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<a href="http://www.businessinsider.in/searchresult.cms?query=amtek">Amtek Group</a>, which acquired <a href="http://www.businessinsider.in/searchresult.cms?query=barista">Barista Coffee</a> almost a year back, is now looking for potential buyers for the Italian coffee chain.<br />
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The auto component maker, Amtek, which is the fourth owner of Barista, has roped in Grant Thornton for the same.<br />
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Reportedly, Amtek Auto might liquidate about one-third in Carnation Hospitality as Arvind Dham had recently informed about the decision to offload non-core assets and exit non-auto businesses.<br />
<br /> <keyword id="165529" type="COMPANY" weightage="20" keywordseo="Amtek-Group">Amtek Group</keyword> is debt laden and defaulted on repayment of Rs 800 crore.<br />
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It is not that Barista Coffee is making profits as 170-plus stores are loss making. However, in terms of stores, Barista outnumbers <a href="http://www.businessinsider.in/searchresult.cms?query=cafe+coffee+day">Cafe Coffee Day</a>. <br />
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(Image: Indiatimes)<br />

Barista is up for sale yet again!

<ul class="summary-list"><li>Former Starbucks CEO Howard Schultz has some thoughts on the company's poor quarterly sales.</li><li>He said the chain needs to fix its app and focus on the customer experience.</li></ul><p>Howard Schultz says <a target="_blank" href="https://www.businessinsider.com/starbucks-menu-drink-order-why-coffee-2024-5">Starbucks</a> needs to fix its stores and mobile app to reverse its "fall from grace."</p><p>The longtime former CEO wrote in a LinkedIn post on Sunday that the coffee chain should focus on improving its customer experience. This comes after Starbucks posted <a target="_blank" href=" https://www.businessinsider.com/starbucks-says-mornings-are-too-busy-leading-to-abandoned-orders-2024-4">disappointing quarterly results</a> last week.</p><p>"The company's fix needs to begin at home: US operations are the primary reason for the company's fall from grace," Schultz <a target="_blank" href="https://www.linkedin.com/feed/update/urn:li:activity:7193044402255110144/">wrote</a>. "The stores require a maniacal focus on the customer experience, through the eyes of a merchant. The answer does not lie in data, but in the stores."</p><p><a target="_blank" href="https://www.businessinsider.com/starbucks-howard-schultz-ceo-gen-z-2023-3">Schultz</a> had multiple stints leading Starbucks, where he was CEO for more than two decades.</p><p>Though he wasn't a founder — he <a target="_blank" href="https://www.businessinsider.com/starbucks-howard-schultz-success-story-2017-12">bought the company from its previous owners</a> — <span>Schultz shaped the company's growth and turned it into a global giant.</span></p><p>He most recently returned as interim CEO for nearly a year after <a target="_blank" href="https://www.businessinsider.com/starbucks-ceo-kevin-johnson-retire-howard-schultz-interim-ceo-coffee-2022-3">Kevin Johnson retired</a> in April 2022.</p><p>"Senior leaders — including board members — need to spend more time with those who wear the green apron," Schultz wrote on LinkedIn in reference to Starbucks' baristas. He added that the chain needs to "overhaul" its strategy and reinforce its "premium position."</p><p>"Through it all, focus on being experiential, not transactional," Schultz wrote. Starbucks has long positioned itself as a "third place" where people can spend time outside their home or workplace, although this model is increasingly <a target="_blank" href="https://www.businessinsider.com/starbucks-embracing-drive-thrus-and-mobile-over-traditional-mode-2022-8">under threat</a> as the chain embraces drive-thru and delivery sales.</p><p>Schultz said that one of leadership's first actions should be to "reinvent" its mobile app to make it an "uplifting experience" once again, without elaborating further. App orders made up 31% of all US transactions last quarter.</p><p>CEO Laxman Narasimhan told investors last week that a <a target="_blank" href="https://www.businessinsider.com/starbucks-says-mornings-are-too-busy-leading-to-abandoned-orders-2024-4">"mid-teens percent" of potential mobile orders weren't being completed</a>, with customers putting items into their carts but then not finalizing orders. Baristas have complained that the app can leave stores <a target="_blank" href="https://www.businessinsider.com/starbucks-mobile-ordering-app-barista-pandemic-coffee-customers-online-digital-2021-6">inundated with too many orders</a> and that customers have used it to order drinks with <a target="_blank" href="https://www.businessinsider.com/starbucks-baristas-drinks-ingredients-orders-customization-stickers-coffee-2021-6">excessive modifications</a>.</p><h2>Recovery 'certain'</h2><p>Starbucks posted a 1.8% fall in quarterly net revenues to $8.56 billion, with fewer visits from what Narasimhan described as "occasional" customers.</p><p>In North America, comparable sales fell 3%, driven by a 7% drop in the number of transactions. That's where almost half of Starbucks' stores are located, and the region accounts for almost three-quarters of its revenues.</p><p>The decline was even worse in China, Starbucks' second-biggest market behind the US, where comparable sales plunged 11%. The number of orders was down 4%, with an 8% decline in ticket size. Total revenues in China fell 8% to $705.8 million.</p><p>Sharon Zackfia, <span>an analyst with William Blair,</span> said in a note to clients that the chain had posted a "stunning across-the-board miss on all key metrics."</p><p>The stock is down 22% this year, and by almost a third over the past 12 months, leaving Starbucks worth about $82 billion.</p><p>It's not the first time Schultz has offered some advice to management. Earlier this year he said Starbucks should go on a soul-searching journey and reinvent itself in a <a target="_blank" href="https://www.businessinsider.com/starbucks-founder-wants-it-to-do-some-soul-searching-2024-3">two-page letter posted on LinkedIn</a>.</p><p>However, the chairman emeritus hasn't lost faith in the business.</p><p>"Starbucks will recover — of that, I am certain," Schultz wrote on Sunday. "I am confident the China business will return to health and become the company's largest market. The brand is incredibly resilient, but it's clearly not business as usual."</p><p><em>Do you work at Starbucks? Got a story? Email this reporter at </em><strong>gdean@businessinsider.com</strong></p>

Howard Schultz tells Starbucks to fix its stores and mobile app to reverse 'fall from grace'  

