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Hunger Hits Closer to Home

Hunger Hits Closer to Home; By Stephanie Otero, Feeding America Riverside | San Bernardino (FARSB)

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OPINION

By Stephanie Otero, Feeding America Riverside | San Bernardino (FARSB)

COVID-19 presented a great deal of issues for food banks, including increased demand for services, declines in donations of food, loss of volunteers, a reduction of resources, and disruptions to food distribution models, creating an economic crisis unlike anything since the Great Depression. 

Feeding America Riverside | San Bernardino (FARSB) has played an essential role in feeding vulnerable families during this time of economic disparity. In 2020, we fed over 1.5 million Inland Empire residents and distributed over 26 million pounds of food to Riverside and San Bernardino County residents. We provided multiple programs and a variety of services to meet the growing need. These programs included Cal Fresh application assistance, home-bound food deliveries, contactless emergency drive-through food distributions, and access to free food distributions through our network of over 250 community partners.

As the CEO of FARSB, I have seen, first-hand, the impact that the pandemic has had on our community. So many of our neighbors have found themselves turning to FARSB for emergency support for the first time in their lives. We’ve seen mothers cry tears of joy after receiving a box of food; seniors filled with gratitude when they could not leave their home and had food delivered; children with smiles when they received milk, fruit, and cereal. Also, we’ve received countless gratitude cards and letters from community members thanking us for our services. 

As we approach the one-year mark since the pandemic’s initial onset, we still see an increased demand for food assistance.  While economic recovery from the pandemic will take years, FARSB will continue to work on the front lines assisting all of our neighbors in need, providing hope and nourishment.

If you have offered a helping hand during the pandemic, thank you for your support. If you have not yet given or would like to show your continued support, visit www.FeedingIE.org to donate now. Every $1 can provide up to 7 meals, and 100% of your donation stays in the Inland Empire, where your neighbors will receive the emergency food assistance they need.

From all of us at FARSB, thank you for your support. Together, #WeFeedtheIE.

The Inland Empire Business Journal (IEBJ) is the official business news publication of Southern California’s Inland Empire region - covering San Bernardino & Riverside Counties.

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Opinion

Rethinking Dynamic Pricing: Wendy’s CEO Pulls Back on Controversial Strategy

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A strategic retreat sheds light on the complexities of surge pricing in the fast-food industry and the importance of customer perception

By Sandeep Krishnamurthy and Christopher Tang, IEBJ Contributors

What a difference a day makes. Wendy’s CEO, Kirk Tanner, retracted his decision to introduce a dynamic pricing plan on February 28. This reversal came just a day after his statements about the 2025 launch of dynamic pricing were reported in a February earnings call.

Dynamic or surge pricing, regardless of the terminology used, is generally not favored by customers, particularly in restaurants, pubs, or supermarkets. To successfully implement dynamic pricing, companies need to understand customer psychology and must effectively explain their approach to customers.

The obstacles that Mr. Tanner is encountering are not unique, and there are valuable lessons to be gleaned from his experience.

First, low hanging fruits may not be beneficial.

As the newly appointed CEO of Wendy’s since January, Mr. Tanner faced the daunting task of devising a plan to revive the company following a 14% drop in its stock price in 2023.

One potential strategy to boost profits involves using an AI-enabled system to dynamically promote different items at varying prices, potentially encouraging customers to order and spend more. As reported in the press, Tanner had unveiled new strategies during the February earnings call to enhance Wendy’s profitability. These strategies included digital menu boards capable of real-time price updates and diverse menu offers throughout the day.

While Mr. Tanner might consider this approach a no-brainer, he should be aware of past instances where similar plans were met with resistance. Rumors circulated in 2017 that UK supermarkets like Tesco, Sainsbury’s, and Morrisons were planning to use electronic labels for dynamic price changes. However, they subsequently denied these plans following customer backlash.

The implementation of dynamic pricing in restaurants and supermarkets carries inherent risks of customer defection and loss of brand reputation. This is why so few companies dare to pick this low-hanging fruit.

Second, transparency and honesty are paramount when it comes to price increases.

Following an online uproar over its dynamic pricing plan, Wendy’s issued an online statement clarifying that it “would not raise prices when our customers are visiting us most.” While this statement may mitigate some of the backlash against surge pricing, it also implies that Wendy’s intends to increase prices for certain items, which may not be perceived as sincere by consumers.

Dynamic pricing can be counterproductive if a company is seen as greedy. Before implementing a price increase or dynamic pricing, companies must genuinely explain their reasoning, supported by facts. For instance, in the fast-food sector, like Wendy’s, it’s crucial to emphasize that material and labor costs have risen post-pandemic. A new California law effective April 1, 2024, will set the minimum wage for fast-food workers at $20 per hour, $4 higher than the state’s minimum wage for 2024. Additionally, the costs of employing servers during busy hours are even higher, setting the stage for price increases.

