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We’ve all been there—hungry, scrolling through <keyword id="20299302" type="General" weightage="20" keywordseo="food-delivery" source="keywords">food delivery</keyword> apps, trying to satisfy our cravings. And among the many options, one name stands out: <keyword id="19901323" type="General" weightage="100" keywordseo="Zomato" source="keywords">Zomato</keyword>. And huge credit for this goes to those cheeky push notifications. A household name in India and many parts of the world, Zomato has become synonymous with food delivery. But have you ever wondered where the name “Zomato” actually came from and what is the reason behind those push notifications that seem to be flirting with you? <keyword id="19901325" type="General" weightage="20" keywordseo="Deepinder-Goyal" source="keywords">Deepinder Goyal</keyword>, the CEO of the <keyword id="23915877" type="General" weightage="20" keywordseo="food-tech-giant" source="keywords">food tech giant</keyword>, answered these questions on the latest episode of The <keyword id="21100902" type="General" weightage="20" keywordseo="Great-Indian-Kapil-Show" source="keywords">Great Indian Kapil Show</keyword> on Netflix. <h2>How was Zomato’s name born</h2>In a conversation with comedian Kapil Sharma, Goyal shared how the name “Zomato” was born out of necessity rather than creativity. The platform’s founders had originally envisioned the name to have something to do with “tomato” — a staple ingredient in many dishes, and a word that’s easily recognisable. But here’s the twist: when they went to register the domain, tomato.com was already taken! Not to be deterred, they simply tweaked the letter and came up with “Zomato” — a name that not only worked but ended up being memorable, too. The “Z” was added for that perfect tech-savvy ring to the name, and the rest, as they say, is history. And while Goyal didn’t spill the final details about whether it’s pronounced “Zomato” or “Zomaato,” he did confirm one thing — it’s all about how you want to say it. Just like a ripe tomato, the name has become part of the cultural fabric. The debate about the exact pronunciation, as seen in hilarious ads with cricketers Harbhajan Singh and Sreesanth, only adds to the charm. <h2>About Zomato’s <keyword id="23915874" type="General" weightage="20" keywordseo="cheeky-notifications" source="keywords">cheeky notifications</keyword></h2>That’s not all. The Zomato CEO also talked about another amusing aspect of the Zomato experience—those cheeky, flirtatious push notifications. We’ve all received a notification that says, “Your food is just 10 minutes away!” But did you ever stop to think about why Zomato’s notifications always seem to have a bit more personality? Well, it turns out the company’s marketing team, full of youthful energy and passion, took Deepinder’s advice to heart. He had asked them to “build a relationship with the customer,” inspired by a book he read—though he himself wasn’t entirely sure what that meant. The results? A fun, almost flirtatious tone that’s become a signature of Zomato’s communication style. “Our marketing team is very young. They don't have any background in marketing. They are passionate people. So, I briefed them one day to make a relationship with the customer. Even I didn't know what it meant. I don't have any marketing background. I read a book and it said to make a relationship with the customer. I told them. They took me seriously,” Goyal said during the show. So, next time you get that slightly cheeky notification from Zomato, you’ll know that it’s not just about food—it’s about building a connection with you.

I asked my young marketing team to 'make a relationship' with customers, they took me seriously: Zomato’s Deepinder Goyal on cheeky notifications

Food delivery and quick-commerce behemoth Swiggy's initial public offering (IPO) closes for subscription today. The issue has already been subscribed about 213% as of 1:35 pm today. The offer garnered massive interest from QIB (qualified institutional buyers), who subscribed 3.46x to it, bidding for 30,09,09,954 shares as against 8,69,23,475 shares allotted for them. The company will tentatively list on both BSE and NSE on November 13, 2024. Swiggy's employees also gave the IPO a thumbs-up, subscribing 1.42x to the offer. Around 7,50,000 shares were reserved for employees in the IPO, at a discount of Rs 25 to the issue price. On the other hand, retail investors subscribed to 99% of their potion. At the same time, the NII (non-institutional category) fetched a muted response, with investors subscribing to only 25% of shares in their category. <h2>Dull GMP</h2> Pre-IPO, Swiggy had also lapped up Rs 5,085 crore from anchor investors. With a price band of Rs 371-390, the company is looking to raise Rs 11,327 crore from the IPO. Out of this, the fresh issue component is worth Rs 4,499 crore, and the offer for sale (OFS) is Rs 6,828 crore. Investors can expect dampened listing day gains, going by the trends in the GMP (grey market premium) market. The company's last-traded GMP was at a mere Rs 1, taking the estimated listing price to Rs 391 (upper end of the price band at Rs 390 + GMP), which means that the potential gain per share would be a minuscule 0.26%. Per InCred Equities, the IPO can be subscribed to since the company has favorable scale and potential to tap in long-term opportunities. Quick commerce provides growth runaway, while the food delivery vertical has the potential to improve the margin and cash flow going ahead. Per the company's Q1FY25 earnings report, it generates 47% of revenue from the food delivery business and 39% from its supply chain and distribution business (operated via Scootsy Logistics Private Limited). About 12% of the company's revenue comes from its quick commerce wing i.e. Instamart, while Dineout (eating out) and platform innovations make up about 1% each of the revenue. "Swiggy’s IPO price band implies 1) EV/revenue multiple of ~6.5x, 2) EV/GOV of ~2.1x, and 3) a P/S of ~6.7x based on annualized FY25F financials. The valuation is at a discount to Zomato, which trades at an EV/revenue multiple of ~11.3x, an EV/GOV of ~3.2x (annualized), and a P/S of ~11.4x based on FY25F consensus estimates. Internal controls, as reflected in the auditor’s qualified opinion, and increased competitive intensity are the key downside risks, in our view," InCred further adds. Notably, in FY23 and FY24, auditors raised concerns over loans given to subsidiaries, namely Supr Infotech and Scootsy which may impact Swiggy's overall financial stability. Some of the qualifications highlighted by the auditors include potential impairment, interest payment delay, and using new loans to cover interest costs.

