Waning fast food demand

The performance of McDonald’s and other fast food chains’ value meal launches will be closely watched when the US restaurants report quarterly results over the next few weeks. McDonald’s, Burger King, and other chains have been scrambling to improve traffic as soaring menu prices have put off diners, especially from the lower-income group. In the past few months, McDonald’s extended its $5 value meal into August after its launch in June, while rival Burger King began offering a $5 “Your Way Meal” and Wendy’s rolled out its $3 breakfast deal. Foot traffic at McDonald’s, Burger King, and Wendy’s rose 0.4pc, 1.6pc and 1.4pc, respectively, between April and June, as per Placer.ai data. While the promotions are in their early days, some analysts have said their benefit, if any, would be temporary.

(Adapted from “US Fast-Food Chains’ Bet On Value Meals Set To Face Investor Scrutiny,” by Savyata Mishra and Juveria Tabassum, published by Reuters on July 25, 2024)

When the boss cancels

When your boss frequently cancels on you, it can feel like a slight and even make you worry about your standing. Usually, the best course of action is to directly address the issue. Here are a few ways to keep things productive: 1) Don’t take it personally. If your manager always misses your meetings, they’re probably cancelling on others, too. Having a clear sense of your boss’s patterns will help you step back from your anger and see the bigger picture. 2) Get your tone right. A neutral, non-accusatory tone will ensure you get off on the right foot. Sometimes people genuinely don’t know they’re chronically cancelling, especially if they have an assistant managing their schedule. 3) Start the discussion. If you feel comfortable being direct, you can say, “There are times that I need your guidance, or I’m waiting for your input. When you cancel at the last minute, it puts me behind since I’m often counting on this time together.”

(Adapted from “Cancelling Meetings Last Minute,” by Alisa Cohn, published by HBR Early Career)

Apple losing lustre in China

Apple was edged out of the top five smartphone vendors’ list in China in the second quarter, as competition from domestic brands such as Huawei intensifies, according to a Canalys report. Apple’s market share in China shrank to 14pc in the second quarter from 15pc in the first quarter and 16pc in the same period a year ago. The iPhone maker, which was the third-largest smartphone vendor in the second quarter last year, dropped to the sixth spot with about 9.7m in shipments, according to CNBC calculations. Honor’s latest Magic V3, which leverages GenAI, has significantly enhanced the user experience of foldable devices. On the other hand, Apple is facing a “bottleneck” in the Chinese market as it aims to stabilise prices and protect the margins of channel partners.

(Adapted from “Apple’s No Longer Among Top 5 Smartphone Vendors In China As Domestic Brands Dominate Market,” by Sheila Chiang, published by CNBC on July 26, 2024)

Waning hiring spree

Americans’ once-in-a-generation job market has come to an end. The red-hot hiring and rock-bottom unemployment that helped millions of workers find new gigs, boost their wages and reinvent their careers are giving way to more prosaic times. While the market is still healthy by many measures, signs of difficulty are creeping in. The unemployment rate ticked up to 4.1pc last month — the first time it has crossed above 4pc since 2021. That’s still low by historical measures, but it’s up from 3.4pc early last year. Workers have stopped quitting jobs at a frenzied pace, and college grads are having a hard time breaking into the market at all. The number of open positions for every unemployed person is back to the prepandemic level of 1.2, down from over 2 in 2022. Many economists see a job market that has come back into balance, though some worry that conditions could continue worsening.

(Adapted from “The Hottest Job Market In A Generation Is Over,” by Jeanne Whalen, by July 24, 2024, by The Wall Street Journal)

Published in Dawn, The Business and Finance Weekly, July 29th, 2024