<ul class="summary-list"><li>William Li grew up in a village in rural China without electricity. </li><li>He's co-founded and invested in 40 companies, including premium EV startup Nio.</li></ul><p><a target="_blank" href="https://www.businessinsider.com/china-xi-jinping-crush-tesla-elon-musk-american-ev-industry-2024-2">China is the world's leading electric vehicle market</a>, and <a target="_blank" href="https://www.businessinsider.com/ev-electric-vehicle-china-brands-byd-nio-wuling-zeekr-geely-2023-5">Nio is one of its key players</a>.</p><p>The Shanghai-based premium EV company was co-founded in 2014 by its CEO, William Li.</p><p>William Li, also known as Bin Li, has been dubbed the <a target="_blank" href="https://www.businessinsider.com/chinas-answer-elon-musk-explains-company-take-tesla-2018-5">"Elon Musk of China"</a> for his push to develop self-driving EVs and his loyal fan base. His company's annual "Nio Day" drew crowds of 10,000 Nio owners who came to see the latest vehicle, the ET9, unveiled.</p><p>Here are eight things to know about the CEO of Nio:</p><h2>1. Li grew up on a dairy farm</h2><div type="image" title="William Li onstage in front of an image of the countryside" height="1737" width="2605" msid="108900733" hostid="261" sizebytes="120372"></div><p>Born in 1974, <a target="_blank" href="https://www.scmp.com/magazines/style/tech-design/article/3101572/chinas-elon-musk-billionaire-brains-behind-start-ups">Li grew up on a dairy farm</a> in China's agricultural Anhui province, where his village didn't have electricity until he was in high school.</p><p>He gained entry to one of China's most prestigious universities, Peking University, to study sociology and law. He launched his first company at the age of 21.</p><p>He's since gone on to cofound and invest in <a target="_blank" href="https://www.niocapital.com/en/team/4.html#:~:text=developed%20into%20Dangdang.-,Mr.,the%20internet%20and%20automotive%20industries.">40 companies</a> across the internet and automotive industries — three of these have gone public, per <a target="_blank" href="https://www.ft.com/content/6df9031b-4dca-405d-8165-6983de270e68">the FT</a>, including Bitauto in 2010 and Nio in 2017.</p><p>It's unclear what Li's net worth is — though he's listed as a billionaire in some rankings, he's not currently included on Bloomberg's Billionaires Index.</p><h2>2. He co-founded his first major company in his mid-twenties</h2><p>Bitauto, a car comparison website, was co-founded by Li in 2000. It was his first major success in the market, and went public on the New York Stock Exchange in 2010.</p><p>In 2020, it was taken private with a $1.1 billion buyout, and Li resigned as CEO to turn more of his attention to Nio.</p><h2>3. His company is pioneering battery-swapping charging technology</h2><div type="image" title="a Nio car in the Nio battery-swapping station" height="2784" width="4176" msid="108900735" hostid="261" sizebytes="516994"></div><p>Li is distinguishing his company from other EV players like Tesla and BYD with <a target="_blank" href="https://www.businessinsider.com/ev-battery-swapping-china-rescue-us-revolution-2024-2">battery-swapping technology</a>.</p><p>Instead of users plugging in their cars and waiting to charge, they can swap out the dead battery for a fully charged one at a designated station. The process takes just under five minutes.</p><p>To manage costs, customers can buy the car without a battery and then pay a monthly subscription to access the swapping stations. It has more than 2,000 stations around China and around 30 in Europe.</p><p>There's still a while to go to build up the infrastructure of this service and it remains more expensive than regular charging.</p><h2>4. His latest Nio model can shake off snow like a puppy</h2><div type="image" title="Camouflaged Nio ET9 shaking off snow" height="809" width="1442" msid="108900737" hostid="261" sizebytes="47646"></div><p>Nio's new ultra-premium model, the ET9, can independently <a target="_blank" href="https://www.businessinsider.com/nio-et9-ev-china-skyride-intelligent-chassis-snow-video-2024-2">shake off chunks of snow, clearing the windshield and roof</a>.</p><p>Li also demonstrated the vehicle's stability in a <a target="_blank" href="https://www.nio.com/videos/nio-day-2023-a-new-journey">video</a> that showed champagne glasses full of liquid balancing on the front of the car while it drove over bumps.</p><h2>5. Nio cars come with a hefty price tag</h2><div type="image" title="A Nio parked in front of the NYSE" height="3724" width="6503" msid="108900740" hostid="261" sizebytes="930502"></div><p>Nio's premium smart EVs can be more expensive than a Tesla, <a target="_blank" href="https://www.cnbc.com/2023/04/18/nio-says-it-wont-join-the-price-war-and-slash-prices-like-tesla.html">CNBC</a> reported.</p><p>The ET9, which starts shipping in China in 2025, will cost customers $112,000, making it Nio's most expensive car.</p><p>Its mid-size cars, such as the Nio ES7 SUV, are priced at <a target="_blank" href="https://www.businessinsider.com/ev-electric-vehicle-china-brands-byd-nio-wuling-zeekr-geely-2023-5#2-nio-a-premium-ev-brand-says-it-will-not-join-teslas-price-war-3">around $68,000</a>, a lot pricier than the Tesla's Model Y, which comes in the <a target="_blank" href="https://www.reuters.com/business/autos-transportation/tesla-raises-price-model-y-long-range-china-nov-21-2023-11-21/">$40,000 range in China</a>.</p><h2>6. Li's fans can direct message him anytime they want</h2><div type="image" title="William Li at the launch of the NIO phone" height="2427" width="3640" msid="108900742" hostid="261" sizebytes="340364"></div><p>Li wants Nio customers to feel like they're <a target="_blank" href="https://www.ft.com/content/6df9031b-4dca-405d-8165-6983de270e68">members of a club.</a></p><p>Anyone who purchases a Nio car can access <a target="_blank" href="https://www.businessinsider.com/nio-tesla-of-china-has-swanky-clubhouse-for-car-owners-tour-photos-2018-10">"Nio Houses"</a> equipped with meeting rooms, lounges, baristas, and supervised kids' play areas.</p><p>Last year, the company launched its own <a target="_blank" href="https://www.nio.com/news/NIO_IN_2023">Nio smartphone,</a> which connects to Nio EVs — customers can use the phone to unlock their car, adjust their seat preferences, and <a target="_blank" href="https://www.reuters.com/technology/chinese-ev-maker-nio-launches-first-mobile-phone-2023-09-21/">activate the car's self-parking feature.</a></p><p>Nio owners can also directly message Li in the car's app with feedback. This has meant that some senior execs from the company have faced calls from Li in the middle of the night to implement customer suggestions, per the <a target="_blank" href="https://www.ft.com/content/6df9031b-4dca-405d-8165-6983de270e68">FT.</a></p><h2>7. Nio developed a battery that can last for over 649 miles — and Li livestreamed himself trying it out for 14 hours</h2><div type="image" title="William Li" height="1667" width="2500" msid="108900744" hostid="261" sizebytes="196144"></div><p>In December, Li showcased the EV's groundbreaking battery lifespan with a <a target="_blank" href="https://www.businessinsider.com/nio-has-developed-ev-battery-with-a-1-000km-range-2023-12">livestream of his 14-hour car journey</a> from Shanghai to Xiamen — all done on a single battery charge.</p><p>After covering the distance of 1,044 km (649 miles), the NIO ET7 was left with 3% charge.</p><h2>8. To Li's dismay, Nio cars are not yet available for sale in the US</h2><div type="image" title="Nio CEO, William Li with his hand on his head in front of the NIO logo" height="5760" width="8640" msid="108900746" hostid="261" sizebytes="1075200"></div><p>In an <a target="_blank" href="https://www.ft.com/content/8b903ae7-750f-460d-822b-adee7215c528">interview with the FT</a>, Li expressed dissatisfaction with the <a target="_blank" href="https://www.businessinsider.com/china-xi-jinping-crush-tesla-elon-musk-american-ev-industry-2024-2">25% tariffs levied against Chinese-made EVs</a> sold in the US.</p><p>He said geopolitical tensions between the US and China shouldn't impact business. Nio already has ties to the US: it's listed on the New York Stock Exchange, and most of its investors come from outside China.</p><p>But some US manufacturing advocacy groups have called for a block on Chinese EVs being imported from their outposts in Mexico as a threat to domestic industry, <a target="_blank" href="https://www.reuters.com/business/autos-transportation/us-should-block-low-cost-chinese-automaker-imports-mexico-says-manufacturers-2024-02-23/">Reuters reported</a>. Elon Musk said that <a target="_blank" href="https://www.businessinsider.com/elon-musk-tesla-warns-chinese-ev-firms-could-demolish-rivals-2024-1">"Chinese EVs would pretty much demolish"</a> American automakers if allowed to be sold in the US.</p>

8 things you need to know about EV startup founder William Li — known as China's version of Elon Musk 

