Tag: GE

Religious leader in northeast India bans KFC meals, saying they don’t conform to Islamic law; GE contract talks start today; and Texas Roadhouse treads softly as rivals jack up prices

A news summary focused on 10 big employers; updated 8:31 a.m.

KFC: The senior mufti in northeastern India’s Bareilly has issued a fatwa, or an Islamic edict, against KFC restaurants in the area, terming it a “sin” to eat there because the chicken sold doesn’t conform to Islamic law. “People at KFC process the meat away from the eyes of Muslims and such meat has been termed haram in Islam,” he said. The mufti said that the halal certificates displayed at the stores are irrelevant if the owners and workers can’t detail the procedures they use. “Halal is not only about killing the animal,” he said, “it is also about the way its meat is processed and cooked” (Hindustan Times).

GE: Contract talks open today between Louisville-based GE Appliances and the union representing about 4,000 workers at Appliance Park, and the saber-rattling is well underway. Management says the factory complex in the south end is losing money, and workers are earning more than typical in the industry. But a union leader says the company is merely trying to intimidate workers ahead of negotiations (Insider Louisville). The employees are covered by a contract reached before GE Appliances was bought in June by China’s Haier for $5.6 billion. In all, the nearly 60-year-old complex has about 6,000 workers. GE Appliances employs another 6,000 workers elsewhere. More about the company’s history in Louisville.

TEXAS ROADHOUSE, despite a second-quarter earnings miss, is a bright spot in the struggling casual dining industry, where rivals have boosted prices to compensate for falling traffic — and paid a price for the misstep. The steakhouse chain increased prices less than peers, and traffic’s improved, according to KeyBanc Capital Markets. Overall, traffic at casual-dining chains is down almost 30% since 2005. What gives? “Casual-restaurant chains are feeling the heat as loyal baby-boom customers age and millennials take their place,” the business weekly says. “Boomers like big portions and value pricing; their children, who favor organic and gluten-free foods, are pickier and less price-sensitive” (Barron’s).

On Friday, Texas Roadhouse shares ranked No. 1 in weekly performance among big area employers Boulevard tracks. Founded in 1993 with a single restaurant in southern Indiana, it’s grown to nearly 500 outlets in 49 states plus five foreign countries. It employs 48,000 workers, including about 500 in Louisville. More about the chain.

Pizza Hut boxPIZZA HUT: In Albuquerque, a Pizza Hut is seeking delivery drivers in a Craigslist ad posted yesterday that lists the following perks: “The hours are flexible. You’re out and about, listening to tunes and delivering great pizzas. Oh, and people are really, really happy to see you!” (Craigslist).

TACO BELL: In Portland, Ore., a man posted the following in Craigslist’s men-for-men Missed Connections section yesterday: Continue reading “Religious leader in northeast India bans KFC meals, saying they don’t conform to Islamic law; GE contract talks start today; and Texas Roadhouse treads softly as rivals jack up prices”

Papa John’s opening 40 more outlets in Russia; judge sets Dec. 5 trial date for Humana-Aetna case, jeopardizing $1B breakup fee to HUM; and ouch: new GE beverage maker like something out of ‘Spaceballs’

A news summary focused on 10 big employers; updated 3:14 p.m.

PAPA JOHN’S said today it will open 40 restaurants in Russia over the next eight years, with the first store scheduled to open in St. Petersburg next month. Franchiser PJ Western Retail already operates more than 80 restaurants in Russia and Belarus; it’s owned by Global Restaurant Management and private equity firm Capman Russia Fund (press release). The chain opened 357 outlets last year, and now has nearly 5,000 restaurants consisting of 752 company-owned and 4,141 franchised in all 50 states and in 39 countries and territories. Beyond the U.S., the country with the single-most locations is China, with 244, as of the end of last year (annual SEC report).

In Hawaii, a Papa John’s worker is among the latest of scores of people affected by a recent hepatitis A outbreak, according to the state Department of Health. The unidentified employee worked at a restaurant in Waipahu on the island of Oahu, and brings to a total of 168 cases confirmed through yesterday. DOH investigators suspect the source of the outbreak was likely a product widely distributed primarily on Oahu (KHON-TV).

Judge John Bates
Bates

HUMANA: The federal judge hearing the Justice Department’s case to block Aetna’s $37 billion purchase of Humana has set a trial date for Dec. 5 — later than the companies had requested — and allowed 13 days for the proceedings. The date is a compromise between the two sides. During a hearing yesterday in Washington, U.S. District Judge John Bates said he was leaning toward an early November trial, but he later accepted the Justice Department’s arguments that date wouldn’t give the agency enough time to prepare. The insurers had argued for an earlier time frame, noting that the current contractual agreement between the two is subject to a Dec. 31 deadline. If the merger isn’t approved by then, Humana would have the option of walking away and potentially collecting a $1 billion breakup fee. Bates told the parties to proceed with the “expectation” that he will issue a ruling in mid-January  (Wall Street Journal and Bloomberg).

