Fast-food chains are increasingly collaborating with celebrities and it’s a brilliant way to borrow star power without the risks

Fast food celebrity partnerships McDonald's Popeyes Dunkin'
  • Major fast-food chains have embraced celebrity partnerships over the last year.
  • Brands like Dunkin’ and Popeyes can have the excitement of a new menu item without adding complexity.
  • Chains seem isolated from any backlash associated with celebrity partners.

McDonald’s, Dunkin’, Tim Hortons, and other chains keep launching partnerships with celebrities, and analysts say it’s a smart move.

Just this week, McDonald’s launched its Mariah Menu, discounting different classic McDonald’s menu items in December, and Tim Hortons announced it would serve Justin Bieber branded Timbits, called “Timbiebs.” Starbucks also announced plans to sell Taylor Swift’s favorite drink alongside the release of her latest album.

Partnering with celebrities has been a boon to brands. McDonald’s kicked off the trend with the Travis Scott Meal, which was available for a month in the fall of 2020. It was the first in McDonald’s ongoing Famous Orders lineup, consisting of a Quarter Pounder with cheese, bacon, and lettuce, medium fries with BBQ Sauce, and a Sprite — Scott’s favorite meal at the chain.

The brilliance of the promotion was that McDonald’s got all the excitement that typically goes with a limited time offering, alongside the press from a celebrity partnership. But the meal didn’t add any complexity to the kitchen, because it used only ingredients already on the menu. 

“Operationally, it’s very smart to take that approach,” Mark Kalinowski, CEO and founder of Kalinowski Equity Research, told Insider. McDonald’s franchisees have pushed for simplified menus, something many major brands adopted in 2020 and into 2021.

The Travis Scott meal was so popular that some locations ran out of Quarter Pounder ingredients. It was also enriching for Scott personally, as he netted at least $20 million from the deal, according to Forbes.

“Everyone saw McDonalds do well, so it’s not surprising to see some other concepts emulate what they did,” Kalinowski said, though not all have been as successful as McDonald’s. 

The other important piece of these promotions is “culturally relevant entertainers,” who brands can tap into to attract younger customers, Kalinowski said. For example, Dunkin’ partnered with TikTok star Charli D’Amelio on a drink called “The Charli,” which became its most successful product launch ever.

Some of the celebrities working with fast food brands aren’t necessarily household names to the average McDonald’s or Burger King customer, but Saweetie, Lil Huddy, and Megan Thee Stallion are certainly known to younger, social media-savvy buyers. 

“Part of the hope is if you get somebody to be a customer at age 17 or 23, hopefully they’re still a customer at 77 or 83,” Kalinowski said. Brands that use relevant celebrities to appeal to young customers now could potentially be adding lifelong customers without having to invest in any major menu changes.

“You’ve got this outrageous celebrity with no investment in R&D for the product, and the celebrity’s just so much value,” Edward Cotton, a brand consultant who has worked with Chipotle and Jamba Juice, told Vox.

Celebrity partnerships can be hugely profitable for chains, but they also come with risks. Brands partnered with celebrities who behave badly or face bad press can suffer, with Subway’s Jared Fogle as perhaps the most famous example.

Limited time menu offerings don’t seem to carry the same risk for brands, because they come with built-in expiration dates. Travis Scott is currently facing criticism and legal action for the mass casualty event at his Astroworld Festival performance where at least eight died and 300 were injured. None of this bad press is landing on McDonald’s, despite its public partnership with Scott only a year ago. The chain has launched several other Famous Orders in the meantime, effectively protecting it from any scandals associated with Scott or any other celebrities it might partner with.

Do you have a story to share about a retail or restaurant chain? Email this reporter at mmeisenzahl@businessinsider.com.

Read the original article on Business Insider

Taylor Swift’s rerecorded ‘Red’ album broke 2 Spotify records in 1 day — here’s why it’s a big deal for the music industry

Images of Taylor Swift singing and performing on her Red album tour on a pink colored background with twinkle stars.
Taylor Swift

  • Taylor Swift instantly broke two Spotify records upon Friday’s release of “Red (Taylor’s Version).”
  • The rerecorded album is the latest move in Swift’s battle over the rights to her earlier music.
  • Its success highlights the industry’s shifting power dynamics, impacting small artists and big labels alike. 

“Red (Taylor’s Version)” broke Spotify’s record for the most-streamed album in a day by a female artist on Friday, the day it was released. 

The album’s success propelled Swift to break a second Spotify record as the most-streamed female in a single day. Her music totaled over 122.9 million streams on Friday, approximately three-quarters of which came from “Red (Taylor’s Version).”