<p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"></div><p></p></div></div><ul class="summary-list"><li><a href="https://www.businessinsider.com/category/howard-schultz" target="_blank" rel="noopener">Howard Schultz</a>, likely <a href="https://www.businessinsider.com/howard-schultz-wants-to-run-for-president-2020-why-2019-2">presidential hopeful</a> and former <a href="https://www.businessinsider.com/category/starbucks">Starbucks</a> CEO, took issue with the word "billionaire" in his response to a question about the political influence of the wealthy.</li><li>At a book event on Monday, Schultz swapped out the word for the term "people of means."</li><li>"The moniker 'billionaire' now has become the catchphrase," he said.</li></ul><p>Billionaire Howard Schultz isn't a fan of being called a billionaire.</p><p>On Monday, the former Starbucks CEO and chairman sat down with New York Times reporter Andrew Ross Sorkin to talk about <a href="https://www.amazon.com/Ground-Up-Journey-Reimagine-Promise-ebook/dp/B07HWS8LC9">his book</a> "From the Ground Up: A Journey to Reimagine the Promise of America."</p><p>Sorkin asked Schultz to respond to a question from "Winner Takes All" author Anand Giridharadas - who's been critical of Schultz's political ambitions - about whether or not billionaires wield too much political power in the United States.</p><p>Schultz appeared to take issue with the question's phrasing, saying, "The moniker 'billionaire' now has become the catchphrase." Schultz's team didn't immediately respond to Business Insider's request for comment.</p><div data-rapid-cpos="3" data-rapid-subsec="paragraph" data-rapid-parsed="subsec"><p>"I would rephrase that and say people of means have been able to leverage their wealth and their interest in ways that are unfair," Schultz said. "And I think that speaks to the inequality, but it also directly speaks to the special interests that are paid for by people of wealth and corporations who are looking for influence and they have such unbelievable influence on the politicians who are steeped in the ideology of both parties."</p><p><em><strong>Read more</strong>: <a href="https://www.businessinsider.com/howard-schultz-wants-to-run-for-president-2020-why-2019-2" target="_blank" rel="noopener">Insiders reveal why Starbucks' former CEO Howard Schultz is willing to ruin his life to run for president</a></em></p><p>The likely presidential hopeful's net worth is around $3.5 billion, according to <a href="https://www.forbes.com/profile/howard-schultz/#3a7ef92752c6" target="_blank" rel="noopener">Forbes</a>. And his comments come at a time when notable Democratic politicians like <a href="https://www.foxnews.com/politics/most-voters-support-70-percent-tax-hike-on-richest-americans-poll" target="_blank" rel="noopener">Alexandria Ocasio-Cortez</a>, <a href="https://thehill.com/homenews/campaign/427967-warren-billionaires-should-stop-being-freeloaders" target="_blank" rel="noopener">Elizabeth Warren</a>, and <a href="http://fortune.com/2019/01/31/sanders-proposes-estate-tax-of-up-to-77-percent-for-billionaires/" target="_blank" rel="noopener">Bernie Sanders</a> are calling for higher taxes on the wealthy.</p><p>But Schultz's concern about the word "billionaire" also echoes that of yet another famous billionaire: Elon Musk.</p><div></div></div><p>On July 10, 2018, Musk tweeted that the media uses the term "billionaire" to "devalue" and "denigrate" people. Musk's net worth is $21.3 billion, according to <a href="https://www.forbes.com/profile/elon-musk/" target="_blank" rel="noopener">Forbes</a>.</p><p>For his part, Schultz ended his response to Giridharadas' question by stressing that he's not beholden to either major US political party.</p><p>"All I'm trying to do is one thing: Walk in the shoes of the American people," he said.</p><ul class="read-more-links"><li>Read more about Howard Schultz:</li><li><a href="https://www.businessinsider.com/starbucks-baristas-on-howard-schultz-presidential-aspirations-2019-1" data-read-more-link="" data-e2e-name="read-more-link">Starbucks baristas are begging their former CEO not to run for president</a></li><li><a href="https://www.businessinsider.com/howard-schultz-book-bad-reviews-amazon-2019-1" data-read-more-link="" data-e2e-name="read-more-link">People are flooding the Amazon page for Howard Schultz's new book with negative comments after the ex-Starbucks CEO said he was 'seriously considering' running for president</a></li><li><a href="https://www.businessinsider.com/howard-schultz-starbucks-president-independent-could-elect-trump-2020-2019-1" data-read-more-link="" data-e2e-name="read-more-link">If you want to see Trump get fired in 2020, tell Howard Schultz to go home</a></li><li><a href="https://www.businessinsider.com/howard-schultz-failed-race-together-campaign-2019-1" data-read-more-link="" data-e2e-name="read-more-link">Howard Schultz reveals how he decided to launch Starbucks' 'embarrassing' and 'tone-deaf' 'Race Together' campaign despite internal concerns</a></li></ul><div></div>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/leaked-video-ex-starbucks-ceo-howard-schultz-tells-workers-trump-creating-chaos-2017-5">LEAKED VIDEO: Former Starbucks CEO Howard Schultz tells workers Trump is 'creating chaos' that's affecting the economy</a></h3>        <div>                    </div>    </div>

Billionaire and likely presidential hopeful Howard Schultz doesn't want people calling him a 'billionaire'

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>REUTERS/Stefan Wermuth</span></p><p class="caption">Starbucks is closing stores to train workers on issues related to discrimination.</p></div><p></p></div></div></p><ul><li><strong><a href="http://www.businessinsider.com/category/starbucks">Starbucks</a> is <a href="http://www.businessinsider.com/starbucks-stores-are-closed-may-29-2018-4">closing all locations across</a> the US on May 29 to train employees on issues related to discrimination after <a href="http://www.businessinsider.com/starbucks-arrest-builds-on-exclusion-problem-2018-4">two black men were arrested</a> in a Philadelphia store. </strong></li><li><strong>The coffee chain has only closed all stores one other time, in a period when Starbucks was <a href="http://www.businessinsider.com/starbucks-ceo-howard-schultz-onward-book-excerpt-2011-3">struggling to survive.</a> </strong></li><li><strong>Starbucks lost roughly $6 million when it closed stores for an afternoon in 2008 to retrain employees.</strong></li></ul><p>Starbucks is <a href="http://www.businessinsider.com/starbucks-stores-are-closed-may-29-2018-4">closing all stores across the US to train employees</a> - something the coffee giant has only done one other time in its history. </p><p>On Tuesday, Starbucks announced plans to close all 8,000 stores across the US for the afternoon of May 29. Starbucks said in a statement it plans to "conduct racial-bias education geared toward preventing discrimination in our stores" during the period. </p><p>The training comes after a video of two black men being arrested at a Philadelphia location of the coffee chain <a href="http://www.businessinsider.com/starbucks-boycott-grows-2018-4">went viral.</a> Employees called the police when the men refused to leave the Starbucks after asking to use the restroom without having purchased any drinks.</p><p>Starbucks apologized to the men over the weekend and began a review of its training and practices, with plans to change policies that could result in discrimination against certain customers. </p><p>"The company's founding values are based on humanity and inclusion," executive chairman Howard Schultz said in a statement. "We will learn from our mistakes and reaffirm our commitment to creating a safe and welcoming environment for every customer."</p><p>While the decision to close stores to train employees on issues of racial discrimination is unprecedented, Starbucks has done something similar once before under Schultz's leadership.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>AP Photo/Paul Sakuma</span></p><p class="caption">A sign announcing a Starbucks store's closure to reeducate baristas in Palo Alto, California.</p></div><p></p></div></div></p><p>In February 2008, Starbucks closed all 7,100 of its stores for three and a half hours to train employees. Schultz had recently returned as CEO to <a href="http://www.businessinsider.com/how-starbucks-got-stuck-in-the-middle-in-4-jokes-2017-4">turn the company around</a> as it struggled to repair its reputation and grow sales after a period of overexpansion. </p><p>The closures cost the company an estimated $6 million, according to <a href="http://www.businessinsider.com/starbucks-ceo-howard-schultz-onward-book-excerpt-2011-3">Schultz's 2011 book "Onward: How Starbucks Fought for Its Life without Losing Its Soul"</a>. However, Schultz maintained that it was worth the financial cost and the mockery the company endured to put Starbucks back on the road to recovery. </p><p>"Ultimately, closing our stores was most powerful in its symbolism," Schultz wrote in "Onward." "It was a galvanizing event for Starbucks' partners - the term we use for our employees - a stake in the ground that helped reestablish some of the emotional attachment and trust we had squandered during our years of focusing on hypergrowth."</p><p>The gamble worked. While Starbucks was struggling to survive in 2008, the company reported net revenues of $22.4 billion in 2017.</p><p class="tagline"><a href="http://www.businessinsider.com/intelligence/next-frontier-in-customer-relations?IR=T&amp;utm_source=businessinsider&amp;utm_medium=ctgr&amp;utm_term=ctgr_leadgen&amp;utm_content=mobile_ctgr_leadgen&amp;utm_campaign=mobile_ctgr_leadgen_messaging-apps-crm"></a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/cook-out-food-review-restaurant-fast-food-2018-3">Inside Cook Out, the South's most underrated restaurant</a></h3>        <div>                    </div>    </div>