Antitrust cases are typically kept on a strict timetable set by the judge, who in this case is very efficient, said David Balto, a lawyer representing several consumer groups that oppose the insurance mega-mergers. Even though Aetna and Humana extended the deadline to close the deal by the end of this year, the litigation is likely to force them to extend the closing again (Courier-Journal). The DOJ last month sued to block the merger, arguing that it would likely raise consumer prices and stifle competition.

Bates was appointed to the bench in December 2001 by President George W. Bush (Wikipedia).

Ford Explorer Sport
Sport’s MSRP: $45,000.

FORD says professional Generation-Xers don’t always drive SUVs, but when they do they drive a Ford Explorer Sport, according to a new vehicle customer study by MaritzCX. the The vehicle has the highest percentage of Gen-X buyers of any non-luxury SUV in the United States, MaritzCX says (press release). X-ers are the spawn of the huge baby boom generation. There are no precise dates for when the group starts or ends; demographers have used birth years bracketed by the early 1960s to early 1980s (Wikipedia). Ford employs nearly 10,000 workers at truck and auto factories in Louisville; more about the automaker’s local operations.

KFC is opening a new restaurant today at Louisville International Airport, as part of an ongoing renovation of the terminal there (Courier-Journal).

TEXAS ROADHOUSE has reportedly backed out of plans to build a restaurant in the northern Chicago suburb of Mount Pleasant (Journal Online).

AMAZON‘s stock touched a new record trading high, $773.75, before easing back to a recent $771.51, up $2.95. It’s one of the Louisville area’s biggest employers, with 6,000 workers at distribution centers in Jeffersonville and Shepherdsville. More about Amazon here.

GE: The new GE Keurig Beverage Center prototype would be built right into the wall and replace basically every appliance that makes drinks, including coffee, soda, and smoothies. Wolf Appliances debuted a semi-similar mega-coffeemaker two years ago. The cost? Well over $3,000, and it didn’t even have the built-in blender.

Spaceballs posterThere’s no plan to make more Beverage Centers just yet (and no word on how much each one would cost), but Chris Bissig, GE Appliances’ manager of concept and brand development wouldn’t rule it out (CNET and Tech Insider).

CNET’s cruel conclusion: The gadget looks like something out of “Spaceballs,” the 1987 Star Wars parody starring director Mel Brooks, John Candy and Rick Moraines, featuring a character named Pizza the Hut.

Here’s a bad photo of what it looks like:

GE Beverage Center
That’s a pullout tray of Keurig cups is in the foreground.

Coming to a kitchen near you

Haier completed its $5.6 billion purchase of GE Appliances and its 6,000-employee Appliance Park in the south end in June. From baby boomers to millennials, the story of GE Appliances’ rise and decline is a tale of Louisville’s middle class.

Nuns play legal hardball against Yum; B-F names new Australia region chief; Roadhouse rival is bust; and Amazon’s Bezos sells $757M in stock — most ever

A news summary focused on 10 big employers; updated 1:01 p.m.

Boxing nun puppet
$35.99 at eBay!

YUM: Two activist groups filed a shareholder proposal today requesting that fast-food giant Yum quickly phase out harmful antibiotic use in its meat supply, taking particular aim at the KFC unit’s nearly 15,000 restaurants, according to Reuters. The request from the Sisters of St. Francis of Philadelphia and As You Sow of Oakland, Calif., say KFC lags rivals McDonald’s, Chick-fil-A, Subway and Wendy’s in setting policies to curb routine use of antibiotics in chicken production.

In a statement issued after reports of the shareholder proposal, KFC said its “position on antibiotics is currently being reviewed to determine the viability for our suppliers to go beyond the FDA guidelines for antibiotic usage,” according to The Courier-Journal.

Yum’s 6,500-Taco Bell chain has agreed to stop using antibiotics for humans in its chicken supply early next year. The 14,000-unit Pizza Hut division has made a similar promise for pizza topping chicken. But KFC, which buys far more chicken than the other two brands, hasn’t budged (Reuters and Courier-Journal). Buy a boxing nun hand puppet at eBay for just $35.99 (auction listing).

Marc Satterthwaite
Satterthwaite

BROWN-FORMAN named Marc Satterthwaite as new managing director for Australia, New Zealand and Pacific Islands, taking over from Michael McShane, who’s retiring Oct. 31 after 17 years with the company. Satterthwaite has held several leadership positions, including division director for the U.S. central states and Canada, director of North America Region sales operations, and as the interim country manager for India. Most recently, he’s been chief of staff to the U.S. commercial director (The Shout).

