• Red Lobster emerged from bankruptcy in September.
• Now, the chain has to find a new strategy to bring in customers that's not just endless shrimp.
• I visited a Red Lobster restaurant in the Washington, DC, area to see what dining there is like.

Red Lobster has emerged from bankruptcy and has a new CEO. Now, it just needs to win customers back with something other than the promise of endless shrimp.

As recently as last year, diners could pay $20 for all of the shrimp they could eat. But while customers loved it (maybe too much), the deal led to losses for Red Lobster's former parent company.

The chain filed for Chapter 11 bankruptcy in May and emerged from bankruptcy in mid-September with new ownership led by Fortress Investment Group, a new CEO, and fewer locations. It just has to figure out a strategy to win customers back — and make money this time.

Damola Adamolekun, Red Lobster's new CEO, told CNN in October that he wants to add flashier menu items, such as food served on sizzling-hot stone plates, to attract younger customers. At the same time, Red Lobster is holding on to some current menu items, such as flounder, to appeal to older patrons.

Adamolekun isn't totally opposed to bringing back endless shrimp, though he said the chain would have to find a better approach. "I never want to say never, but certainly not the way that it was done," he told CNN.

I visited a Red Lobster outside of Washington, DC, in September to see what dining there is like and what the chain needs to change going forward. Here's what I found:

I visited a Red Lobster in Waldorf, Maryland.

This Red Lobster is located right off of a major highway, about a 50-minute drive from the center of Washington, DC.

I arrived at the restaurant a little after 11 a.m. on a Wednesday.

The restaurant was empty, which wasn't surprising given that I showed up just after opening time on a weekday. While no one was at the host stand when I walked in, an employee appeared a few seconds afterward and showed me to my table.

Red Lobster's nautical decor was everywhere.

Red Lobster's restaurants have long resembled coastal communities where fishing and lobstering dominate. A 2011 remodel of the restaurant chain's stores drew inspiration from Bar Harbor, Maine, and added everything from ship lanterns to Adirondack chairs to the restaurants.

Red Lobster's dining room felt a little worn and dated.

Seaside decorations aside, the dining room included a lot of dark wood. It made me feel like I was at a Midwestern supper club in the 1970s.

The edges of the tables and booths were scratched and dinged, too.

I started looking at Red Lobster's extensive menu once I was seated at my booth.

The menu offers different specials depending on the day of the week. Monday's special is endless shrimp, which costs $25, according to the menu I saw.

I ordered the Sailor's Platter to try Red Lobster's shrimp.

While I first considered a steak-and-lobster daily special, I had never tried Red Lobster's shrimp. After my server recommended the Sailor's Platter, which contains two kinds of shrimp and some flounder, I ordered that.

My server brought some Cheddar Bay biscuits to my table after I ordered.

The four biscuits were complimentary — and very warm.

The biscuits were one of the highlights of my visit.

Besides being warm, you could taste the cheese.

After about 15 minutes, my main course arrived.

My Sailor's Platter came with a side. I upgraded mine to Bacon Mac & Cheese for an upcharge.

The popcorn shrimp reminded me of food I've had at fast-food restaurants.

While tasty, these reminded me of shrimp that I've had at Popeyes, Long John Silver's, and other fast-food chains.

I like the shrimp scampi better.

These were my favorite of the two kinds of shrimp.

The fried flounder was nothing special.

The flounder was better with some of the tartar sauce.

The Bacon Mac & Cheese was rich.

The Mac & Cheese was creamy, though after a few bites, it was a little too rich for me.

I also ordered a Mango Iced Tea.

My server noticed I was running low on my first tea and brought me another before I even asked.

I finished my platter, and the service was so swift, my plate was gone before I could snap a photo.

With tax and a tip, I paid about $35 for my lunch.

I was full after the platter and had trouble imagining what eating dozens of shrimp here would be like.

After paying, I took another few minutes to appreciate all the nautical decorations.

These two photographs hung over the booths next to mine.

Overall, the food was okay, but I don't feel like I have to rush back to Red Lobster.

The Red Lobster that I visited felt worn, dark, and could use a renovation. And while the biscuits were great, the other food was nothing amazing.

On the bright side, the service was fast and friendly — something that can be tough to find even at much more expensive restaurants. (The fact that I showed up at midday on a weekday might have helped.)

Diners are looking for good deals these days thanks to the lingering effects of inflation. Some are even looking to sit-down chains instead of fast-food restaurants due to cost.