Starbucks is doing something it has only done once before - and last time it cost the company $6 million

<h3><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><p class="source"><span>Hollis Johnson</span></p></div><p></p></div></div></h3><h3>1. <a href="http://www.businessinsider.com/what-it-costs-to-open-a-chick-fil-a-2016-1">It costs almost nothing to open a Chick-fil-A</a></h3><p>Despite its success, Chick-fil-A charges franchisees only $10,000 to open a new restaurant, and it doesn't require candidates to meet a threshold for net worth or liquid assets, the company told Business Insider.</p><h3><strong>2. <a href="http://www.businessinsider.com/papa-johns-cuts-artificial-flavors-2016-1">Papa John's just made a huge change to its ingredients</a></strong></h3><p><span>The pizza chain announced on Tuesday that it had removed artificial flavors and synthetic colors from its food items, including pizza ingredients and toppings, desserts, and sauce selections.</span></p><h3>3. <a href="http://www.businessinsider.com/cadbury-creme-egg-sales-plummet-2016-1">Cadbury Creme Egg sales have plummeted after a controversial recipe change</a></h3><p><span><span><a href="http://www.businessinsider.com/cadbury-changes-creme-egg-recipe-2015-1">Last January</a>, </span>Cadbury changed the recipe of its iconic Creme Eggs; it swapped the Dairy Milk the company used in its shells for "a standard traditional Cadbury milk chocolate." Now, <a href="http://www.buzzfeed.com/saraspary/cadbury-creme-egg-sales-tumble-after-recipe-change-fury#.wgovzWdY0">BuzzFeed News</a> has reported that sales have dropped by more than $8 million since the big change.</span></p><h3>4. <a href="http://www.businessinsider.com/heineken-launches-moderate-drinkers-wanted-ad-2016-1">Heineken ad says you'll get more girls if you drink less beer</a></h3><p><span>In a press release, Heineken said the advertisement is rooted in research conducted by research agency Canvas8. The research shows that "responsible drinking is becoming the preferred means of enjoyment" for people over 21-years-old.</span></p><h3>5. <a href="http://www.businessinsider.com/starbucks-pays-for-baristas-housing-2016-1" target="_blank">Starbucks is offering a huge perk to workers in China</a></h3><p><span>Starting this month, full-time baristas and shift supervisors in China's Starbucks corporate stores will receive a monthly housing subsidy, expected to cover an average of 50% of monthly housing costs, according to a recent release.</span></p><h3>6. <a href="http://www.businessinsider.com/axe-launches-find-your-magic-campaign-2016-1">Axe is dropping its bro advertising in favor of a more modern take on masculinity</a></h3><p><span>Unilever-owned Axe is changing gears and dropping its signature "bro" ad campaigns. Instead, the company will be attempting to appeal to a wider demographic of men, by showing that masculinity is more expansive than just the idea of the alpha male.</span></p><h3>7. <a href="http://www.businessinsider.com/adore-me-shoppers-complain-of-scam-2016-1">Furious customers are calling a hot lingerie startup a scam because of its sales model</a></h3><p><span>Lingerie startup Adore Me has been besotted with good press, but the company has also endured backlash from some of its customers. Adore Me operates on a subscription model, which locks buyers into monthly payments. Some consumers say they do not receive clear disclosure about this. </span></p><h3>8. <a href="http://www.delish.com/food-news/a45512/starbucks-valentines-day-frappuccinos/" target="_blank">A barista has created a secret Valentine's Day Starbucks menu</a></h3><p>Tuscon, Arizona Starbucks barista Tony Aguilar posted photos of three Valentine's Day-inspired Frappuccinos to <a href="https://www.reddit.com/r/starbucks/comments/409bi2/my_coworkers_and_i_came_up_with_some_valentines/" target="_blank">Reddit</a>, <a href="http://www.delish.com/food-news/a45512/starbucks-valentines-day-frappuccinos/" target="_blank">Delish has reported</a>. He says he and his coworkers invented these beverages, which include the Valentine Frappuccino, the Love Bean Frappuccino, and the Java Berry Frappuccino.</p><h3 class="page-title">9. <a href="http://nrn.com/franchising/burger-king-franchisee-buys-42-units-south">A major Burger King franchisee has bought 42 more units</a></h3><p><span><span>Cambridge Franchise H</span>oldings has swept up</span><span> 42 southern locations of fast food chain, according to <a href="http://nrn.com/franchising/burger-king-franchisee-buys-42-units-south" target="_blank">Nation's Restaurant News</a>. Now, the franchisee has 85 units.</span></p><h3>10. <a href="http://www.businessinsider.com/american-apparel-missed-payroll-blames-deutsche-bank-2016-1">American Apparel briefly failed to make its payroll last week and the CEO is blaming Deutsche Bank</a></h3><p><span>American Apparel temporarily missed its payroll for US staff last week, according to two internal emails obtained by Business Insider. At least one employee complained about not being paid on social media, also.</span></p>

