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☆ These restaurants are taking the lead on AI and robots. What it means for their stocks
▼ + stars: | 2024-06-04 | by ( Lisa Kailai Han | ) www.cnbc.com time to read: +11 min

Restaurants have traditionally lagged behind other sectors in their adoption of technology, but rising labor costs have changed the narrative. Major food industry players are making strides to invest in innovation, including AI and robotics. While it is still early days, analysts have already identified some companies that are taking the lead. YUM YTD mountain Yum Brands shares year to date Robots peeling avocados, mixing salads The use of robotics in restaurants is at its nascence. Chipotle, Sweetgreen and Cava partially have an advantage due to the nature of their products, which offer customers a bowl of mixed ingredients as an end order.

Persons: Bernstein, Danilo Gargiulo, Gargiulo, Morgan Stanley, Brian Harbour, Payne Capital Management Courtney Garcia, Rahul Krotthapalli, They've, Courtney Garcia, Garcia, Payne, Piper Sandler, Chipotle Organizations: Wall, CNBC, Google, Payne Capital Management, Starbucks, JPMorgan, Yum Brands, KFC, Taco Bell, Systems, Collider Lab Locations: Cava, Chipotle, Sweetgreen

Starting Monday, fast-food workers in California at chains with more than 60 national locations earn $20 an hour, higher than the state's broader minimum wage of $16 per hour. California pay is already highwatch nowWhile the new fast-food minimum wage is among the highest in the U.S., California employers are used to paying more for their labor. Even when it is not mandated, restaurants usually find themselves paying more than the minimum wage to attract hourly workers. As a full-service restaurant chain, the company won't be obligated to pay its California workers $20 an hour. Advocates prepare to go biggerFrom start to finish, the California law, which was backed by the Service Employees International Union, has been controversial.

Persons: David Paul Morris, Gavin Newsom, Matthew Haller, Daniel Zhao, Zhao, Lauren Crabbe, she's, Crabbe, Matthew Clark, Jennifer B, Perez, I'm, it's, Newsom, Greg Flynn, Flynn Organizations: McDonald's Corp, Bloomberg, Getty, International Franchise Association, CNBC, Bureau of Labor Statistics, Service Employees International Union, Gov, SEIU Locations: Oakland , California, U.S, California, , California, Fresno, San Francisco, Long Beach

☆ McDonald's to raise royalty fees for new franchised restaurants for first time in nearly 30 years
▼ + stars: | 2023-09-22 | by ( Amelia Lucas | ) www.cnbc.com time to read: +3 min

McDonald's franchisees who add new restaurants will soon have to pay higher royalty fees. It's the first time in nearly three decades that McDonald's is hiking its royalty fees. However, the higher rate will affect new franchisees, buyers of company-owned restaurants, relocated restaurants and other scenarios that involve the franchisor. McDonald's will also stop calling the payments "service fees," and instead use the term "royalty fees," which most franchisors favor. They pay rent, monthly royalty fees and other charges, such as annual fees toward the company's mobile app, in order to operate as part of McDonald's system.

Persons: Joe Erlinger, McDonald's, Erlinger, Ian Borden Organizations: CNBC, Kalinowski Equity Research Locations: McDonald's, California, U.S

☆ McDonald's franchisee group says new California fast-food bill will cause 'devastating financial blow'
▼ + stars: | 2023-09-15 | by ( Kate Rogers | ) www.cnbc.com time to read: +4 min

After California lawmakers passed a landmark fast-food bill, an independent advocacy group of McDonald's owners is pushing back against what it says will be a "devastating financial blow" to its franchisees in the state, according to a memo to its membership viewed by CNBC. It includes a wage floor of $20 for California workers at fast-food chains with at least 60 locations nationwide, starting April 1. The National Owners Association, an independent advocacy group of more than 1,000 McDonald's owners, projects in the memo the bill will cost each restaurant in the state $250,000 annually. McDonald's sent its own letter to its restaurant system on Monday, which was viewed by CNBC. The new legislation eliminated the threat of joint franchisor-franchisee liability, which McDonald's said would "destroy the franchise model in California and strip thousands of restaurant owners of the right to run their business."

Persons: Gavin Newsom's, McDonald's, Roger Delph Organizations: CNBC, Gov, Labor, National Owners Association, National Restaurant Association, International Franchise Association, IFA, [ Service Employees International, America, Team, Industrial Welfare Commission Locations: California

☆ A fight between fast-food chains and unions in California is over, for now – what to know
▼ + stars: | 2023-09-15 | by ( Amelia Lucas | ) www.cnbc.com time to read: +8 min

Gavin Newsom's office, also creates a nine-person council that will decide on future wage hikes for the fast-food industry in California through 2029. The deal will mean a wage floor of $20 for California workers at fast-food chains with at least 60 locations nationwide, starting April 1. The council will include four representatives from the fast-food industry, four from the workers' side and one neutral party who will serve as chair. But the fast-food industry was attacking the bill before it even made its way to Newsom's desk. Fast-food workers employed by affected restaurants will see pay increases of as much as 25% hit their paychecks starting in April.

