Red Lobster will start serving ‘endless shrimp’ every day

• June 27, 2023

Red Lobster revealed Monday its “Ultimate Endless Shrimp” promotion is now “here to stay,” following earlier comments from a major shareholder that the seafood chain needed to create a new menu with more value for customers. 

For $20, customers can start with two shrimp dishes and then order more. Options include coconut shrimp, garlic grilled shrimp skewers, garlic shrimp scampi, and other. The meal comes with the customer’s choice of a side as well as Cheddar Bay Biscuits.

Orlando-based Red Lobster recently offered the deal in September, when restaurants were in one of the slowest parts of the year in the weeks after Labor Day, but now the promotion is “available all day, every day,” a news release said.

Red Lobster shareholder Thai Union reported in May it had a “share of profit from operations” for Red Lobster in the first quarter of this year, a turnaround from a loss in the same period last year.

But Thai Union group CFO Ludovic Garnier said on an earnings call there was still a lot of work to be done and Red Lobster needed to make sure it offered good value between big promotions like Ultimate Endless Shrimp because consumers in the United States are sensitive to price.

Red Lobster is making money again, key investor says

“We need to reinvent. We need to be a bit more creative,” Garnier said. “… The team right now is working on how to propose [a] new menu, new meal, very attractive from a value proposition.”

Eating out cost 8.3% more in May than it did a year earlier, with full-service meals up 6.8%, according to measures by the federal government.

San Diego-based restaurant analyst John Gordon said there are risks with moving the promotion to the everyday menu, including that Red Lobster loses the deal as a marketing opportunity.

“It is new news for a while, but after a while, it’s no longer new news,” Gordon said. “What is paramount in the restaurant business is to provide new product, [and] new news.”

While Gordon noted seafood supplier Thai Union’s expertise in sourcing products, he said another risk is Red Lobster could be put in a difficult position with the promotion’s price if there is a spike in shrimp costs.

The positive, Gordon said, is adding the promotion to the menu will attract a certain kind of customer and bring in sales.

But “after a while, the impact of that will wear off,” Gordon said. “I have seen this over my 45 years [in the restaurant industry].”

Thai Union said in its earnings presentation it had no plans to sell Red Lobster in the short term. The seafood supplier, whose brands include Chicken of the Sea, became a Red Lobster stakeholder in 2016 before teaming up with a group of investors in 2020 to acquire the rest of the company from San Francisco’s Golden Gate Capital.

But there have been some public signs of instability at Red Lobster, with CEO Kelli Valade resigning after just eight months on the job in 2022. A new CEO has not yet been announced.

“Ultimate Endless Shrimp” has been around for more than 18 years.

“Knowing how much our guests love and look forward to the return of Ultimate Endless Shrimp each year, we decided it’s time to make this guest favorite available all day, every day,” said Red Lobster chief marketing officer Patty Trevino, in the release.  “And this is just the beginning – we’ll be ‘dropping’ more Ultimate Endless Shrimp excitement later this year.”

​ Orange County Register 

Ryan Seacrest to host ‘Wheel of Fortune’ after Pat Sajak retires

• June 27, 2023

​ Orange County Register 

Kim Kardashian opening first Skims store in Los Angeles

• June 27, 2023

By Kim Bhasin | Bloomberg

Kim Kardashian’s underwear label Skims plans to open its first permanent stores next year as it plots retail expansion in the US and abroad.

Skims is set to debut its first flagship store in Los Angeles in the first half of 2024, followed by a second opening in New York. The 5,000-square-foot shop will be in West Hollywood on Sunset Boulevard near streetwear stores such as Supreme and Kith.

“Kim and I can envision a future where years from today there’s a Skims store anywhere in the world you’d find an Apple store or a Nike store,” said Jens Grede, co-founder and chief executive officer of Skims. “It marks the second chapter.”