If Red Lobster can come up with a more exciting, tasty menu and give their stores a facelift, the chain could be poised to take advantage of that environment.

Do you work at a major restaurant chain and have a story idea to share? Reach out to this reporter at [email protected]

• Hackers and scammers are getting more sophisticated in their methods.
• Elaborate social engineering schemes and AI are some ways that scammers are upping their game.
• One cybersecurity expert explained four ways to protect yourself going into 2025.

The end-of-2024 hack of US Treasury Department computers is a reminder that if the government isn't immune to tech trouble, neither are you. So, keeping your online accounts and information secure matters.

While state-backed hackers like the ones suspected of tapping into the Treasury's computers are sophisticated, there are still threats from small-time cybercriminals, Etay Maor, chief security strategist at Cato Networks, told Business Insider.

Still, individuals can use various tactics to avoid hackers and scammers gaining access to their information. Many have been around for years, but recent developments, such as the rise of generative artificial intelligence, call for new strategies, Maor said.

"It's a pain to remember another password or to enable another application to send you an SMS," Maor said. But, he added, "It'll help you not be the lower-hanging fruit" for those smaller hackers.

Here are four tips for enhancing cybersecurity and avoiding hackers and digital scammers going into 2025.

Use strong passwords — and have a secure place to keep track of them

Using the same password repeatedly for different accounts makes a scammer's job easier, Maor said.

Instead, he pointed to some long-standing advice: Create a separate password for each account, and make each one "strong" — usually, at least several characters long, with a variety of letters, numbers, and punctuation marks, and without common words or sequences like "123456".

But keeping track of all those passwords can be tough. Maor said he has a pattern that he uses to create new passwords. It's mostly secure, though he said that hackers might be able to figure out his pattern if they got enough of his passwords. There is also password-keeping software, but bad actors can hack those, too.

Perhaps a more secure option is a low-tech one, he said. "For me, writing them down on a piece of paper is much more secure than having the same password everywhere," Maor said. Just make sure you don't leave it lying around in plain sight.

Be aware of social engineering scams

Some scammers don't use AI but instead rely on their own communication and relationship-building skills to steal money or information.

Basic versions of this scam can include direct messages from people on Facebook or other social media apps who try to befriend you before asking for money or personal information, Maor said.

Others are more sophisticated, he added.

"If I'm now an attacker and I want to attack your boss, I might connect with you on LinkedIn, and then I'll try to connect with your boss," he said. That will create a mutual connection that could make the hacker appear more credible to the boss, Maor said.

Avoid AI-based scams by making a plan with family and friends

Some scammers use AI voice generators to create convincing clips of people saying they're in trouble and need money. The scammers then call the subject's friends and relatives and use the AI-generated voice to rip them off.

Maor said he already has a plan to avoid such scams with his family: They have agreed on a "secret word" they can ask for if they get a request they suspect might be AI-generated.

"It's not something very common," Maor said of the word his family picked. "And I think we shouldn't be afraid to do that in our corporate environment and in a private environment as well, just to confirm."

AI has also made phishing scams, which typically involve scammers sending emails that look like they're from a reputable source in order to get personal information about the recipient, more convincing.

Most guidance for avoiding phishing scams suggests looking for obvious typos in emails to identify potential phishing scams, Maor said. But scammers can now use AI to create grammatically passable messages in any language they need, he added.

Make sure to use two-factor authentication

While it's been around for years, two-factor authentication — that is, asking a website or app to send you a code via email, text, or call that you must enter in addition to your password to log in — remains a good way to protect unauthorized people from accessing your accounts, Maor said.

It's also possible to use an authenticator app like Duo or Microsoft Authenticator to sign off on login attempts or a physical security key, which, when used near the computer, confirms that it's really you trying to log in, according to the Federal Trade Commission.

• Starbucks underwent many changes this year, and more are likely coming in 2025.
• New CEO Brian Niccol will face choices about Starbucks' unionized stores and its China business.
• Starbucks faced slumping sales and dealt with activist investors in 2024.

Signs that Starbucks needed a turnaround mounted in 2024. It might get one in 2025.

Starbucks' sales had slowed and even lost ground in the first half of this year. Customers and employees pointed to operational challenges for the company, such as a lengthy menu and an explosion of mobile orders. There were even two activist investors with stakes in Starbucks this summer.

Then, in August, the coffee chain surprised investors by saying that Brian Niccol would take over as its CEO, replacing Laxman Narasimhan, who had held the job for roughly a year and a half.