Consumer and retail news: 10 things you need to know today

<p><div class="KonaFilter image-container display-table"><div><div class="image"></div></div></div></p><ul class="summary-list"><li><strong>I started looking into <a href="https://www.businessinsider.com/category/disability-insurance">disability insurance</a> after hearing how a family member struggled for income after getting into an accident.</strong></li><li><strong>Long-term disability insurance would replace my income for a period of time if I were to be too injured or sick to work.</strong></li><li><strong>I wish I'd looked closer at two important clauses: own-occupation (in which the policy pays when you can't do your own job, as opposed to any job) and partial disability, which would pay out if I were only able to work part-time.</strong></li><li><strong><a href="https://policygenius.go2cloud.org/aff_c?offer_id=114&amp;aff_id=1592&amp;redirect_slug=businessinsider-disability">Policygenius can help compare disability insurance policies to find the right coverage for you »</a></strong></li></ul><p>Something I didn't anticipate looking into when I became a <a href="https://www.businessinsider.com/mistakes-i-made-as-a-new-freelance-writer-2019-8">full-time freelance writer</a> was <a href="https://www.businessinsider.com/disability-insurance-definition-cost-who-needs-it">disability insurance</a>. Sure, I knew that getting my financial paperwork in order is important - I took out a <a href="https://www.businessinsider.com/i-bought-a-500000-life-insurance-policy-at-age-25-2019-8">life insurance policy</a>, and got my estate planning completed - but it never crossed my mind what would happen if I wasn't able to work before I retired.</p><p>What really put the nail in the coffin is when I heard that a relative of mine had gotten into a major car accident and it took him months to recover. During that time, he and his family had to scramble for income because he was the sole earner.</p><p>As a breadwinner in my own family, this concerned me because I didn't want to put my husband in a position where he'd have to work extra long hours to pay for our bare necessities. Sure, we have a sizable <a href="https://www.businessinsider.com/how-much-money-to-save-in-emergency-fund-rules">emergency fund</a>, but what happens if that runs out?</p><p>That was the point when I was more serious about taking out a disability insurance policy. <a href="https://www.businessinsider.com/why-i-purchased-long-term-disability-insurance-as-a-freelancer-2019-8">As a freelancer</a>, I wasn't sure what my options were or what I should look for.</p><h2>Disability insurance protects your income in case you're unable to work</h2><p>As someone who is self-employed, I don't have an income if I can't work. Think of disability insurance as a safety net of sorts, one where you can protect your income in case something happens.</p><p>There are two kinds of disability insurance you can look into: short-term and long-term. <a href="https://www.businessinsider.com/what-is-short-term-disability-insurance-explained">Short-term</a> will start paying out a portion of your salary for a shorter period of time, like three to six months. <a href="https://www.businessinsider.com/long-term-disability-insurance-income-replacement-explained">Long-term will do so for a longer period of time</a>, like years. </p><p>For freelancers, short-term disability insurance isn't typically available (it's more commonly <a href="https://www.businessinsider.com/disability-insurance-why-employer-provided-isnt-enough">offered by an employer</a>) and from my own experience, not worth it. That's because I have a sizable emergency fund that will see me for a least a year before I need to be concerned. However, you need to figure out what's best for your situation.</p><p><em><strong><a href="https://policygenius.go2cloud.org/aff_c?offer_id=114&amp;aff_id=1592&amp;redirect_slug=businessinsider-disability">Policygenius can help compare disability insurance policies to find the right coverage for you »</a></strong></em></p><h2>You can choose when insurance kicks in, and how long it lasts</h2><p>For everyone, you'll need to meet some basic requirements - things like that you're generally in good health or are of a certain age. I'm thankful I don't have pre-existing conditions, because in some cases it may make you ineligible for coverage with certain insurers.</p><p>In addition, I also needed to prove I've been earning steady income from my freelancing. In this case I had to show proof of income for the past two years, so I used my tax returns. </p><p>Once I did that, then I was able to choose the amount I wanted to be paid out per month in case something does happen. My husband and I took a good look at our bare bones expenses and used that number as a benchmark.</p><p>Then came choosing the elimination period and the benefit period. The elimination period is how long I would have had to wait after becoming disabled to start receiving benefits. The shorter the period, the more expensive the policy can be - I ended up choosing 90 days since that was an option offered by the group plan I was under. </p><p>The benefit period is how long I wanted to receive benefits. Most are good for a few years and you can choose to be covered all the way until retirement. I opted for five years because again, that was what the group plan offered.</p><h2>Get clear on exactly what your policy covers</h2><p>One of my friends asked me to look into some important clauses in my disability insurance policy. I'm so thankful she did, because it opened my eyes that my income may still be at risk.</p><p>First, there's the own occupation clause. This is where the insurance company considers you too disabled to work at your current position. Mine is currently at two years, meaning if I'm disabled, those first two years I'm covered if I can't work as a freelance writer. </p><p>However, after two years it will switch to any occupation, meaning if I can't work as a writer but <em>can</em> work as a barista at Starbucks, for example, then the policy won't pay out anymore. Depending on what you're comfortable with, you can increase the term of the own occupation clause, though your premiums could go up.</p><p>Another benefit I wished I looked more into is the partial disability or residual disability benefit. This means that it you can work but not full-time, you'll still get a payout. For example, let's say you recovered and have the energy to write for three days a week instead of five because of rehab treatments, you'd still receive a monthly check.</p><p>It sounds like a lot to think about on top of all other things you need to juggle as a freelancer, but it's worth it knowing my family would be taken care of during challenging times.</p><h3><a href="https://policygenius.go2cloud.org/aff_c?offer_id=114&amp;aff_id=1592&amp;redirect_slug=businessinsider-disability">Policygenius can help compare disability insurance policies to find the right coverage for you »</a></h3><ul class="read-more-links"><li>More <a href="https://www.businessinsider.com/category/personal-finance-insider">personal finance</a> coverage</li><li><a href="https://www.businessinsider.com/best-airline-credit-card-comparison-delta-united-american">What's the best airline credit card?</a></li><li><a href="https://www.businessinsider.com//best-cash-back-credit-cards">The best cash back credit cards</a></li><li><a href="https://www.businessinsider.com/are-cds-a-good-investment">Are CDs a good investment?</a></li><li><a href="https://www.businessinsider.com/when-to-save-money-in-high-yield-savings">When to save money in high-yield savings</a></li><li><a href="https://www.businessinsider.com/best-rewards-credit-cards">Best rewards credit cards</a></li></ul><p class="tagline"><p style="font-size:14px;"><em>Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.<em></em></em></p></p>

When I started working for myself I never thought about disability insurance, but I've come to realize it couldn't be more important

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Starbucks</span></p><p class="caption">Starbucks closed stores across the United States on Tuesday.</p></div><p></p></div></div></p><ul><li><strong><a href="http://www.businessinsider.com/category/starbucks">Starbucks</a> closed 8,000 locations across the US on Tuesday afternoon <a href="http://www.businessinsider.com/starbucks-racial-bias-training-2018-5">for racial-bias training.</a> </strong></li><li><strong>Rough calculations indicate the closures could result <a href="http://www.businessinsider.com/starbucks-closures-arrest-cost-millions-2018-4">in $12.4 million in lost sales</a>.</strong></li><li><strong>But for a chain whose reputation is vital, $12 million is a worthwhile investment. </strong></li></ul><p> </p><p><a href="http://markets.businessinsider.com/stocks/sbux-stock">Starbucks</a>' decision to shut down all its stores in the US for anti-bias training has sparked debate.</p><p>Since the coffee giant announced plans to close 8,000 company-owned stores for the afternoon of Tuesday, May 29, <a href="http://www.businessinsider.com/starbucks-store-closures-spark-backlash-2018-4">people have been split</a> on the wisdom of the decision.</p><p>The decision to temporarily close stores came after two black men were arrested in a Philadelphia Starbucks after they tried to use the bathroom without ordering anything. Footage of the arrests went viral, sparking boycott threats.</p><p>Rough calculations from Business Insider estimate that the closures <a href="http://www.businessinsider.com/starbucks-closures-arrest-cost-millions-2018-4">could mean $12.4 million in lost sales.</a> And that's purely from a couple of hours of shuttered stores - not considering wider repercussions.</p><p>Despite the backlash and the lost sales, Starbucks' decision to close stores is built on a solid business plan. Here are three reasons why Starbucks is making the right choice with the closures.</p><h2>Starbucks' reputation is vital</h2><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>AP Photo/Seth Wenig</span></p><p class="caption">Starbucks is eager to boost its reputation.</p></div><p></p></div></div></p><p>Much of the plan to close stores for training has centered on the idea of the "third place." </p><p>"In 1983 I took my first trip to Italy," Starbucks executive chairman Howard Schultz wrote in an open letter on Tuesday. "As I walked the streets of Milan, I saw cafés and espresso bars on every street. When I ventured inside I experienced something powerful: a sense of community and human connection."</p><p>Schultz continued: "I returned home determined to create a similar experience in America - a new 'third place' between home and work - and build a different kind of company."</p><p>Starbucks depends on its reputation as a "third place" - or at least its reputation as a comfortable, welcoming environment - to attract customers.</p><p>The coffee chain is able to charge more for drinks not just due to their quality, but because Starbucks is a place that more customers actively enjoy compared to the average fast-food chain. Starbucks isn't the status symbol it once was, but it still has a more upscale environment than McDonald's. </p><p>If customers are associating Starbucks with actively unwelcoming and racist footage, that ruins Starbucks' reputation in a way it wouldn't impact other brands. So, it is clear major action needed to be taken. </p><h2>Closures have worked before</h2><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>AP Photo/Paul Sakuma</span></p><p class="caption">A sign from Starbucks' closures in 2008.</p></div><p></p></div></div></p><p>Starbucks closed all of its US locations for an afternoon once before, at another point in time when the chain's "third-place" reputation was under fire. </p><p>In February 2008, Starbucks closed all 7,100 of its stores <a href="http://www.businessinsider.com/starbucks-closing-stores-first-time-since-2008-2018-4">for three and a half hours to train employees</a>. Schultz had recently returned as CEO to turn the company around as it struggled to repair its reputation and grow sales after a period of overexpansion.</p><p>The closures cost the company an estimated $6 million, according to Schultz's 2011 book "Onward: How Starbucks Fought for Its Life without Losing Its Soul." However, Schultz maintained that it was worth the financial cost and the mockery the company endured to put Starbucks back on the road to recovery.</p><p>"Ultimately, closing our stores was most powerful in its symbolism," Schultz wrote in "Onward." "It was a galvanizing event for Starbucks' partners - the term we use for our employees - a stake in the ground that helped reestablish some of the emotional attachment and trust we had squandered during our years of focusing on hypergrowth."</p><p>The gamble worked. While Starbucks was struggling to survive in 2008, the company reported net revenues of $22.4 billion in 2017.</p><p>With this track record, it makes sense Schultz would try to shut down locations again when it needed to make a dramatic change. </p><h2>$12 million isn't that much</h2><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Kim Hong-Ji/Reuters</span></p><p class="caption">$12 million is a relatively small sum for Starbucks.</p></div><p></p></div></div></p><p>Starbucks' reputation is worth way more than $12 million. </p><p>In November, Starbucks reported $22.4 billion in revenue in 2017, a 5% increase over the prior year. Compared to $22 billion, $12 million is basically a rounding error. </p><p>However, the stain on Starbucks' reputation that would continue if the chain lost its sheen of respectability would not be something the company could ignore. </p><p>It remains to be seen whether the actual material of Starbucks' training will cut through rhetoric and result in an actual change. This isn't the first time that Starbucks has tried to revamp its employee training. In 2017, the chain rolled out <a href="http://www.businessinsider.com/starbucks-north-star-agenda-causes-barista-backlash-2017-5">a controversial new training program</a> to improve employees' interactions with customers. </p><p>Closing - as opposed to behind-the-scenes training - sends a major message to customers that Starbucks is serious about creating a certain environment. If the company uses the Tuesday afternoon training wisely, $12 million in sunk costs could be a very worthwhile investment. </p><h2>Read more about Starbucks' closures:</h2><ul><li><a href="http://www.businessinsider.com/why-are-starbucks-closing-2018-5" target="_blank" rel="noopener">Starbucks is closing all of its US locations early Tuesday. Here's what you need to know.</a></li><li><a href="http://www.businessinsider.com/starbucks-store-closures-spark-backlash-2018-4">Starbucks is closing all locations in response to the arrest of 2 black men who tried to use a store's bathroom - and it's sparking a culture war on all sides</a></li><li><a href="http://www.businessinsider.com/free-starbucks-is-hoax-4chan-2018-4">Internet trolls are spreading fake Starbucks coupons exclusively for black customers after the chain announced it would close all stores for 'racial-bias education'</a></li><li><a href="http://www.businessinsider.com/starbucks-closing-stores-first-time-since-2008-2018-4">Starbucks is doing something it has only done once before - and last time it cost the company $6 million</a></li><li><a href="http://www.businessinsider.com/starbucks-rejects-black-man-from-using-bathroom-in-video-2018-4">Video shows a black man confronting a Starbucks barista about why he was apparently denied access to bathroom while a white man was not</a></li></ul>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/mark-cuban-barbara-corcoran-invested-avocaderia-avocado-only-restaurant-sharktank-2018-3">Take a look inside this avocado-only restaurant</a></h3>        <div>                    </div>    </div>