Given the higher labor costs during peak hours, a restaurant may choose to increase prices either all the time or only during peak hours. To maintain or improve service quality during busy periods, it is arguably fairer to charge higher prices during these times rather than spreading the increased labor costs across all customers, including those who patronize the establishment during off-peak hours. This logic was employed in the UK when about 800 pubs owned by the Stonegate Group started charging an extra 20 pence (25 cents) for a pint of draft lager during peak hours from September 2023. Despite some UK customers expressing dissatisfaction with the surge pricing at the pub, no significant boycotts against the Stonegate Group have been reported to date.

Third, presenting dynamic pricing from a different perspective can be advantageous.

Dynamic pricing, which involves varying prices based on supply and demand, can be reframed positively. For fast-food chains like Wendy’s, where peak and off-peak hours are consistent daily, lower prices could be offered during off-peak hours instead of higher prices during rush hours. This approach, often termed as ‘happy hour discounts’, is familiar to customers, even though they are aware that regular prices during peak hours are higher.

Proper framing can alter customer reactions to differential pricing. This strategy has been employed at gas stations for years, where instead of imposing credit card surcharges, they offer cash discounts. The effectiveness of this framing lies in the concept of reference pricing. By promoting ‘happy hour discounts’, customers use the higher regular price during peak hours as a reference, and are pleased to find discount opportunities during off-peak hours.

While dynamic pricing is a common practice in industries like airlines, hotels, and ride-hailing services, customers in the food and beverage sector have a stronger sense of fair pricing. The use of the term “surge pricing” in particular is seen as an inherently unfair pricing approach that only benefits the company at the cost of the customer.

Therefore, the implementation of dynamic pricing in restaurants and pubs requires careful planning. If executed correctly, customers are more likely to accept price fluctuations over time. Simultaneously, restaurants and pubs can balance demand, reduce labor costs, and provide consistent service to customers.

In essence, dynamic pricing can be a mutually beneficial solution if implemented correctly.

About the Authors

Sandeep Krishnamurthy
Singelyn Family Dean, College of Business Administration
Cal Poly Pomona

Dr. Chris Tang
Distinguished Professor, Edward W. Carter Chair in Business Administration
Anderson School of Management
UCLA

 

 

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Health & Wellness

Embracing the Sun: The Simplest Wellness Hack for Busy Lives

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So Many “Wellness Tips” So Little Time

Wellness Tips By Sarah Goudie, Nutrition Expert & Guest Writer for IEBJ

For many of us, managing all the “right” things amidst the chaos of daily life is not just overwhelming but also… let’s get real, feels almost like an impossible task! Navigating where to begin feels like finding a needle in a haystack, particularly when ads, influencer opinions, and well-intentioned suggestions from friends and family bombard us. Here’s the deal: We can’t do it ALL. Take a deep breath and let that sink in. We. Can’t. Do. It. All. Now, don’t misunderstand me; I’m 100% into discovering what works best and crafting a routine that caters to the health needs of each individual. But let’s face it: with the hectic schedules of entrepreneurs and business owners, finding time for it all feels like a constant challenge.

So, what’s my top recommendation? It’s all about soaking up the SUNSHINE!

Catch some rays between 8 am and 10 am daily, even if it’s just for 10-15 minutes.

You may have heard before that our bodies have an internal clock. It’s called the circadian rhythm. At the heart of this rhythm is light. When we soak up natural light during the day, it’s like our bodies are taking cues from the sun to stay awake and alert. Our eyes catch that sunlight and shoot signals to the brain, giving it a little wake-up call. At the same time, our melatonin production, which is the sleep hormone, takes a back seat until about 12 hours later, when it kicks in and gets us ready for bed. It’s about syncing up with the natural light-dark cycle, like tuning into the right frequency for a good night’s sleep. Sunlight helps with sleep and dishes out Vitamin D, amps up energy and mental health, kicks stress to the curb, and boosts our immune system. *Quick note: Artificial light can mimic these signals, too, so be aware of screen time close to bedtime, as they can interfere with melatonin regulation.

How can you fit this into the daily grind?” Park a bit further from the office and enjoy some sun rays on your stroll. Take a breather outside during work breaks. Roll down that car window during rush hour. Do a lap around your workplace or hit the pavement after breakfast. And when outdoor time isn’t an option, consider snagging a red-light therapy lamp for a little biohacking boost.

So, instead of diving into the deep end with ALL the wellness trends this month, give this sunshine tip a whirl and see how it adds a sprinkle of vitality to your life!

ABOUT SARAH
Sarah passionately advocates for the intricate relationship between the mind and body. Her dedication to promoting vitality at the intersection of lifestyle medicine and nutrition inspires her exploration of biopsychology, epigenetics, and systemic belief systems within her PhD studies in Health Psychology. Sarah genuinely enjoys educating and guiding others, using an approach that is supportive and free of judgment. Recognizing the potential for shame in discussions about nutrition, she is committed to creating a supportive environment that encourages growth and progress. You can learn more about her work with approachable nutrition while visiting Murrieta Hot Springs Resort.

