Restaurant And Hospitality News – November 17, 2014
By Christine Kern, contributing writer
In news this week, McDonald’s may have taken on an activist investor, the healthy restaurant sales market continues into 2015, and quick service continues to outpace casual dining in October. Also, the midterm elections may bring some positive notes for the industry, and travel ads need to engage mobile users without being “spammy.”
Activist Investor Jana Partners Could Push McDonald’s For Important Changes
The Nation’s Restaurant News reported that as McDonald’s struggles to improve its sales and profitability, Jana Partners LLC has purchased more than 800,000 shares in the fast-food giant. Although there are no official signs that this is an activist investment, Jana’s history suggests that it may be just that. This article speculates what could be next for McDonald’s.
Experts See Restaurant Deals To Continue in 2015, Though Rising Sale Prices Cause Some Hesitation
According to the Nation’s Restaurant News, there is currently a healthy restaurant market as a result of affordable business loans, with sales up 8 percent, a trend that experts anticipate will continue well into 2015. The same experts at the Restaurant Finance & Development Conference also caution that some industry players are a bit hesitant in light of rising sale prices for restaurant franchisees.
Report: Quick Service Drives Strong Industry Sales Trends
The latest data from the NRN-MillerPulse survey showed that quick-service restaurants experienced strong same-store sales for October, although a performance gap persists between restaurant segments, according to the Nation’s Restaurant News. In October, industry same-store sales saw a 3.3 percent rise, marking the first time in 3 years that it passed 3 percent. Traffic also saw a modest 0.2 percent increase, providing the second positive mark in three months. QSR showed gains, while casual-dining numbers fell.
Midterm Republican Victories Seen By Some In Restaurant Industry As Positive Move
According to the Nation’ s Restaurant News, the results of the midterm elections that gave Republicans control of the U.S. Senate has provided the restaurant industry some opportunities. These include lobbying for changes to the Affordable Care Act , minimum wage legislation, and labor regulations, according to industry leaders. Steve Caldeira, president and chief executive of the International Franchise Association, told NRN that the midterm election results indicated Americans “will not tolerate a government that blatantly continues to overreach through aggressive executive fiat.”
Mobile Users Reject Spam, Engage With Relevancy And Trust
This article from Hotel News Resource reveals that mobile customers ignore spam and irrelevant messages from mobile travel ads, according to a new study. Carried out by On Device and sponsored by MobPartner, the study surveyed 1000 mobile users regarding their response to mobile travel ads as part of their travel research and planning process. Of respondents, 38 percent were reluctant to engage with mobile travel ads because they were concerned about spam, while 33 percent reported that those ads were simply irrelevant. The likelihood of engaging rose once users had engaged with a trusted mobile travel ad.