Swiggy IPO subscribed to 2.13 times on last day of the offer

Three years after rival <keyword id="19901323" type="General" weightage="20" keywordseo="Zomato" source="keywords" meta.keywordsubtype="org" meta.entityname="Zomato" meta.hostid="261" meta.entityid="Zomato">Zomato</keyword> went public, raising Rs 9,375 crores, food and grocery delivery behemoth Swiggy is set to open for subscription on the Indian bourses between November 6th and 8th, 2024. Looking to raise Rs 11,327.43 crore from the markets, Swiggy has set a price band of Rs 371 to Rs 390 per share. The company is targeting a valuation of $11.3 billion, around 25% down from its initial target of $15 billion. The issue comprises Rs 4,499 crore worth of fresh issue, with the remaining Rs 6,828.43 crore coming via <keyword id="19951016" type="General" weightage="20" keywordseo="OFS" source="keywords">OFS</keyword> (offer for sale), with stakeholders like <keyword id="20294899" type="General" weightage="20" keywordseo="Prosus" source="keywords" meta.keywordsubtype="org" meta.entityname="Prosus" meta.hostid="261" meta.entityid="Prosus">Prosus</keyword> offloading about 5.2% of their stakes, which could translate into proceeds worth $510 million. The offer will conclude on November 8, and listing is tentatively scheduled for November 13, 2024. Other stakeholders who will be participating in the OFS at the present valuation include <keyword id="20064356" type="General" weightage="20" keywordseo="Accel" source="keywords" meta.keywordsubtype="org" meta.entityname="Accel" meta.hostid="261" meta.entityid="Accel">Accel</keyword>, which will sell around $60 million worth of their stake. Elevation Capital and Tencent's stake sale could earn them up to $30-35 million each. Swiggy's CEO <keyword id="20304807" type="General" weightage="20" keywordseo="Sriharsha-Majety" source="keywords">Sriharsha Majety</keyword> and co-founder Nandan Reddy are also expected to offload their shares. Currently, they hold 6.23% and 1.76% stakes in the company, respectively. The sale of around 0.1% stake by each is expected to earn them about $14 million in total. Notably, the company does not have any identifiable promoters, as per SEBI ICDR Regulations and the Companies Act 2013. From funds raised via IPO, the company plans to allot Rs 1,648 million for repaying borrowings made by its subsidiary, Scootsy. The app, which operated independently of Swiggy, offered <keyword id="20299302" type="General" weightage="20" keywordseo="food-delivery" source="keywords">food delivery</keyword> services from a selected list of high-end bakeries and restaurants in the city. Notably, Swiggy had acquired Scootsy in 2018 at a reported valuation of Rs 50 crore. However, Swiggy's foray into the premium-food delivery segment did not pan out well, and the company decided to shut Scootsy in 2020. However, per the company's RHP (red herring prospectus), Swiggy is planning to reinvest and revive Scootsy for extending their dark store network and making lease/license payments for the same. About Rs 11,787 million would be utilised for expanding Swiggy's dark store network for its quick commerce wing, <keyword id="20255906" type="General" weightage="20" keywordseo="Instamart" source="keywords">Instamart</keyword>. Swiggy has also allocated Rs 11,153 million for enhancing the brand's visibility and outreach. <h2>Negative cash flows from operations</h2>The company has only incurred net losses since its inception in 2014. However, the company's annual losses as a percentage of its revenue from operations has come down in the recent years. From 63.61% in 2022 to 20.90% in 2024, the losses as part of its revenue from operations further narrowed to 18.96% for the quarter ended June 30, 2024. Moreover, Scootsy is yet to receive requisite registrations and approvals for each of the dark store it intends to set up. It does not help that Scootsy has not run into greens over the past 2-3 years. The subsidiary had incurred losses worth Rs 2,953.5 million, which have burgeoned to Rs 4,239.72 million in FY24. Swiggy also lags behind its rival Zomato in terms of monthly transacting users (MTU), along with many other key financial and operational metrics. Zomato has a wider, pan-India presence, commanding a 57% <keyword id="20038792" type="General" weightage="20" keywordseo="market-share" source="keywords">market share</keyword> in FY24. Compared to this, Swiggy's market share stood at 43% during the same period. As of FY24, Swiggy's MTUs, at 12.7 million, are about 31% lower than Zomato's MTU of 18.4 million.

