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Taco Bell is opening its own biz school.
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Morning Brew January 20, 2022

Retail Brew

Route

Howdy. Here’s your reminder that the Winter Olympics are somehow two weeks away. And Team USA’s opening-ceremony outfits—created by Ralph Lauren—just dropped.

In today’s edition:

  • Taco Bell is opening its own biz school
  • A pilot program to combat trucker shortages
  • Cleaning products are still cleaning up

Erin Cabrey, Jeena Sharma, Katishi Maake

LABOR

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Taco Bell storefront Taco Bell

Class is in session at Taco Bell, which announced yesterday that it’s opening a business school—but not to give students a bachelor’s in burritos.

The fast-food chain is teaming up with the University of Louisville to introduce the Taco Bell Business School, a franchisee training program it hopes will eliminate barriers to entrepreneurship for its employees.

  • The six-week program, welcoming its first class of three to five students next month, will teach participants the nuts and bolts of running their own Taco Bell, from financing, marketing, and HR, to growth and development.
  • It’s aimed at employees in managerial roles, and participants will receive scholarships from Taco Bell to cover tuition. (No details yet on the cost.)

Amid a tough labor market, Taco Bell hopes to challenge the idea that fast-food jobs are “stepping stones to other careers,” CEO Mark King said in a statement. He told Entrepreneur that employees rarely become owners because franchises take a lot of $$ and resources to start, so the school could help simplify that path to ownership.

“This school is really one of those things that says, ‘Hey, if you come to work at Taco Bell, you can have a career, not just a part-time job,’” he said.

Food for thought: The biz school comes after parent company Yum! Brands (which also owns KFC and Pizza Hut) formed the Yum! Center for Global Franchise Excellence in May 2021 to educate underrepresented communities about the franchising business.

  • James Fripp, chief equity and inclusion officer at Yum!, discussed at NRF this week how to make DE&I personal by highlighting the importance of reverse mentorship: POC and women are often “overly mentored and under-sponsored,” he said.

The new biz school also builds on Taco Bell’s “Start with Us, Stay with Us” program, introduced in 2016, that includes its Live Más college scholarship—which will award $2+ million to restaurant employees in 2022—a GED certification program, and a partnership with Guild Education (which has also worked with companies like Chipotle, Walmart, and Five Guys), a startup that helps employees with educational programs.

Faced with the ever-looming Great Resignation and student debt in the US totaling at least $1.75 trillion, subsidized higher education is one of the latest benefits retailers from Target to Macy’s are using to win over—and hopefully retain—workers.—EC

        

LOGISTICS

Keep truckin’

Truck platoon Francis Scialabba

Some teens drive their parents’ old-school minivans. Others will get to drive 18-wheelers. That’s the upshot of a new pilot program that will allow those as young as 18 to be trained as commercial truck drivers.

The deets: Established by the Federal Motor Carrier Safety as part of the Infrastructure Investment and Jobs Act, the program can enroll up to 3,000 apprentices at a time.

  • Trainees will need to complete 400 hours of “on-duty time” during a probationary period alongside an experienced driver. Afterwards, they can drive solo—but would still be under continuous monitoring by trucking companies.
  • TBD on an official start date for the program.

Planning ahead: Supporters of the initiative hope it will help address the trucker shortage in the US. Trucks transport more than 70% of the country’s goods—but the industry could be short by as many as 160,000 drivers by 2030 if nothing is done to help, per the American Trucking Associations.

Moreover, the current workforce is aging; estimates put the industry’s average age at 55. Replacing these drivers can take 12 to 18 months, experts previously told Retail Brew.

  • “These are not folks you can just hire off the street,” explained Dave Gilbertson, chief customer officer at UKG.

Though not an end-all solution, Nick Geale, a VP at the American Trucking Associations, acknowledged to The NYT, he said that he believes the pilot program is a solid step to getting more drivers on the road.

But, but, but: Not everyone is ready for this ride-along. Cathy Chase, the president of Advocates for Highway and Auto Safety, shared concerns with the Times: “We think that putting one of the most dangerous driving populations, teenagers, behind the wheel of 80,000-pound trucks will imperil not only the teen truckers themselves,” she said, “but everyone on the roads with them.”—JS

        

TOGETHER WITH ROUTE

Just because the ’90s are back…

Route

...doesn’t mean an e-commerce strategy from ’99—or even the one you’re using from last year—is gonna be any more effective. (Unless you’re giving away scrunchies with every order. Scrunchies might work.)

