On the evening of June 1st, I experienced a moment that was simultaneously déjà vu and first-time ever.
A tornado warning had me hunkered down in my basement, recalling numerous other such warnings that had sent me to windowless, subterranean areas during a childhood spent in Illinois and Indiana. The difference this time: The twister and I were both in Massachusetts. And my 10-year-old was off on a school camping trip because, oh yeah, tornadoes usually don’t affect the Northeast.
We’ve all realized over the past few years that the old rules don’t apply, whether you’re talking about the indecipherable economy, fickle consumer habits or our careers. And now we can add weather to that list. During the winter we saw massive snowstorms that shut down roads, schools and most of the nation’s air travel. The spring brought indiscriminate paths of destruction as tornadoes sprung from skies both in states where they were expected and others where they weren’t. And now we’re watching the Missouri River, swollen by record rains, invade residences and businesses.
Given a hurricane season that also promises to be more active than usual, NRN looked into best practices for weathering the unpredictable incidents of volatile atmospheric events. That story appears in the Operations section, along with tips for devising preparedness plans.
In other realms of unpredictability, we examine the immigration issue and the proliferation of developments at the state level. That story begins on page 1 and continues in the Business Intel section. The big takeaway: Keep an eye on local lawmakers, who industry members anticipate will soon be introducing their own immigration-related initiatives.
The M&A arena also has been a hotbed of activity, and private-equity firm Roark Capital Group has been at the heart of several recent acquisitions. Most recently, Roark bought the parent company of the Il Fornaio and Corner Bakery Cafe chains, and expects to close on its purchase of Arby’s later this year. In Finance we look at Roark’s buying history as well as its shopping and investment strategies.
Another master of investments, Al Covelli, is profiled in Community. The 91-year-old Covelli opened the 161st McDonald’s in 1959. In time he grew his franchise to 43 McDonald’s before selling them and turning his attention to Panera Bread. Today, Covelli Enterprises operates 200 Paneras and projects sales to hit $400 million in 2011. Covelli’s story is inspiring, and the profile is filled with his insights on seizing opportunities.
Speaking of business opportunities, in a story that begins on page 1 and jumps to the Marketing section, we look at the tactics some operators are using to convey value — even as they raise prices to cover rising commodity costs. For example, officials at P.F. Chang’s point to their 3-year-old Chang’s for Two promotion, a four-course meal that has remained priced at $39.95 and has helped the brand take a 2-percent price increase in May and a 1-percent increase last November.
“We viewed it as a convenience to our guests to be able to choose from a multicourse menu but know what the price would be,” said president Lane Cardwell. “If you order Chang’s for Two, you’re actually getting to opt out of our last two price increases.”
In other words, one way to make money is by providing predictability in a world that appears to be increasingly chaotic. At the same time, as Al Covelli’s success and recent weather events prove, you should always be ready to respond to the unexpected.
Contact Robin Lee Allen at robinlee.allen@penton.com.