Swiggy sets IPO price band between Rs 371-390/share; offer likely to open on November 6th. Here's all you need to know

The much-anticipated IPO (<keyword id="20478869" type="General" weightage="20" keywordseo="initial-public-offer" source="keywords">initial public offer</keyword>) of food and grocery delivery giant Swiggy is expected to go live between November 6th and 8th, 2024, with the window for <keyword id="21330641" type="General" weightage="20" keywordseo="anchor-investors" source="keywords">anchor investors</keyword> likely to open on November 5, 2024. The offer consists of around Rs 3,750 crore worth of <keyword id="20953853" type="General" weightage="20" keywordseo="fresh-issue" source="keywords">fresh issue</keyword> and an offer for sale (OFS) of around 18.53 crore shares. All in all, the total issue is expected to be in the range of Rs 11,700 crore and Rs 11,800 crore. Per media reports, the fresh issue component is expected to be pushed up to Rs 4,500 crore, with the company now targeting a diluted valuation of $11.3 billion, as opposed to its previous target of $15 billion. The 25% slash is done to aid retail investors. Per the company, it does not want a "bad IPO." Notably, Swiggy's rival <keyword id="19901323" type="General" weightage="20" keywordseo="Zomato" source="keywords" meta.keywordsubtype="org" meta.entityname="Zomato" meta.hostid="261" meta.entityid="Zomato">Zomato</keyword>, which recently reported a staggering 389% YoY jump in its net profits, also recently announced that it is taking the QIP (qualified institutional placement) to raise Rs 8,500 crore. For the quarter ended September 30, 2024, Zomato earned a net profit of Rs 176 crore. Over the last year, i.e., between March 2023 and 2024, Swiggy saw its revenue from operations jump by 34% from 8,714.45 crore in FY23 to Rs 11,634.35 crore in FY24. The company's losses also narrowed down to Rs 2,350.24 crore in FY24, from Rs 4,179.31 crore in FY23. Swiggy's rival Zomato had gone public in July 2021, with an offer size of Rs 9,375 crore. At present, the company's stock was trading at Rs 251.95, having surged a whopping 138.48% over the last year. As of August this year, the company's quick commerce wing, <keyword id="20255906" type="General" weightage="20" keywordseo="Instamart" source="keywords">Instamart</keyword>, has a network of 605 active dark stores across 43 Indian cities. Some of the major existing investors in Swiggy include Prosus, which holds a 32% stake, SoftBank, which has an 8% stake, and Accel, which holds a 6% stake in the company. Notably, <keyword id="23707337" type="General" weightage="20" keywordseo="market-watchdog-SEBI" source="keywords">market watchdog SEBI</keyword> had approved Swiggy's IPO via the confidential filing route. Under this mechanism, companies can file for a DRHP (draft red herring prospectus) without making it public. The company has the power to decide when to make this document available for public view after having incorporated the suggestions of the regulator.

Swiggy IPO likely between November 6-8, 2024. Here's all you need to know

A period of darkness followed after World War II for a number of reasons — one of them being the limited access to sweets and sugar. Between 1942 and 1953, the UK imposed sugar rationing to prevent hoarding, where sugar intake averaged at 40 grams per day. And this purported deprivation had some surprisingly positive effects! Recent research on individuals born in the 1950s has revealed a startling connection between early life sugar exposure and the development of chronic diseases like <keyword id="20902" type="General" weightage="20" keywordseo="type-2-diabetes" source="Orion">type 2 diabetes</keyword> and <keyword id="22984" type="General" weightage="20" keywordseo="hypertension" source="Orion">hypertension</keyword> later in life. The study found that limiting sugar intake during the critical first 1,000 days of life — from conception to nearly age three — can significantly reduce the risk of these conditions. Published in the journal Science, the study analysed data from the UK Biobank and compared the health outcomes of individuals born before and after the end of World War II sugar rationing in 1953 — after which sugar and sweet intake doubled to 80 grams per day. Notably, overall nutrient intake remained relatively stable during the rationing, with protein and fat consumption largely unaffected by the rationing policies, as per the study. The researchers discovered that those exposed to lower sugar levels during this period had a 35% reduced risk of developing type 2 diabetes and a 20% reduced risk of hypertension. Moreover, the onset of these diseases was delayed by four and two years, respectively. “Sugar early in life is the new tobacco, and we should treat it as such by holding food companies accountable to reformulate baby foods with healthier options and regulate the marketing and tax sugary foods targeted at kids,” says Paul Gertler, one of the study’s authors and a professor of economics at the University of California. The study suggests that even in-utero sugar exposure can have long-lasting health consequences. Limiting sugar intake during pregnancy and early childhood can provide significant protection against future health problems. <div type="Article" hostid="261" msid="112411685" title="Diet soda fans, look out for this ingredient — it may increase your risk of blood clots and heart problems, scientists say" mstype="2" mssubtype="0"></div>

“Sugar early in life is the new tobacco”: Scientists urge food companies to reformulate baby foods and tax sugary options