Persons: Mario Tama, Gavin Newsom's, Mark Kalinowski, Newsom, Joe Erlinger, Erlinger, Jan, What's, Joe Pawlak, Technomic, they'll, Joe Pawlak Technomic, Pawlak, Mary Kay Henry, it's, Sean Kennedy, Burger Organizations: Getty, Gov, Equity Research, Democrat, FAST, Yum Brands, Restaurant Brands, McDonald's, Citi Research, Service Employees International Union, SEIU, California State, CNBC, Walmart, Target, Food, National Restaurant Association, Delta Airlines, Los Angeles International Airport Locations: Boyle, Los Angeles , California, California, McDonald's U.S, Minnesota, New York, —

☆ A couple invested $29,500 into buying a soccer franchise in 2018 to start making passive income. They explain how they grew to 2 locations and have done more than $1 million in revenue.
▼ + stars: | 2023-08-30 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +11 min

Ultimately, they went with Soccer Shots, a children's program that partners with local schools to help kids develop both soccer and life skills. The Halls bought their first Soccer Shots franchise in 2018. They also had to put together a PowerPoint presentation for Soccer Shots' executive team at the headquarters in Pennsylvania. Buying their first Soccer Shots for $29,500 plus additional start-up costsSoccer Shots officially offered the franchise to the Halls in September 2018. On average, they spend one to two hours a week working on Soccer Shots.

Persons: Erika, Kareem Hall, Kareem, they'd, that's, it's, Jon Brock, Rachael Victoria, Brock, they've, Erika Hall, That's Organizations: Soccer Shots, Emory, Bain, Accenture, Primrose Schools, Shots, Soccer Locations: Atlanta, Dekalb County, Pennsylvania, —, Covid

☆ Franchising industry holds its breath as FTC takes a closer look at regulations
▼ + stars: | 2023-07-05 | by ( Kate Rogers | ) www.cnbc.com time to read: +7 min

The FTC told CNBC it received more than 5,500 comments on the inquiry, indicating "broad interest in ensuring fairness in franchising." The agency sought input from stakeholders, including franchise operators, workers and parent corporations, as it scrutinizes franchising practices. Industry watchers say an initial proposal from the FTC on franchise rule amendments could come as soon as the end of year. The NOA's public submission said, "The McDonald's system was, and could again be, the gold standard for the franchise business model. "Since McDonald's founding in 1955, our franchising model has successfully served the brand, franchisees, employees and the local communities we operate in."

Persons: Lina, Matt Haller, they're, Haller, franchisors, McDonald's, NOA, Danielle Marasco, Marasco Organizations: FTC, CNBC, Federal Trade Commission, Franchise Association, Microsoft, Activision, Twitter, Industry, IFA, Service Employees International Union, Strategic, Marriott, Hilton, Brands, National Owners Association, National Locations: U.S, McDonald's, Marriott, California

☆ How Ford, GM auto dealers are thinking about Detroit's EV transition and their future
▼ + stars: | 2023-06-03 | by ( Trevor Laurence Jockims | ) www.cnbc.com time to read: +12 min

If consumers are to be sold on the mass adoption of battery-powered electric vehicles, car dealers are going to be essential to the pitch. But she expects more Ford dealers will opt in at a future date, once they observe a meaningful consumer shift to EVs. "Despite significant increases in EV sales in 2023, dealers are largely skeptical about the OEM's timeframes on the EV rollout," Kerrigan said. A dealer in Santa Monica may decide more quickly, "I need to be all-in on EVs," Maas said. It also caps their total EV sales at 25% of inventory.

Persons: Robb Hernandez, Hernandez, Brian Maas, Maas, EVs, Kerrigan, Ford, Erin Kerrigan, Kelley, BEV, Dealers, Jim Farley, Farley, Tesla, Tesla's, Ford's Organizations: Ford, Bloomberg, Getty, EV, GM, Camino Real Chevrolet, Car Dealers, California Air Resources Board, Kerrigan Advisors, Toyota, ICE, CNBC, Auto Locations: Colma , California, Monterey Park, Calif, California, U.S, Santa Monica, EVs, Eureka

☆ McDonald's Exec Slams California Lawmakers for Passing Fast-Food Law
▼ + stars: | 2023-01-26 | by ( Nancy Luna | ) www.businessinsider.com time to read: +5 min

The FAST Recovery Act could raise minimum wage for California fast food workers to $22 an hour. This week, a top McDonald's exec slammed lawmakers for passing the law in an open letter. AB 257 creates a 10-member council of fast food workers, franchisees, franchisors, advocates for fast food employees, and representatives from the governor's office. The organization said higher wage mandates could raise costs for California fast-food restaurants by $3 billion. "As California fast-food workers defend this landmark law and assert their voice, SEIU is absolutely committed to standing with them in their fight."

