US job market faces hurdles even with 5.5 pct. unemployment

WASHINGTON — Unemployment in the U.S. has dropped to a seven-year low of 5.5 percent — a level normally considered the mark of a healthy job market. Yet that number isn't as encouraging as it might sound.

While U.S. employers added a solid 295,000 jobs in February, and the jobless rate fell from 5.7 percent, it went down mostly because many people gave up looking for work and were no longer officially counted as unemployed, the government reported Friday. What's more, wage gains remained sluggish.

Those trends suggest that the job market, while improving rapidly, isn't quite as healthy as it looks.

That complicates the Federal Reserve's task of figuring out when the economy has strengthened enough to withstand higher interest rates. The Fed is considering a rate increase as early as June.

With Friday's report, employers have now produced 12 straight monthly job gains above 200,000. It's the longest such stretch since 1994-95.

The U.S. is easily outshining most other major economies. For example, the unemployment rate in the 19 countries that share the euro is 11.2 percent, or twice the U.S. rate.

The robust U.S. job gains appear to have convinced many investors that the Fed will soon raise the short-term interest rate it controls. Investors on Friday sold ultra-safe U.S. Treasurys, a sign that many anticipate a rate increase. The yield on the 10-year Treasury note rose to 2.24 percent from 2.11 percent.

And they dumped stocks. The Dow Jones industrial average plummeted 276 points in afternoon trading.

A 5.5 percent unemployment rate is typically consistent with what economists call "full employment" — when the proportion of unemployed people has fallen so low that employers must raise pay to find enough qualified workers.

Companies then raise prices to pay for the higher wages. And the Fed usually follows suit by raising its benchmark short-term rate to cool growth and ward off inflation.

But the scars of the Great Recession have made the process hazier and more complicated.

"5.5 percent doesn't mean what it once did," said Diane Swonk, chief economist at Mesirow Financial. Full employment "is always a moving target, and it has moved down."

Since the recession ended in June 2009, the percentage of adults working or looking for work has fallen to a 37-year low of 62.8 percent. It has hovered around the mark for most of the past year.

Economists calculate that about half that decline reflects the aging of the population as the baby boom generation retires.

But another factor is that many Americans have become discouraged about their job prospects and have given up looking. Those out of work aren't counted as unemployed unless they are actively looking for jobs.

That has helped artificially lowered the rate since its peak of 10 percent in October 2009.

Many economists also argue the economy can't be near full employment if wages aren't growing. And average hourly earnings rose just 3 cents to $24.78 in February from the previous month.

Megan Greene, chief economist at John Hancock Financial Services, noted that hourly pay fell in February from January in the construction and mining industries. Such figures will outweigh the falling unemployment rate in Fed chair Janet Yellen's mind, she said, and perhaps discourage a rate increase soon.

Yet many other economists expect the Fed will put a rate increase into effect in June or September.

The short-term interest rate is usually at 3 percent or 4 percent when the economy is at full employment. It is now at a record low of zero, and inflation is practically nonexistent.

Tim Hopper, chief economist at TIAA-CREF, said that if unemployment keeps falling and inflation starts to pick up later this year, "the Fed will be behind the curve if they haven't already started raising rates."

Nearly 3.3 million more Americans are earning paychecks than 12 months ago. That has boosted U.S. consumer spending and the broader global economy. Many leading exporters, particularly China, Germany and Japan, depend on Americans' spending for a chunk of their growth.

February's hiring gains were broad-based. Some of the industries with the biggest gains include mostly low-paid work: Hotels and restaurants added 60,000 jobs, retailers 32,000.

But higher-paying fields also added jobs: Professional and business services, which include accountants, engineers and lawyers, gained 51,000, construction 29,000 and financial services 10,000.

Growth slowed in the final three months of last year to an annual rate of 2.2 percent after roaring ahead at nearly 5 percent last spring and summer. But consumer spending rose, a sign demand remains strong.