The IPO (initial public offer) of food and grocery delivery behemoth Swiggy is set to open tomorrow and conclude on November 8, 2024. The entire issue is worth Rs 11,327.43 crore and has a fresh issue component of Rs 4,499 crore and an OFS (offer for sale) of about Rs 6,828.43 crore. With a price band of Rs 371-390, retail investors will be required to invest a minimum of Rs 14,820 to get their hands on Swiggy's shares. Swiggy, which will tentatively list on the bourses on November 13, 2024, is seeking to raise Rs 1,952.43 crore more than its rival <keyword id="830092" type="General" weightage="20" keywordseo="zomato" source="Orion">Zomato</keyword>, which went public in July 2021 and was looking to raise Rs 9,375 crore. Zomato's offer was oversubscribed around 38.25 times, with retail investors subscribing 7.45x to the issue. Notably, only around 15% of Swiggy's total issue will be made available to retail investors. Moreover, Swiggy's IPO is not garnering the same buzz if its present GMP (<keyword id="938640" type="General" weightage="20" keywordseo="grey-market-premium" source="Orion">grey market premium</keyword>) trends are to be believed. The company's last traded GMP was Rs 7, taking its estimated listing price to Rs 397 (upper end of its price band, i.e., Rs 390 + Rs 7), and its potential listing gains per share at a minimal 1.79%. Last week, Swiggy's GMP was at Rs 25, before tumbling to Rs 18, and then momentarily stabilizing at Rs 22 before its steep fall to present levels of Rs 7. <h2>Strengths and weaknesses</h2> Since its inception in 2014, Swiggy's bottom line has been in red, unlike that of its rival Zomato, which turned profitable in the first quarter of FY24. In FY22, its total income was Rs. 6119.78 crore with a net loss of Rs. 3628.90 crore. While the company's total income increased to Rs. 8714.45 crore in FY23, it also spelled a corresponding rise in its net losses, which surged to Rs. 4179.31 crore. The trend varied a little in FY24 when Swiggy's total income rose to Rs 11,634.35 crore while its net loss reduced to Rs. 2,350.24 crore. However, in the first quarter of FY25, ending June 30, 2024, the company's total income stood at Rs 3,310.11 crore and a net loss of Rs. 611.01 crore. While Swiggy did achieve 42.4% revenue growth between FY2022-223, most of its revenue is sourced from the top 50 of the 500 Indian cities it is currently operational in. Even in this regard, Zomato, which operates in around 1,000 cities across India, has an edge. <h2>Some say invest, some say avoid</h2> Some experts are advising against subscribing to this IPO. Per SAMCO Securities, "As of FY 2024, Swiggy Limited continues to operate at a loss, in contrast to its competitor, Zomato Limited, which has recently achieved profitability. Given Swiggy’s current financial position, competitive pressures, associated risks, and valuation, its IPO appears overvalued. Therefore, investors should avoid this IPO until the company’s financial performance and growth outlook improve. Waiting until Swiggy demonstrates improved financial results and a clearer path to sustainable growth would be a more prudent investment approach. Per Bajaj Broking's IPO note, Swiggy's IPO can be subscribed to from a long-term perspective. However, it also highlights that Swiggy's offer document is missing PAT (profit after tax) and RoCE (returns on capital employed) data. "For the last three fiscals, the company has reported an average EPS of Rs - (14.90) and an average RoNW of - (35.39%). The issue is priced at a P/BV of 11.60 based on its NAV of Rs. 33.61 as of June 30, 2024, and is at a P/BV of 7.31 based on its post-IPO NAV of Rs. 53.36 per share (at upper cap). If we attribute annualized FY25 earnings to a post-IPO fully diluted equity base, then the asking price is at a negative P/E, and based on FY24 earnings also, it is at a negative P/E, as the company has posted losses for those periods. On other parameters, the issue appears aggressively priced," it further adds. Gaurav Garg, research analyst at Lemonn Markets Desk, notes that it might take some time for Swiggy to reach Zomato's level, both in terms of valuation and AOV (average order value). Swiggy's valuation has been pegged at about Rs 95,000 crore, at the upper price band, while Zomato has a market valuation of Rs 2.13 lakh crore. "Almost 50% valuation compared to Zomato gives some comfort, although it should not be considered an arbitrage in valuation. If Swiggy’s EBITDA catches up to 3-4% in the food delivery business, which is currently at 1%, and Average Order Value (AOV) improves to Rs. 550-600 levels in quick commerce with a higher non-grocery share, we can see bridging in the valuation gap. However, this should not be expected in the near term," he adds.

Swiggy's IPO set to open tomorrow. Should you subscribe?

Food delivery behemoth <keyword id="19901323" type="General" weightage="100" keywordseo="Zomato" source="keywords" meta.keywordsubtype="org" meta.entityname="Zomato" meta.hostid="261" meta.entityid="Zomato">Zomato</keyword>'s co-founder and CEO <keyword id="19901325" type="General" weightage="20" keywordseo="Deepinder-Goyal" source="keywords">Deepinder Goyal</keyword> is the latest entrant into the elite club of Indian <keyword id="20204945" type="General" weightage="20" keywordseo="billionaires" source="keywords">billionaires</keyword> after the stock surged around 2.22% at Rs 227.40 during trade on Monday. The stock has been on an upward journey, inching up by 70.46% during the last six months, and a staggering 183.72% over the previous year. Zomato's stock also touched its all-time high of Rs 232 today, propelling the company's total <keyword id="19930507" type="General" weightage="20" keywordseo="market-capitalization" source="keywords">market capitalization</keyword> to over Rs 2 lakh crore. Notably, Goyal holds 4.2% stake holding, or about 36.95 crore shares in Zomato, which went public in July 2021. His share has surged by over 300% in just the last 2 years. Recently, Zomato hiked its platform fee from Rs 5 to Rs 6 in metros such as Delhi and Bengaluru. <h2> Strong financials </h2>As of 31st March 2024, the company's total revenue from its B2C businesses, which includes food delivery, <keyword id="19963428" type="General" weightage="20" keywordseo="Quick-commerce" source="keywords">quick commerce</keyword> (<keyword id="20069203" type="General" weightage="20" keywordseo="blinkit" source="keywords">Blinkit</keyword>) and dining out grew 56% on a year-on-year (YoY) basis to stand at Rs 13,545 crore, up from Rs 8,693 crore in FY23. The company expects over 40% YoY growth in this segment for a couple of years. first-ever profit of Rs 2 crore in Q1 of FY24. The company's gross order value (GOV) also registered a stellar rise of 30%, inching up from Rs 26,305 crore in FY23 to Rs 32,224 crore in FY24. The company is also expecting a 20% YoY growth in its gross order value in the years to come. The platform's delivery business also saw a significant rise in its average monthly transacting customers, which went up from 17 million in FY23 to 18.4 million in FY24. In FY24, the company also generated profit after tax (PAT) worth Rs 351 crore, after reporting losses worth Rs 2,386 crore in FY20, Rs 816 crore in FY21, Rs 1,223 crore in FY22 and Rs 971 crore in FY23. <a href="https://www.businessinsider.in/business/news/zomato-posts-q4-consolidated-net-profit-at-175-crore/articleshow/110082043.cms" data-type="tilCustomLink">Zomato </a>first broke profits of Rs 2 crore in Q1 FY24. Zomato's quick commerce business also registered significant growth, with the average monthly transacting customers witnessing a YoY jump of 73%, up from 2.9 million in FY23 to 5.1 million in FY24. The store count also jumped up from 377 to FY23 to 526 to FY24, with the target of crossing over 1,000 stores by March 2025.