Nearly identical to Swift’s 2012 “Red,” the rerecorded album marks the artist’s latest move to regain control over her life’s work after the sale of her master recordings.

Swift began rerecording songs last year after her early catalog was sold twice without her consent: first to celebrity talent manager Scooter Braun and then to Shamrock Capital Advisors in Los Angeles. Over the span of four days, “Red (Taylor’s Version)” has successfully overpowered the original album on both streaming services and social media.  

“I know this will diminish the value of my old masters, but I hope you will understand that this is my only way of regaining the sense of pride I once had when hearing songs from my first six albums and also allowing my fans to listen to those albums without feelings of guilt for benefiting Scooter,” Swift wrote to the investment firm last October about her decision to rerecord. 

In most traditional record deals, artists don’t retain the rights to the recordings in exchange for an advance payment. This was the case for Swift’s first label deal with Big Machine, which was later acquired by Braun. 

Then in 2018, Swift signed a contract with Universal Music Group that has allowed her to own the master recording of any music produced since — a negotiation that is rare to come by, especially among smaller artists. 

“By owning your master recordings, you keep creative control and you’re free to release your music however you want via whichever channels you choose,” Paul Hitchman, President of AWAL, a British music distribution company owned by Sony Music Entertainment, explained

The massive success of the “Taylor’s Version” rerecordings is a testament to the impact streaming has had on power dynamics that have historically defined the music industry. 

“If Swift — who is, without exaggeration, one of the biggest powerhouse pop stars of an entire generation — can’t get her own masters back, who could? Turns out, almost nobody,” Meredith Rose, senior policy counsel at Public Knowledge, wrote in an American Bar Association blog post.  

The “Taylor’s Version” era is already sending shockwaves throughout the industry. Universal, the largest record label in the world, has in recent contracts reportedly doubled the time it bars artists from re-recording their music, according to a new report from The Wall Street Journal

Read the original article on Business Insider

Fast food celebrity partnerships are a smart way for chains to borrow star power without the risks

Fast food celebrity partnerships McDonald's Popeyes Dunkin'
  • Major fast food chains have embraced celebrity partnerships over the last year.
  • Brands like Dunkin’ and Popeyes can have the excitement of a new menu item without adding complexity.
  • Chains seem isolated from any backlash associated with celebrity partners.

McDonald’s, Dunkin’, Tim Hortons, and other chains keep launching partnerships with celebrities, and analysts say it’s a smart move.

Just this week, McDonald’s launched its Mariah Menu, discounting different classic McDonald’s menu items in December, and Tim Hortons announced it would serve Justin Bieber branded Timbits, called “Timbiebs.” Starbucks also announced plans to sell Taylor Swift’s favorite drink alongside the release of her latest album.

Partnering with celebrities has been a boon to brands. McDonald’s kicked off the trend with the Travis Scott Meal, which was available for a month in the fall of 2020. It was the first in McDonald’s ongoing Famous Orders lineup, consisting of a Quarter Pounder with cheese, bacon, and lettuce, medium fries with BBQ Sauce, and a Sprite – Scott’s favorite meal at the chain.

The brilliance of the promotion was that McDonald’s got all the excitement that typically goes with a limited time offering, alongside the press from a celebrity partnership. But the meal didn’t add any complexity to the kitchen, because it used only ingredients already on the menu.

“Operationally, it’s very smart to take that approach,” Mark Kalinowski, CEO and founder of Kalinowski Equity Research, told Insider. McDonald’s franchisees have pushed for simplified menus, something many major brands adopted in 2020 and into 2021.

The Travis Scott meal was so popular that some locations ran out of Quarter Pounder ingredients. It was also enriching for Scott personally, as he netted at least $20 million from the deal, according to Forbes.

“Everyone saw McDonalds do well, so it’s not surprising to see some other concepts emulate what they did,” Kalinowski said, though not all have been as successful as McDonald’s.

The other important piece of these promotions is “culturally relevant entertainers,” who brands can tap into to attract younger customers, Kalinowski said. For example, Dunkin’ partnered with TikTok star Charli D’Amelio on a drink called “The Charli,” which became its most successful product launch ever.

Some of the celebrities working with fast food brands aren’t necessarily household names to the average McDonald’s or Burger King customer, but Saweetie, Lil Huddy, and Megan Thee Stallion are certainly known to younger, social media-savvy buyers.

“Part of the hope is if you get somebody to be a customer at age 17 or 23, hopefully they’re still a customer at 77 or 83,” Kalinowski said. Brands that use relevant celebrities to appeal to young customers now could potentially be adding lifelong customers without having to invest in any major menu changes.