Dave Long, chief executive of Orangetheory Fitness, said the improving economy has given a boost to his fast-growing exercise studio business. He opened the first location five years ago in Fort Lauderdale, Florida. The company now has nearly 200 sites in the U.S.

"As people have a little extra money ... it opens up their minds to spending a little more on a product like ours," he said.

12.33 | 0 komentar | Read More

3 reasons Apple's watch will... or won't... change the game

SAN FRANCISCO — No one can argue that Apple has changed the way people live their lives. The company's iPod, iTunes, iPhone and iPad have shaken up music, phone and computer markets worldwide. Is the Apple Watch going to be able to do the same?

The stakes are big for Apple CEO Tim Cook: the watch is the first brand-new Apple product to be launched without legendary co-founder Steve Jobs. But the market is awash in smartwatches that have gained little traction. Here are three reasons the Apple Watch will finally move the needle in the smartwatch industry — and three reasons it might not.

WHY IT WILL CHANGE THE GAME

MORE FEATURES THAN RIVALS: Along with email, texts and phone calls, Apple says its watch will present news, health readings and other notifications in creative ways that can be read at a glance. It will have a heart rate monitor and accelerometer, and an internal motor that can signal the wearer with a subtle "tap" on the wrist. And Siri and Apple Pay will be built in. Apple is working with outside companies to create more apps; Cook has talked about using the watch as an electronic "key" for hotel doors or even cars.

A POWERFUL BRAND: The world's biggest tech company has a reputation for quality and a direct conduit to customers — it operates more than 400 retail stores around the world. And it has deep pockets to spend on advertising — it is showcasing the watch this month with a sleek, 12-page insert in Vogue and other fashion magazines.

APPLE'S TRACK RECORD: This wouldn't be the first Apple product that revolutionized a market where rivals had struggled to break through. Other companies made digital music players before the iPod, smartphones before the iPhone and even tablets before the iPad. Most of those products failed to catch on until Apple made devices so appealing they set new standards and created new demand, said Forrester Research analyst J.P. Gownder.

OR NOT

WHAT'S THE NEED?: Most smartwatches — including Apple's — only work with a smartphone nearby, so you can't swap one expensive gadget for the other. "What we've seen is that it's not obvious why people would want a smartwatch," says Gownder. A recent Forrester survey found some respondents didn't see a reason to buy one because they already owned a less-expensive fitness band or a full-featured smartphone (although it also found Apple fans ready to buy the new watch).

CONSUMERS NOT EXCITED: You can already buy smartwatches made by giant tech companies like Samsung, Sony or LG, or from a tech startup like Pebble, that track your heart rate, show you email and deliver other online services to your wrist. None of them have really caught on. Only about 5 million smartwatches were sold worldwide last year, according to market researchers at Strategy Analytics. By comparison, Apple sold 74.6 million iPhones in just the last quarter.

PRICE AND OBSOLESCENCE: Many of today's smartwatches sell for $200 or less. Apple plans to sell three models, starting at $349, but Piper Jaffray's Gene Munster predicts the average buyer will pay $550 for a watch and extra, interchangeable bands. Apple's high-fashion "Edition" model, made with 18-karat gold, is expected to cost thousands. While affluent consumers might pay that for a watch they can wear for years, or even hand down to their children, it's a lot of money for something that could become outdated if Apple releases a new model every year or so — as it does with smartphones.

Cook will make his case for the Apple Watch at a press event Monday, where he's expected to show off more features and apps. Expectations are high.

But even the iPhone didn't become a mainstream blockbuster in its first year, notes Creative Strategies analyst Ben Bajarin. Of the Apple Watch, he says, "people need to understand more about what this product is, and what it does, and I think that will evolve over time."

12.33 | 0 komentar | Read More

Defunct parenting company Isis to pay $260G fine to AG’s office

Isis Parenting, the Needham-based prenatal and parenting retailer that abruptly shut down last year — leaving many parents and expectant parents in a lurch — will pay a $260,000 penalty for failing to provide services and refunds to its customers after its abrupt closure.

