Category Archives: Analysis

Video Profile: How Danny Meyer Built ‘Shake Shack’

It’s hard to think of a bigger restaurant success story over the last decade than Shake Shack. The high-end burger chain began as a hot dog cart in 2001 in New York City’s Madison Square Park by famed restaurateur Danny Meyer. The menu was handwritten written by Meyer on a single sheet of paper in about 10 minutes and is about 85 percent the same today.

But there’s so much more to this story. Like for three years after 9/11 that hot dog cart paid the bills at the crown jewel of Meyer’s restaurant empire, Eleven Madison Park. Or how he wasted over a million developing a line of French fries only to throw them away out of pure pride. If Danny Meyer is the heart and soul of Shake Shack, its longtime CEO Randy Garutti is the engine that powers it. Here’s how they built Shake Shack.

Stock Market: ‘GameStop & Payment For Order Flow’

Following the GameStop trading frenzy, the SEC is expected to take a fresh look at payment for order flow, a decades-old practice that’s at the heart of how commission-free trading works. WSJ explains what it is, and why critics say it’s bad for investors. Illustration: Jacob Reynolds/WSJ

Covid-19: Israel’s Efforts To Vaccinate Holdouts

Israel is allowing vaccinated citizens to access gyms, restaurants and live concerts. As the country races to immunize all adults against Covid-19 and reopen fully, it is even offering free drinks and pizza to entice those who are hesitant to get the shot. Photo: Tamir Elterman

Future Shopping: Online Retail & Personal Data

The pandemic has upended the way people buy—online retail has soared as high-street shops and malls close. Brands are now racing to exploit one of the most important weapons in the battle for buyers: their customers’ data.

Read special report on the future of shopping here: https://econ.st/2Q8XQC2

Electric Cars: ‘Can Tesla Succeed In India’ (Video)

As Tesla looks to expand to new markets, rumors are circulating that India could be next. While the 5th largest auto market could be big for the ev manufacturer, it’s filled with challenges and increasing competition. 

There is an electric vehicle revolution sweeping the world, but India is lagging behind. Elon Musk has said that Tesla will enter India this year, but it’s not clear if that will actually happen. On January 8th, Tesla took its first step towards launching in the country, registering Tesla Motors India and Energy Private Limited in Bengaluru. 

But when Tesla does eventually come to India, it won’t be easy. The electric vehicle industry is in its infant stages there, lacking much of the infrastructure needed for widespread adoption. And the most popular vehicles are motorcycles, rickshaws and budget passenger cars. Watch the video to find out what Tesla will be up against in India. 

Business Customs: ‘Why Do Americans Tip?’ (Video)

Tipping is a quintessential American custom. In the U.S. consumers tip for services ranging from baggage handlers at the airport to housekeepers at hotels. But according to some analysts, tipping has created an environment where restaurant servers are subjected to sexual harassment and low pay.

About 70% of tipped workers in the restaurant industry are women and about 45% are people of color. In a recent study by One Fair Wage and UC Berkeley’s Food Labor Research Center over 78% of restaurant workers reported witnessing hostile behavior from customers who were asked to follow Covid-19 safety protocols, more than 40% noticed a change in the frequency of unwanted sexual comments from customers and 83% said their tips had declined during the pandemic.

With Covid-19 leaving millions to do essential work for low pay there have been renewed calls for a $15 minimum wage and the elimination of the tipped minimum wage — the base salary for many restaurant workers. Forty three states, including Georgia, North Carolina and Texas, have a tipped minimum wage for workers who in some cases are paid as little as $2.13 an hour by their employer.

But many in the full-service restaurant industry oppose the proposed changes, saying they would lead to higher menu prices and fewer hours for workers. According to the National Restaurant Association, the pandemic has already enacted a devastating toll on the industry, wiping out 2.5 million restaurant jobs and more than 110,000 eating and drinking establishments in 2020 alone. Watch the above video to find out what the $15 minimum wage and the elimination of the tipped minimum wage would mean for restaurants and their employees.

Analysis: ‘China’s Digital Currency Concerns’ (WSJ)

As China moves closer to rolling out its new digital cash, there are concerns the government will track every transaction––not just of citizens but of foreign companies in the country. WSJ travels to Chengdu to see this money revolution in action. Photo: Lorenz Huber for The Wall Street Journal

Reviews: ‘Can Subaru Hold On To Its Recent Success?’

Subaru started as a small scrappy Japanese brand, brought to the states by a couple of American businessmen in the 1960s, and was quickly met with ridicule. But it persisted, and over the decades has gone from being a small niche player to one of the most successful brands in America.

Subaru has weathered economic recessions far better than much larger competitors, and it is positioned near the top of consumer satisfaction surveys. But the ever-changing auto market presents some challenges for them, and they need to adapt to keep up.

When Subaru entered the United States in the 1960s it was panned by critics, and actually advertised its own cheap ugliness. Over the next several decades it would become a highly successful brand through a combination of offbeat but practical cars and a relentless focus on understanding its own customers.

The scrappy brand enjoyed a 93-month sales increase streak that ended in 2019, and it has found ways to survive during the coronavirus pandemic. But it is not without challenges. The intense demand for its vehicles has at times brought growing pains — quality issues and recalls gave led to an unusual quarterly loss in 2018.

There is also pressure on the company, like all automakers, to develop some kind of electrification strategy. Subaru does have a partnership with the much larger Japanese automaker Toyota, which is expected to soon produce an electric vehicle jointly made by the two companies.