SEE MORE: Barbie’s Malibu DreamHouse on Airbnb ahead of movie’s release

Skims began as a direct-to-consumer business in 2019, but it since has dabbled in physical retail through relationships with department stores such as Nordstrom Inc. and Saks Fifth Avenue. In recent months, Skims has opened temporary pop-ups in locations like London’s Selfridges department store and Rockefeller Center in New York.

Executives are looking to open at least four stores next year and speed up expansion once those are in place. They’re considering placing shops in domestic markets that attract regional tourism, including Dallas, Atlanta and Miami.

The company is weighing international flagships as well, after tests in cities like Paris and Hong Kong. On its online shop, 20% of Skims customers are from abroad.

READ MORE: Ryan Seacrest the next host of ‘Wheel of Fortune’

“Our strategy going forward is to open important stores in the world’s most important cities,” Grede said.

Swimwear to underwear

Skims expects to achieve net sales of about $750 million in 2023, up from nearly $500 million last year. So far this year, the business has been trending at 75% year-over-year growth, according to Grede.

Product expansion has boosted that growth, as Skims branched out from its original selection of shapewear bodysuits into categories like pajamas and swimwear. Underwear now accounts for a sizable chunk of its business, and it’s now planning to launch a men’s line in October.

Skims was most recently valued at $3.2 billion in a 2022 financing round, with total funding now at nearly $400 million. Investors include hedge fund Lone Pine Capital and venture firms Thrive Capital and Imaginary Ventures. Grede declined to say if Skims is seeking additional capital at this time.

Kardashian and Grede are interested in one day taking Skims public, but the CEO said there are no short- or medium-term plans for an initial public offering. The company hired a chief financial officer last year.

“Skims deserves to be a public company — when the time is right,” Grede said.

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Taylor Swift adds sixth night to her record-breaking run at SoFi Stadium

• June 27, 2023

Taylor Swift has added yet another date to her record-breaking run of shows at SoFi Stadium in Inglewood. She’s already sold out evenings on Aug. 3-5 and 8-9 of The Eras Tour and just put Aug. 7 on sale on Tuesday morning.

Swifties already registered on the SoFi Stadium waitlist and Ticketmaster Verified Fan program will have the opportunity to snag tickets for the additional date first. The Verified Fan program is now closed, but those registered received an email with a sale code at 10 a.m. on June 27. Whatever is left over, will be available to the general public at Ticketmaster.com.

But don’t hold your breath.

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Those originally priced tickets will go fast. It provides yet another opportunity to grab a seat or two, though the resale market is extremely inflated, with even the nosebleeds going for hundreds or thousands of dollars.

Swift will be joined on the newly added date by Los Angeles indie darlings Haim and Los Angeles-based singer-songwriter Gracie Abrams. On Aug. 4, Haim and singer-songwriter Owenn will be on deck; Haim and Abrams will be on the bill on Aug. 3 and 8, too; Haim and singer-songwriter Gayle will be with Swift on Aug. 5 and 9.

The tour is in support of her latest record, “Midnights,” which dropped last year, but the “Anti-Hero” star will also play some of her greatest hits from throughout her career.

​ Orange County Register 

California’s new budget covers $32 billion deficit without touching reserves

• June 27, 2023

By ADAM BEAM

SACRAMENTO — California Gov. Gavin Newsom and the Democrats who control the state Legislature agreed late Monday on how to spend $310.8 billion over the next year, endorsing a plan that covers a nearly $32 billion budget deficit without raiding the state’s savings account.

The nation’s most populous state has had combined budget surpluses of well over $100 billion in the past few years, using that money to greatly expand government.

But this year, revenues slowed as inflation soared and the stock market struggled. California gets most of its revenue from taxes paid by the wealthy, making it more vulnerable to changes in the economy than other states. Last month, the Newsom administration estimated the state’s spending would exceed revenues by over $30 billion.

See more on the California budget: Legislators approve budget package — but what does that mean for Southern California? | Climate, business groups clash over Newsom’s proposed environmental law reforms | Transit, child care are among the sticking points in California’s $300 billion budget negotiations | Gov. Gavin Newsom spars with Fox News host Sean Hannity over Biden, immigration and the economy

The budget, which lawmakers are scheduled to vote on this week, covers that deficit by cutting some spending — about $8 billion — while delaying other spending and shifting some expenses to other funds. The plan would borrow $6.1 billion and would set aside $37.8 billion in reserves, the most ever.

