Posts Tagged ‘Fast food’

It is always a matter of amazement to many that in the richest country in the world, so many live in grinding poverty, and many of those people are in work. Yet every move to raise the minimum wage for workers is met with howls of protest. (And not just in America: the syndrome is repeated everywhere.) But this pic illustrates how the public in America misunderstand what’s really at stake, as opposed to the populist bias against low paid workers.

Makes one think. no?

Makes one think. no?

In a general sense, it has always fascinated me how every rise in the standards for the poorest working people is invariably met with two canards from the politico-business community … “People will lose their jobs, employers wont be able to afford it!” and “the market should decide!”

Lloyd George and Churchill, then allies in the Liberal Party, shared a reforming zeal.

Lloyd George and Churchill, then allies in the Liberal Party, shared a reforming zeal.

Those were exactly the cries when David Lloyd George introduced the People’s Budget in the UK over a hundred years ago, and again when the UK brought in National Insurance … and you hear the same waffle today about Obamacare – not from those who will benefit, of course, but from those to whom it doesn’t matter, directed against those for whom it desperately does.

But time and again, when working people DO make an advance, people aren’t thrown out of work, businesses somehow keep making mega bucks, and we also know that left to its own devices the market invariably acts as if workers have no real rights or needs at all.

I think we need to seize back these debates in our own homes, around our own dinner tables, and with our friends and neighbours and work colleagues. In short, it’s time we recovered our decency.

We seem somehow to have lost, more’s the pity, the simple idea that it is the legitimate role of the state – acting collectively on our behalf – to support and empower the least powerful in our community, not with hand outs, but with hand ups. So they may look after their own, and so they may make a full-hearted contribution to our society and our economy. The most important hand up you can give anyone is a job, with a reasonable living wage.

I grew up as a member of the working poor, albeit in a nice neighbourhood of a genteel seaside town.

My father died when I was 2. Mum had little or no money put by, and worked long hours to ensure we had everything we needed. My older (adult) brother, who had fallen on his feet, topped up our household income, or we would have been in dire straights indeed.

From the age of 14, I never had a school holiday when I didn’t work. I wasn’t working for pocket money. I was working to make a genuine contribution to our household income. I was a part-time wage earner: my age was irrelevant.

Never asked for charity, nor yet social security. Just wanted a decent days pay for a decent day's work. When did we give up on that principle?

Never asked for charity, nor yet social security. Just wanted a decent day’s pay for a decent day’s work. When did we give up on that principle?

I delivered papers, got up at 4 am and worked as a relief postman, made what must have added up to millions of cups of tea in beach cafes, sold ice-creams in a booth that was five feet by six feet in which I worked an eight hour day sometimes in blistering heat, then changed my togs and toted baskets of prawns and cockles around pubs late at night, worked as a sous-chef (including on Christmas Day), and so on.

I never took one penny of social security money.

But then, as today, I was grateful for legislation that guaranteed that I was not working for slave wages, and for trade unions who loomed in the background like avenging angels, the very mention of which would ensure management would not seek to “put one over on us”.

And assuredly, sometimes those unions went too far, or were needlessly obstructive. But many times a local union rep was a decent fellow who had a fair working relationship with the local boss, and they would work things through in a good natured way, and those with no stake beyond their labour were thus de-marginalised, brought into the process, and consulted.

My mother proudly noted that we never took a cent from any other member of the family other than my brother, and there were plenty of Uncles who could have chucked in a few bob and never noticed.

“Everything you’ve got, we paid for.” she would say, with a steely glint in her eye. “Never forget, Son, love them all you want, like I do, but you owe them nothing.”

Concern about low pay led to an unprecedented call for fast food workers in the USA to strike on August 29

Concern about low pay led to an unprecedented call for fast food workers in the USA to strike on August 29

It was that sort of home. Even then, as a die-hard lifelong Conservative, she was nevertheless deeply grateful for the representation she received at work from her Union, believing that she paid her dues uncomplainingly and deserved good representation.

As right-wing as they came, she simply didn’t trust employers to do the right thing spontaneously out of the goodness of their hearts: my Mum was nothing if not a realist.

When Friedmanite economics and the new Right (backed by the new Left, who should have known better) swept away many of these protections – when we were all, suddenly, free market capitalists – we may well have made the world more efficient. But we also made it colder, and less humane. We lost something of ourselves.

We lost our decency. Collectively. And we should all stand up and say so.