TEXAS ROADHOUSE competitor Logan’s Roadhouse — founded in Lexington in 1991 — has filed for Chapter 11 bankruptcy protection in Delaware. The Nashville-based steakhouse chain said Monday in its petition that it will close 18 under-performing restaurants; it has 250 overall. Logan’s was easily confused with Louisville-based Texas Roadhouse because of their similar formats, including encouraging patrons eat buckets of free peanuts and drop the shells on the floor (Lexington Herald-Leader). Texas Roadhouse shares recently traded for $45.48, up 1.3%, or 59 cents.

Jeff Bezos
Bezos

AMAZON founder and CEO Jeff Bezos sold one million of his company shares last week, raising $757 million, according to a Securities and Exchange Commission filing. That’s a record for Bezos, exceeding the $671 million he sold in May (Fortune). Amazon’s stock closed yesterday at $766.56, near its all-time high of $770.50 (Google Finance). Say yes to this dress: The retailer’s best-selling wedding gown is gorgeous and a bargain to boot: as little as $16, a steal when the average bridal dress costs $1,357 (Refinery 29). Amazon employs 6,000 workers at distribution centers in Jeffersonville and Shephardsville; more about its local operations.

GE: Twisting the knife in the back of all the cities that didn’t land GE’s new headquarters, the conglomerate has unveiled renderings of its planned, new, high-tech 2.4-acre corporate campus in Boston. The design shows a 12-story building with a giant, sail-like veil and GE logo on top. The former owner of GE Appliances is moving from Fairfield, Conn., its corporate home since 1974 (Boston Globe and Seattle Times).

GE headquarters
New GE headquarters includes two century-old brick warehouses.

GE sold GE Appliances to Haier for $5.6 billion in June. The maker of refrigerators, dish washers and other “white goods” employs 6,000 workers in Louisville’s Appliance Park.

Taco Bell’s new Cheetos burrito looks like ‘Donald Trump exploded’; Jack’s Chris Fletcher recalls distillery as a ‘magical place’; and why Goldman downgraded Ford shares

A news summary focused on 10 big employers; updated 1:29 p.m.

proxy
The new $1 sandwich will be tested in Cincinnati next month.

More than two weeks before Taco Bell even starts testing a new Cheetos-stuffed burrito in Cincinnati, social media is having a field day — and handing the Yum division a public relations bonanza. Attorney Marcy Wagman Rauer told Huffington Post the $1 sandwich looks like “Donald Trump exploded.” And everyone was retweeting San Diego musician Danny Ellis’ marijuana-inspired conclusion that it looks  “like a stoner’s dream date with death.” The chain had tested the “Cheetos Crunchwrap Slider” earlier this year in Canada, but this is the first time the snack’s being used on its menu in the U.S. (Huffington Post).

Cheetos and Trump
A hairy comparison?

In the Ohio test market, the Cincinnati Enquirer’s Ben Goldschmidt says to forget the November elections. “Sure,” he wrote yesterday, “we’re in a swing county in a swing state in a bonkers election year, but . . . we will decide for the nation if the cheesy powder of Cheetos successfully meshed with molten queso, or if it’s just an uninspiring, soggy lump in a burrito.” Much more news coverage.

Sadly, Taco Bell ranks only fourth of 10 places for potheads with the munchies, according to Stoner Days. The line-up:

  1. In-N-Out
  2. Del Taco
  3. Jack in the Box
  4. Taco Bell
  5. McDonald’s
  6. Burger King
  7. Arby’s
  8. Starbucks
  9. Chipotle
  10. Subway

Road warriors take note: Google says there are 10 Taco Bells in Cincinnati.

Taco Bells Cincy map

To be sure, it wasn’t all good news yesterday for the Yum division. In California, Taco Bell is investigating reports employees taunted a Bakersfield police officer Thursday night by making “oink, oink” sounds and laughing at the cop in the drive-thru. “Taco Bell does not tolerate discrimination in any way,” the company told 23 ABC. “We are deeply appreciative of the men and women who have taken the oath to serve and protect our communities” (23 ABC).

The chain is still smarting from an incident two weeks ago in Alabama, where a cashier refused to serve two sheriff’s deputies; the chain apologized and fired the employee, but not before it was slammed across the Internet.

Chris Fletcher
Fletcher

BROWN-FORMAN: Jack Daniel’s assistant master distiller Chris Fletcher remembers long weekends walking through Continue reading “Taco Bell’s new Cheetos burrito looks like ‘Donald Trump exploded’; Jack’s Chris Fletcher recalls distillery as a ‘magical place’; and why Goldman downgraded Ford shares”