Niccol was known for turning around the Mexican grill chain Chipotle after a food poisoning crisis. He announced some changes after starting as CEO in September, such as cutting the number of discounts that Starbucks offers to members of its loyalty program.

Starbucks has also stopped charging extra for non-dairy milk, and is bringing back self-service bars for milk and other condiments to reduce complexity for its baristas.

It's already clear that 2025 will probably bring even more change.

Niccol said in October that he's "putting a full-court press" on getting drinks to customers within four minutes of when they placed their order.

He has also said he wants Starbucks to return to being a "third place" where people can hang out — a role it played for many patrons in its early years of national expansion.

Store workers have pointed to some specific areas where it might have to make adjustments to achieve those goals. Some have said that their Starbucks stores need to be better staffed, especially during the busiest times.

Others have suggested that a better process needs to be developed for handling mobile orders, which can be difficult to manage in addition to customers who walk in and others who order at the drive-thru.

There are further issues that Niccol will need to address in 2025.

These include Starbucks' unionized stores, which account for about 4.5% of the chain's locations. Starbucks workers at those stores went on strike in the days leading up to Christmas and have yet to secure a contract. An agreement would be the first ever between Starbucks and its store workers.

Starbucks and Niccol also have to craft a strategy for the company's business in China, its second-largest market after the US. In October, Niccol said that Starbucks was considering "strategic partnerships that could help us grow in the long term."

The following month, Bloomberg reported that Starbucks was weighing selling a stake in its China business and finding a partner in the country to manage the unit.

Niccol has only been at the helm for four months, but it's clear he has big plans for the coffee chain at home and abroad. Investors were hopeful when he joined the company, but while shares have recovered from summer lows, they're still down year-to-date.

Starbucks' challenge for 2025 will be to make itself more than a place for a quick cup of coffee. The chain has long held itself to higher service and quality standards than most fast-food joints, from offering healthcare benefits to part-time employees to encouraging customers to stick around the store and relax.

Yet one barista with almost two decades of experience at the company said his store has drifted from those higher standards lately.

"It started out as a trendy, quirky coffee shop job, and it's just morphed into this soulless fast-food empire since that time," the employee told Business Insider earlier this year.

Do you work at Starbucks and have a story idea to share? Reach out to this reporter at [email protected].

• Dunkin' will start serving a drink inspired by Sabrina Carpenter's "Espresso" on Tuesday.
• The coffee chain features Carpenter in a new ad, "Shake that Ess,'" promoting the drink.
• It's also adding a $5 meal with two sandwiches and a coffee to its menu.

Dunkin' is betting on "Espresso" — the Sabrina Carpenter song, that is — and a $5 meal deal going into 2025 as fast food joints compete for customers.

The coffee chain will start serving "Sabrina's Brown Sugar Shakin' Espresso" on Tuesday. The limited-time iced coffee includes espresso, "brown sugar notes," and oat milk, the company said on Monday.

Dunkin' is promoting the drink with a new video ad called "Shake That Ess.'" The ad features Carpenter and others shaking espresso as her hit song plays in the background. Dunkin' created the ad with Artists Equity, a production company founded by Ben Affleck — another Dunkin'-featured celebrity — and Matt Damon.

The ad ends as pop sensation Carpenter has a realization. "Oh, 'Shake That Ess' kinda sounds like 'Shake That A—,'" she says in the ad.

"Working with one of America's most beloved pop stars, Sabrina Carpenter, adds a spirited, fresh energy that perfectly aligns with Dunkin's love of bold taste and good-natured fun," Jill McVicar Nelson, Dunkin's chief marketing officer, said on Monday.

Dunkin' is also adding a $5 meal to its offerings on Tuesday. The deal includes two of the chain's Wake-Up Wrap sandwiches, which include an egg, cheese, and either sausage, turkey sausage, bacon, or a no-meat option, as well as a medium hot or iced coffee.

The chain will also offer discounts for its rewards members in January, including a $3 Maple Sugar Bacon Breakfast Sandwich between Tuesday and January 6 and a $3 Hash Brown Brisket Scramble. Both deals require customers to purchase a beverage.

Fast food chains have been offering value meals this year as a way to attract inflation-weary diners back to their restaurants. While many took aim at lunch or dinner, fewer have been breakfast offerings. In May, Wendy's said it would offer a limited-time $3 breakfast meal, including a sandwich with a side of potato wedges.

McDonald's launched its $5 meal in June, then extended it to most restaurants. Burger King and Wendy's also launched their own $5 options.

