How the Gig Economy is Having a Positive Effect on the Hospitality Industry
The GIG economy has, in the last few years, dramatically changed the restaurant, transportation and health care markets… but it also has revamped the hospitality sector as well. The GIG economy has been successful because it provided employers with dependable workers when needed and provides workers with greater control of their work schedule which translates into higher rates of job satisfaction and better services for the employers. Much of this has arisen due to the rise of online mobile apps over the past several years. On-demand labor platforms connect the hospitality industry in real-time with qualified individuals ready to work. Gone are the days of relying on traditional temp agencies, a new era has now arrived. Specifically, on-demand, short-term labor platforms are looking to meet the needs of hospitality businesses and ease the crippling effects that labor shortages can cause. It is all too common in the catering, hospitality, and food & beverage industry that good workers can be hard to find. Often there is a great need for a reliable and professional extra hand because a regular employee took an unexpected sick day or a big catering job is coming up. But today, thanks to innovative apps, companies can post available shift openings and be matched with an eager, qualified gig worker ready to fill in where and when they are needed. By leveraging the readily available on-demand labor force, employers can now reap the rewards of the fast-growing gig economy. Active companies in the markets this week include ShiftPixy, Inc. (NASDAQ: PIXY), Amazon.com, Inc. (NASDAQ: AMZN), Microsoft Corporation (NASDAQ: MSFT), Costco Wholesale Corporation (NASDAQ: COST), Starbucks Corporation (NASDAQ: SBUX).
The future of the gig economy is strong thanks t to the pioneering companies that launched these apps, and now the hospitality industry has benefitted from the new availability. This trend is driven in part by the fact that more people are opting to join the GIG workforce. The ongoing rapid growth of the gig economy is changing the future of work and redefining the work-life experience. With smartphones as a constant companion, workers have the freedom to move seamlessly from gig to gig. Recent research from Intuit forecasts that by 2021 the gig economy will surge, resulting in 9.2 million Americans joining the gig workforce. With this continued uptick in the gig economy, gig workers will quickly outnumber jobs within the finance and construction sectors, respectively
ShiftPixy, Inc. (NASDAQ: PIXY) BREAKING NEWS: ShiftPixy Announces Partnership with Washington Hospitality Association – More than 300,000 restaurant and hospitality employees to enter ShiftPixy ecosystem – ShiftPixy, a gig engagement platform provider, today announced a new partnership with the Washington Hospitality Association, the state’s leading hospitality trade group representing more than 6,000 members, and supporting more than 300,000 restaurant and hospitality industry employees across the state of Washington.
“We are absolutely thrilled to join forces with the Washington Hospitality Association in one of our largest and most significant partnerships to date,” said ShiftPixy Co-Founder and CEO Scott Absher. “The Washington Hospitality Association has historically demonstrated leadership and innovation in bringing vitality and leading-edge capabilities to the thousands of restaurant and hospitality operators across Washington State. We see our new partnership as a natural extension of that forward-thinking mindset, and eagerly anticipate helping Washington Hospitality Association advance its core mission utilizing our sophisticated and scalable human capital platform.”
Discussing the new partnership, Washington Hospitality Association [CEO/President Anthony Anton] stated, “An important focus of ours is to keep our restaurant and hospitality operators agile and equipped with the latest tools to succeed. We found the ShiftPixy platform to be exactly what we were seeking, especially during times such as these, when the ability to adapt to new market realities is of the utmost importance. We’re excited to join forces with the ShiftPixy team and eagerly look forward to introducing the ShiftPixy ecosystem to our restaurant and hospitality operators and the thousands they employ across Washington State.” Read this and more news for ShiftPixy at: https://www.financialnewsmedia.com/news-pixy/
Other recent developments in the markets this week include:
Amazon.com Inc. (NASDAQ: AMZN) recently announced it is on course to invest $18 billion this year to help independent businesses sell to customers, including investments in logistics, tools, services, programs, and people. Since the beginning of the year, Amazon has launched more than 135 free tools and services to help sellers grow their sales in Amazon’s store. In the next twelve months, the company will provide more than 500,000 U.S. small and medium-sized businesses (SMBs) currently selling on Amazon with online selling guidance, education, and support, and the company plans to onboard an additional 100,000 U.S. businesses as new sellers in its store. The announcements were made at Amazon Accelerate – a three-day virtual summit for U.S. SMBs who are currently selling in Amazon’s store or interested in doing so.
“At Amazon, our mission is to be Earth’s most customer-centric company, and part of fulfilling that mission is connecting small businesses with customers,” says Jeff Wilke, CEO Worldwide Consumer at Amazon, who opened the event with a fireside chat with Dharmesh Mehta, Vice President, Customer Trust & Partner Support at Amazon. “Amazon’s success is directly tied to the success of independent businesses across the U.S. We are passionate about supporting small businesses, investing and inventing on their behalf to help them be resilient through COVID-19 and beyond.”
Microsoft Corporation (NASDAQ: MSFT) and Universal Filmed Entertainment Group recently announced a strategic partnership to cloud-optimize live-action and animation productions. The partnership aims to empower the creative community with cloud-based production workflows that enable frictionless remote collaboration and content creation. Working together, the teams will extend DreamWorks Animation’s cutting-edge production platform to include live-action production. They will bring those workflows into Microsoft Azure and ensure Universal’s ecosystem of partners can connect to them in open, standards-based ways.
“With this partnership, Universal is continuing to build on our commitment as an industry leader in transitioning to a cloud production model across our portfolio of studios. As outlined last year in the MovieLabs 2030 vision paper, streamlining our workflows will allow for a more efficient creative process, empowering the artists and storytellers we work with to make the best content possible,” said Michael Wise, Senior Vice President and Chief Technology Officer, Universal Filmed Entertainment Group.
Costco Wholesale Corporation (NASDAQ: COST) recently reported net sales of $13.56 billion for the retail month of August, the four weeks ended August 30, 2020, an increase of 15.0 percent from $11.79 billion last year. For the 16-week fourth quarter ended August 30, 2020, the Company reported net sales of $52.3 billion, an increase of 12.7 percent compared to net sales of $46.4 billion during the similar period last year. For the 52-week fiscal year ended August 30, 2020, the Company reported net sales of $163.2 billion, an increase of 9.2 percent from the $149.4 billion during the similar period last year.
August sales were negatively impacted by the shift of Labor Day. The estimated negative impact on August net and comparable sales was approximately 75 bps in the U.S., and a little more than 50 bps worldwide.
Additional discussion of these results is available in a pre-recorded telephone message. It can be accessed by dialing 1-855-859-2056 (conference ID 6899287). This message will be available through 5:00 p.m. (PT) on Wednesday, September 9, 2020.
Starbucks Corporation (NASDAQ: SBUX) recently reported financial results for its 13-week fiscal third quarter ended June 28, 2020. GAAP results in fiscal 2020 and fiscal 2019 include items that are excluded from non-GAAP results. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information.
“Since the beginning of the COVID-19 outbreak in January, we have taken a principled approach to navigate the crisis, true to our mission and values. Every step of the way, we have thoughtfully addressed the needs of Starbucks stakeholders and are particularly proud of the industry-leading investments we have made to support our partners while creating a safe, familiar and convenient experience for our customers. Starbucks partners have risen to the occasion, and our near-term focus is to recover sales safely and responsibly by offering our customers the comfort and care that differentiate the Starbucks Experience,” said Kevin Johnson, president and CEO.