The settlement reached with state Attorney General Maura Healey's office provides for refunds to eligible Massachusetts customers who had prepaid for merchandise and services, including classes, and received no refunds, according to documents filed today in Suffolk Superior Court.

"Massachusetts companies have an obligation to treat customers fairly and deliver on the promises they make," Healey said in a statement. "When Isis Parenting went out of business, it left many new and expecting parents without the prenatal and parenting courses they paid for and were depending on. We are pleased that this settlement will provide restitution to these consumers."

The settlement follows an investigation of Isis by the AG's Office after it received numerous complaints from customers of Isis' alleged unfair business practices.

"The commonwealth alleges that while attempting to sell its business operations as a going concern, Isis Parenting marketed and sold goods and services when it knew or should have known it had insufficient reserves to ensure it would be able to provide (them)," the court documents state. "Isis Parenting failed to provide such goods and services or provide refunds."

Isis cancelled all of its ongoing and future classes when it closed, including prenatal education, early parenting groups and child development classes.

Isis Parenting's going-out-of-business sales at its four stores in Boston, Needham, Arlington and Hanover violated state law on termination sales, which requires companies to file a bond, pay a fee and provide advanced notice and an inventory list to the the AG's Office and towns or cities where the business is located, according to the court documents.

The company also violated the state's Consumer Protection Act regarding unfair competition and unfair or deceptive business practices, the court documents state.

The $260,000 penalty will be paid on behalf of Isis by its insurer.

Customers can go through a claims office to receive restitution.

The AG's Office urges consumers with questions to contact its consumer hotline at 617-727-8400.

12.32 | 0 komentar | Read More

Can Etsy keep its folksy brand and make shareholders money?

NEW YORK — If craft seller Etsy goes public later this year it will be a test of how well the company can balance an explicit social mission with shareholder expectations for making money.

Founded in 2005, Brooklyn-based Etsy sells everything from a $110,000 antique desk from the 1800s to a $20 handmade antler pendant, and everything in between. In 10 years it's grown from a scrappy startup offering craftspeople a way to sell necklaces and needlepoint online to a marketplace of 54 million members that generated $1.93 billion in sales in 2014. And on Wednesday, Etsy filed for an initial public offering of stock valued at up to $100 million.

The company is more than a folksy, funky brand. It's a B Corporation, which is a for-profit company with a stated social mission certified by a nonprofit organization called B Lab. In its prospectus filed with the SEC, Etsy says its mission is to build a "human, authentic and community-centric global and local marketplace," and cites any loss of its B Corp status as a risk factor to its brand.

There are only about 1,000 such B-Corporations worldwide, including Warby Parker, Patagonia and Ben & Jerry's. But none of them are public companies on their own (Ben & Jerry's is owned by Unilever). If Etsy does go public, it will be the first test of how well certified B Corps can work on Wall Street.

Analysts agree it makes sense for Etsy's growth to go public or seek a buyer, but some say it is difficult for companies to maintain their entrepreneurial or social spirit in the face of Wall Street pressure for financial returns.

"It's going to be a tall order for a management team in the future to be true to its core company values while also delivering shareholder value," said Forrester analyst Sucharita Mulpuru on Thursday. "When companies go public they're held accountable for quarterly goals that shareholders want and it's very, very difficult to stay true to core values." An Etsy spokeswoman declined to comment citing the company's quiet period ahead of the IPO.

But the cash infusion that an IPO brings could juice Etsy's growth. And some Etsy sellers welcome the added awareness an IPO would bring.

"I am excited about the additional attention the site will be receiving," said Michael Webb, 41, a Colorado artist who sells his art through Etsy and other sites and galleries.

Others are playing wait-and-see.