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Business

Partners in Action: How CalOSBA is bridging the gap in funding and resources for Inland Empire small businesses

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By Josaline Cuesta, California Program Director, Small Business Majority & IEBJ Content Contributor

For Tara Lynn Gray, Director of the California Office of the Small Business Advocate (CalOSBA), entrepreneurship has always been a core principle of her life. Her journey as an advocate for small businesses wasn’t built on textbooks, but on her family’s roots in small business ownership. As a young girl, she watched her grandmother empower and elevate Black women’s presences by styling their hair and instilling confidence in their personhood. She witnessed the direct impact of small businesses on community members in real time, and that’s always stayed with Tara.

As a key partner of Small Business Majority, she stands as a champion for the dreamers and risk-takers; the pillars of the communities across California and in the Inland Empire. I chatted with her to share more about her work at CalOSBA, what entrepreneurs can expect when they meet with a CalOSBA advisor, and the resources and community support available to help boost entrepreneurship in the Golden State.

Tell us about CalOSBA’s role in the small business community.

“California has the biggest small business community in the country, accounting for 4.1 million small businesses in 2023 alone. The overwhelming majority have no employees at all, except themselves, which means they don’t have a Board of Directors, expensive consultants, and they definitely don’t have lobbyists. I take my role as their advocate seriously, talking with and listening to small business owners from up and down the state. During the pandemic, we were under a very bright spotlight, administering nearly $5 billion in direct relief funding and we’re proud of the grant programs we still oversee. But that’s only a small part of what we do at CalOSBA.

My team connects small business owners to information and resources to help them get started, manage their business and, most importantly, to grow. If they’re looking for help, we want to be the first door they knock on. In addition, we offer Outsmart Disaster training, which focuses on how to mitigate risks associated with natural disasters and recovery avenues available to them. I always say the flagship of our office is our support for the statewide network of Small Business Centers, providing 1:1 business assistance and training for small business owners of all industries and in dozens of languages. In addition, supporting partners that deliver these services–all the federally funded centers like the Small Business Development Centers and the Women’s Business Centers but also Chambers of Commerce and other nonprofits—is a core function of my office. And a big source of pride because we know what a difference they make for their clients.”

What can small business owners expect from meeting with a California Small Business Center advisor?

“Small business owners can expect to meet someone who is fully invested in them. Our Centers cover the full spectrum of business needs, from writing a business plan and obtaining the right permits and licenses, to finding capital, planning a succession strategy and marketing to e-commerce. Our business advisors provide the experience and the objective perspective to help business owners optimize their best assets: ideas, energy, and ability to keep adapting and learning. And they do it because they love helping other people succeed. What’s more, business ownership can become isolating and it may be challenging for entrepreneurs to find assistance. But they don’t have to go at it alone–and they shouldn’t, when these no-cost and low-cost services are available to them.”

What’s the most rewarding part of your role at CalOSBA?

“I always say I have the best job in the state. And it’s because I frequently have the honor to watch someone’s dream come true. I love a ribbon-cutting ceremony–Every time, big or small. It means someone dreamed of accomplishing something and worked hard for it: They opened the doors to their business, they made a sale, and hopefully they will hire their first employee and then it’s off to the races. But no matter what happens to that business, that ribbon-cutting is a milestone they made happen for themselves. There are many other events I get invited to, where you can just see the hope and pride, and even fear in their faces. I’m often overwhelmed by the sheer emotion of it, and I’m always humbled that I get to participate in that person’s big milestone.”

What are some new programs that can benefit small business owners in the Inland Empire?

“The number one question my office gets asked is how to access small business financing. To help address this key need, we’re launching the Technical Assistance for Capital Readiness program this February. The program is part of a bigger effort to fill well-known funding gaps in the state to benefit very small businesses and Socially and Economically Disadvantaged Individuals (SEDI). Through investments from the U.S. Treasury, the State Treasurer’s Office and IBank, the program is going to support lenders to facilitate “high risk” loans that they normally would not approve.

In addition to supporting lenders, my office also received $25.3 million in U.S. Treasury funding to start the new Capital Readiness network. The Capital Readiness Coaches in this network will help business owners get ready for the lending marketplace, help them make the best choices in a high interest-rate environment, and optimize the use of the capital once they receive it. The network is also designed to help spread the word about this opportunity to these SEDI-owned businesses, and some of those partners will be focused on supporting the Inland Empire small business ecosystem.”

How can business owners get in touch with CalOSBA?

“That’s simple! Check out calosba.ca.gov and sign up for our monthly newsletter, where I write a column and showcase success stories from our network, along with deadlines and updates on grant and workforce support programs. We’re also on social media, so I would encourage business owners to check out all of our channels.”

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