Zomato's Deepinder Goyal joins elite list of Indian billionaires

<keyword id="20555600" type="General" weightage="20" keywordseo="Dr-Reddys-Laboratories" source="keywords" meta.keywordsubtype="org" meta.entityname="Dr Reddy's Laboratories" meta.hostid="261" meta.entityid="Dr Reddy's Laboratories">Dr Reddy's Laboratories</keyword> and <keyword id="20026907" type="General" weightage="20" keywordseo="Sun-Pharma" source="keywords" meta.keywordsubtype="org" meta.entityname="Sun Pharma" meta.hostid="261" meta.entityid="Sun Pharma">Sun Pharma</keyword> are recalling products in the US due to manufacturing issues, as per the latest Enforcement Report by the US Food and Drug Administration (<keyword id="19914245" type="General" weightage="20" keywordseo="USFDA" source="keywords">USFDA</keyword>). According to the report, Dr Reddy's Laboratories is recalling drugs to treat insomnia and gout in the American market. New Jersey-based Dr Reddy's Laboratories, Inc., a unit of Hyderabad-based drug major, is recalling 13,752 bottles of Eszopiclone tablets, the USFDA stated. The affected lot has been produced at Dr Reddy's Bachupally plant in Telangana. As per the USFDA, the drug firm is recalling the affected lot due to "Failed Impurities/Degradation Specifications". The company issued the Class III nationwide recall on June 4 this year. As per the USFDA, a Class III recall is initiated in a "situation in which use of, or exposure to, a violative product is not likely to cause adverse health consequences". Dr Reddy's Laboratories, Inc. is also recalling 20,520 units of Allopurinol tablets in the US market due to the "presence of foreign substance". The company initiated the Class II nationwide (US) recall on June 7, 2024, the US health regulator said. The USFDA said a US-based unit of Sun Pharma is recalling 2,088 vials of Decitabine for Injection (50mg per vial) due to "CGMP Deviations". The affected lot of the chemotherapy medication was produced at Sun Pharma's Gujarat-based manufacturing plant. New Jersey-based Sun Pharmaceutical Industries Inc. initiated the nationwide Class II recall on July 2 this year. As per the USFDA, a Class II recall is initiated in a situation in which the use of, or exposure to, a violative product may cause temporary or medically reversible adverse health consequences or where the probability of serious adverse health consequences is remote. SEE ALSO:<a href="https://www.businessinsider.in/sports/webstories/virat-kohli-not-included-in-the-rohit-sharma-led-icc-team-of-the-tournament/slidelist/111398470.cms" target="_blank"></a> <a href="https://www.businessinsider.in/sports/webstories/virat-kohli-not-included-in-the-rohit-sharma-led-icc-team-of-the-tournament/slidelist/111398470.cms" target="_blank">Virat Kohli not included in the Rohit Sharma-led ICC Team of the Tournament</a><a href="https://www.businessinsider.in/business/auto/news/upcoming-cars-launching-in-india-in-july-2024/slidelist/111341281.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/news/upcoming-cars-launching-in-india-in-july-2024/slidelist/111341281.cms" target="_blank">Upcoming cars launching in India in July 2024</a><a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-and-airtel-price-hike-new-plans-and-how-you-can-save-money/articleshow/111331794.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-and-airtel-price-hike-new-plans-and-how-you-can-save-money/articleshow/111331794.cms" target="_blank">Reliance Jio and Airtel price hike – new plans and how you can save money</a>