Holly Marshmueller, 32, has sold her line of new mom and baby products, like handmade changing pads and car seat covers, on Etsy since 2011. She said she understands that an IPO will help Etsy grow, but expects it will bring some changes to the site. When she heard about the expected IPO, she signed up for Shopify to host a shopping cart on her own site so she can sell her goods outside of Etsy.

"I was a little nervous and I wanted to protect my brand," said the Portland, Oregon, resident.

But she added that she has no plans to close her Etsy shop.

"I'm positively curious about how things are going to go," she said.

Etsy Inc. plans to list its shares on Nasdaq under the ticker symbol "ETSY."

12.32 | 0 komentar | Read More

Credit card agreements may stall Boston taxi app

Boston's options for a unified taxi dispatch and payment smartphone app could be limited because of exclusive contracts cab companies have signed with two credit card processing companies, according to industry insiders.

Boston cab companies have signed contracts with one of two com­panies — Verifone or CMT — which require drivers to only use that service to process credit card transactions.

"It complicates things if you have a contract in your vehicle to be used for credit card processing and the vehicle isn't using it," said Chris English, chairman of the city's Taxi Advisory Committee.

The Herald reported yesterday that dispatch companies are banding to come up with a single smartphone app all taxis could use to better compete with rivals such as Uber and Lyft and make it easier for people to hail cabs. Any app that the city or the taxi industry puts in place that allows people to pay for a ride would need to take into account those contracts with Verifone and CMT.

"If you stop using their credit card machine ... then they don't get a percentage and they start to lose," said Capt. Jim Gaughan of the Boston Police Hackney Unit. "If they start losing their percentage, there's going to be a problem."

CMT and Verifone also provide the equipment Boston police use to track and monitor taxi trips and fares.

Both companies have created apps and mobile payment systems — Verifone has an app that's being used in New York City and will launch soon in Philadelphia. Neither CMT nor Verifone responded to multiple requests for comment.

12.32 | 0 komentar | Read More

Jerry Remy’s locations thrive...outside Fenway ’hood

The namesake Boston restaurant of Red Sox Nation president and NESN color analyst Jerry Remy abruptly closed Tuesday — a month before baseball season opens — but other­ locations appear to be thriving.

Jerry Remy's Sports Bar & Grill debuted in the shadow of Fenway Park in March 2010 after a $5 million build-out and later added a large roof deck.

The Fenway location is co-owned by Remy and John O'Rourke. Remy declined comment yesterday, and O'Rourke did not return calls.

The other Remy's restaurants in Boston's Seaport District, at Logan International Airport and in Fall River, have different owners­ and operate under licensing agreements. They remained open yesterday, and all three owners said they're doing well.

"I was just told they closed the (Boston) restaurant and would revamp it for two weeks to modernize," said Anthony Cordeiro, co-owner of Remy's in Fall River.

NESV Real Estate LLC, a sister company of the Red Sox, owns the Boylston Street property where the Fenway Remy's is located and is its landlord.

"Our understanding is that the current operators have ceased operations," Red Sox spokesman Kevin Gregg said, "and we cannot speculate on their plans or future uses of the site."

But the restaurant's website, Facebook and Twitter accounts gave no indication that the restaurant had closed, and the website was still allowing customers to make reservations.

Neither Remy nor O'Rourke were restaurateurs. Their managing partner, John Mascia, had the restaurant experience but left in August.

The eatery, Mascia said, was challenged by a decline in business in the Red Sox off-season. Even veteran chef/restaurateur Michael Schlow failed to make a go of it in the Fenway, where his Barrio Cantina closed in 2014 after replacing his Happy's Bar + Kitchen, which opened in 2012.

August was also when Cordeiro and co-owner Larry Couto took over day-to-day operations of the Fall River Remy's, in which the former Sox second-baseman and O'Rourke still are partners, Cordeiro said.

"Let's just say it was time for us to control our own future," he said. "It's in our building, and we have our vision, and we plan on keeping Jerry Remy's in Fall River."

