Category Archives: Businesses

Re-Opening of New York’s Economy

Businesses,

The economy has been shut down for around six weeks now due to the extremely contagious COVID-19.  But Governor Cuomo is in the process of implementing a plan to re-open the economy on a regional level. Easing restrictions will be undertaken based on data taking into consideration the number of hospitalizations, confirmed cases of the virus and other related factors.

Cuomo pointed how regions look very different even within the state, specifically mentioning the divergences between New York City, Central New York and North Country.  Other areas will be monitored by governors there such as Lt. Gov. Kathy Hochul (Western New York and Buffalo) and Lt. Gov. Bob Duffy (Rochester and Finger Lakes).

In addition, New York State is increasing testing to health care workers, essential employees and first responders.  The goal is to reach 40,000 people each day.  In addition, in the near future independent pharmacies should be able to conduct diagnostic testing resulting in a network of 5,000+ pharmacies with this capacity.

It is likely that many measures will gradually be put in place to get the economy going again but that it will take a long time.  Some examples include: staggered schedules at work; less people per square footage of office space and temperature taking before entering the building.  Those who can work from home may continue to do so at least for the foreseeable future.

Recent Business Conference

Businesses,

The Win The Storm (WTS) Conference held last month was attended by over 3,500 individuals.  According to one presenter, founder and CEO of Elev8 Consulting Group Angela Delmedico:

“It was fantastic to share some much-needed knowledge with the industry on the first-ever marketing panel. As always, our breakout session was a hit! With over 15 years of experience, we are committed to providing education and tips on the latest and greatest in marketing and publicity.”

In attendance were contractors, industry experts, business executives and more.  Panel discussions centered around accounting, apps, business growth, education, marketing, safety and technology.

New York Today: Economics, Businesses and Minimum Wage

Businesses, ,

When it comes to the escalation of minimum wage in New York, Ripley is a good case study to begin.  There, a gradual increase has been taking place since 2013 when it began at .  $7.25 per hour.  Today, that figure is up to $11.10.  It is due to reach $12.50 by next year.  For those working in the fast-food industry it is even higher, having already reached $12.75.

While wages in the hospitality industry in New York’s border counties are increasing, according to findings from the Federal Reserve Bank of New York, this did not impact general employment growth.

In addition, there were increases in hourly wages in the southern counties of New York, in particular for the lower earners.   According to the National Employment Law Project between 2014 and 2018 there was an average of 6.6 percent increase in sales annually.

Earlier this year The Bank of America increased its minimum hourly wage from $15 to $17. The plan is that this figure will further jump to $20 by the end of Q1 2020.

WeWork: What’s Working and Who’s Not

Businesses,

WeWork is in trouble in New York.  Its Dock 72 space – spanning 220,000 square feet – seems more like a ghost town than a buzzing networking shared workspace. While it all seemed to be exciting when it opened – and then a few days following that – that has substantially died down ever since. 

Most of the private offices at WeWork are vacant with WeWork claiming 30 percent occupancy.  According to a recent NYTimes article written by David Trainer:

“If the economy stays strong over the next year, it’s possible WeWork could make progress towards profitability. However, it wouldn’t change the fundamental weakness of the business. The company’s strategy of taking on long-term lease obligations and then subleasing for 1-2 years leaves it vulnerable to an economic downturn and falling real estate prices.”

Attempts are however, being made to save it.  SoftBank has agreed to take over control and make some mega investments, on top of the $9bn it already has. It is aiming to decelerate its expansion pace, renovate, focus on its primary markets and more.

But perhaps WeWork is no long “WeWorking.”  Perhaps there has been a complete overhaul in attitudes to how we work.  That’s what German entrepreneur Lasse Rheingans might have us believe.  His idea was recently reported on in a WSJ article, which he is putting in practice in his tech start up firm.  He is developing a five-hour workday for employees to arrive at 8am and leave at 1pm at which point they are not expected to do any work until the next morning. BUT, while at the office, the phones must be left in their bags and use of social media is forbidden.  Meetings are limited to 15 minutes or less and work emails are only checked twice a day!

WeWork’s mission is to: “create a world where people work to make a life, not just a living,” but perhaps today Rheingans has a more practical way of arriving at this goal.

NY 7-Eleven News

Businesses

7-Eleven Inc. – the multi-million dollar corporation boasting $782 million in revenue last year – has a humble history. Starting in 1927 John Jefferson Green began selling bread and milk convenience products in ice-house storefronts. Today there are 68,236 stores worldwide.

New York City 7-Eleven stores are now offering something extra.  A new feature with its mobile app.  Customers who have the store’s rewards program will be able to scan product barcodes, pay using a stored card/mobile-payment service and also scan a confirmation code post-purchase.  In other words NYC customers will be able to pay for their items from their phone, bypassing the checkout line completely.  Any promotions will be automatically featured in. According to 7-Eleven Chief Digital, Information and Marketing Officer, Gurmeet Singh:

“More people are on the go and looking for faster, easier ways to shop than ever before. 7-Eleven continues to redefine convenience with frictionless experiences like Mobile Checkout. Our customers use their smartphone for all kinds of activities that save them precious time. Now with the Mobile Checkout feature, customers can control their entire 7-Eleven shopping experience. Not only that, but customers can earn and redeem points on a variety of products when using Mobile Checkout. Customers are given lots of options when they walk into a 7-Eleven store, from product assortment and customization all the way to payment methods. Mobile Checkout is just one more way we can make someone’s day a little easier and give 7-Eleven customers a convenient checkout alternative to waiting in line during a store’s busiest times of day. It’s another reason to say, ‘Oh thank heaven for 7-Eleven.'”

Perhaps after last month’s news of what 7-Eleven Inc. did for a new baby, it’s not surprising the company is so successful.  J’Aime Brown was born on 7/11/19 (July 7), at 7: 11pm, weighing 7 pounds 11 ounces. Following the announcement of her birth, 7-Eleven pledged $7,111 toward a college fund for her as well as newborn goodies including special 7-Eleven Inc., onesies!

Recent New York Transactions

Businesses
business transactions

New York is a hub for business transactions.  Here we take a look at three recent ones.

The Parker New York has been acquired by GFI Capital Resources Group and Elliot Management Corporation affiliates.  $100m+  has been committed by these companies for renovation purposes.  With this money residential condo units will be incorporated into the premises.  Thomas Juul-Hansen is leading the design team.

The Little Rock Sedgwick Building has been purchased for $4.5m by New York’s Woodmont Hardin.  Located at 400 Hard Road, it has nearly 50,000 square feet office space capacity.  It is being sold by Responsive Education Solutions.

A new position if 764,359 shares of Avanos Medical Inc has been purchased by Bank of New York Mellon Corp in the third quarter.  This has been valued at approximately $52,359,000. Other shares were purchased by Bollard Group LLC (valued at $100,000); Whittier Trust Co (valued at $110,000) and Public Employees Retirement System of Ohio (valued at $136,000).