• Gig work apps like Uber and Instacart continued to attract millions of workers in 2024.
• The job can still be lucrative, though many workers pointed to challenges.
• From hackers stealing accounts to tip baiting, here's what being a gig worker was like in 2024.

Being a gig worker for Uber, Lyft, DoorDash, Walmart Spark, and other apps came with opportunities and lots of challenges in 2024.

Millions of workers made grocery deliveries, dropped off takeout at doorsteps, and drove people to the airport through the apps. Workers involved in the gig economy told Business Insider that it's still a tempting way to make money.

At the same time, many told BI that they faced challenges working for the apps.

Here are some of the biggest factors that affected gig workers in 2024:

Gig workers said they made less money on apps like Uber Ears and DoorDash than in previous years

Workers' gross earnings on several gig delivery apps, including DoorDash and Uber Eats, fell in 2023, a study from Gridwise found in February. Uber Eats drivers, for instance, saw their earnings fall 15.4% on average — the largest drop of any service. Spokespeople for DoorDash, Uber Eats, and Instacart told BI that the study used incomplete data.

Many gig workers don't even earn the equivalent of their local minimum wage after accounting for expenses such as gas, researchers at the UC Berkeley Labor Center and the Center for Wage and Employment Dynamics found in May.

In some cases, good tips have also gotten harder to come by. Workers for some services, such as Walmart's Spark, told BI that customers continued to "tip bait" them, or offer a good tip when the workers accept a delivery only to take it back afterward.

Some gig delivery services struggled with hackers

Hackers have targeted roughly one-fifth of accounts on food delivery apps, online fraud tracker Sift found in May. That total includes both customer accounts, which hackers can mine for reward points, and the delivery workers' accounts.

Some delivery workers for Walmart's Spark service told BI that they saw signs that someone else was using their account. One said that Spark told her that she was logged into more than one device and her activity history on the app included orders that she had never delivered.

Some legitimate, policy-abiding workers struggled with having their gig work accounts deactivated, often with little explanation or recourse, meanwhile. One facial recognition ID tool used by Walmart's Spark to prevent the improper use of driver accounts even kicked some actual workers off of the app. Walmart said at the time that the facial recognition feature was working as intended and that users who thought that they were incorrectly deactivated could appeal the decision.

Gig workers started their own businesses

Instead of continuing to earn money through apps like Uber or DoorDash, some gig workers started their own businesses to cut out the middleman.

Uber and Lyft drivers with their own black-car services, for instance, told BI that they have been able to make more money by building relationships with clients directly, including many whom they met through rides via the rideshare apps. It's also allowed them to work on their own schedules — something that the rideshare apps have long promoted as a benefit of working for them.

Tony Illes, a delivery driver in Seattle, used a similar approach to start his own food delivery service. Illes told BI that he promotes his service through posters around downtown Seattle and provides estimated wait times to his customers through voice notes.

Cities implemented new pay laws for gig workers

Cities such as New York City and Seattle implemented new laws about gig work, especially pay, at the start of 2024.

In New York, gig workers delivering restaurant food now earn $19.56 an hour at minimum, a rate that will be adjusted for inflation each year. Seattle implemented a law — part of a package called "Pay Up" — that required Instacart and other delivery services to pay workers the equivalent of $19.97 an hour.

The companies fought back. In New York City, for example, DoorDash added a $1.99 fee that it said offset that city's pay law.

And in Seattle, Instacart shoppers in the city's suburbs said that the app was sending them on longer routes to avoid taking them within city limits — and paying them more.

Gig work has expanded beyond rideshare and delivery

Using apps to find work as an independent contractor isn't unique to rideshare and food delivery.

One report summary released earlier this month by the Roosevelt Institute investigated the expansion of such gig apps to nursing jobs at hospitals, care homes, and other medical facilities.

Like rideshare and delivery workers, many nurses and nursing assistants told the researchers behind the report that they appreciate the flexibility that working for the apps gives them. Many also dealt with problems similar to other gig workers, from being kicked off the platforms without explanation to navigating a workplace without an in-person boss or clear coworkers.

One IT worker who found work as an independent contractor in that field told BI in February that he enjoyed the freedom but had a hard time finding a full-time job again.

Do you work in the gig economy and have a story idea? Reach out to this reporter at [email protected]

• This is the busiest time of year for returning holiday gifts.
• Retailers from Amazon to L.L. Bean have adopted a range of return policies.
• Most shoppers consider whether they can make free returns when deciding where to shop.