“In the face of continued global economic uncertainty, this budget increases our fiscal discipline by growing our budget reserves to a record $38 billion, while preserving historic investments in public education, health care, climate, and public safety,” Newsom said.

Republicans criticized the budget plan as unsustainable, noting it would leave the state with projected multi-billion dollar deficits over the next few years. They said the state’s gas tax is scheduled to increase on Saturday, an automatic adjustment that is tied to inflation. Republicans have repeatedly tried to halt those increases, but to no avail.

“What do Capitol Democrats have in store for you this holiday weekend? Higher gas prices!” Assembly Republican Leader James Gallagher posted on Twitter.

Budget talks stalled over the weekend as Newsom sought major changes to the state’s building and permitting process. Newsom said the changes are needed to speed up vital construction projects, including expanding the state’s energy capacity and upgrading the state’s aging water infrastructure.

But a group of lawmakers from the Central Valley feared Newsom was using the proposal to push through a long-delayed project to build a giant tunnel to send water to Southern California. In the end, Newsom got most of the changes he wanted — but lawmakers made sure the changes wouldn’t benefit the tunnel project.

The budget includes a lifeline for public transit agencies struggling to survive following steep declines in riders during the coronavirus pandemic. It allows transit agencies to use some of the $5.1 billion in funding over the next three years for operations.

Still, some San Francisco Bay-area lawmakers said the spending wasn’t enough to forestall painful service cuts over the next few years. Monday, they proposed legislation that would increase tolls on seven state-owned bridges — including the San Francisco-Oakland Bay Bridge — by $1.50 over the next five years. State Sen. Scott Wiener, a Democrat from San Francisco who supports the proposal, said it would generate $180 million in revenue.

Democratic state Sen. Steve Glazer said he would oppose any toll increase, saying in a statement “Transit riders and taxpayers have witnessed first hand the trail of broken promises by advocates for bridge toll increases.”

“The status quo is failure and we should not put in another penny to support it,” he said.

The budget does not raise income taxes to cover the deficit, but it does impose a new tax on managed care organizations — private companies that contract with the state to administer Medicaid benefits. The tax would generate an estimated $32 billion over the next four years.

Some of that money would go toward increasing how much money doctors get for treating Medicaid patients. It would also offer $150 million in loans to hospitals that are at risk of failing. That’s in addition to $150 million lawmakers approved earlier this year.

“In good years, we buckled down so that in tough years this one, we could meet our needs,” Senate President Pro Tempore Toni Atkins said. “That pragmatic approach works for household budgeting, and it works for state budgeting.”

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​ Orange County Register 

Santa Ana College professor eyes state Senate seat

• June 27, 2023

Irvine resident Ali Kowsari is the latest addition to the slate of candidates running to represent Orange County residents in the state Senate.

Running for the seat in the 37th district, Kowsari said: “We need to create a better community and state, for our children’s sake, and the future of our state and our country.”

“My students want to find jobs, want to advance, want to find opportunities just like I did when I got here,” said Kowsari, who teaches international business and marketing at Santa Ana College. “At the local level, people are struggling. And to me, nothing can be done unless we change locally. Local and state regulations run our lives, and until that changes, we can’t truly be happy.”

Born in the U.S. to Iranian parents and raised in Iran, Kowsari said he grew up under a repressive regime where he faced “daily harassment and witnessed the severe consequences of questioning authority.”

“I was 7 when the (Iranian Revolution) happened, and so I was in the thick of it,” he recalled. “We went through eight years of war, daily bombings, no electricity, no heat. All forms of what they called ‘Western things’ were banned. Western music, alcohol, socializing with the opposite sex. The consequences were getting beaten up, getting thrown into small cells without any due process. It was absolutely brutal.”