Starbucks is set to lose $12 million by closing stores for racial-bias training, but it's still a brilliant business idea

<p class="p1"><div class="KonaFilter image-container float_right"><div class="image on-image"></div><p></p></div>Growing up in New York City housing projects, <a href="https://books.google.com/books?id=V_MjPzynsRcC&amp;printsec=frontcover&amp;source=gbs_ge_summary_r&amp;cad=0#v=onepage&amp;q&amp;f=false">Howard Schultz says</a> he never dreamed of going into business.</p><p class="p1"><span>Schultz </span>certainly never imagined he'd one day run a global coffee chain and have a net worth estimated at $2.3 billion, according to <a href="http://www.wealthx.com/home/" target="_blank">Wealth-X</a>.</p><p class="p1">The chairman and CEO of Starbucks writes in his book "<a href="https://books.google.com/books?id=V_MjPzynsRcC&amp;printsec=frontcover&amp;source=gbs_ge_summary_r&amp;cad=0#v=onepage&amp;q&amp;f=false">Pour Your Heart Into It</a>" that he was raised in a working-class Jewish family in Canarsie, Brooklyn.</p><p class="p1">While his mother Elaine tended to him and his siblings full-time (she later became a receptionist), his father Fred held a series of blue-collar positions, including truck driver, factory worker, and cab driver.</p><p class="p1">In 1961, when Schultz was 7 years old, his father broke his ankle while working as a truck driver picking up and delivering diapers. At the time, Fred had no health insurance or worker's compensation, and the family was left with no income.</p><p class="p1">Today, Schultz writes, he still remembers the way his father looked laying on the couch with his leg in a cast. In a way, his tremendous professional success is a tribute to his father, who died years later and "never attained fulfillment and dignity from work he found meaningful."</p><p class="p1">Almost from the outset, Schultz's career path was different from his parents. In high school, he played football and earned an athletic scholarship to Northern Michigan University, becoming the first college graduate in his family.</p><p class="p1">After graduation, Schultz landed a job in the sales training program at Xerox, where he got experience cold-calling and pitching word processors. In a few years, he took a job at Hammarplast, a housewares business owned by a Swedish company called Perstorp. There Schultz ascended the ranks to vice president and general manager, leading a team of salespeople.</p><p class="p1">Despite his seeming success, Schultz writes that he was "getting antsy. It may be a weakness in me: I'm always wondering what I'll do next."</p><p class="p1">Or perhaps it was because he hadn't yet found what he would discover in Starbucks: "what it means when your work truly captures your heart and your imagination."</p><p class="p1"><div class="KonaFilter image-container"><div class="image"></div><p></p></div>Schultz first encountered Starbucks when he was working at <span>Hammarplast</span>. The coffee shop had four stores in Seattle and caught his attention when it ordered an unusually large number of drip coffeemakers.</p><p class="p1">Intrigued, Schultz traveled to Seattle to meet the company's then owners, Gerald Baldwin and Gordon Bowker. He was struck by the partners' passion and their courage in selling a product that would appeal only to a small niche of gourmet coffee enthusiasts.</p><p class="p1">Joining Starbucks would mean moving across the country and taking a significant pay cut, but Schultz was certain it would be the right move for him. It took a year to persuade Baldwin to hire him as the director of marketing.</p><p class="p1">Schultz's career - and Starbucks's fate - changed forever when the company sent him to an international housewares show in Milan. While walking around the city, he encountered several espresso bars where owners knew their customers by name and served them drinks like cappuccinos and cafe lattes.</p><p class="p1">"It was like an epiphany," Schultz writes of the moment he understood the personal relationship that people could have to coffee. He was convinced that Starbucks should start serving espresso drinks the Italian way - that Starbucks should be an experience, and not just a store. </p><p class="p1">Baldwin and Bowker, however, felt differently. In 1985 Schultz decided to leave Starbucks to start his own coffee company: Il Giornale (Italian for "the daily").</p><p class="p1">He spent two years away from Starbucks, wholly focused on opening Il Giornale stores that replicated the coffee culture he'd seen in Italy. It caught on quickly. In 1987, Il Giornale bought Starbucks, and Schultz became CEO of Starbucks Corporation. <span style="background-color: #ffff00;"><br /></span></p><p class="p1">Throughout his career at Starbucks, Schultz's first priority has been his employees' well<span style="background-color: #ffffff;">-being, he says. L</span>argely because of his father's experience when he was injured, Schultz offered all his employees (including part-time workers) complete healthcare coverage as well as stock options. Last year, Starbucks announced it would <a href="http://www.businessinsider.com/starbucks-will-now-cover-4-years-of-college-tuition-for-employees-up-from-2-2015-4">pay for employees' college tuition</a>.</p><p class="p1">Schultz has also been committed to maintaining the quality of his product. In 2008, when Starbucks was struggling financially, he <a href="http://www.businessinsider.com/howard-schultz-turned-starbucks-around-2011-6?op=1">temporarily closed</a> 7,100 US stores in order to retrain baristas on how to make the perfect espresso. Over the next two years, he led Starbucks' massive turnaround.</p><p class="p1"><div class="KonaFilter image-container"><div class="image on-image"></div><p></p></div>Today, there are more than <a href="http://www.starbucks.com/business/international-stores">21,000 Starbucks stores</a> in 65 countries, and the company is valued at $77 billion.<a href="http://www.forbes.com/companies/starbucks/"><br /></a></p><p class="p1">Although it's been years since he was a college football player, Schultz writes that he still identifies with the persona of the blue-collar athlete whose determination and perseverance more than compensate for his lack of training.</p><p class="p1">"I've always been driven and hungry," <span>Schultz says.</span> "Long after others have stopped to rest and recover, I'm still running, chasing after something nobody else could ever see."</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/how-to-make-good-first-impression-science-body-language-2015-4">Scientists figured out how to avoid making a bad first impression</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="QyeGE1bjqy83ve-kK24C5BgWXh4_Kmxj" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

