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sales@spotsndots.com Copyright 2017.The Daily News of TV Sales Tuesday, May 30, 2017

WHAT’S REALLY WRONG WITH RESTAURANTS?LIKE RETAIL, SIMPLY TOO MANY STORES? Readers of our daily Advertiser News columns are well aware that the majority of restaurant chains have been struggling for many months, mostly a victim of significantly lower counts of customers coming into the stores. Joe Pawlak, Managing Principal of the Technomic consultancy firm says the industry “is facing its most challenging environment since the Great Recession,” and notes “The bottom line is that fewer consumers are visiting restaurants less often than they were a few years ago.” Pawlak also says it’s counterintuitive that this is happening: unemployment is down, disposable personal income is up, consumer confidence is high and inflation and gas prices are low—all of which should be leading to booming restaurant results. He suggests there are several drivers of the real decline in business (especially for chains; many independents are doing better) and one of the largest is pricing. To make up for soft traffic, he says, chains have been aggressively raising prices to build up revenue and the all-important same-store sales figures. Technomic’s data estimates menu price inflation for the top 500 chains hit 4.3% last year, which he contends means these “bold” price increases have caused chains to stray from the value proposition they have been known for. Secondly, competition has become more intense and more fragmented, as consumers have more (and more competent) competition for out-of-home food than ever before. Meal kits have taken some business while supermarkets “have taken their game up a few notches on selection, value and quality in their prepared foods areas.” Even convenience stores have become serious competition, especially among Generation Z and younger millennials. Perhaps surprisingly, Pawlak downplays the often-quoted disparity between lower prices for food at supermarkets and higher prices at restaurants. He says of course that is a factor, but rejects the idea that consumers are quitting restaurants in big numbers and are now preparing significantly more meals at home. “When did consumers suddenly find time to cook on a regular basis or even learn to cook?,” he asks. Finally—perhaps most importantly—just as retail is finding it simply has too many stores, restaurants may reach the same conclusion. In 2016, the top 500 restaurant chains’ unit count was just over 225,000 units. In the five years prior, these chains added units at about 2% a year—while population grew at just 0.7% yearly. “Simply put,” Pawlak comments, “the U.S. has too many restaurants to service its set of 325 million potential patrons…too many restaurants are chasing a finite set of customers.” (Continued on page 2)

ADVERTISER NEWS Ulta Beauty has been the superstar of retail for the last several quarters and in a season when so many retailers’ reports have been dismal, Ulta shined once again. Same-store sales rose 14.3% on an 8.7% increase in the number of transactions and 5.6% growth in average ticket. And despite the fact online sales were up more than 70% versus last year, the chain is opening 100 new stores in the current fiscal year……Costco

also had a strong quarter with a better-than-anticipated 6% same-store increase in its U.S. stores. Membership fees were up 4%, a little under expectations as those fees will be increased on June 1……Many other retailers announced quarterly results just before the holiday weekend and most of them pale in comparison to Ulta or Costco. Big Lots comps were down 0.9% (it had predicted a flat-to-2% increase), and total sales were down 1.2% after having closed some stores. Burlington Stores’ comps rose by 0.5%, but that was

behind numbers that had come from other “off-price” apparel retailers like TJX and Ross Stores. Still, the chain expects to add 30 net new stores this year—it’s at 596 locations right now and projects an eventual 1000 locations. Same store sales were up 2.5% at Dollar Tree, but down 1.2% at the Family Dollar stores the company acquired last year……Abercrombie & Fitch, which has said it’s in discussion with several parties about a sale of the company, enjoyed a 3% same-store increase at its Hollister stores but that gain couldn’t make up for a 10% decline at Abercrombie itself. Williams-Sonoma had mixed results—comps were up 3.2% at the namesake chain and up 6% at West Elm, but down 1.4% at Pottery Barn, off by 5.7% at Pottery Barn Kids, and even worse at PB Teen, down 14.3%. And Genesco had an overall 4% comp decline with Journeys down 5% and Johnston & Murphy down 3%, only partially offset by a 1% increase from the Lids Sports group……(Continued on page 3)