Over 100 years ago, when he introduced the People’s Budget in 1909, Lloyd George said:

“This is a war Budget. It is for raising money to wage implacable warfare against poverty and squalidness. I cannot help hoping and believing that before this generation has passed away, we shall have advanced a great step towards that good time, when poverty, and the wretchedness and human degradation which always follows in its camp, will be as remote to the people of this country as the wolves which once infested its forests”.

As we schlep wearily into the last ten days of a general election campaign in Australia between two essentially identical right wing parties, that’s the type of stuff I want to hear from my political leaders, and leaders around the world.

Whatever happened to waging “implacable warfare against poverty and squalidness”, huh?

If you want to know what it’s like for a working adult male to try and live on or just above the minimum wage in America, click this link. Oh, and by the way? McDonalds made over $5.5 billion last year.

A little while back, a big brouhaha broke in the States over a chicken fast food chain called Chick-fil-A.

The business, hitherto best known for its amusing billboard advertising, became the centre of a storm when key personnel spoke out against gay marriage, prompting calls for a boycott of the business.

Perhaps Chick-fil-A should have stuck to their knitting.

Their cause was taken up by right wing conservative commentator Mike Huckabee resulting in a highly successful protest in favour of the company’s position, when sales in one day went up 29%. However quite recently opinion polling revealed that some 13% of people were still considering or actively boycotting the business.

As recently as two days ago, the controversy continues to rumble. The long term effect on the brand is, as yet, unclear.

Now, a similar controversy has broken over another fast food company. And calls for a boycott are growing fast.

Pizza maker Papa John’s chief executive John Schnatter has criticized President Obama’s health-care law and said it will raise costs by 15 to 20 cents a pizza.

The blow-back has been fierce:

Papa John’s pizza extortion,” ran the headline for a story Wednesday from Salon, an American news website.

Vote for Romney or we’ll raise our prices” was how Daily Kos, a liberal news site, topped its story , which went on to illustrate Mr. Schnatter’s links to the GOP presidential candidate..

Some Twitter and Facebook users are now actively urging a boycott of the Kentucky-based pizza chain.

This is not what you want to see on your Facebook page when you check it over breakfast.

Nor this. See the ease with which the graphic encourages people to hit the Share button on Facebook? Be afraid. Be very afraid. You do not want this on a couple of million customer’s FB pages overnight.

But the Christian Science Monitor, for one, argues that such reactions may be overdone. They ask: was Mr. Schnatter making a political threat – or simply explaining the economics of the pizza business? Well, you be the judge.

In the middle of an Aug. 1 conference call with reporters and analysts to discuss the chain’s second-quarter results, Schnatter was asked about the impact of the new health-care law on Papa John’s. Here’s what he said, according to a recording of that call on the company’s website:

“Our best estimate is that the Obamacare [law] will cost about 11 to 14 cents per pizza – or 15 or 20 cents per order from a corporate basis. To put that in perspective, our average delivery charge is $1.75 to $2.50 – or about 10-fold our estimated cost of the Obamacare [law] to Papa John’s.

We’re not supportive of Obamacare, like most businesses in our industry. But our business model and unit economics [are] about as ideal as you can get for a food company to absorb Obamacare. We have a high ticket average with extremely high frequency of order counts – millions of pizzas per year. To give you an example … let’s say fuel goes up, which it does from time to time, and we have to raise delivery charges. We don’t like raising delivery charges. But the price of fuel is out of our control, as is Obamacare.

So if Obamacare is, in fact, not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto the consumer in order to protect our shareholders’ best interest.”

CSM believe several points stand out: The 15 to 20 cents he’s talking about are costs, not prices. If he was making a political statement, would he really make the point that delivery charges, based at least in part on fuel costs, are 10 times the size of the hit from Obamacare? And he is promising to cut or “shallow out” the costs of healthcare before passing any price increase to the consumer.

Is that a threat? Really? I guess it depends on what “shallowing out” costs actually means.

Schnatter is certainly no fan of the president or the health-care law. Who knows? Perhaps he will cut health-care costs by laying off or shafting his employees. But, the CSM argues, he deserves to have his words quoted in context, before another battle of the culture war is fought over fast food.

Fair enough. What is certain is that the row over his words is likely to grow. Like a brushfire. And it highlights dramatically the care that business owners and managers must take when commenting, in whatever medium, on controversial political issues.

At Wellthisiswhatithink we believe that it would not be a good thing for business to be prevented from expressing its point of view through fear of igniting controversy – it is, when all’s said and done, a key segment of society and we need to know the perspectives it holds, and why it holds them, given that “business” is somewhat opaque to the non business community.