From the projects to a $2.3 billion fortune - the inspiring rags-to-riches story of Starbucks CEO Howard Schultz

<p><em>This story was originally sent to thousands of professionals just like you in this morning's PAYMENTS WEEKENDER newsletter.  Don't be left in the dark while your competition gets ahead each morning. <a href="http://www.businessinsider.com/intelligence/insider-newsletter?&amp;utm_source=House&amp;utm_term=CtgrPr_PI-weekender-2015-6-21&amp;utm_campaign=CtgrPr_nlsa"><strong>Learn more about our 7-day FREE trial now »</strong></a></em></p><p><strong><div class="KonaFilter image-container display-table float_right"><div><div class="image"></div></div></div>MOBILE WALLET ADOPTERS LIKELY TO OPT FOR PAYPAL OVER OTHER PROVIDERS: </strong>Apple and Google have had the spotlight this year in mobile payments, but a new <a href="http://www.cmbinfo.com/cmb-cms/wp-content/uploads/2015/06/PR_Consumer-Pulse_MW_2015.compressed1.pdf?submissionGuid=0a9df5d2-cf41-4640-ba8c-2fa7ab7333c8">survey</a> from CMB shows that new mobile wallet adopters will opt for PayPal. The survey of 1,716 US adults was conducted from late March through early April. </p><ul><li><strong>PayPal came out ahead of other brands: </strong>71% of likely mobile wallet adopters, or consumers who haven't made an in-store mobile payment but plan to make one in the next six months, selected PayPal as their preferred provider. </li><li><strong>Apple, Amazon and Google followed closely behind: </strong>A slight majority of this constituent said they'd use Apple, followed by 49% and 48% for Amazon and Google, respectively.</li><li>Microsoft settled near the bottom at 34%. The company hasn't made many vigorous pushes into mobile payments but recently filed for a money transmitter license in Idaho, and is working to acquire licenses in all 50 states. </li></ul><p><em><div class="KonaFilter image-container display-table float_right"><div><div class="image"></div></div></div></em>The survey results show that PayPal can gain even more customers as the mobile wallet ecosystem grows. A <a href="https://intelligence.businessinsider.com/best-buy-accepting-apple-pay--paypal-expands-one-touch-to-pcs--security-concerns-hampering-payments-tech-investment-2015-4">recent survey</a> from 451 Research gave the opposite result - that Apple Pay, a newer entrant to the ecosystem, is growing its user base at the expense of PayPal. In the survey, 45% of consumers said they planned to make a payment with Apple Pay, compared to just 28% with PayPal. Last year, the reverse was true - 54% said PayPal, and 19% chose Apple Pay. </p><p>It's very likely that Apple Pay has eroded PayPal's wallet business, but it's clear from the new survey that PayPal still has a highly visible brand, which it should be able to leverage as it works to create new mobile payment products. </p><p>PayPal's foray into mobile payments has seen mixed results - it's built successful in-app and peer-to-peer transfer payment products, but its in-store efforts have been largely fruitless. The firm recently acquired Paydiant, a mobile wallet and loyalty platform used by restaurants, and will offer Paydiant's wallet as a white label product. </p><p><strong><em>Finding this article interesting? Thousands of professionals just like you had it in their inbox first. Stay ahead of the curve and gain a comprehensive understanding of the latest news &amp; trends, start your day with the PAYMENTS</em></strong><strong><em> INSIDER. <a href="http://www.businessinsider.com/intelligence/insider-newsletter?&amp;utm_source=House&amp;utm_term=CtgrPr_PI-weekender-2015-6-21&amp;utm_campaign=CtgrPr_nlsa"> Get 7-days FREE » </a></em></strong></p><p><strong>LATEST APPLE PAY DEVELOPMENTS: </strong>Last week, Apple announced a number of forthcoming changes to Apple Pay, including synchronization with rewards cards and its launch in the UK next month. Here are the latest developments: </p><ul><li>Global Payments, an international payments processor, <a href="https://investors.globalpaymentsinc.com/releasedetail.cfm?ReleaseID=917899">announced</a> that it will give its merchants in the UK the ability to accept Apple Pay payments, presumably by supplying them with NFC terminals that can also accept tokens. Global Payments claims a 20% share of the UK's total transaction volume, <a href="https://globalpaymentsinc.co.uk/about-us.html">according to the company</a>. Although UK merchants are fairly excited about Apple Pay, consumer demand in the country is far lower, according to a recent survey (see chart). </li><li>VeriFone, another prominent payments processor, will accept Apple Pay loyalty card transactions on select NFC terminals. </li><li>The early retail partners that will issue loyalty cards in Apple Pay include Walgreens, Coca-Cola, Dunkin' Donuts, Panera Bread and Whole Foods. Not only do these retailers have robust loyalty programs, but some of them already see the highest in-store Apple Pay activity. Whole Foods, for instance, has consistently seen the most Apple Pay traffic in its stores, boasting 3.3 million Apple Pay transactions in Q1 2015, which represents about 3.2% of Whole Foods' total in-store sales, <a href="https://intelligence.businessinsider.com/new-visa-checkout-results--apple-pay-milestones--mastercard-being-investigated-in-europe-over-swipe-fees-2015-5">according to our analysis</a>. The rewards integration could intensify Apple Pay activity in Whole Foods. Dunkin' Donuts, meanwhile, has a thriving mobile payments platform of its own, and mobile-savvy customers would likely be open to using their rewards cards in Apple Pay.</li></ul><p>Loyalty could ultimately drive the success of Apple Pay because it helps incentivize repeat usage. For instance, rewards and loyalty have been crucial to Starbucks' success with its mobile payments app, which now registers <a href="https://intelligence.businessinsider.com/mobile-payments-now-account-for-18-of-weekly-transactions-at-us-starbucks-stores-2015-5">8 million</a> transactions per week. </p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image"></div></div></div></p><p><strong>STARBUCKS' MOBILE ORDER-AHEAD PLATFORM BRANCHING OUT TO NEW STATES: </strong>Mobile Order &amp; Pay, Starbucks' order-ahead platform that was originally piloted in late 2014, is <a href="https://news.starbucks.com/news/starbucks-mobile-order-and-pay-expansion?hootPostID=a41849fb9c2156c9ffe15f7157e7eb36">expanding</a> to 21 more US states, meaning that the feature will be available in more than 4,000 Starbucks stores. The feature is only available for iOS as of now, but the company plans to launch an Android version later this year. Starbucks introduced Mobile Order &amp; Pay to the Pacific Northwest region in March, and the platform's continual expansion is an indicator that it's been a hit with consumers in the test markets. </p><p>Mobile Order &amp; Pay is an integrated service in Starbucks' pre-existing app that allows customers to order coffee ahead of time and pick it up at a specific location. They make their purchases in the app, so they can skip the line when they walk in. </p><p><strong>Starbucks <a href="https://intelligence.businessinsider.com/payments-insider-starbucks-expands-mobile-ordering--apple-pay-adoption-strong-usage-low--verifones-emv-progress-2015-3">expects</a> Mobile Order &amp; Pay to "increase speed of service, drive incremental transactions and increase throughput" in its stores.</strong> This is because order details are printed on a sticker that can easily be attached to a coffee cup, cutting down the time of the checkout process. This improved operational process will enable baristas to make more orders in less time and could result in higher sales for Starbucks. </p><p><strong>Many Starbucks customers likely favor convenience and therefore might adopt the app's order-ahead feature quickly.</strong> And, since these orders are processed through the app, mobile could take an even greater share of Starbucks sales. Currently, mobile represents 18% of US in-store Starbucks sales (see chart).