“You’ve got this outrageous celebrity with no investment in R&D for the product, and the celebrity’s just so much value,” Edward Cotton, a brand consultant who has worked with Chipotle and Jamba Juice, told Vox.

Celebrity partnerships can be hugely profitable for chains, but they also come with risks. Brands partnered with celebrities who behave badly or face bad press can suffer, with Subway’s Jared Fogle as perhaps the most famous example.

Limited time menu offerings don’t seem to carry the same risk for brands, because they come with built-in expiration dates. Travis Scott is currently facing criticism and legal action for the mass casualty event at his Astroworld Festival performance where at least eight died and 300 were injured. None of this bad press is landing on McDonald’s, despite its public partnership with Scott only a year ago. The chain has launched several other Famous Orders in the meantime, effectively protecting it from any scandals associated with Scott or any other celebrities it might partner with.

Do you have a story to share about a retail or restaurant chain? Email this reporter at mmeisenzahl@businessinsider.com.

Read the original article on Business Insider

Mark Meadows got a call during Amy Coney Barrett’s confirmation hearing because a low-level HUD staffer liked a Taylor Swift Instagram post urging people to vote: book

Former White House Chief of Staff Mark Meadows and musical artist Taylor Swift.
Former White House Chief of Staff Mark Meadows and musical artist Taylor Swift.

  • Mark Meadows had to leave the room to take a call during Amy Coney Barrett’s confirmation hearings.
  • A HUD official called to inform Meadows that a low-level staffer had liked a Taylor Swift Instagram post.
  • The post said “Vote” and endorsed Biden, and the White House was rooting out disloyal staffers.

Former White House chief of staff Mark Meadows got a phone call during the high-stakes Supreme Court confirmation hearings for Justice Amy Coney Barrett – prompting him to briefly leave the room – because a low-level staffer at the Department of Housing and Urban Development had liked an Instagram post by musical artist Taylor Swift.

This comes from Jonathan Karl’s forthcoming book, “Betrayal: The Final Act of the Trump Show,” an excerpt of which was published in The Atlantic on Tuesday.

Andrew Hughes, a former Uber driver who was serving as chief of staff at HUD, called Meadows because a young assistant at the department had liked Swift’s post urging people to vote. It also featured a photo of Swift holding a plate of Biden-Harris themed cookies.

“I spoke to @vmagazine about why I’ll be voting for Joe Biden for president,” Swift wrote in the Instagram post. “So apt that it’s come out on the night of the VP debate.”

“We really can’t have our people liking posts promoting Joe Biden,” Meadows told Hughes, according to the book. It is unclear whether the staffer was ultimately fired or not.

A post shared by Taylor Swift (@taylorswift)

This attention paid to something as minuscule as Instagram activity was part of a broader pattern of scrutinizing staffers for their loyalty to then-President Donald Trump during the last year of his administration, an effort that was led by the Presidential Personnel Office under John McEntee, a 29-year old staffer who started out as Trump’s “bag man” during the 2016 campaign and part of his administration.

McEntee was once fired in March 2018 by then-chief of staff John Kelly after a background check revealed that he “deposited suspiciously large sums of money into his bank account” that came as the result of gambling winnings. He was reportedly escorted out without being allowed to collect his belongings.

But he was then re-hired in January 2020 long after Trump had fired Kelly, and Trump decided to put him in charge of the personnel office. According to the book’s excerpt, that move prompted a screaming match between Trump and Mick Mulvaney, then the acting chief of staff.

“I want to put Johnny in charge of personnel,” Trump told Mulvaney, who called his top deputy, Emma Doyle, into the meeting.

“Mr. President, I have never said no to anything you’ve asked me to do, but I am asking you to please reconsider this. I don’t think it is a good idea,” Doyle said, according to Karl’s book.

“You people never fucking listen to me!” Trump screamed. “You’re going to fucking do what I tell you to do.”

Doyle later spoke with McEntee about his interest in the job, Karl wrote, to which he responded that he “didn’t feel ready before” but added, “I am 29 now and I’m ready.”

“I’m the only person around here that’s just here for the president,” McEntee went on to say, per Karl.

Meadows, Hughes, and McEntee didn’t immediately respond to Insider’s requests for comment.

Read the original article on Business Insider

Sen. Marsha Blackburn escalates feud with Taylor Swift, says singer would be the ‘first victim’ of socialism

Taylor Swift (left), Tennessee senator Marsha Blackburn (right)
Taylor Swift (left) and Tennessee senator Marsha Blackburn (right)

  • Sen. Marsha Blackburn escalated her feud with Taylor Swift in an interview with Breitbart.
  • The GOP senator said singers like Taylor Swift would be the “first victims” of socialism.
  • The two have been feuding since 2018 when Swift called Blackburn “Trump in a wig.”
  • See more stories on Insider’s business page.

