The Memes Traders are back, and this time they go for “Wendys [sic] Chicken tendies. Wendy’s stock prices jumped about 26% on Tuesday, June 8 after an article on the r / WallStreetBets subreddit argued in the name of the stock.
After the outbreak, a spokesperson for Wendy’s commented to Yahoo Finance: “We are aware of the unusual business activity this morning and are monitoring closely.”
User Chillznday posted that Wendy’s was “literally the perfect stock for this sub,” highlighting Wendy’s social media presence, her high-profile new summer salad, her Twitter relationship with GameStop, and (“well this one- this is obvious “) the chicken offers as reasons the company was a good candidate for the subreddit.
Wendy’s purchase was accompanied by price inflation on the subreddit of health insurance tech startup Clover Health Since Tuesday, Wendy’s stock has normalized, although it remains 5% below above Monday’s price.
CNBC’s Jim Cramer commented that the purchase marks a departure for the subreddit community, saying, “Now they’re spreading their wings, even in an institutional favorite like Wendy’s with a very weak short position.”
For other restaurants, this increase could indicate an opportunity to attract the memes crowd, as part of the quick service restaurant’s (QSR) savvy social media presence has won the favor of the reddit community. . However, unsuccessful attempts to keep up with internet trends can lead to mockery, and the behavior of these online communities is generally, by design, unpredictable. Most certainly, Wendy’s meme-ing is a reminder of the power online communities can have over commerce and the need to keep a finger on the pulse of the digital discourse surrounding a brand.
Starbucks hit by supply chain shortages
One of the reasons that customers can buy their coffee from Starbucks rather than a small local store is that in a large chain, you usually know what you’re going to get. Now, an unwanted element of unpredictability is creeping into the Starbucks experience. Shortages in the supply chain are causing articles to disappear from chain locations, the Wall Street Journal reports.
Items that have disappeared in some places include cup caps, cake lollipops, and mocha syrup. Oat milk has been removed from the company’s app and menus at many Starbucks stores while stores wait for supply to be replenished.
According to Foodbeast, customers initially got wind of the shortages thanks to TikTok videos posted by employees. One of these videos reported shortages of items including (“but not limited to”) vanilla, caramel, chai, a number of fruit flavors, straws, mug sleeves and Moreover.
Starbucks then sent a notification to users of its mobile app: “We’re sorry for the inconvenience. Due to current supply chain shortages, some of your favorites may be out of stock. Feel free to browse the menu for different options or ask your barista for a recommendation.
NYC Delivery Services Charged With Violating Fee Cap Laws
In May 2020, the New York City Council voted to cap charges for third-party meal delivery services, limiting delivery charges to 15% and additional charges to 5%. Now, a lawsuit filed against Grubhub, DoorDash, Uber Eats, Postmates and Seamless alleges that the services violated the fee cap, imposing fees above 20%, Law360 reports.
“Despite the passage of the… Delivery App. Legislation and delivery application changed. Legislation, “the district court file says,” the defendants continued their previous practices of dry-bleeding New York City restaurants while raising millions of dollars at their own expense, in blatant disregard of New York City’s laws. new York City. “
The costume comes from Micheli & Shel LLC, owners of the Michaeli Bakery on the Lower East Side of Manhattan. The bakery site is currently announcing delivery through all of the accused in the lawsuit, except Seamless. In the lawsuit, bakery owners accused delivery services of charging the bakery additional fees exceeding the 5% cap and “fraudulently inflating[ing] their credit card processing fees, ”among other alleged violations.
“The claims in this lawsuit are entirely false,” a DoorDash spokesperson said in an email to Restaurant Business. “DoorDash has complied with price controls in New York.”
A spokesperson for Grubhub told the outlet: “We look forward to responding to these baseless allegations.”
Lawmakers propose to allocate an additional $ 60 billion in aid to restaurants
A bipartisan bill introduced by Democratic Sen. Kyrsten Sinema and Republican Senator Roger Wicker would add $ 60 billion to the Restaurant Revitalization Fund (RRF), after the funds requested greatly exceeded the amount initially allocated. Sinema announced the bill on Thursday, June 10, adding that a bipartisan congressional pair were presenting a complementary bill in the House of Representatives.
“The Restaurant Revitalization Fund has provided a lifeline for small independent American restaurants,” Wicker said in a statement. “Our restaurants are now starting to recover from a year of lost income, but many establishments are still suffering and have not been able to access the aid to which they are eligible. Replenishing this fund would help restaurants, their staff and the entire food supply chain as they continue to recover. “
This proposed addition comes after claims close earlier than expected, following the announcement in mid-May that the request for relief was already more than double what the $ 28.6 billion fund could accommodate, just nine days after the opening of applications.