Our World in Data, August 8, 2021

“Covid vaccine mandates sweep across corporate America as delta variant spurs action – The U.S. government may not require that everyone get Covid-19 vaccines, but large employers across corporate America are stepping into the void. More than a dozen large U.S. corporations, including Walmart, Google, Tyson Foods and United Airlines, have recently announced vaccine mandates for some or all of their workers.”, CNBC, August 9, 2021

“Six EU states overtake UK Covid vaccination rates as Britain’s rollout slows – Malta, Belgium, Spain, Portugal, Denmark and Ireland overtake UK in fully jabbed percentages. The 27-member EU, whose campaign was dogged by repeated early stumbles, delays and shortages, is getting shots into arms faster than most developed countries, while also adopting tough tactics to keep take-up rates high.”, The Guardian, August 6, 2021

“Germany and the U.K. will offer COVID booster shots – Germany will prioritize offering the booster shot to those considered more at risk, such as people with weak immune systems, per Reuters. The country has also made plans to make vaccination available to all children aged 12 to 17. Britain, which has shown a reluctance to return to pandemic-related restrictions, is slated to offer nearly 32 million doses to its citizens starting tentatively on Sept. 6.”, Axios, August 3, 2021

“COVID-19 vaccine mandates are arriving in small business – Half of America’s small businesses are likely or certain to require their on-premise employees to be vaccinated, according to a Morning Consult poll of small businesses commissioned by American Express. That compares to 31% who say that such a mandate is unlikely or that they certainly won’t impose one.”, August 4, 2021

Country & Regional Updates

Argentine

“Argentina partially reopens as it approaches 5 mln COVID-19 cases – Argentina will relax coronavirus restrictions as infection and mortality rates falls, the government announced on Friday, even as the South American nation approached 5 million cases with more than 107,000 deaths. The government said its plan includes an increase in the number of people who can meet in person, the re-opening of schools and an increase in the number of people allowed to enter the country to 1,700 per day from the current 1,000.”, Reuters, August 6, 2021

Australia

“KFC, Taco Bell (Australia) 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

China

“China manufacturing: ‘policymakers in a dilemma’ as factory-gate prices rise and producers feel the pinch – Some analysts say inflation is ‘largely controllable’, while others cut their full-year GDP growth forecast for China’s economy. Exports are also under pressure, as China is expected to more heavily scrutinise the cross-border movement of cargo due to its latest coronavirus outbreak.”, South China Morning Post, August 9, 2021

“China’s Services Growth Gains Pace – The Caixin China General Services Business Activity Index, which gives an independent snapshot of operating conditions in the sector, surged to 54.9 in July from a 14-month low of 50.3 the previous month. The index, better known as the Caixin China services PMI, showed the services sector expanded for a 15th consecutive month.”, Caixing Global, August 4, 2021

“China’s Capital to Impose Travel Restrictions as New Covid Outbreak Spreads to 15 Provinces – The latest round of outbreaks have caused infections in 15 provinces and municipalities, of which 12 are linked to a flare-up of the delta variant of the coronavirus that began spreading in earnest in Nanjing, capital of East China’s Jiangsu province.” Caixing Global, August 2, 2021

European Union

“Q2 Growth Ends EU’s Economic Recession – Seasonally adjusted GDP rose by 2% in the euro area and by 1.9% across the entire European Union in the second quarter of 2021 compared with the previous quarter….. The latest data shows that the European Union is not only no longer in a recession, but that new jobs are also being created in the bloc. The improvements in both GDP growth and unemployment coincide with the lifting of lockdown measures across Europe in the second quarter amid escalated vaccination campaigns, resulting in a reactivation of economic activity.”, Stratfor, July 30, 2021

India

“As Covid-19 Recedes in India, Bars Are Full and Masks Are Optional – Many return to crowded public spaces, abandon pandemic safety measures after devastating coronavirus wave. In New Delhi and other cities across the country, shoppers are once again crowding stores, diners are squeezing into restaurants, and bars are hosting crowds of revelers.”, The Wall Street Journal, August 3, 2021