Republican Sen. Marsha Blackburn has reignited her long-running feud with pop star Taylor Swift.

In an interview with right-wing news outlet Breitbart, the Tennessee senator criticized the left for making country music “woke” and said that singers like Swift would suffer under a socialist government.

“If we have a socialistic government, if we have Marxism, you are going to be the first ones who will be cut off because the state would have to approve your music,” she said.

“When you look at Marxist socialistic societies, they do not allow women to dress or sing or be on stage or to entertain or the type of music she would have. They don’t allow protection of private intellectual property rights.”

“Taylor Swift came after me in my 2018 campaign, but Taylor Swift would be the first victim”, she said.

Swift first criticized Blackburn during the 2018 midterm elections in a lengthy Instagram post. Her comments were widely reported at the time, being the first time the singer spoke publicly about her political views.

A post shared by Taylor Swift (@taylorswift)

“As much as I have in the past and would like to continue voting for women in office, I cannot support Marsha Blackburn,” Swift wrote at the time.

“Her voting record in Congress appalls and terrifies me. She voted against equal pay for women. She voted against the Reauthorization of the Violence Against Women Act, which attempts to protect women from domestic violence, stalking, and date rape. She believes businesses have a right to refuse service to gay couples. She also believes they should not have the right to marry. These are not MY Tennessee values.”

At the time, The Washington Post reported that more than 169,000 people registered to vote on Vote.org in the 48 hours after Swift’s post.

Despite Swift’s intervention, Blackburn went on to win the Senate seat.

Taylor Swift’s 2020 Netflix documentary Miss Americana showed the pop star reacting to the Tennessee politician’s victory.

“She gets to be the first female senator in Tennessee, and she’s Trump in a wig,” Swift said.

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Taylor Swift ‘doesn’t need’ to earn streaming royalties, according to a former Spotify boss who said the company is a distribution platform that wasn’t built to pay artists money

taylor swift 1989 tour
Taylor Swift performs in 2015 during the “1989” world tour.

  • Former Spotify boss Jim Anderson said the platform was designed to distribute music, not pay artists.
  • “I think Taylor Swift doesn’t need .00001 more a stream,” Anderson told singer Ashley Jana.
  • Apple Music’s average per play rate is $0.01. On Spotify, it takes around 250 streams to make $1.
  • See more stories on Insider’s business page.

A former Spotify boss who is credited with helping to create the Swedish music streaming platform said Spotify was never built to pay artists.

“Spotify was created to solve a problem,” said Jim Anderson, who also co-founded About.com, at a 2019 music industry conference in New York, according to a newly released recording of the event. “The problem was this: piracy and music distribution. The problem was to get artists’ music out there. The problem was not to pay people money.”

Anderson’s comments were recorded by singer-songwriter Ashley Jana, who didn’t share the recording until this week in fear of retribution from the music industry, according to Digital Music News.

The comments now made public follow a growing push for music streaming platforms to raise royalties, or the amount artists are paid per stream. “Artists are really broke,” Jana told Anderson at the 2019 event. “We’re not making any money off of the streams.”

Anderson used Taylor Swift, a long-time advocate for new musicians, as an example, saying she “doesn’t need” an increase in streaming royalties.

Swift has advocated for change in the music streaming industry since 2014 when she published an essay for the Wall Street Journal arguing that “music should not be free.” The same year, Swift pulled her “1989” album from Spotify.

In response to recent pressure, Spotify founder and CEO Daniel Ek launched the company initiative Loud and Clear to “shed light on the complicated economics of music streaming.”

In April, Apple Music said its streaming royalties pay double what Spotify pays, although the rate is calculated on a stream-share basis, not a per-stream basis, making the two rates difficult to accurately compare.

Ek wrote that one of Spotify’s goals is to help artists make a living by creating opportunities for more musicians to reach more listeners, saying fans ultimately determine the financial fate of musicians.

The Union of Musicians and Allied Workers (UMAW) organized international protests against Spotify this March. The company did not meet the union’s demands such as the one penny per-stream royalty rate.

“The company consistently deflects blame onto others for systems it has itself built, and from which it has created its nearly $70 billion valuation,” UMAW said on Twitter this March.

In an interview with The Verge, Ek said the future of Spotify depends on multiple streams of revenue, which will then allow creators to best decide how to monetize their fan base.

“What we realized is that we’re no longer this kind of small startup from Sweden,” Ek told the Verge. “We’re in fact a very, very important platform for a lot of these audio creators.”

Spotify declined Business Insider’s request for comment.

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