Starbucks Shake Up

Starbucks’ new CEO, Brian Niccol, has announced plans to simplify the company’s “overly complex menu” and review its pricing strategy in an effort to win back customers and boost declining sales. The coffee chain has faced several challenges, including rising costs of living, particularly in China, and operational issues such as staff shortages and customer bottlenecks. Niccol, who previously led Chipotle, aims to streamline operations and enhance the customer experience by refining mobile order and pay systems. Additionally, Starbucks is grappling with social media backlash and boycott campaigns related to the Israel-Gaza conflict and union disputes in the US. These controversies have added to the company’s difficulties, contributing to a 7% decline in global sales between July and September, with a more significant 14% drop in China. To address these issues, Niccol plans to focus on operational efficiency and customer satisfaction, hoping to stabilize and eventually grow the company’s market position. The strategy includes simplifying the menu to reduce wait times and improve service quality, as well as adjusting prices to better align with customer expectations and economic conditions.

BBQ: How might simplifying its menu and adjusting pricing help Starbucks address its declining sales and operational challenges?

Starbucks Shake Up

McDonalds E.Coli Outbreak

 

McDonald’s has temporarily removed quarter pounders and fresh, slivered onions from the menu in about a fifth of its US stores due to an outbreak of deadly E. coli poisoning. The Centers for Disease Control and Prevention (CDC) has recorded 49 cases of illness across 10 states, with 10 hospitalizations and one death. Most cases have been reported in western and Midwest states. The source of the outbreak is still under investigation, but onions from California-based Taylor Farms are suspected. McDonald’s has taken precautionary measures by recalling the affected products and working with health officials to address the issue. This outbreak has significant implications for McDonald’s business operations and brand reputation. The company’s stock initially dropped by 7% following the news, reflecting investor concerns about the potential financial impact. The recall and temporary menu changes could lead to supply chain disruptions and increased operational costs as McDonald’s works to source safe ingredients and ensure food safety standards are met. Additionally, the company is facing challenges from changing consumer spending habits and increased competition, which have forced it to rely heavily on discounts and promotions to attract customers.

BBQ: How might an E. coli outbreak and subsequent product recall affect McDonald’s brand reputation and financial performance? 

McDonalds E-Coli

Freeze Dried Sweets

Bebeto has launched a new range of freeze-dried sweets in the UK, inspired by a viral TikTok trend. The “Freeze Crunchy” range transforms classic gummies and marshmallows into light, crispy treats with intensified flavors. This process involves freezing the sweets and removing the liquid via vacuum, resulting in a unique texture and taste experience. Bebeto is the first major brand to bring such products to UK retail shelves, aiming to capitalize on the growing popularity of freeze-dried candies. The company manages the entire freeze-drying process to ensure quality and affordability, offering 35g bags at an RRP of £2. This move reflects a broader trend in the confectionery industry, where brands are leveraging social media trends to innovate and attract consumers. By tapping into the viral success of freeze-dried sweets on platforms like TikTok, Bebeto hopes to attract a younger audience and boost its market presence. The company’s strategy includes maintaining control over the production process to keep costs low while delivering a premium product. This approach not only meets the current demand for novel and exciting confectionery but also positions Bebeto as a leader in adopting and commercializing social media-driven trends

BBQ:  How can leveraging social media trends, like the viral TikTok craze for freeze-dried sweets, impact a company’s product development and marketing strategy? 

Bebeto Freeze Dried

Netflix Pushes Up Prices

 

Netflix has announced a significant price increase for its streaming service in the UK, with the standard plan rising by £2 to £12.99 per month. This decision comes as the company faces increasing production costs and competition from other streaming services like Disney+ and Amazon Prime Video. Netflix justifies the price hike by highlighting its substantial investment in new content, including original series and films, as well as improvements to the user experience. The company argues that these investments are necessary to maintain its competitive edge and continue delivering high-quality entertainment to its subscribers. However, this move has sparked concerns among subscribers about affordability and value for money, especially in the current economic climate where many households are already facing financial pressures. Some industry analysts suggest that while the price increase could lead to short-term revenue gains, it might also result in a loss of subscribers who may switch to more affordable alternatives. Netflix will need to carefully balance its pricing strategy with customer satisfaction to sustain its market position and long-term profitability.

BBQ: How might Netflix’s decision to increase subscription prices impact its customer base and competitive position in the streaming market?

Netflix Price Rise

Greggs Champagne Bar

Greggs, the popular UK bakery chain, is launching its first-ever champagne bar in Fenwick’s Newcastle store from October 24 to December 31. This pop-up bar will offer a unique dining experience, pairing Greggs’ signature pastries with a selection of fine champagnes, including high-end options like Louis Roederer Cristal. The menu will feature gourmet twists on classic Greggs items, such as sausage rolls with hot honey sauce and steak bakes with peppercorn aioli. This initiative follows the success of last year’s Bistro Greggs and aims to attract both loyal customers and new visitors with its innovative approach

BBQ: How can Greggs’ strategy of launching a champagne bar in collaboration with Fenwick’s impact its brand image and customer base?

