Pepsi and Coke settle a Truce for Veteran’s Day

This past summer, McDonald’s and Burger King made headlines with Burger King proposing a collaboration in efforts to create awareness for “Peace Day.” However, with McDonald’s declining the offer, Burger King teamed up with other restaurant chains to “end friendly restaurant feuds” for a day. Likewise, for Veteran’s Day, Pepsi Co. and Coca-Cola came together to create a public service announcement for American Corporate Partners, a nonprofit that connects veterans to professionals for career guidance.

Both CEO’s approached the cause in friendly terms. “They compete on the beverage side for customers, but independently both companies are very focused on veterans,” says Sid Goodfriend, ACP Founder and chairman.

While both companies target the same consumer market, they both also support similar causes in which they seize rivalry for. This is the first time the two CEOs have come together in a public way, but according to a Coke representative, Pepsi’s Indra Nooyi attended a reception hosted by Coke during the World Economic Forum at Davos.

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Nationwide Restaurant Chain Eliminates Tipping

With Danny Meyer’s making recent headlines with restaurants under the Union Square Hospitality Group eliminating tipping, the head of Ignite Restaurant Group has also recently revealed to investors that all Joe’s Crab Shack locations will be testing a gratuity-free model. Joe’s Crab Shack has locations nationwide, and has already implemented no tipping in 18 restaurants with more on the way. Being the first of a casual mid-range chain to implement gratuity-free policies, this proposes options for other restaurants to follow its model.

The policy has increases serves wages to start at a flat $14 an hour, instead of $2.13 and tips. The menu prices will rise by 12 to 15 percent to compensate the extra labor costs. However, noted by generous tippers, implementing such policies while increasing menu prices is still a cost benefit to themselves.

Ray Blanchette, CEO of Ignite, believes Joe’s Crab Shack’s conversion to a gratuity-free policy is sensible because their consumers are mostly big groups and waiters dislike doubling up on tables and splitting tips. The policy test is expected to run through at least the end of the year, and Blanchette says “We’re really leading in our industry with regards to national brand going out and testing this thing in a meaningful way. So we want to be somewhat cautious.”

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