Dr Reddy's, Sun Pharma recall drugs in US market: USFDA

<ul class="summary-list"><li>McDonald's Quarter Pounders have been linked to an <keyword id="22099782" type="General" weightage="100" keywordseo="E-coli-outbreak" source="keywords">E. coli outbreak</keyword> in several states, the CDC said.</li><li>McDonald's said it will temporarily remove the burgers from its menus in affected areas.</li></ul>A deadly E. Coli outbreak has been linked to the <a target="_blank" class="" href="https://www.businessinsider.com/mcdonalds-e-coli-outbreak-tied-quarter-pounders-2024-10">McDonald's Quarter Pounder</a>. So far, one person has died, and 10 others have been hospitalized in connection with the outbreak, which impacted 49 people across 10 states, the Centers for Disease Control and Prevention said Tuesday. McDonald's said it believes the outbreak may be linked to the slivered onions used on its Quarter Pounder. The fast-food chain said it is temporarily taking the burger off the menu in several states. "Negative <keyword id="20000858" type="General" weightage="20" keywordseo="food-safety" source="keywords">food safety</keyword> news is never welcomed by restaurants operators, especially those working to improve the brand image after getting off-sides on consumer affordability in recent years," Jon Tower, an analyst at Citigroup, said in a note to clients, according to <a target="_blank" class="" href="https://www.bloomberg.com/news/articles/2024-10-22/mcdonald-s-quarter-pounders-linked-to-e-coli-outbreak-cdc-says?srnd=homepage-americas&amp;sref=yaJhKSOh">Bloomberg</a>. Tower said McDonald's outlook depends on the company's response, which should include taking responsibility, controlling the outbreak, and overcorrecting on food safety, the outlet reported. Examining how other fast-food giants have recovered from recent health-related crises might also provide insight into how McDonald's will try to recover from the incident. <h2>How Chipotle and Wendy's came back from health-related problems</h2>Several fast-food brands have bounced back from food-safety incidents before. One of those is Chipotle, the fast-casual Mexican chain that McDonald's had a <a target="_blank" href="https://www.businessinsider.com/the-ridiculous-reason-mcdonalds-sold-chipotle-2015-5">90% stake in</a> until 2006. In 2015 and 2016, hundreds of customers reported becoming ill after eating at Chipotle outlets. Chipotle's stock price plummeted, and the company eventually agreed to pay a $25 million <a target="_blank" href="https://www.fda.gov/inspections-compliance-enforcement-and-criminal-investigations/press-releases/chipotle-mexican-grill-agrees-pay-25-million-fine-resolve-charges-stemming-more-1100-cases-foodborne">fine</a> to settle criminal charges related to outbreaks that impacted 1,100 people between 2015 and 2018. But less than five years later, the company and its stock price had <a target="_blank" class="" href="https://www.nytimes.com/2019/07/23/business/chipotle-stock-earnings.html">recovered</a>. So what did Chipotle do? In 2016, the company <a target="_blank" class="" href="https://ir.chipotle.com/news-releases?item=122453">announced</a> a spate of <a target="_blank" class="" href="https://www.nytimes.com/2016/09/22/business/every-days-a-safety-drill-as-chipotle-woos-customers-back.html?rref=collection%2Fbyline%2Fstephanie-strom">new food-safety protocols</a> — such as rinsing produce multiple times and putting stickers on food storage containers to indicate when they were sanitized — and hired James Marsden,a professor from Kansas State University, to serve as executive director of food safety. In 2017, Chipotle <a target="_blank" class="" href="https://ir.chipotle.com/news-releases?item=122384">announced</a> its founder, Steve Ells, would be stepping down as CEO in favor of someone with "demonstrated turnaround expertise." In 2018, Brian Niccol, currently the CEO of Starbucks, <a target="_blank" class="" href="https://ir.chipotle.com/news-releases?item=122376">took over</a> as the CEO of Chipotle after a successful stint at the helm of Taco Bell. Niccol told <a target="_blank" class="" href="https://www.nytimes.com/2019/07/23/business/chipotle-stock-earnings.html">The New York Times</a> in 2019 that Chipotle had become "an industry leader" in food safety, adding: "We're doing some really progressive things on the food safety front, and we're going to have to, because we're going to stay committed to using real ingredients." Chipotle's recovery may also have hinged on expanding the business in areas unrelated to food safety. "They are exceptional in how well the brand has capitalized on digital ordering," Sara Senatore, a Bernstein analyst who followed Chipotle, told <a target="_blank" class="" href="https://www.nytimes.com/2019/07/23/business/chipotle-stock-earnings.html">the Times</a> in 2019. Wendy's dealt with a similar situation. Between July and August 2022, Wendy's restaurants were linked to an E. coli outbreak in six states, per <a target="_blank" class="" href="https://archive.cdc.gov/www_cdc_gov/ecoli/2022/o157h7-08-22/index.html">the CDC</a>. A total of 109 people were infected, with 52 hospitalized. No deaths were reported. An investigation into the incident was unable to determine the specific food source responsible for the outbreak, but 46 people reported eating romaine lettuce served on the burgers and sandwiches before falling sick, per <a target="_blank" class="" href="https://archive.cdc.gov/www_cdc_gov/ecoli/2022/o157h7-08-22/details.html">the CDC</a>. As a precaution, the fast-food chain removed romaine lettuce from menu items in the affected states. Despite the E. coli outbreak, the company's US sales <a target="_blank" class="" href="https://s1.q4cdn.com/202642389/files/doc_financials/2022/q3/2022-Q3-Press-Release.pdf">jumped 7.7% in the third quarter of 2022</a>, compared with the year prior. In its latest <a target="_blank" href="https://www.wendys.com/csr-what-we-value/reports">corporate responsibility report</a>, published in May, Wendy's said it was committed to continuously improving its food safety standards and operational procedures and has conducted over 12,000 Food Safety Assessments in its restaurants worldwide. <h2>What McDonald's should do</h2>The McDonald's case differs from similar incidents at other <keyword id="20697449" type="General" weightage="20" keywordseo="fast-food-chains" source="keywords">fast-food chains</keyword> primarily due to the iconic status of the Quarter Pounder, Alexandra Leung, the founder of <a target="_blank" class="" href="https://monogic.co/">Monogic</a>, an F&amp;B marketing and PR agency in Singapore and Hong Kong, told Business Insider. "As a classic menu item, any food safety issue involving the Quarter Pounder could significantly impact consumer trust and brand reputation, making it a more sensitive issue for McDonald's," she said. The Quarter Pounder is important to McDonald's menu — and to its brand more broadly. Menu "classics" like the Quarter Pounder <a target="_blank" class="" href="https://www.businessinsider.com/mcdonalds-quarter-pounder-ecoli-outbreak-why-important-sales-2024-10">have made up a bulk of food sales</a> in McDonald's top markets in recent years. The company's stock price tumbled nearly 10% in after-hours trading on Tuesday, following the news. However, Leung said the company's well-established food safety management system and history of rigorous supplier audits may allow for a more effective response. The fast-food chain will also have to conduct thorough audits of its suppliers' practices, she said. In addition to removing any affected items from the menu, McDonald's should also communicate clearly with its customers throughout the process, Leung said. "Clear messaging about the steps being taken to ensure food safety is vital. This proactive approach will help reassure customers that their health is a top priority," Leung said. "Transparency is crucial in rebuilding trust with customers, as it demonstrates accountability and a commitment to their safety." October 24, 2024 — An earlier version of this story mentioned a product recall of the affected items, McDonald's has not confirmed an official recall.