</p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image"></div></div></div></p><p><strong>MORE DETAILS ON GOLDMAN SACHS' NEW LENDING INITIATIVE: </strong>Last month, Goldman Sachs <a href="https://intelligence.businessinsider.com/gen-z-values-bank-branches-more-than-their-predecessors--emv-migration-update--western-unions-digital-channel-is-dominating-2015-5">announced</a> plans to create its own digital lending unit, hiring Harit Talwar from Discover to head the initiative. Here's the latest on Goldman's foray into personal lending, courtesy of <a href="http://www.nytimes.com/2015/06/16/business/dealbook/goldman-to-move-into-online-consumer-lending.html?hpw&amp;rref=business&amp;action=click&amp;pgtype=Homepage&amp;module=well-region&amp;region=bottom-well&amp;WT.nav=bottom-well&amp;_r=1">The New York Times</a>:</p><ul><li>Loan applications will flow through an app or website and will likely be disbursed to borrowers on a type of prepaid card. </li><li>The loans would be funded by Goldman Sachs using the bank's certificates of deposit (CDs) on file. This differentiates the firm from many nascent alternative lending startups, which usually mediate interactions between borrowers and investors, but don't originate the loans themselves. </li><li>The company hasn't decided if it will brand the lending division under its current name or re-brand it under a new one. </li><li>The firm plans to begin issuing loans by the beginning of 2016, and it will issue loans in the range of $15,000 to $20,000 to ordinary US consumers. Presumably, the loans would be marketed either as alternatives to a credit card or as loans for a larger undertaking, e.g. a home improvement project.</li></ul><p>There are two big factors that will determine the success of Goldman's lending program:</p><ul><li><strong>Brand image: </strong>Goldman Sachs has specialized in high net-worth and investment banking for many decades and hasn't built a strong rapport with Main Street consumers. Therefore, the average US consumer might not be comfortable visiting Goldman Sachs for a loan. If Goldman re-brands its lending unit to establish separation from the core brand, consumers could be more open to the program. </li><li><strong>Interest rates: </strong>The digital lending industry is filled with online marketplaces that can offer loans at below-average rates because they don't incur as many regulatory costs as banks. Given that Goldman Sachs is a bank and will be issuing the loans itself, it's unclear if it will benefit from as many cost savings as existing online marketplaces, meaning it might not be able to offer interest rates at the same level. This could discourage borrowers from going to Goldman over a startup like Prosper or Lending Club. </li></ul><p>Banks have approached the emergence of alternative lending startups very differently. Some, like Goldman Sachs, are competing directly with them, while others, like JPMorgan, are stamping their approval and investing heavy amounts of money into the startups, believing they can benefit the personal finance ecosystem. </p><p>Despite these opposing views, banks aren't overly threatened by digital lending startups - only 7% of banks in a recent survey said P2P lenders posed the greatest threat to their business (see chart). And it's still early days for alternative lending; P2P lending companies in the US originated $6.6 billion in loans last year, however, the total value of revolving US consumer debit was about <a href="https://intelligence.businessinsider.com/the-peer-to-peer-lending-explainer-how-digital-lending-marketplaces-work-and-why-theyre-poised-for-major-growth-2015-5">$800 billion</a>. </p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image"></div></div></div></p><p><strong>STRIPE ENTERING MORE INTERNATIONAL MARKETS: </strong>Payment gateway provider Stripe is expanding to Denmark, Norway, Sweden, and Finland next week, <a href="http://www.ibtimes.co.uk/stripe-unveils-scandinavian-mobile-payments-push-founder-john-collison-speaks-moneyconf-1506162">according to co-founder John Collison</a>, speaking at the MoneyConf in Belfast. The company will now have operations in a total of 20 countries.</p><p>Collison also stated that his company is really focused on mobile commerce, mainly because that channel generates lots of traffic. However, he also mentioned that conversion rates are still low. These two trends together means that potential sales via mobile are far greater than actual sales.</p><p>This gap will likely close over time, as mobile in-app payments become more frictionless; Stripe could see more transactions pass through its gateway. This would be highly beneficial to the company, because it doesn't earn much money off of each individual transaction - it will need higher transaction volumes to see significant gains in total revenue. </p><p>Recently, we <a href="https://intelligence.businessinsider.com/apple-pay-use-growth-2015-5">reported</a> that Stripe was in discussions to raise additional funding, at a $5 billion valuation. </p><p><strong>MASTERCARD INTRODUCING TOKENIZATION SERVICE TO NEW AUDIENCES: </strong>MasterCard is going to make its digital enablement service (MDES) available to <a href="http://newsroom.mastercard.com/press-releases/mastercard-continues-to-define-the-future-of-digital-payments-with-tokenization-support-for-app-ecommerce-and-recurring-payment-card-on-file-programs/">merchants</a> that run apps or websites, those with subscription programs, and <a href="http://newsroom.mastercard.com/press-releases/mastercard-becomes-first-network-to-add-tokenization-support-for-private-label-credit-cards-for-use-in-digital-wallets/">private-label card issuers</a>. MDES is a digital payments service that assigns tokens in place of MasterCard account numbers, which allows MasterCard credit cards to be stored securely in consumers' mobile wallets and merchants' servers. MDES is designed to sync with acquirer and payment service providers' tokenization solutions as well.</p><p>The main reason MDES is expanding for online merchants is to increase payments security. MasterCard tokens can be stored within the Secure Element of a phone's hardware or in the cloud, allowing other wallets to leverage host card emulation (HCE) to support mobile payments. </p><p>MDES' expansion to include private-label cards will enable retailers to issue their cards in participating mobile wallets using MasterCard's tokenization service. JCPenney is an early partner, and it will use MDES to issue its cards in Apple Pay wallets later in the year. </p><p>Last week, Apple Pay announced it would integrate a rewards program into its wallet, enabling consumers to load their applicable retail rewards cards.</p><p>Visa <a href="https://intelligence.businessinsider.com/android-pay-secures-big-partnerships--visas-new-platform-wont-charge-tokenization-fees--hands-free-payments-2015-6">recently launched</a> its own digital enablement platform (VDEP), which will open access to tokenization solutions for any card issuer. It is also not charging these issuers per-token fees, which could create a huge incentive for the issuers to adopt the platform. It's unclear as of now if MDES will charge private-label issuers per-token fees. </p><p><strong>CLEARXCHANGE EXPANDING REAL-TIME PAYMENTS TO INTER-BANK TRANSFERS:</strong> ClearXchange, an online peer-to-peer payments network managed by a consortium of US banks, is going to implement its existing real-time payment protocol for inter-bank transfers. The network's customers can already send real-time transfers to people within their banks; however, they'll soon be able to send money instantly to people across all member banks. ClearXchange is owned by Bank of America, JPMorgan, Wells Fargo, Capital One and US Bank, giving it an addressable customer base of 100 million, <a href="http://www.finextra.com/news/fullstory.aspx?newsitemid=27471">according to Finextra</a>.</p><p>Real-time payments are increasingly becoming a priority for consumers as banking migrates online, according to Mike Kennedy, CEO of clearXchange. This is likely because customers associate online banking with convenience.</p><p>Don't miss another day of breaking developments! Stay ahead of the curve and gain insight into the latest news &amp; trends. Join thousands of other professionals who start the day with PAYMENTS INSIDER. <strong><a href="http://www.businessinsider.com/intelligence/insider-newsletter?&amp;utm_source=House&amp;utm_term=CtgrPr_PI-weekender-2015-6-21&amp;utm_campaign=CtgrPr_nlsa">Try it FREE for 7 days now »</a> </strong></p>

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