But look out: the swamp is full of alligators, and treading warily would seem to be in order.

What a smart thing it might be, for example, for Boards of Directors to deliberately seek out and include ex-officio Directors with different points of view to their own, who might be closer to the general public, and with a better than passing knowledge of the likely public effect of policy decisions. The same could be said of a Board’s approach to environmental issues, risk management issues, (hello, BP, we’re talking to you), personnel issues generally, and many more.

“What’s on for the weekend, Bill, taking the boat out?” “Hell no, Ted, I’m heading for the mosh pit at the Midwinter Rave. Just love that feeling of mud on my jeans and getting off my face.” Yeah, right.

When companies are basically run by a group of accountants, lawyers and entrepreneurs, they can get a very narrow view of the society in which they do business. And when those same people leave work for the day, they often – not always, but often – circulate in a social milieu that usually does very little to broaden their horizons. It’s called “living in the bubble”. When a storm breaks, they are generally shocked and scramble to play catch up, often ineffectively.

As an adviser to business, I have sometimes found the upper echelons of management to be staggering insular, tone deaf to the likely public impact of their activities or statements, and completely lacking understanding of how social media has fundamentally altered the rules of the game, and as a result – essentially – they are riding for a fall.

It will be interesting to watch how Papa John’s deal with the crisis. The cost of getting it wrong will be a hell of a lot more than 14 cents a pizza, that’s for sure.

Some more examples that we have covered of how NOT to embrace social media can be found here, concerning recent industrial disputation and management actions at Australia’s national airline: http://wp.me/p1LY0z-cb and here: http://wp.me/p1LY0z-cu. A very funny and cautionary tale.

Anyhow, as we all sit mesmerised with horror at the new power of social media, my final word to managers and Directors is very simple.

For more than 2,000 years, Christian society has been based on what is known as the Golden Rule. To wit:  “Do unto others as you would have done unto yourself.”

Why not try applying that rule to your next major decision? Forget what you think is your responsibility to your shareholders, just momentarily, and imagine you are your customer. You will soon find, I assure you, that building shareholder value isn’t actually about pinching pennies here and there, it’s about providing world class products and services. World class.

Because in an internet world, world class is the new basic standard. Think about it.

More interesting coverage is here: http://www.mediaite.com/tv/papa-johns-pizza-ceo-john-schnatter-owes-president-obama-two-words-thank-you/  I note his share price is now down more than 4%. Bet his shareholders are delighted.

"I can't believe I did that. I'll never be able to show my face at the Womens' All-In Pumpkin Growing Championships again. Mother will simply die of the shame."

OK, over here at Planet Wellthisiswhatithink we know how much you’re enjoying these occasional wading around in the deepest dankest end of the advertising gene pool moments – as they are consistently the most popular posts we, er, post* – so here’s another.

(*Except for the story we ran about Adam and Eve not being real, which went viral, but that’s a one off.)

So here, with all fanfare we can muster – toot! toot! – is number 5 of our series.

And it’s a doozey.

OK, so all y’all need to know that Yass is a real town. “Hi, Yass.”

Whilst a perfectly pleasant place full of perfectly nice people, it is famous for absolutely nothing (except being a good place for a coffee on the road between Sydney and Melbourne) except this stupid billboard.

What we also all need to know is why the idiot art director for MacDonalds didn’t put the ‘M’ on the other side of the sign. But then, if he/she had, then we wouldn’t all be snorting the milk from our rice crispies through our noses right now, so, well, let’s be grateful for small mercies.

I bet there’s some McDonalds signage standards rule that says “The McDonalds Golden Arches will always appear full height on the left in directional signage.” Yes, well. Suck it, bitches. Meanwhile:

Judgement is coming. Be afraid, ad land.

The other Advertising F*** Ups we’ve spotted this year, if you missed ’em.

The world’s stupidest billboard placement: http://wp.me/p1LY0z-gX

Not the holiday anyone would really want: http://wp.me/p1LY0z-hJ

Stores abusing innocent shoppers: http://wp.me/p1LY0z-j8

And my personal favourite so far, the most embarrassingly badly worded headline in history: http://tinyurl.com/7enukvd

Please keep sending them in, and thanks Mark for this one!

We’ll have to have a poll at the end of the year as to which one is the absolute worst, and publish the results worldwide.

It will do nothing to improve the quality of the output of the advertising industry, but it will give us all a good laugh.