Kowsari, who immigrated back to the U.S. in 1995 at the age of 23, said this unique experience, along with the time he spent in Orange County as an immigrant, business owner, professor and father, pushed him to run for office. He said he’s noticed a common theme of discontent in the people he’s talked to in the U.S., especially in the past few years.

“I’ve interacted and worked with people from all walks of life, from very young to grown-up adults,” he said. “Nobody seems to be happy. And it really bothers me that we live in the most advanced country in the world and a state that, by all measures should be the richest state, yet people are not happy and businesses aren’t thriving.”

As a business owner, Kowsari said his priorities include supporting policies that reduce regulations, lower taxes and provide incentives to “help small businesses so they may thrive and grow.”

“I strongly believe in the power of small businesses as they are the backbone of our economy,” said Kowsari. “Small businesses create jobs and foster innovation.”

Public safety is another priority of his, Kowsari said.

“It’s important to provide law enforcement with adequate funding and support to do their jobs effectively,” he said. “We must prosecute offenders to protect our communities, otherwise law and order is just an idea.”

Kowsari, who is a Republican, said Sacramento needs a balance and diversity of ideas. In order to achieve that, he said, people need to be willing to communicate with one another.

“If you have a ‘D’ or an ‘R’ in front of your name, you don’t want to talk to each other. And that’s part of the problem,” he said. “My plan is to bring an approach of being open to talk to anybody if they have a good solution. My neighbors who own businesses don’t care if it’s a Republican or a Democrat who solves their problem. They care if their problem is solved.”

The 37th Senate district — now represented by Sen. Dave Min, D-Irvine, who earlier this year launched a bid for California’s 47th congressional district — encompasses a wide swath of Orange County, including Laguna Niguel, Costa Mesa, Irvine and Orange.

So far, Kowsari will be up against another Iranian candidate, Alex Mohajer, as well as former Assemblymember Steven Choi in the primary. Sen. Josh Newman, D-Fullerton, who was drawn into SD-37 during the redistricting process, is also vying for the seat.

Kowsari plans to formally launch his campaign on Thursday, June 29 in Villa Park.

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​ Orange County Register 

Barbie’s Malibu DreamHouse available to rent on Airbnb ahead of movie’s release

• June 27, 2023

Pack your bags Barbie fans, this summer’s holiday destination is clear: The Malibu DreamHouse.

The pink pad will be available to rent in California this summer, but the house has been given a twist by Barbie’s beau Ken.

The “life-size toy pink mansion” sits above the beach and boasts “panoramic views,” according to an AirBnb listing purportedly written by Ken.

“Welcome to my Kendom! While Barbie is away, she has handed over the keys to her Malibu DreamHouse this summer and my room could be yours for the night,” reads the listing.

“I’ve added a few touches to bring some much-needed Kenergy to the newly renovated and iconic Malibu DreamHouse,” it adds.

The house is fitted out with cowboy gear, an outdoor disco dance floor, an infinity pool and a wardrobe full of clothes.

Guests can book from 10 a.m. PT (1 p.m ET) on July 17, with two one-night stays for up to two guests available on July 21 and July 22.

Those selected will also be able to take home Ken-style yellow and pink Impala skates and surfboard, the listing adds.

The DreamHouse is part of promotional efforts for the new “Barbie” movie from Warner Bros. which is set for release on July 21. Warner Bros., like CNN, is a unit of Warner Bros. Discovery.

“In celebration of BARBIE hitting theaters on July 21, and to honor girls’ empowerment, Airbnb will make a one-time donation to Save the Children,” the listing states.

In the Greta Gerwig-directed film, Barbie and Ken, played by Margot Robbie and Ryan Gosling respectively, leave Barbie Land to explore the “real world.”

Creating the perfect backdrop for the upcoming movie required so much pink paint that it led to a global shortage, according to its production designer.

“The world ran out of pink,” said Sarah Greenwood in a recent interview with Architectural Digest.

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​ Orange County Register 

California’s crazy home prices: Down 18% then up 14%, all in one year

• June 27, 2023

“Numerology” tries to find reality within various measurements of economic and real estate trends.