Jon Cronin, of the Cronin Group LLC, was an original investor in the Fenway Remy's and has 100 percent ownership of the Remy's in the Seaport District, which he says is thriving.

"Business is up 10 percent year-over-year," Cronin said. "Even with this bad winter, we've had great business."

12.32 | 0 komentar | Read More

Primark plans Boston opening in September

European fashion retailer Primark is prepping for a September opening of its four-floor Boston store in Downtown Crossing — its first U.S. location — and plans to open its U.S. headquarters in the city.

The Dublin chain will have 70,000 square feet of modern, "cosmopolitan" selling space for its private-label clothing, footwear and home decor in the refurbished Filene's building.

"We're a value and volume business … affordable fashion at great quality," said Breege O'Donoghue, group director of business development, who was in Boston yesterday.

Primark still is working on its U.S. pricing, said O'Donoghue, who bought her powder-blue suit jacket, graphic print pants and T-shirt from Primark for the equivalent of about $60.

The chain brings in new merchandise every day, and its U.S. distribution center in Pennsylvania will start operations this summer.

"We'll listen to the customers, and we'll adapt if it's needed," said Primark U.S. president Jose Luis Martinez de Larramendi.

A subsidiary of London's Associated British Foods, Primark is based in Dublin, where it started in 1969 and operates as Penneys. It has 287 stores in nine countries.

"We believe in Boston," said O'Donoghue, noting the large share of students and Irish connections. "We know the level of interest and awareness in Primark is not high in this area. We'll work on that."

Primark will hire about 500 employees for the Boston store and already is training some senior American hires in Ireland and elsewhere in Europe.

It plans to open 10 stores in Massachusetts, Pennsylvania, New York, New Jersey and Connecticut by the end of 2016.

12.32 | 0 komentar | Read More

Pilot course teaches leadership for a patient-centered model

A pilot program to put certified nursing assistants in leadership positions is helping to move 
Hebrew SeniorLife's nursing-home culture away from an institutional feel to a model where residents get more choice and freedom in their day-to-day 
activities.

With the support of a $300,000 grant from 
the Boston Foundation, Hebrew SeniorLife and its 
educational partner JVS have been training CNAs to become what they call senior resident assistants, leading teams to help transform the medical model — with its strict schedules 
— into patient-centered care.

The six-month training senior RA program, held for eight hours each Friday, teaches a variety of skills, including how to work with residents and families, documenting care on computer systems, leadership, time- and stress-management skills and orientation of new CNAs.

"You learn how to better manage yourself and your team on the job," said Gerry Guerier, a 20-year 
CNA who took the program. "It teaches us to listen better in order to understand and resolve problems."

The 32 CNAs chosen for the senior RA program are among the best at Hebrew SeniorLife's Roslindale and
Dedham campuses, said Doris Bertram-Morin, dir- ector of professional dev-elopment.

"They are natural leaders who have earned the respect of all the staff," Bertram-Morin said. "In fact, by observing and reporting what they see to nurses, the senior RAs have become extensions to nurses and that is a huge asset."

Tammy Retalic, chief nursing officer at Hebrew SeniorLife in Roslindale, said senior CNAs are a critical component in changing the way nursing homes work.

"We're trying to make a big cultural change away from the medical model, and senior RAs are the ones helping to create more home-like environments for the residents," Retalic said.

Teams of four to five CNAs work with five to six residents, helping with activities of daily living. But instead of requiring set times for meals or bathing, senior RAs have learned to take a flexible approach to scheduling, based on resident preferences.

"We learn their life stories, their likes and dislikes and give residents a choice about creating their own life," said senior RA Nancy Jeanniton, who has been a CNA for eight years and works at Hebrew SeniorLife's NewBridge on the Charles in Dedham. "It's a big change from the old nursing home institutional style. It's their home. And we do whatever we can to be flexible and offer them more freedom."

