Singular Sensation for Alibaba; Don’t Bet On It: Online Daily Fantasy Sports Gone in a New York Minute; In: Higher Minimum Wage. Out: Tipping

Singled out…

Image courtesy of  bplanet/FreeDigitalPhotos.net

Image courtesy of bplanet/FreeDigitalPhotos.net

Did Alibaba just throw down the gauntlet to Black Friday? China’s biggest e-commerce site knocked it out of the fiscal park on November 11, aka Singles Day, shattering last year’s $9.3 billion record for the auspicious shopping event. In fact, just by midday the company had already hit $9 billion in sales. Some of the top sellers were Nikes and baby-related products. CEO Jack Ma kicked off the Singles Day shopping festivities by launching the event Tuesday evening with James Bond actor Daniel Craig and House of Cards Star Kevin Spacey. After all nothing says Chinese e-commerce like British and American actors, right? The earth-shatterting sales left many wondering what many are worried about a flagging Chinese economy and its October report that the country hit a particularly slow pace in the third quarter. What didn’t hit a slow pace i was mobile sales for Alibaba’s Singles Day, where 68% of the day’s transactions occurred.

You bet-or not…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

New York Attorney General Eric Schneiderman just might be the least popular person on the planet right now. The AG sent “cease and desist” letters to fantasy sports companies FanDuel and DraftKings, ordering them not to accept bets from New Yorkers anymore. The AG called the companies a “new version of online gambling” and said the contests are “neither harmless nor victimless” because they lure in people who are predisposed to gambling addiction. AG Schneiderman went on to say that the companies are basically perpetrating “a massive, multi-billion-dollar scheme intended to evade the law and fleece sports fans across the country.” Ouch. FanDuel and DraftKings, however, argue that what they offer is “a game of skill.” There are currently 34 lawsuits in 13 states pending against the daily fantasy sports companies accusing its proprietors of unfair and/or illegal activity. DraftKings and FanDuel actually stopped doing business in Nevada after the state’s attorney there ruled that the business models meet the state’s definition of gambling and would therefore have to pay for a license.  Both companies are valued at about $1 billion each. Major League Baseball has a stake in FanDuel while the NBA has its own stake in DraftKings. FanDuel also has big money ad deals in place with both the Brooklyn Nets and the New York Jets. At least the AG isn’ t looking to get back any proceeds from New Yorkers who placed bets and actually won. Well, for now anyway.

Not tipsy…

Image courtesy of maya picture/FreeDigitalPhotos.net

Image courtesy of maya picture/FreeDigitalPhotos.net

No more bragging rights for big tippers at Joe’s Crab Shack. Well, at least in 18 of the chain’s 131 locales. Parent company Ignite Restaurant Group has decided to do away with the “tip” model and the idea behind it is quite simple: The restaurant scraps tipping and then increases the minimum wage of its employees to $14 per hour.  It means that for some servers, it makes up for lost tip wages. “I personally believe tipping is an antiquated model,” CEO Ray Blanchette said investors at a recent meeting. That’s lovely and all but he also believes it helps improve service and reduces employee turnover. Besides, servers will get paid the same whether they work a busy shift or a slow one with fewer diners. Of course, that tip model means menu prices are heading north from anywhere between 12% to 15%. But considering that most tippers tip around 18%, there’s no great loss there. While Joe’s Crab Shack is the first national restaurant chain to try this out, restaurateur Danny Meyers Union Hospitality Group also put this model into place in New York. Joe’s started doing this back in August and incidentally, or not, its restaurant that adopted this no tipping model the longest has gained the most traction. Which is good since overall sales for Joe’s Crab Shack in the third quarter went down 6.6%. Ironically, the National Restaurant Association does not care much for the model because the “median hourly earnings for servers range from $16 – $22.” Do the math and you realize that could actually mean a nasty pay cut for plenty of restaurant employees.

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One response to “Singular Sensation for Alibaba; Don’t Bet On It: Online Daily Fantasy Sports Gone in a New York Minute; In: Higher Minimum Wage. Out: Tipping

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