Italy

“What it’s like to visit Italy on Day 1 of the vaccine pass mandate – With the delta variant wreaking havoc and vaccines now widely available in much of the world, Italy has become one of the first countries in the world to require proof of vaccination to visit museums, dine in restaurants, use public transportation and access most other indoor venues…if you have completed your vaccine series, Italy’s ready to welcome you with open arms. I flew from Newark (EWR) to Milan (MXP) earlier this week, and have had absolutely no trouble getting into and around the country just by flashing my CDC-issued vaccination card.”, The Points Guy, August 6, 2021

New Zealand

“New Zealand rated best place to survive global societal collapse – Study citing ‘perilous state’ of industrial civilisation ranks temperate islands top for resilience. New Zealand, Iceland, the UK, Tasmania and Ireland are the places best suited to survive a global collapse of society, according to a study. The researchers said their study highlighted the factors that nations must improve to increaseresilience.”, The Guardian, July 28, 2021

Singapore

“Singapore to ease some COVID-19 curbs as vaccination rate soars – Singapore will from next week lift some COVID-19 curbs and ease restrictions on entry for foreign workers, its health minister said on Friday, as the share of people who have been fully vaccinated against the virus in the city state nears 70%. Fully vaccinated people will be able to dine-in at restaurants in groups of five from Aug. 10….”, Reuters, August 6, 2021

United Kingdom

“Here’s what London is like right now – Masks are no longer required, excluding on public transit, and I’ve seen few people wearing them on the street and in most public places, including shops, restaurants, pubs, etc. As of Aug. 3, 57% of the U.K. population is fully vaccinated.”, The Points Guy, August 6, 2021

“Get Covid vaccine or miss the fun, adverts tell young – New campaign to boost take-up in under-30s. A billboard and social media campaign will try to convince the under-30s that they will not be able to enjoy themselves fully without having their jabs. Adverts running on platforms such as Instagram, Snapchat and TikTok as well as music radio will tell them to have a jab or “miss out on the good times” as ministers plan to introduce vaccination passports in the autumn.”, The Times of London, August 6, 2021

United States

“U.S. services sector index races to record high in July ISM survey – The Institute for Supply Management said on Wednesday its non-manufacturing activity index raced to 64.1 last month, the highest reading in the series’ history, from 60.1 in June.’, Reuters, August 4, 2021

“Small Businesses Are Nearing Pre-Pandemic Sales Levels – A  national survey finds that the smallest companies are still struggling. S mall business sales as a whole have reached 80 percent of pre-pandemic levels, according to a recent survey conducted by Kabbage, a fintech company that provides funding to small businesses. That average is primarily supported by medium and large-sized small businesses, which Kabbage defines as companies with 21 to 500 employees.”, Inc. Magazine, August 4, 2021

“Tyson Foods, Microsoft mandate vaccinations, U.S. automakers mask up – Tyson Foods Inc (TSN.N), Microsoft Corp (MSFT.O) and Detroit’s Big Three automakers joined a growing list of U.S. companies that are changing their vaccination and masking policies as the Delta variant triggers renewed pandemic restrictions.”, Reuters, August 3, 2021

“Where does the U.S. get most of its imports? And does the main import partner for each state vary across the country? Canada is the main import partner for 20 states, and Mexico is only the top import partner for 6 states. Although only a handful of states have China as their main export partner, China plays a much larger role in imports, serving as the main import partner for 15 states.”, Howmuch.net, June 2, 2021

Brand News

“The Boiling Crab®, Louisiana crab boil masters, are dropping anchor in Melbourne (Australia) – The messy, delicious joys of a good ol’ Cajun crab boil come to Glen Waverley with the opening of Australia’s first Boiling Crab outpost. We’ve always had great seafood here in Australia but one thing that we’re wise to import is authentically delicious ways to serve it. And in terms of sheer fun, there’s little to match the American crab boil.”, Time Out, 2021

“FFL Partners agrees to sell Church’s Chicken to High Bluff Capital Partners – Atlanta-based chain will join Quizos and Taco Del Mar under REGO Restaurant Group. Church’s, which is called Texas Chicken outside the Americas, generated systemwide sales of nearly $1.2 billion in 2020, the company said.”, Nation’s Restaurant News, August 6, 2021