"With the training, I feel confident speaking up and doing what needs to be done for the residents. And we are the role models for demonstrating best practices."

The biggest new responsibility for senior RAs is that they are now the main liaison between nursing-home residents and their families.

"It used to be that when families asked about residents, you'd direct them to the charge nurse," said Anne Allison, a senior RA who's been a CNA at 
Hebrew SeniorLife in Dedham for 10 years. "Now, the senior RAs talk to the families about residents and it makes everything feel more personal and home-like. You get to know the entire family."

During the recent blizzard, Allison said a resident begged her to stay in her place at NewBridge on the Charles, which she did for two days.

Senior RA Prince Kuffour, a CNA who has worked with dementia 
patients for six years on the Roslindale campus, says the program has helped him and his co-workers better manage the stress of the job.

"It's very challenging working with dementia patients," Kuffour said. "The training helped me learn skills such as being able to pull back during stressful situations. It's helped me and others on my team better protect patients."

He said it's better for CNAs to have their own leadership structure in reporting to charge nurses and operations leaders.

"We are the first line of contact with residents," Kuffour said. "But now we feel interwoven with everyone else providing care."

Another benefit for 
Hebrew SeniorLife is that offering their best CNAs more training ­— and an 
increase in wages ­— helps retain them, which keeps the continuity of care in place. And senior RA training is also a ladder up the career path for CNAs who aspire to eventually become LPNs or RNs.

Once the training is over, senior RAs also have some ongoing support. Through the Boston Foundation's SkillWorks initiative, a 
career coach is assigned to meet with each senior RA once a week.

"We brainstorm on what to do if things aren't working out with a resident or team co-worker," said the RA program career coach, Mary Jo Kiepper of JVS. "I help bring out their leadership and problem-solving skills."

With the success of the Hebrew SeniorLife pilot RA program, several community colleges, among them Mass Bay, Middlesex Community and Quinsingamond, will start to offer a similar senior CNA certificate training program.

"The RA training has given me an opportunity to develop my career," said Guerier. "And it's helped me build better relationships with residents and provide a better quality of care."

12.32 | 0 komentar | Read More

Shake Shack escalates burger battle

Opening a restaurant in a city still dealing with lingering snow piles may not be great timing, but yesterday's Boston debut of Shake Shack on Newbury Street, while devoid of its famous long lines, fired 
another shot across the bow in the battle against burger giants.

"People still love burgers, shakes and fries, but they don't want to eat fast food anymore," said Randy Garutti, CEO of the cult-favorite New York City-based burger chain, in town for the Newbury opening, as well as Sunday's launch at Legacy Place in Dedham. They're the third and fourth Greater Boston outlets for the "fast casual" eatery. The others are in Chestnut Hill and Harvard Square.

The back-to-back openings come at a time of dramatic changes in the American fast-food market. Major international chains such as McDonald's still dwarf newcomer national outlets such as Shake Shack, Five Guys and BurgerFi, not to mention local entries such as Tasty Burger, UBurger and Wahlburgers.

But these nouveau burger joints, slightly more upscale with generally higher prices, are thriving while the big boys are rapidly losing market share. McDonald's Corp. CEO Don Thompson stepped down this week after just three years on the job, defined mostly by declining American sales. The fast-food giant reported a sales drop of 2.1 percent last year, the biggest decline since 2001.

"We like to think we're a very democratic place," Garutti said. "You can come here on a date, bring your kids, meet your buddies for a beer or even watch the game."

12.33 | 0 komentar | Read More

Gasoline prices creep up

Massachusetts gas prices climbed 10 cents in the past week and are likely to keep going up before leveling off this spring or summer — but they are likely to stay below the $3 mark, analysts say.

The average price for a gallon of regular gas yesterday was $2.37, according to gasbuddy.com, and will continue to rise for the next month or two as refineries do maintenance, said Patrick DeHaan, senior petroleum analyst at gasbuddy.com.

