The Paychex CEO, Martin Mucci, was interviewed about the lack of movement in his company's stock. Mr. Mucci stated new business formation was flat. He mentioned 2 statistics which show the importance of small businesses in any business turnaround.
He stated 82% of the Paychex customers have fewer than 20 employees and 98% have fewer than 100 employees.
Paychex stock may be ready to make a move upward as American small businesses stop hibernating and begin hiring again.
Should you be hiring now before the inevitable rise in salaries and wages? The job market is starting to add more jobs and first time unemployment claims are in decline.
If your sales are perking up or your summer pipeline looks promising, it may be the time to hire.
Thursday, March 31, 2011
Corn Spot Doubles From March 2010
In a discussion of record crop planting in the corn market, a CNBC report forecasts high corn prices for 2011. The reason is very low inventory levels due to demand for the grain in the production of ethanol. The graph displayed on air showed a 100% gain in the spot price year over year.
The discussion spread to other crops and cotton is up 145% since March 2010. Expect your linen replacement costs to continue upward.
How can caterers take advantage of the rising grain prices? These record price moves are very well communicated in the press. With all the national press highlighting huge price increases, your customers will be more receptive to menu price increases. In every menu price change, you need to study your competition carefully.
Even the large public companies with futures protection may not be able to outrun this wave. I don't see this as a short term trend. Global demand is on the increase and the rhetoric regarding less dependence on foreign oil implies greater demand for grains.
The discussion spread to other crops and cotton is up 145% since March 2010. Expect your linen replacement costs to continue upward.
How can caterers take advantage of the rising grain prices? These record price moves are very well communicated in the press. With all the national press highlighting huge price increases, your customers will be more receptive to menu price increases. In every menu price change, you need to study your competition carefully.
Even the large public companies with futures protection may not be able to outrun this wave. I don't see this as a short term trend. Global demand is on the increase and the rhetoric regarding less dependence on foreign oil implies greater demand for grains.
Wednesday, March 2, 2011
Get Catering is Coming Soon
You should get on the mailing list early for Erle Dardick's new book,Get Catering, which is scheduled for a May 2011 release. Erle brings decades of hands on experience to the table. The book is available for free if you are a multi-unit restaurant operator.
Restaurants have been in the party business for years. I'm sure Erle will have many great ideas to increase your catering business. MonkeyMedia offers hosted solutions for food service and food manufacturing operations.
Spring Events Take Us Outside
I have been reading as much as possible to gain a understanding of what's in store for caterers this spring. Sara Perez Webber covers this topic in this month's Catering Magazine on page 16. She points out the trend toward backyard parties. Rather than renting a high profile venue, many catering clients are using their office property or private home as the venue.
They start with a Down East shellfish dominated wedding menu staged in a backyard in Chatham (Cape Cod). The signs are small chalkboards. The mini lobster rolls sound good to me along with a signature Pomegranate Cape Codder served in a Mason jar. Friends of the bride brought homemade cookies.
[Source: Catering Magazine]
One of the featured outdoor events is a block party affair held on the company's property. The simple menu is loaded with backyard faves: burgers, hot dogs, grilled chicken, bratwurst and ice cream. Again, we see the trend away from the upscale affair to the down home themes.
The last backyard wedding reception example in the article is actually a surprise. This is no run of the mill backyard party. Splurging on the menu, the host offers the guests caviar, Prime Beef, Lobster Tails, Dungeness crab and other high end menu items. Even the tents in the photos looked elegant.
[Source: Catering Magazine]
They start with a Down East shellfish dominated wedding menu staged in a backyard in Chatham (Cape Cod). The signs are small chalkboards. The mini lobster rolls sound good to me along with a signature Pomegranate Cape Codder served in a Mason jar. Friends of the bride brought homemade cookies.
[Source: Catering Magazine]
One of the featured outdoor events is a block party affair held on the company's property. The simple menu is loaded with backyard faves: burgers, hot dogs, grilled chicken, bratwurst and ice cream. Again, we see the trend away from the upscale affair to the down home themes.
The last backyard wedding reception example in the article is actually a surprise. This is no run of the mill backyard party. Splurging on the menu, the host offers the guests caviar, Prime Beef, Lobster Tails, Dungeness crab and other high end menu items. Even the tents in the photos looked elegant.
[Source: Catering Magazine]
Friday, February 25, 2011
Urge to Splurge
As 2011 gets in gear, we find the stock market rising despite rapid increases in many key commodities. They are throwing the term stagflation around on the financial shows and websites. some economists don't see any reason to believe we are in danger of rising prices and unemployment. They cite improvements in the US job market.
My email each week includes a decent number of questions on my view of the impact of higher oil prices on food cost. In a straightforward manner, I let them know my feelings are price increases are guaranteed. Since we now see major ethanol production from corn, the same grain used for feeding livestock and making high fructose corn syrup is being consumed by major energy companies as an additive to gasoline.
Source: Morningstar.com
Look for more clients requesting a touch of luxury in this year's events. The urge to splurge has returned although caviar and foie gras may still be considered extravagant. Corporations and families may order pricier menu items and open their wallets for a few extras at the next party.
While most homeowners have seen their home equity decline since the 2006 peak, we have also seen a major reduction in personal debt. Credit card companies are back with the mail offers of 0% balance transfers (along with 3 to 4% upfront fees). Small businesses will take advantage of these offers. I'm not sure if the trend of credit line conversions to term loans will end soon.
If businesses get access to credit lines back, we may see much higher spending on sales and marketing oriented events.
My email each week includes a decent number of questions on my view of the impact of higher oil prices on food cost. In a straightforward manner, I let them know my feelings are price increases are guaranteed. Since we now see major ethanol production from corn, the same grain used for feeding livestock and making high fructose corn syrup is being consumed by major energy companies as an additive to gasoline.
Source: Morningstar.com
Look for more clients requesting a touch of luxury in this year's events. The urge to splurge has returned although caviar and foie gras may still be considered extravagant. Corporations and families may order pricier menu items and open their wallets for a few extras at the next party.
While most homeowners have seen their home equity decline since the 2006 peak, we have also seen a major reduction in personal debt. Credit card companies are back with the mail offers of 0% balance transfers (along with 3 to 4% upfront fees). Small businesses will take advantage of these offers. I'm not sure if the trend of credit line conversions to term loans will end soon.
If businesses get access to credit lines back, we may see much higher spending on sales and marketing oriented events.
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