All posts by Michelle Grathers

About Michelle Grathers

Michelle Grathers is an international tax expert. She has consulted for a variety of firms and high net worth individuals on all tax- and legal-related issues. She also helps new companies develop payroll services, statutory audits and mergers and acquisitions. Contact Michelle at michelle[at]businessdistrict.com

McDonald’s Planning to Shine Up their Tarnishing Golden Arches

As business at McDonald’s plummets the globally ubiquitous fast food chain is looking for ways to halt the downward spiral and retrieve a bit of their former glory. Sales are in the doghouse, and increased competition from fast-casual restaurants is making it even harder for McDonald’s to get back on track. In addition, McDonald’s is dealing with worker unrest and trouble from the franchises. McDonald’s announced this week a 3.3 percent decline in sales last quarter.

CEO Don Thompson is ready with a plan of action to turn his brand around.

•    Create menus more in tune with the local consumer
•    Lose some menu items: this reduces waiting times and improves the worker environment
•    Allow customers to personalize their food
•    Get there reputation as unhealthy and bad for the environment rehabilitated

McDonald's will need to make some changes to preserve their market share
McDonald’s will need to make some changes to preserve their market share

“Conveying the facts and adjusting misperceptions about the freshness, quality and integrity of our ingredients appeals to our customers and supports the work we’re doing to offer greater menu choice,” Thompson said.

AmCham-Tanzania is Helping to Save the Elephants

AmCham-TZ Supporting Elephants and Elephant Tourism
AmCham-TZ Supporting Elephants and Elephant Tourism

The American Chamber of Commerce in Tanzania (AmCham-TZ), an organization that supports US businessmen in Tanzania, is making big efforts to help big mammals, elephants, from the ravages of poaching.

Tanzania is struggling with poaching of elephants, and AmCham-TZ is soliciting funds from US sources to help support the country’s anti-poaching policy. Executive Director Mr. Richard Miles explained that his organization will be looking for funds from Americans that do business in Tanzania, Tanzanian corporations that trade with the US, and US citizens living and working in Tanzania.

“It’s up to us to ensure that future generations of elephants continue to thrive in this beautiful country, and that future generations of tourists from around the world come to see them, creating income and employment for the nation,” said Miles. “This is why we are so proud to lead the charge in galvanizing American corporate efforts to protect wildlife.”

Over 30 elephants are killed every single day in Tanzania. In one year about 10,000 elephants are killed, according to Mr. James Lembeli, chairman of the Natural Resources Committee of Tanzania’s Parliament. At this pace there will no longer be elephants in Tanzania in less than ten years.

One Third of Consumers with Debt Face Collection Agencies

One third of consumers with debt end up with the debt collector
One third of consumers with debt end up with the debt collector

According to a recently published study from the Urban Institute, 35 percent of Americans have had their debt and other past due bills reported to collection agencies.

Caroline Ratcliffe, a senior fellow at the Urban Institute, a Washington-based think-tank, explained that often consumers get behind on their credit card payments or their hospital bills. Mortgages, car loans and student loans are also put aside, unpaid. Sometimes gym membership fees and cellphone bills can also go to a collection agency if they remain unpaid for too long. Once debt ends up in the hands of a collection agency credit scores and job opportunities can be negatively affected.

“Roughly, every third person you pass on the street is going to have debt in collections,” Ratcliffe said. “It can tip employers’ hiring decisions, or whether or not you get that apartment.”

The results of the study showed that 35.1 percent of all people with credit cards have been reported to collection agencies for debt averaging $5,178, based on records from September 2013.

The vast majority of this debt is concentrated in southern and western states. Texas is overly represented to collection agencies, with 44.3 percent in Dallas, 44.4 percent in El Paso, and 51.7 percent in McAllen. Las Vegas has about half of its residents with debt in collections.

Ratcliffe blames frozen salaries for much of the debt problem in the worst hit states. In many places wages have been struggling to keep up with inflation during the past five years of economic recovery. In an unrelated survey Wells Fargo discovered that after-tax income dropped for the lowest 20 percent of earners during the same time frame.

Aronia Berry Brings Health Benefits and Profits

Chokeberries
Chokeberries

There is a new fruit on the market which makes other anti-oxidant fruit look like wimps: it’s called the aronia berry and, according to research, it has more antioxidant muscle than just about any other kind of fruit.

Also known as the chokeberry due to the way European settlers in North America reacted when they ate it; the new name bears no preconceived negative connotations, and comes from its Latin name Aronia melanocarpa.

Native to North America, aronia was introduced to eastern Europe and Russia in the beginning of the 20th century and is grown there for wines and juices. In the US the berry is grown in the upper Midwest, with thousands of bushes planted there each year for cultivation.

The main push for the rising popularity of aronia came from the Pittz family. In 1997 Andrew Pittz’s parents were looking for a crop they could grow on the hilly and silt-heavy soil close to the Missouri River. They discovered aronia, and planted 200 bushes that year. It was a good choice because the bush grows easily in that area and has few pests. The bushes do not need to be planted anew each year.

Almost 20 years later Andrew, who is 28, sells his berries to about half of all the 237 Hy-Vee stores, and to every Whole Foods market in their Midwest region of the US.  Not only have the Pittz family been successfully growing and selling aronia, but they have been spreading the gospel to just about anyone who will listen.

His farm sponsors a yearly field day in September that attracts thousands of participants. Last year Andrew planted aronia bushes in all of Iowa’s 99 counties. Iowa State is also helping to promote the berry. It offers grants to help people begin to grow aronia, and promotes the berry as a value-added crop and a great way to diversify farm income.

“We want the aronia berry to be to Iowa’s Heartland what the peach is to Georgia.” Pittz said.

Starbucks to Help Employees Earn On-line Degrees

Work at Starbucks and graduate college
Work at Starbucks and graduate college

Beginning in 2011 Starbucks offered a tuition reimbursement program for its employees who attended either City University of Seattle or Strayer University. Students/employees could receive up to $1,000 per year to help pay their tuition. The perk is a rarity among low-paying jobs. So far Starbucks has paid out about $6.5 million to their workers enrolled in this program.

Now Starbucks is phasing out the tuition reimbursement program in favor of a program in conjunction with Arizona State University to help their employees earn degrees on-line. Starbucks says there is not requirement for employees to stay at Starbucks after they graduate, and they can choose from a large selection of subjects to study, not just those subjects related to their employment.

It is not known at this time about how many employees will take Starbucks up on this offer. Neither is it known the financial deal the company made with the University. What is known is that an on-line degree from Arizona State costs about the same as the regular degree program, about $10,000 per year.