Greggs x Fenwicks

Marshmallow Mum

 

A mum-of-two says she has made nearly £10,000 in six months by making marshmallows in the kitchen of her family home. Emily Roberts, 25, from Swansea, started making the treats while on maternity leave from her retail job as something to do with her eldest daughter. But after the sweets went down well with family and friends, Ms Roberts started selling them at local markets - which she said were "sell-out upon sell-out". Ms Roberts, who has now left her retail job to focus on her new venture, said she "never imagined" that her hobby could be turned into a business. Ms Roberts, who is registered as a sole trader but wants to soon convert her business into a limited company, said setting up was not as challenging as she thought it would be. Ms Roberts said she was not yet taking a wage, but had made just under £10,000 since March 2024. She sells her marshmallows at four events each week, either at markets or food festivals. Her advice to anyone considering setting up their own small business was to "go into it with all the passion that you've got". "It’s pointless doing something if you haven’t got your whole heart in it," she said.

BBQ: What entrepreneurial skills are on show by Emily? Is she right to consider becoming an LTD?

Marshmallows

Workers Rights Change

The UK government is introducing a major overhaul of workers’ rights through the Employment Rights Bill, which includes several significant changes aimed at benefiting millions of workers. Key reforms include granting sick pay from the first day of illness and allowing unpaid parental leave from the start of employment, removing the previous two-year qualifying period for unfair dismissal protections, and introducing a nine-month probation period. Additionally, the bill proposes making flexible working requests a right from day one of employment. These changes are designed to provide greater job security and flexibility for workers, reflecting the evolving nature of the workforce and the increasing demand for work-life balance. While business groups have generally welcomed the reforms, there are concerns about the practical implementation, particularly for smaller firms that may face challenges in adapting to the new regulations. The government emphasizes that these changes aim to strike a balance between being pro-worker and pro-business, ensuring that the UK remains an attractive place to work and do business.

BBQ: How might the introduction of immediate sick pay and parental leave from day one of employment affect small businesses and their approach to employee management?

Workers Rights

Paper Quality Street Tubs

 

Nestlé is trialling a new paper tub for its iconic Quality Street chocolates in collaboration with Tesco, aiming to reduce the use of virgin plastic. Over 200,000 paper tubs, designed with a luxurious feel and gold foil embellishments, will be available in selected Tesco stores this festive season. The trial will help Nestlé gather feedback from shoppers and supply chain teams to assess the tub’s popularity and effectiveness. This initiative is part of Nestlé’s broader sustainability efforts, which previously included switching to recyclable paper packaging for Quality Street’s twist-wrapped sweets. By introducing these paper tubs, Nestlé hopes to not only reduce its environmental footprint but also appeal to eco-conscious consumers who are increasingly prioritizing sustainability in their purchasing decisions. The success of this trial could pave the way for a broader rollout of paper packaging across more of Nestlé’s product range, further cementing the company’s commitment to environmental responsibility.

BBQ: How can sustainability initiatives, like Nestlé’s trial of paper tubs for Quality Street, impact a company’s brand image and consumer behavior?

Quality Street

Modern Slavery in McDonalds

A BBC investigation has revealed that signs of modern slavery were missed for years at a McDonald’s branch in Cambridgeshire and a factory supplying bread products to major UK supermarkets. Six members of a Czech family-run human trafficking network were convicted for forcing 16 victims to work under exploitative conditions. The victims, who were vulnerable and often homeless or struggling with addiction, had their wages stolen by the gang while living in squalid conditions. Despite earning at least the legal minimum wage, their pay was funneled into accounts controlled by the traffickers. The exploitation ended in 2019 after victims contacted police in the Czech Republic, leading to the gang’s arrest. McDonald’s UK and the British Retail Consortium have since pledged to improve systems for detecting such abuses.

What are your thoughts on how businesses can better prevent such exploitation in the future?

Modern Slavery

Workers Tips Law

 

A new law in the UK mandates that all customer tips, whether given in cash or by card, must be passed on to workers, benefiting over three million service employees in England, Scotland, and Wales. This legislation, effective from Tuesday, aims to prevent businesses from withholding tips and allows employees to take claims to an employment tribunal if the law is breached. The law is expected to significantly impact workers in restaurants, cafes, bars, pubs, hairdressers, and taxis, ensuring they receive their rightful earnings. However, some businesses may face challenges adapting to this change, particularly in terms of adjusting their payroll systems and managing the distribution of tips. Overall, this move is seen as a positive step towards fairer treatment of service industry workers, who often rely heavily on tips as part of their income.

BBQ: How do you think this new law will affect the service industry in the UK?

Workers Law Tips

Mike Ashley Mulberry Takeover

 

Mike Ashley’s Frasers Group has made a takeover bid for luxury handbag maker Mulberry, expressing significant concern about the brand’s future. Mulberry has faced a sharp decline in sales due to a downturn in the luxury sector. To address its financial challenges, Mulberry recently announced plans to raise nearly £11 million. assistant Mike Ashley’s Frasers Group has launched a takeover bid for Mulberry, the renowned luxury handbag maker, amid growing concerns about the brand’s financial health and future prospects. The luxury sector has been experiencing a significant downturn, which has severely impacted Mulberry’s sales and overall performance. In response to these challenges, Mulberry has outlined a strategic plan to raise nearly £11 million through a share issue, aiming to stabilize its finances and support its long-term growth. This move by Frasers Group highlights the increasing consolidation within the luxury market as companies seek to strengthen their positions and navigate the current economic uncertainties.

BBQ: What are the main reasons behind Frasers Group’s interest in acquiring Mulberry?

Mulberry Takeover