Summary List Placement
It’s been a busy week as always on the retail team. If this is your first time reading Insider Retail, welcome to Business Insider’s weekly round-up of everything that’s happening in restaurants and retail. If you haven’t already subscribed, you can do so here to get this newsletter — from me, Kate Taylor, and my colleague, Shoshy Ciment — in your inbox every Friday.
Now, if you will let me write a bit about a story that I have been obsessed with for the last month…
The rise and fall of McDonald’s ex-CEO
I spent the last few weeks digging into the rise and fall of former McDonald’s CEO Steve Easterbrook, who is currently being sued by the company. What I found is essentially a fast-food soap opera, complete with sex scandals, cover-ups, and office politics that are comparable to “the court of Henry VIII,” as one source put it.
A few tidbits:
McDonald’s filed a lawsuit against Easterbrook in August, alleging he covered up sexual relationships with three employees when the company investigated his relationship with another McDonald’s employee back in 2019. Some insiders wonder why the first investigation fell short. “The very lawsuit against Mr. Easterbrook places the integrity of that first investigation into some question,” an attorney specializing in executive misconduct cases said.
Denise Paleothodoros, Easterbrook’s ex-girlfriend, told me their relationship eroded as he began to socialize more frequently with a group of men within the McDonald’s system after he became CEO. An ex-McDonald’s employee told me Easterbrook and his crew were known for hanging out in the so-called Viagra Triangle, a neighborhood filled with bars where older wealthy men pick up younger women.
McDonald’s recently revealed its former head of HR was fired shortly after Easterbrook’s termination for making women uncomfortable. “We just thought he was a sad man who drank too much and weirdly didn’t have friends outside of people who worked for him,” an employee on the global HR team told me.
McDonald’s new CEO Chris Kempczinski is all about values. His reputation is so squeaky clean that a source told me that he was internally referred to by some as the human version of the McDonald’s vanilla ice cream cone. But, some insiders still don’t trust him.
My coworkers have listened to me talk about this drama for weeks, but you can just read the full story here instead!
Peloton thrives in the pandemic
Peloton had a big week, and Bethany was all over the news.
On Tuesday, the company announced it was launching a cheaper version of its treadmill and a new premium stationary bike. The cost of the original Peloton is dropping to $1,895, down from $2,245.
On Thursday, Peloton reported a whopping 172% year-over-year sales increase in the most recent quarter. But, massive demand has also fueled supply chain problems. CEO John Foley said the company plans to start selling used bikes and may offer rental options.
“While we had expected demand to moderate, the unexpected resurgence of COVID-19 cases in many states …read more
Source:: Business Insider