How McDonald's can learn from other fast-food giants in recovering from the deadly E. coli outbreak

<ul class="summary-list"><li>Fast food chains say they're locked in a "value war" to win <a target="_blank" class="" href="https://www.businessinsider.com/companies-are-doubling-down-on-loyalty-programs-2024-8">increasingly choosy US customers</a>.</li><li>On earnings calls, brands highlighted ways they're trying to offer more bang for diners' bucks.</li></ul>It's an especially challenging time in the fast food business.As a flurry of summer deals come to an end, quick-serve chains say they're now locked in a "value war" to win increasingly choosy US customers.While almost everything is more expensive now than a few years ago, <a target="_blank" href="https://www.ers.usda.gov/data-products/chart-gallery/gallery/chart-detail/?chartId=109406">inflation</a> figures show price increases for dining out have outpaced groceries, with the divide widening sharply over the past two years.More recently, some brands have aimed to soften the sticker shock with <a target="_blank" class="" href="https://www.businessinsider.com/mcdonalds-starbucks-costco-fast-food-retail-loyalty-programs-2024-10">temporary discounts to get diners in the door</a>, but rising costs of things like labor and raw ingredients are increasingly squeezing profits."Consumers have become more discerning," Moody's Ratings analyst Michael Zuccaro said in a note Friday. "Value perception is a key driver. This is not just price but also experience related factors such as convenience, speed, consistency, and accuracy."On earnings calls this week, brands such as McDonald's, Starbucks, Wendy's, and others highlighted ways they're trying to offer more bang for their customers' bucks.Chipotle said Tuesday that its ingredient costs have gone up recently due to a recent emphasis on delivering "<a target="_blank" href="https://www.businessinsider.com/chipotle-says-ensuring-consistent-portions-has-hit-profitability-2024-10">consistent and generous portions</a>" in its burritos and bowls after customers complained earlier in the year of feeling short-changed.Between higher ingredient usage and other costs on the one hand, and a more competitive consumer economy, interim CEO Scott Boatwright said Chipotle was well-positioned to win the "value war" in fast-casual dining."The chicken burrito, on average, is still under $10, which we believe is still a 15% to 30% discount compared to our peer group. And so, we'll continue to lean into that as we move forward," he said in the company's call.Boatwright's predecessor Brian Niccol, who's now CEO at Starbucks, made <a target="_blank" class="" href="https://www.businessinsider.com/starbucks-ceo-to-lay-out-strategy-to-fix-coffee-chain-2024-10">several critiques of the coffee chain's recent value proposition</a> during the coffee company's Wednesday earnings call, including its "complicated" menu and customization options."What I have found is when you get simplification in place on pricing, people understand, OK, this is what I'm paying, and this is what I'm getting. And right now, I think we're surprising people a little bit on what they're paying through the customization process and we've got to fix that," he said.Even Wingstop CFO Alex Kaleida weighed in."We see consumers prioritizing brands that are going to deliver on quality and value," he said Wednesday. "We think we're right in that sweet spot of those guest expectations."In the world of burgers and fries, McDonald's CEO Chris Kempczinski expressed concern during the company's earnings call Tuesday that "our value leadership gap has shrunk" as other chains bring competitive offers to the marketplace."In response, we have moved with urgency in partnership with our franchisees to improve our value offerings in most of our major markets," Kempczinski said.McDonald's CFO Ian Borden also told analysts on the call that the company is using its <a target="_blank" class="" href="https://www.businessinsider.com/mcdonalds-sales-dropped-second-quarter-in-a-row-sharees-down-2024-10">$5 meal deal to grow its loyalty program</a>."Buyers of the $5 meal are visiting us more frequently," he said on the call, saying that those repeat visitors go on to choose other menu items as well. "That's what you start seeing when you start getting consumers back into the restaurants on a more regular basis."Even premium burger brand Shake Shack said on Wednesday that its customers have had enough with price hikes, pushing the company to invest more in value."Despite the pricing we've taken over the last year, we're one of the few brands to actually improve our value equation over the last year," CEO Robert Lynch said during the company's call. "It does feel like all the initiatives that the team has put in place around service and speed, coupled with the great food that we continue to deliver, is driving a stronger value perception, which is allowing us to continue to grow."Wendy's rounded out the trend on Thursday with a detailed discussion of its approach to value."We're thinking about value," CFO Gunther Plosch said Thursday. "We absolutely believe that value in an environment of value-seeking consumers is not about only executing price-pointed promotions and value deals and value bundles — there's more to that."Plosch added that beyond the burger chain's creative promotions, the core menu remains essential to <a target="_blank" class="" href="https://www.businessinsider.com/wendys-stores-closing-140-locations-2024-11">getting customers to come back</a>."We are working really hard on having that value-seeking consumer having an outstanding experience at the restaurant," he told analysts.In other words, prices aren't likely to come down, but CEOs and CFOs will be anxious to see that you were satisfied with your order.