Buzz: Deep discounts on California homes shrank this spring – especially to the south – as the purchasing pace is almost historically sluggish.

Source: My trusty spreadsheet reviewed May’s homebuying report from the California Association of Realtors.

Fuzzy math: Is the springtime price surge really a California housing rebound?

Topline

The median sales price for an existing California single-family house was $836,110 in May. That’s down 6.4% from a revised all-time high of $893,200 in May 2022. Prices fell in 42 of the 53 counties tracked.

But it’s been a pricing rollercoaster in the 12 months since the pandemic’s bubblish peak.

Start with the statewide median crashing 18% from May 2022 through February 2023 to $735,500. That $157,500 drop was tied to rising mortgage rates, which pushed many house hunters away and convinced numerous homeowners not to sell.

Since that recent bottom, this home-value yardstick rebounded by 14% – or $100,500 – in the three months through May 2023. Stabilizing mortgage rates, a traditional springtime buying rush, and limited options for house hunters bolstered pricing.

That leaves the median $57,000 off the all-time high, or 6.4%

All this turmoil stymied sales, as homebuying dropped 24% in these 12 months to an annual pace of 289,640. Purchases were down in all but two counties.

How slow is that? Well, my spreadsheet found only 37 months since 1990 had a sleepier sales pace than May – that’s just 9%.

Details

The crazy gyrations are by no means level from a geographical standpoint.

Yes, prices are lower just about everywhere – except for pricey coastal markets between Los Angeles and San Francisco. But the dips are larger the farther north you look. And sales drops were widespread.

Look across California, when sliced into five regions …

Far north: May’s $380,000 median is down 11% in a year after a 3% rebound since February. Sales fell 22% in 12 months.

Bay Area: $1.3 million median was off 11% even after a 24% rebound the last three months. Sales down 24%.

Southern California: $800,000 median was off 5% after a 7% rebound. Sales dropped 22%.

Central Valley: $485,000 median was off 5% after a 8% rebound. Sales dropped 20%.

Central Coast: $1 million median was up 0.5% after a 17% rally. Sales fell 17%.

Or ponder the state’s 10 most populous counties, ranking but their year-long price dips …

Alameda: $1.26 million median for May – off 17% in a year even after a 15% three-month rally. Sales down 27% in the year.

Contra Costa: $888,000 – off 11% (17% rebound) with sales down 28%.

Santa Clara: $1,788,000 – off 7% (19% rebound) with sales down 15%.

Sacramento: $535,000 – off 7% (7% rebound) with sales down 20%.

Los Angeles: $744,770 – off 7% (2.5% rebound) with sales down 21%.

San Bernardino: $455,000 – off 7% (after a 2.5% drop past three months) with sales down 23%.

San Diego: $935,000 – off 4% (7% rebound) with sales down 24%.

Orange: $1,256,500 – off 3% (8% rebound) with sales down 22%.

Riverside: $629,000 – off 3% (6% rebound) with sales down 23%.

Fresno: $420,000 – flat in a year after a 9% rally. Sales were down 17%.

Bottom line

So, who can afford a home at today’s prices?

Only a relatively small handful of first-time house hunters and not many current owners. That’s why sales activity is lethargic, similar to the economically stagnant early 1990s and the financial meltdown days of the mid-2000s.

Look at the Realtors’ affordability index. It suggests a Californian needed a $188,000 income to buy the median-price home in the first quarter. So only 20% of Golden Staters could afford to buy at the start of 2023 by Realtor calculations.

Yes, that’s dismal. But stunningly it was up from the 15-year low of 16% in 2022’s first quarter. And, FYI, this affordability marker has averaged 32% since 1991.

Now think of the rare Californian who can qualify to buy, then look at these recent price hikes. Add in mortgage rates – which dipped down to the 5% range early this spring – now near 7%. Affordability is abysmal.

And that’s why California homebuying will stay listless for an extended period.

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Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at [email protected]

​ Orange County Register