“Honor to Aquire Home Instead, Creating $2 Billion Home Care Services Company – The technology-enabled home care startup Honor has acquired one of the largest providers of personal home care in the country — Home Instead — in an effort to become the “default” provider of services for seniors in the U.S. The acquisition became effective Friday and financial terms of the deal were not disclosed. Together, the organization will represent more than $2.1 billion in home care services revenue, according to the companies’ joint press release.”, Home Health Care News, August 9, 2021

“JAB Holding forms new Panera Brands, bringing Panera Bread, Caribou Coffee and Einstein Bros. Bagels under one platform – Niren Chaudhary has been named Group CEO of Panera Brands and will continue to lead as CEO of Panera Bread. Einstein Bros. CEO José Alberto Dueñas and Caribou CEO John Butcher will report to Chaudhary will continuing to lead their respective companies.”, Nation’s Restaurant News, August 6, 2021

“Papa John’s, Domino’s and Wingstop shares are up 33% as Americans continue to order in – Take-out pizza and wings comforted many Americans locked out of their favorite eateries last year. Now, as indoor dining rebounds, analysts are saying that the stocks behind those quarantine staples will continue to rise.”, Fortune, August 6, 2021

“Starbucks seeks exit from South Korean JV – Starbucks Corp is exiting a joint venture (JV) in South Korea that’s valued at $2 billion by selling stakes to local partner E-Mart Inc and Singapore sovereign wealth fund GIC, as it looks to invest more in fast-growing international markets. E-Mart, one of the largest retailers in South Korea with over 160 stores and the owner of half of the JV……will continue to operate the Starbucks stores.”, Global Times / Reuters, July 29, 2021. Compliments of Paul Jones, Jones & Co., Toronto

“As sales rebound, Tim Hortons goes on a hiring push in a labour market where ‘demand outstrips supply’ – Like many in the restaurant and retail industries, Tims is seeing wage inflation amid stiff competition for new hires. After months of lockdowns that shuttered stores and restaurants, many are scrambling to hire staff to serve customers who are venturing out more.”, The Globe and Mail, July 30, 2021

Articles & Studies About Doing Business Going Forward

DLA Piper’s Guide to Going Global series is designed to help companies meet the challenges of global expansion. The series reviews business-relevant corporate, employment, equity, intellectual property and technology, and tax laws in key jurisdictions around the world.

“Global Franchise Supply Chain Management Is Critical for International Success, Part 2 – This is part 2 of an article that appeared the previous issue. In that article you heard from Tom Healey, Vice President of International Supply Chain and Product Development at Dairy Queen on his take on the global supply chain for the second half of 2021. This time, following the introduction from Bill Edwards, we hear from 3 more international supply chain experts.”, Franchising.com, August 7, 2021

“It’s time for leaders to get real about hybrid (work) – Employers are ready to get back to significant in-person presence. Employees aren’t. The disconnect is deeper than most employers believe, and a spike in attrition and disengagement may be imminent.”, McKinsey, July 9, 2021

“For Successful Small Businesses, Resilience Is A Strategy, Not An Option – The word resilience gained renewed popularity over the last year as businesses sought to weather the uncertainty surrounding the Covid-19 pandemic and the resulting government restrictions that curtailed activities. But what does resilience even mean for a small business? During the pandemic, “becoming resilient” and “pivot” became buzzwords for action that business leaders should be taking to survive.”, Forbes, August 5, 2021

“How the pandemic has reshaped the future of restaurants – During the course of the pandemic, restaurants have had to reinvent themselves countless times — ramping up off-premises sales, exploring virtual brands and rallying around their communities to support people in need……Most restaurant operators plan to keep at least some of the changes they made to their operations during the pandemic, according to the National Restaurant Association’s 2021 State of the Industry report.”, SmartBrief, August 2, 2021

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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:  

www.edwardsglobal.com

Download our latest 40 country ranking chart at this link:

July 2021 GlobalVue™ Country Ranking Chart

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 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:

• IMF to keep 2021 global growth forecast at 6%

• 5 Technology Trends Changing The Game For Small Businesses

• Zero Covid’ economies like Hong Kong, Singapore, Australia risk being left behind

• The Delta variant throws a wrench in companies’ return to the office plans

• Global Franchise Supply Chain Management Is Critical for International Success

• 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

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