Fast food chains are locked in a 'value war' for US customers

<ul class="summary-list"><li>Fast-food chains and retailers are using loyalty programs to drive sales amid inflation challenges.</li><li>These programs are key for customer retention and giving chains a competitive advantage.</li></ul>Retailers and fast-food chains are leaning into loyalty programs to drive sales. This week, McDonald's reported its Q3 results. Global <a target="_blank" class="" href="https://www.businessinsider.com/mcdonalds-sales-dropped-second-quarter-in-a-row-sharees-down-2024-10">sales dropped 1.5% in its latest quarter</a>, following a 1% slide in the previous quarter.However, one bright spot in its earnings was that the fast-food chain reported sales to its loyal members reached over $28 billion for the 12 months ending September — and $8 billion during the quarter across 50 loyalty markets. This is up from $6 billion in Q1 and $7 in Q2. The figure includes sales in both company-owned and franchisee restaurants.<a target="_blank" class="" href="https://www.businessinsider.com/mcdonalds-new-rewards-program-offers-free-burgers-and-mcchickens-2021-6">MyMcDonald's Rewards</a> was first introduced in the US in the summer of 2021. By the end of that year, McDonald's said over 21 million shoppers in the US had enrolled in the system. The program has since expanded to other markets.For every dollar spent on an order, you receive points. When accumulated, these can then be used to redeem free menu items.CEO Chris Kempczinski told analysts that the company's aim to reach 250 million active members by the end of 2027 was achievable. As of December 2023, McDonald's had 150 million 90-day active users in its loyalty program."We know as we drive loyalty adoption, we increase the frequency of visit and the spend from these customers over time," Kempczinski said.<h2 id="88661e47-ef97-4b4a-ae95-3bf701414a31">It's not just McDonald's</h2>McDonald's is not the only chain reaping the rewards from loyal consumers.Starbucks said in its most recent report earlier this week that its own rewards program had reached 33.8 million 90-day active members, a 4% year-on-year increase. Former boss Laxman Narasimhan said in February that <a target="_blank" class="" href="https://www.businessinsider.com/starbucks-offer-fewer-deals-under-new-ceo-2024-10">60% of the company's sales</a> were from the nearly 34 million Starbucks Rewards members.Another popular example is Costco, which has become a master at building a superfan base.The warehouse club chain said its executive-tier members, who get 2% rewards on purchases, are <a target="_blank" href="https://www.businessinsider.com/companies-are-doubling-down-on-loyalty-programs-2024-8">responsible for about 73% of worldwide sales</a>.For West Paschal, cofounder of Alpine IQ, a Colorado-based customer loyalty platform that works with retail businesses, people are hesitant to spend on non-essential goods, so it is particularly important for businesses to use rewards programs to draw them in."It's especially necessary right now," he told Business Insider, "persuading consumers with loyalty deals can be a way to get them back in the store."<div type="image" title="A Starbucks barista works at an espresso machine" height="3456" width="5184" msid="114852909" hostid="261" sizebytes="514486"></div>As prices have soared due to inflation and shoppers have tightened their belts, fast-food chains have been competing against each other to tempt them back with <a target="_blank" href="https://www.businessinsider.com/fast-food-price-rises-tipping-point-value-deals-combos-mcdonalds-2024-8">the best value meals</a>. McDonald's, KFC, and Burger King all rolled out $5 combo deals, for example."Loyalty programs are among the most effective ways businesses can cultivate customer engagement and repeat business," Kevin Shahnazari, cofounder of FinlyWealth, a personalized credit card recommendation service, said.Restaurants and stores that offer points-earning apps can drive consumers to opt to buy there over shopping at competitors and they would likely continue making their purchases somewhere where they can win rewards, he said.<h2 id="64ce7ac0-7b75-4926-88de-aa38ad203f8c">The power lies in the perks</h2>However, a good loyalty program should be about more than just the points.Financial incentives are still important, but there's a growing appreciation for rewards programs that align with the customer's values and include personalized experiences, Zsuzsa Kecsmar, chief strategy officer of Antavo Enterprise Loyalty Cloud, an AI-powered customer loyalty platform, said.<a target="_blank" class="" href="https://www.businessinsider.com/chappell-roan-against-hm-doesnt-bode-well-for-brand-2024-9">H&amp;M</a> is one of the retailers that offers exclusive event invites to its members, while <a target="_blank" class="" href="https://www.businessinsider.com/nike-ceo-elliott-hill-takes-over-faces-challenges-2024-10">Nike</a> provides a customization service for its app users.For Zarina Stanford, CMO at software development firm Bazaarvoice, today's customer wants to feel recognized, and programs that achieve this can create a powerful cycle of prolonged engagement."In a marketplace where choices are endless, a strong loyalty program doesn't just retain customers, it also builds a relationship that feels personal and valuable," she said.It also provides companies with valuable data to understand customers better and tailor marketing.For the future of rewards systems, Kecsmar said <a target="_blank" class="" href="https://www.businessinsider.com/sc/how-your-business-can-leverage-data-to-increase-customer-loyalty">technology will likely play a crucial role</a> in further adapting to the personalized needs of customers."This might include leveraging AI and advanced analytics to create more intuitive and responsive loyalty ecosystems that adapt to individual customer preferences and behaviors," she added.

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