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food & beverages

Can Food Service Delivery Continue to Deliver?

  • MSI

Food delivery service grew substantially during the COVID-19 pandemic, due to restaurant shutdowns. But new research shows that most of the growth actually came from pre-pandemic customers placing more frequent and larger orders. As restaurants reopen, consumers may revert back to pre-pandemic behaviors, challenging future growth in this category.

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NYCU: Job-hopping Heats Up

Nearly two-thirds of workers are on the hunt for a new job, while almost nine out of 10 company executives say they are seeing higher-than-normal turnover at their organizations, according to a new survey from PricewaterhouseCoopers (PwC). The number of workers looking for a new job has almost doubled since spring. About 64% reported they were seeking a new job at the start of August, when PwC surveyed 1,007 full-time and part-time U.S.-based employees and 752 executives. That's up from 36% of workers in May. It’s a "significant" jump, Neil Dhar, PwC's chief client's officer, said. "Simply put, many workforces are just tired, and they're looking for change." Hispanic and Black employees are more likely to be looking—82% and 67%, respectively—than white workers, about 57% of whom cited a desire for a new job.

  • The biggest reason for the job search for many is a better salary, with 46% of women saying better pay was the biggest driver compared to 34% of men.
Many companies are recognizing this and increasing the pay rates on certain jobs. Wall Street firms Bank of America, Barclays, Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley have raised the salaries of their first-year analysts this year. What’s more, many retailers and restaurant chains, including Costco, Chipotle, McDonald’s and Under Armour, have boosted their minimum wages to $15 or more to entice workers. After salary, workers cited better benefits and career advancement as other top motivators. "Employees have been clear that they deeply, deeply value nonmonetary benefits like expanded flexibility, career growth, well-being, and upskilling," Dhar said. Source: Leonhardt, M. (2021, August 20). Job-hopping heats up: 65% of U.S. workers are looking for a new job. Fortune.  

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How Long Can Brands Go Dark before Sales Suffer?

  • JOURNAL OF ADVERTISING RESEARCH

How long can large- and medium-size brands, with stable sales histories, afford to halt broad-reach advertising? The answer, according to a new study, is about two years before sales and market share start to shrink. Those brands are the exception. Previously declining brands, especially small ones, will see sales drop even further when going dark for a year.

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NYCU: The Pandemic’s Uneven Effect on Spending

Consumer spending quickly recovered from the initial shock, returning to growth as early as June, but spending on services is still more than 5 percent off pre-pandemic levels. The reasoning behind these numbers is straightforward: As the pandemic severely limited people’s option to spend on services such as restaurant visits, travel and other leisure activities, which were either restricted or advised against, they shifted their spending to physical goods, trying to adjust to life with the coronavirus.  And while it’s certainly positive to see overall spending levels recover relatively quickly, the sluggish recovery of consumer spending on services is cause for concern. In 2019, personal consumption expenditure on services accounted for 47 percent of the gross domestic product, making it by far the biggest contributor to the country’s economic output. Source: Richter, F. (2020, December 14). The Pandemic's Uneven Effect on Consumer Spending. Per Capita Expenditure, Consumer Spending: Statista.  U.S. Bureau of Economic Analysis  

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NYCU: Pepsi Introduces “Culture In, Brand Out” Strategy

This year’s event has prompted Pepsi to implement several shifts in its approach to marketing. Pepsi’s VP of marketing, Todd Kaplan, says that social listening has been vital in helping it “navigate this crazy year.” The team does so as part of mechanism he calls “culture in, brand out,” through which it monitors shifts in culture, in order to create topical marketing moments. Often the brief comes after the listening is concluded. It represents a shift for Pepsi. “Once you understand what those cultural truths are and what the consumers that we care about are experiencing, then you overlay the brand’s point of view on top of that. That’s your creative idea. We found this approach to be super helpful in navigating a very uncertain year.” With the year’s plans up in the air due to the pandemic, Pepsi’s marketing team has had to learn how to act quicker, from idea to execution. For years, there’s been talk of accelerating marketing functions, especially in huge brands. This year, the acceleration accelerated. Relationships had to loosen up to deliver these moments. Kaplan says that Pepsi’s a “little less formal” in how it works with partners now. “Typically, the marketing process takes months upon months” from insight to briefing to creative to production to media. It’s too slow in “today’s world”. There has been a move away from the Mad Men model, where agencies pitch solid A, B and C scenarios to something more collaborative. Multiple agencies sit on group chats, solving problems in real-time. This has led to a “quicker turnaround.” “It’s not us versus them, agency versus client. Everybody rolls up their sleeves and tries to solve these big hairy problems together.” Brands that can nail this relationship will up their hit rate, have less back-and-forth – and less stress, he concludes. Source: McCarthy, J. (2020, November 10). Pepsi's VP marketing says ‘start backwards’ to create ads fit for modern culture. The Drum.  

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Attitudes Have Changed Dramatically

One month later, Americans' views of the coronavirus have undergone a seismic shift.  Their attitudes have changed dramatically between USA TODAY/Ipsos polls taken March 10-11 and April 9-10. The changes are dramatic but not surprising in the wake of four devastating weeks in which almost all Americans have been ordered to stay at home and the nation's death toll has reached a global record. The number who say the virus poses a high threat to them personally and to the USA doubled. The poll found a sharpened sense of the dangers and an increasingly somber assessment of the challenges ahead. Trust in governors to provide accurate information has grown by double-digits. By an overwhelming 3-1, 69%-21%, Americans endorse a nationwide lockdown through the end of April, requiring people to stay at home except for essential work. The idea is backed by solid majorities across partisan lines.  There is a strong appetite for government action. On a list of 10 potential steps, Americans endorse nine of them, sometimes by 2-1. Support rose for all eight proposals that were included in the earlier survey, sometimes more than doubling. By 92% to 4% – close to unanimous – Americans want the federal government to make the COVID-19 test widely available. About 8 in 10 support drastic steps on immigration: imposing mandatory quarantines for people who have traveled to any other country and temporarily stopping immigration from all other countries. Seven in 10 want to ground all international flights. Almost half, by 49%-34%, want to ground all domestic flights. More than 8 in 10 support expanding paid sick leave so more workers would be eligible. Six in 10 support temporary financial help for airlines and other affected industries. Three of four report washing their hands more frequently, as public health officials urge, and more than half wear face masks and/or gloves in public. More than two-thirds stopped attending social events. More than a third stopped attending religious services. The sources most trusted for accurate information about the pandemic continue to be the Centers for Disease Control and Prevention, trusted by 80%, and the World Health Organization, trusted by 70%. Over the past month, trust has risen a bit for Trump, up 6 points to 44%, Vice President Pence, up 7 points to 46%, and the U.S. Congress, up 6 points to 41%. Trust in the news media has risen 9 points, to 48%. Source: Page, S. (2020, April 13). Exclusive:  In four devastating weeks, Americans' fears of the coronavirus have exploded. Politics: USA Today.  

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