"A portion of those refineries have to temporarily go offline, which limits the amount of gas they're producing," DeHaan said. "Less gas being supplied equals higher prices."

Gas stations also are beginning to transition to the cleaner-burning, more expensive kind of gas mandated in the spring and summer under the 1993 Clean Air Act, he said. Massachusetts prices are still lower, however, than the national average of $2.43 for a gallon of regular gasoline.

Even prices here, however, could increase by another 20 to 35 cents in the weeks ahead, he said, although it's unlikely that they'll go as high as $3 per gallon because the price of crude oil is about $50 per barrel, compared with $103 per barrel a year ago.

"That's why prices this summer should be relatively cheap," DeHaan said. "The Saudis last fall began undercutting the price of oil to regain market share due to the rise in U.S. oil production, so the price of crude suddenly plummeted."

"Much of the increase in the national average is because prices in the West Coast and Great Lakes have rebounded significantly in the last month, pulling the national average up, while Boston prices remain soft," DeHaan said. "The staggering winter season you've had has muted gasoline demand, and increases haven't hit as quickly because the level of gasoline inventories remains healthy there."

Meanwhile, consumer spending bounced back in January after taking into account sharply lower gas and energy prices, the Commerce Department said yesterday. Overall spending actually fell for the second straight month, the first time that's happened since the Great Recession. But economists said the decline was misleading because it was caused by the steep decline in energy prices. When adjusted for inflation, which has been low as oil prices have plunged, consumer spending actually rose 0.3 percent in January.

12.32 | 0 komentar | Read More

Booting Up: Restaurant app has promise

The global restaurant industry hasn't seen innovation since the Diners Club charge card was born in 1950. Now, a kid from Worcester is among those trying to change that.

Bentley College grad Nick Belsito founded BeeLine (beelinenow.com), a dining concierge mobile app that aims to secure hard-to-get reservations for reliable, well-heeled customers and supply restaurants with an individual profile on those diners — whether they like their wine decanted, prefer a specific drink, etc.

BeeLine recently launched in Boston and San Francisco, one of a handful of new apps aiming to put a fresh twist on restaurant reservations and disrupt the long-stagnant business of wining and dining.

"As your private concierge, we form relationships so you don't have to," said Belsito, 28, formerly a financial analyst at Raytheon.

Belsito's team, funded by a group of individual angel investors in Boston and Silicon Valley, claims that its services are a win-win for customers and restaurants alike: BeeLine users spend 30 percent more than the average patron and have a 99 percent arrival rate. That, said Belsito, helps solve a giant problem for restaurants, which lose hundreds of thousands of dollars each year holding tables for no-shows. For nightclubs and lounges, that no-show rate is usually worse, which is why Belsito's decision to integrate nightlife reservations is so savvy. Belsito says his calculations put the industry's combined losses due to no-shows at up to $27 billion annually.

"This is a very large and hot market," Belsito said. "There are other competitors out there such as OpenTable, which is frustrating to use as a consumer because they are often sold out during prime time."

The restaurant reservation system is ripe for disruption, and OpenTable — the biggest online reservation system — has missed a golden opportunity to lead the way. It simply took an offline system and brought it online, with very few incentives for spending and dining in off-peak hours.

With BeeLine, which does offer those incentives, pricing ranges from free with perks (like a surprise item from the chef) to a $5 premium for prime-time access. Still, the new app faces some competition, with startups such as Reserve and Table 8 both circling the same space with varied business models.

I suspect in the next year or two you'll see more startups follow suit: Some will allow restaurants to bid on certain VIP patrons, automate incentives for new customers or give discounts to patrons willing to keep their meals short and not linger at a table all night.

Uber has launched an interesting experiment in surge pricing, but perhaps it is restaurants that could use that model best. With apologies to fans of salad and appetizers, why shouldn't someone who spends big on fancy food get to skip to the front of the line?