PAGE 2 The Daily News of TV Sales @ www.spotsndots.com

NETWORK NEWS Last Friday’s big announcement from ABC was that former NY Yankee slugger Alex Rodriguez has signed a deal with ABC News, and will appear in segments across the news division including for Good Morning America, Nightline, and World News Tonight. Variety says Rodriguez will continue working for Fox Sports, and his contract would likely prohibit him from making cameos on ABC’s Disney ESPN. But he might be able to add commentary on games during non-sports-centric shows. Rodriguez was a bit hit for Fox at the recent upfront presentation to advertisers....Glenn Weiss and Ricky Kirshner will executive produce the 69th Primetime Emmy Awards, which will air Sunday, Sept. 17 on CBS. The pair are known for producing The Tony Awards and The Kennedy Center Honors....Fox has scheduled Teen Choice 2017 for Sunday, Aug. 13, 8pm (ET). It’s the only event of the summer in which teens control the power of the votes, by selecting new award categories and favorite categories from past Teen Choice shows. The two-hour LIVE event will honor stars from the best films, most-loved TV shows, fiercest music and the top moments in fashion, digital and comedy with the coveted Teen Choice Surfboard Awards....Last Thursday’s Red Nose Day Special on NBC was a hit with viewership up 40% in demo and 27% in total viewers, when compared to last year. Against an NBA Eastern Conference playoff game and a NHL Game 7 playoff, NBC was #2 for the night among the Big 4 with an 0.9 in the 18-49 demo and 3.636 million viewers overall. Comic Relief started Red Nose Day in England in 1985 as a way to raise money to fight child poverty. It crossed the ocean to America three years ago.... ABC’s negotiations with Ryan Seacrest to return as host of American Idol have hit a snag, according to Variety. The network has hired Katy Perry as a judge for the upcoming season, and Perry ‘leaked’ that her compensation will be $25 million per year. Seacrest was reportedly offered $10 million for his services. Besides being slighted by money, a return to Idol would present significant logistical challenges for Seacrest, who relocated to New York for his new gig as host of Live With Kelly and Ryan. Idol has traditionally shot in Los Angeles.

RESTAURANT SLUMP (Continued from page 1) There is a perspective to the decline. The average consumer eats about 190 meals in restaurants annually, about 16 meals per month. If that consumer eats just one less meal out every two months (6 per year), that creates a decline of 3% a year. “That’s all it takes,” Pawlak says, “one average consumer occasion every two months. With all that is happening from competitive, structural and consumer perspectives, perhaps it is surprising that the industry is not performing worse.” With that in mind, he suggests, gaining back customers requires winning the small skirmishes, not necessarily the entire battle.

AVAILS WATE-TV6 Nexstar Media Group in Knoxville, TN is in search of a Digital Sales Manager. The DSM is responsible for directing digital sales efforts for all core digital and digital marketing services. The successful candidate will be an expert in local digital and cross platform sales, have a solid understanding of the local digital marketplace, and be knowledgeable about how to effectively package digital assets to maximize digital

advertising and digital marketing services revenue. All candidates must APPLY HERE. EOE. Comcast Spotlight seeks a Regional Automotive Director, Bethesda, MD. The Automotive Director will utilize all Spotlight products and solutions within their respective region and align with corporate initiatives. The role requires high collaboration and integration with Spotlight constituents in Corporate and Region in development of strategies

and tactics that can support new business and share growth of automotive advertisers’ marketing spend. 10+ years in related automotive media management and/or automotive advertising sales experiences, with increasing management responsibilities. CLICK HERE to apply. Comcast is an EOE/V/D/LGBT employer. If you love selling all screens, we have a tremendous digital/broadcast sales position for you! Your candy store at Fox6now.com & WITI FOX 6, Milwaukee includes: An awesome website, mobile apps, a complete digital solution toolbox, #1 rated local TV news, locally produced programs, NFL/GB Packers Football, MLB, NASCAR and all Fox Sports. We are looking for a self-motivated team player with excellent organization skills. Creativity, first-rate communication and strong marketing instincts are essential to this position. Please send resumes to: witihr@fox6now.com EOE Fox61/WCCT-TV (Tribune Media) in Hartford, CT has an immediate opening for an Account Executive. The successful candidate will be responsible for achieving sales goals, prospecting, developing a target list, building and delivering presentations and managing the sales process from start to finish. Media sales experience preferred with a proven track record in reaching revenue goals in broadcast television, digital and developing new business. The emphasis of the position will be to drive new, non-traditional business and increase sales. APPLY HERE. EOE. WTAE-TV, the Hearst-owned ABC affiliate in Pittsburgh, PA is seeking a dynamic individual to become an Account Executive. The AE will be responsible for increasing the station’s active advertiser customer base through the development of new business. Candidate should have 1-3 years of experience in Media Sales and have a proven track record of generating new business revenue across multiple media platforms. CLICK HERE to apply. EOE.