☆ Here are Tuesday's biggest analyst calls: Tesla, Apple, Wynn, Amazon, Wendy's, Delta & more
▼ + stars: | 2023-01-03 | by ( Michael Bloom | ) www.cnbc.com time to read: +9 min

We are lowering our relative ratings on ALLY, COF and MTB from Overweight to Equal Weight and ZION from Equal Weight to Underweight." Wells Fargo upgrades Wynn to overweight from equal weight Wells said in its upgrade of the casino company that it sees a significant reopening opportunity for the stock. " Wells Fargo initiates Mondelez as overweight Wells said the food products company has "superior" fundamentals. Wells Fargo downgrades Molson Coors to equal weight from overweight Wells said in its downgrade of the stock that it sees downside to estimates. Baird names Wells Fargo a top 2023 pick Baird said it likes the risk/reward for the banking giant in 2023.

☆ Here are Wednesday's biggest analyst calls: Apple, Tesla, Amazon, Blackstone, Carvana, Netflix & more
▼ + stars: | 2022-11-30 | by ( Michael Bloom | ) www.cnbc.com time to read: +6 min

Here are Wednesday's biggest calls on Wall Street: Morgan Stanley adds Blackstone to the financials' finest list Morgan Stanley added the investment bank and private equity firm to its top pick list and said it sees a compelling entry point. Bank of America downgrades Carvana to neutral from buy Bank of America said it has "liquidity and cash burn concerns." "We are reinstating coverage of XPO with a Neutral rating following a period of restriction. Bank of America reiterates Amazon as buy Bank of America attended Amazon's AWS Re:Invent conference and said Amazon Web Services ecosystem "remains strong." Morgan Stanley reiterates Lowe's as overweight Morgan Stanley said the home improvement retailer is in a "strong fundamental position."

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☆ Inflation forces mom and pop restaurants and chains like McDonald's to lean on their strengths
▼ + stars: | 2022-11-20 | by ( Amelia Lucas | ) www.cnbc.com time to read: +6 min

In response to that drop-off, both chains and independents are working to address the cost factor without alienating diners. Aaron Allen, founder and CEO of restaurant consultancy Aaron Allen & Associates, compared restaurant chains to oil tankers and independents to speedboats. Kate Bruce, owner of The Buttery Bar in Brooklyn, said she's been facing higher costs for everything from labor to cooking oil to energy. Portillo's restaurant chain CEO Michael Osanloo said independents do have greater flexibility when it comes to changing prices. Consumers care more about prices when they're visiting a chain restaurant, according to findings from a survey of roughly 2,400 U.S. consumers conducted by PYMNTS.

☆ India regulator fines MakeMyTrip, Oyo for anti-competitive conduct
▼ + stars: | 2022-10-19 | by ( ) www.reuters.com time to read: +2 min

BENGALURU, Oct 19 (Reuters) - India's competition regulator said on Wednesday that it had fined online hotel-booking companies MakeMyTrip Ltd (MMYT.O) and Goibibo and IPO-bound hotel chain Oyo a combined $47 million for anti-competitive behaviour. The Competition Commission of India (CCI) has been investigating the companies since 2019 following allegations by a hotel body that MakeMyTrip gave special treatment to SoftBank-backed (9984.T) Oyo on its platform. The CCI has directed MakeMyTrip and Goibibo (MMT-Go) to amend their market behaviour after fining them about $27 million. The FHRAI had also alleged that Oyo and MakeMyTrip were hurting competition by offering deep discounts and charging "exorbitant" fees from hotels. Register now for FREE unlimited access to Reuters.com RegisterReporting by Chris Thomas in Bengaluru; Editing by Arun Koyyur and Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

☆ California signed off a landmark new law that could pave the way for a $22 minimum wage for fast-food workers. Here's how the state's fast food council will work.
▼ + stars: | 2022-09-06 | by ( Grace Dean | ) www.businessinsider.com time to read: +4 min

California has passed legislation to create a Fast Food Council that could pave the way for a $22 minimum wage. The council would create minimum standards for areas like health and safety, wages, and conditions. "Fast food workers are the largest and fastest growing group of low-wage workers in the state and lack sector-specific protections," it continues. Californian counties and cities with more than 200,000 residents would also be able to establish a Local Fast Food Council. The council's purposes would be to "establish sectorwide minimum standards on wages, working hours, and other working conditions," including training and health and safety standards.

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