12.33 | 0 komentar | Read More

Inspector Gadget: Dance with our robot overlords

WowWee MiP ($89.99 & up, various retailers)

What do you get for the person who has everything? Fun dancing robots! As opposed to actually helpful robots like Roomba or the upcoming Jibo family assistant, just-for-fun robots can be a good way to get kids interested in robotics. Enter the WowWee MiP, billed as a fun little toy that does tricks and even balances objects on a little tray.

The good: Powered by 4 AA batteries, this cute toy is a fun way to wile away the hours. He dances, makes gestures and can even hold another MiP.

The bad: MiP is like a toddler: don't let him near the stairs, and be prepared for an occasional fall.

The bottom line: Anything that can balance a cup of coffee and bring it to me is just plain cool. Now, if only MiP could shovel snow …

12.33 | 0 komentar | Read More

Bookbub reads E-buyers well

Every day, more than 5 million people in three countries get an email about discounted e-books from Boston-based startup BookBub — emails that drove more than 10 million ebook sales last year.

"They're the biggest success story that no one knows about," said David Beisel, a partner at NextView Ventures, an early stage venture capital firm in Boston and an investor in the company.

Founded three years ago, BookBub hit the 5 million member mark last week, up from 4 million in late December.

"Readers need great ways to discover books and have curation among those books," said Josh Schanker, BookBub president and co-founder. "There are so many options out there, and I think that's why this is really resonating. It's been a great way for both readers to discover books and for publishers to get their books discovered."

Bookbub's editorial team sifts through hundreds of books a day to find the best ones for the best price, Schanker said.

Roughly 20 percent of members click on a deal every day, he said.

To keep pace with that growth, BookBub has doubled its staff since April, and plans to add another 10 to 20 employees this year.

"Ten years ago, you walked into Borders or Barnes and Noble and they had the table out front, and that helped you discover books. You could do this browsing in a physical setting, and of course those books seemed curated to you," Beisel said. "Even though it's a simple email newsletter ... it's replacing that function of that table in the bookstore that is no longer there."

A seemingly simple business, a lot goes on behind the scenes, Schanker said. Nearly every member gets a personalized list of deals every day, based on location, book tastes and
e-bookstore preferences.

The company is also using the data it has collected from book sales to better curate books in the future.

"We know books about World War II do incredibly well, and that our audience really likes that even across our categories," Schanker said. "And having a dog on the cover of a book actually seems to send sales even higher."

The company raised
$3.8 million in venture financing in April, money that is being used to expand its content and make the website a destination for booklovers, not just for those looking for a deal.

Schanker said the core business — e-book deals — is profitable.

"We've heard from members that they're looking for ways to discover great books," Schanker said, "whether they're through deals or otherwise, so we're building a lot of things."

12.32 | 0 komentar | Read More

The Ticker

Rosie's Bakery closes all shops

Rosie's Bakery, an Inman Square, Cambridge, institution for 38 years, with other locations including Chestnut Hill and South Station, closed its doors yesterday, saying in a notice posted on its doors that the supplier that baked its specialty desserts had gone out of business and would be too expensive to replace.

TOMORROW

• Commerce Department releases personal income and spending for January.
• Institute for Supply Management releases its manufacturing index for February.
• Commerce Department releases construction spending for January.

WEDNESDAY

• Institute for Supply Management releases its service sector index for February.
• Federal Reserve releases Beige Book.

THURSDAY

• Labor Department releases weekly jobless claims.
• Labor Department releases fourth-quarter productivity data.
• Freddie Mac, the mortgage company, releases weekly mortgage rates.
• Commerce Department releases factory orders for January.

FRIDAY

• Labor Department releases employment data for February.
• Commerce Department releases international trade data for January.
• Federal Reserve releases consumer credit data for January.
• Cambridge-based Genocea Biosciences, Inc., a biopharmaceutical company, has announced that Michael Higgins has joined the company's board of directors.

12.32 | 0 komentar | Read More