5/30/2017

Conan O’Brien

The FAA is investigating why a drone appeared in the sky during a San Diego Padres

game. Authorities have already ruled out the possibility that someone actually wanted to

watch a Padres game.

The Daily News of TV Sales @ www.spotsndots.com PAGE 3

ECONOMIC NEWS Here’s some good news: The revised analysis from the Commerce Department of Gross Domestic Product for the first quarter was significantly higher than originally thought, now seen as having produced an annual growth rate of 1.2% (compared to 0.7% estimated earlier). The upward revision came largely from higher-than-thought consumer spending and business investment and The Wall Street Journal notes the pace of growth appears to be picking up in the current quarter. Forecasting firm Macroeconomic Advisers said on Friday it expects a 3.3% GDP expansion for the second quarter. BUSINESS BYTES Analysis from Loop Capital finds Walmart is improving its share of the grocery business at an accelerating rate and is now estimated to take 21.5% of the entire grocery category. The world’s largest retailer’s same-store sales beat other U.S. supers by 2.9% in the first quarter, up from 1.6% in last year’s fourth quarter. Loop Capital analyst Andrew Wolf said on CNBC Walmart’s strong performance was helped by food deflation and “continued pricing investment” as it seeks to take a better position against Kroger and discounters such as Aldi. There’s some evidence Walmart pricing may be on a market-by-market basis based on competition—Wolf remarked “Kroger has discussed that while certain markets are indeed more competitive, such as those in which Walmart is changing prices, certain other markets are less competitive than normal.” General Motors may be the next auto manufacturer in the crosshairs over diesel emissions. Hagens Berman Sobol Shapiro, one of the major law firms in the Volkswagen litigation, is one of the firms suing GM claiming that the manufacturer installed defeat devices in its trucks to beat emissions tests. Automotive News reports the lawsuit filed on behalf of more than 700,000 owners of GM diesel trucks contains 83 references to Volkswagen. GM calls the claims “baseless” and pledges to “vigorously defend” itself. An analyst at Barclays Capital says “Given this is coming from a class action litigation firm, it could just be ‘fishing’ for a settlement around charges of deceptive advertising. We’d only know that it’s more serious if the (Environmental Protection Agency) steps in, as they did in the cases of (Fiat Chrysler) and VW.”

THIS AND THAT Mattress Mack (actually his name is Jim McIngvale) is at it again. The Houston furniture dealer who has rebated millions of dollars based on sports-related (and last year election-related) promotions, is now offering to refund bed-ding purchases of $3000 or more if the Houston Astros win the World Series this year. Furniture Today reports McIngvale rebated $4 million three years ago when the then-poorly performing Astros won over 63 games and about $10 million last year based on the election. While insurance is available to retailers who offer these kinds of promotions, McIngvale has in the past self-insured the outcome. (P.S. The Astros are currently in first place and very likely to at least make it into the playoffs).

AVAILS Comcast seeks a Regional Advertising Sales Manager for a position in Atlanta, GA. This position is responsible for identifying client business challenges and identifying solutions that drive strategic initiatives. Develops objectives and procedures that are consistent with the overall direction of all sales activities within the regional market area. Accountable for the management of an ad sales team in a major regional

market. CLICK HERE to apply. Comcast is an EOE/Veterans/Disabled/LGBT employer Hearst Television’s WMOR-TV, Tampa is seeking a dynamic Account Executive to sell their triopoly of stations and digital products. Individual must be self-motivated, results driven and creative. A proven track record in new business development along with strong negotiation skills is required. Bachelor’s Degree preferred or equivalent work experience preferred, experience in TV/

Radio sales a plus. We are a destination company in a great market that offers a tremendous opportunity for the right person. CLICK HERE to apply. EOE. KHOU 11 News, a TEGNA owned CBS affiliate in Houston, is seeking an experienced National Sales Manager. We are seeking a driven, solutions-based seller who is eager to sell KHOU marketing solutions to national agencies, as well as grow our national market share by negotiating, packaging and increasing current client spend utilizing all of our assets. Qualified applicants, please CLICK HERE to apply. No phone calls please! Due to the volume of resumes received, we are unable to provide updates on the status of individual applications.

ADVERTISER NEWS (Continued from page 1) ….Steinhoff International, the international manufacturer and retailer that bought Mattress Firm last year, is buying a majority stake in Sherwood Bedding, the fifth largest mattress manufacturer in the country. As we have reported, Mattress Firm ended its dealings with its former largest vendor Tempur Sealy earlier this year in an acrimonious split that has resulted in each company suing the other.

5/30/2017

FunnyTweeter.com

If insanity is repeating the same action expecting a

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