As we enter the new year, now’s the time to start thinking about better ways to engage your customers so you can drive growth and build brand loyalty.

Take a page from Route’s book. In fact, take all 17 pages in this free guide they built on modern customer engagement. It’s got the how, when, and where you should be engaging with customers—the info you need in order to scale better.

According to Route’s guide, a staggering 93% of customers want to hear from you, from the minute they make their purchase to the day they receive their order and beyond.

Take a moment to think about the scrunchies. In the meantime, download and read through Route’s guide here.

CPG

Spick and span

Smurf guy cleaning up Studio Peyo

Clean freak or not, it turns out that shoppers are still reaching for Clorox wipes.

In 2021, shoppers purchased 15% more home-cleaning items than in 2019, a boon for companies like Clorox Co. and Procter & Gamble.

  • Case in point: P&G topped Wall Street’s Q2 earnings expectations, as net sales rose 6% to $20.95 billion.
  • Home-cleaning and laundry sales in the US hit a weekly average of $972.8 million in mid-March 2020, compared to a weekly average of $448.1 million in 2019, according to market research firm IRI.

Clean slate: Across the board, sales haven’t exceeded 2020’s pandemic highs, but supply-chain shortages haven’t affected cleaning products to the extent of the larger CPG industry.

  • 5.5% of home-disinfectant items were out of stock by the end of 2021, as opposed to 19% a year prior, per Euromonitor e-commerce data from January 12, cited by Bloomberg.

Pay up: Price hikes, though, seem unavoidable as inflation takes hold. P&G is planning more increases across categories and brands as soon as next month, after already raising price tags.

“Consumers are starting to feel this now and digest it a bit, so it’s going to be interesting to see if there’s some trade down to lower-priced brands, to private label, or, in the case of certain categories, trade out altogether,” Jefferies LLC research analyst Kevin Grundy told Bloomberg.—KM

        

WHAT ELSE IS BREWING

  • Amazon is opening a new IRL store, the e-comm giant’s first to focus on apparel.
  • Walmart’s head of e-comm is leaving after less than two years with the company.
  • Starbucks won’t mandate its employees be vaccinated against Covid-19 after all, citing the Supreme Court’s ruling that blocked the Biden Administration’s vax-or-test policy for large employers.
  • Yoox, the luxury online e-tailer, is introducing its own marketplace after primarily focusing on wholesale.
  • Primark said it won’t raise prices despite inflation pressure.

TOGETHER WITH OPENSTORE

OpenStore

Don’t sell yourself short. Thinking about pivoting from a small-batch ice cream biz to a large-batch hot sauce operation? Then let us introduce you to OpenStore, the new, modern way to sell your Shopify business in only 24 hours. OpenStore helps Shopify entrepreneurs who make at least $500k in annual revenue pursue their next big idea with a free, no-obligation offer in—once again, not a typo—24 HOURS. Get your offer from OpenStore here.

SWAPPING SKUS

Today’s top retail reads.

Running start: Inside Nike under John Donahoe—its shares are soaring (up 46% since he took over as CEO in January 2020), but some current and former employees have concerns about a changing culture. (Insider)

Join the club: Breaking down the DTC hiring spree. (Thingtesting)

Waste not: Can beauty companies use sell-by dates to their advantage? And be more eco-friendly at the same time? A few are making the case. “Maybe these are things you’re not meant to talk about as a brand, but customers appreciated our transparency.” (Vogue Business)

Get smarter about your money: Meet Money Scoop, our personal finance newsletter—personal finance delivered with the humor, wit and clarity you expect from the Brew. We cover everything you want to know about student loans, mortgages, portfolio management, retirement planning, and more. Sign up here.

NUMBERS GAME

The big number that you need to know.

Online shopping is raising some spirits.

E-comm alcohol sales from grocers hit $1.6 billion in 2021, according to estimates by Rabobank—that’s more than 4x the figure in 2019, which didn’t even crack $500 million. Come 2022, sales are expected to reach $1.87 billion.

  • Growing the category will take work, but Rabobank still predicts that online alcohol sales will outdo grocery overall in a few years. (Cue the Drizly app downloads.)

Written by Erin Cabrey, Jeena Sharma, and Katishi Maake

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