That unwanted kitchen gadget or too-big sweater someone gave you over the holidays represents a growing problem for retailers.

With the holiday shopping season over, retailers now face return requests from customers at the fastest pace of the year. The days between December 26 and 28 are the busiest for returns, with up to three times more than usual, payments platform Lightspeed Commerce found in a review of returns data collected over the last two years.

The amount of stuff that gets returned has been growing each year, too.

Marcus Shen, the CEO of B-Stock, which resells returned items and other excess merchandise, told Business Insider that his company has seen the volume of returns that it processes grow over the last few years. Some of the most-returned items include clothing, electronics, and toys, Shen said.

The share of goods returned to retailers is expected to reach almost 17% and be worth $890 billion this year, a report from the National Retail Federation, or NRF, found earlier this month. In 2019, it was about 8%.

The growth of e-commerce — and easy return policies at many retailers — has contributed to that explosion of returns, Shen said. Some shoppers even plan on making returns from the start with strategies like bracketing, which is buying multiple sizes or colors of an item with the intent to keep just one and return the others.

"I think that a lot of these very consumer-friendly policies are really a big driver here," Shen said.

Returns represent extra costs for the stores that handle them, whether it's the cost of shipping or marking down the price of the returned item when reselling it.

Many companies try to trim the costs of returns by offering customers incentives to use less costly methods. Earlier this year, for example, Amazon offered customers discounts on groceries if they stopped by an Amazon Fresh store to make a return.

Many retailers offer at least one free way to return a purchase, which often involves customers dropping their return off at a store or other physical location. That usually saves the retailer the cost of shipping the item from a customer's home to a processing center.

Many have also added incentives — or penalties — meant to steer customers toward those options.

Outdoor retailer REI, for instance, recently banned some customers who made frequent returns from doing so in the future. The action targeted a group of customers that had an average return rate of 79% on purchases, REI told ABC in November.

Amazon took a different approach with one of its policies, which tries to preempt returns entirely by letting shoppers on its website know when a product is frequently returned.

Other companies, such as L.L. Bean and GameStop, assess a fee of less than $10 in order to mail something back to them.

"Retailers are responding by investing in a variety of innovative returns options," the NRF said in its report. "But, at the same time, they are facing growing costs for managing and processing returns."

The NRF's report found that 76% of shoppers decide where to shop based on whether the retailer offers free returns.

"Given the priority shoppers place on free returns, retailers have to walk a fine line in implementing these policies," the NRF said in its report.

At the same time, retailers are paying more attention to controlling the costs of processing returns, Shen told BI.

Getting merchandise back to retailers is only part of the challenge: Once a retailer has the item, it has to decide whether to write it off completely or resell it at a discount, either to its own customers or through companies like Shen's.

"It's cash that's sitting on the floor of a warehouse," he said.

• OpenAI shared new details about its plan to overhaul its company structure.
• Its current for-profit arm has been governed by a nonprofit board.
• OpenAI said its existing for-profit arm would become a public benefit corporation with ordinary shares of stock.

OpenAI has detailed its plans for a new corporate structure that would separate its business from being controlled by its nonprofit board.

In a blog post shared by the company on social media on Friday, the company said its board was considering "how to best structure OpenAI to advance the mission of ensuring AGI benefits all of humanity have been."

"Our plan is to transform our existing for-profit into a Delaware Public Benefit Corporation⁠ (PBC) with ordinary shares of stock and the OpenAI mission as its public benefit interest," OpenAI wrote.

"The PBC is a structure⁠ used⁠ by many others⁠ that requires the company to balance shareholder interests, stakeholder interests, and a public benefit interest in its decisionmaking," the company said. "It will enable us to raise the necessary capital with conventional terms like others in this space."

This structure aims to generate profit while also benefiting the public interest. The nonprofit arm would take shares in the public benefit corporation, it added.

OpenAI said it was planning to make the structural change "in order to best support the mission of ensuring artificial general intelligence benefits all of humanity."

"As we enter 2025, we will have to become more than a lab and a startup — we have to become an enduring company," it added.

In September, OpenAI confirmed that it would convert to a for-profit structure.

The move was also widely reported to be key to its $6.6-billion funding round in October: OpenAI has two years to make the switch, or else investors in the round could ask for their money back, multiple reports said.

OpenAI CEO Sam Altman said last month that a for-profit status makes it easier to attract new funding.

Altman is overseeing the transition just over a year after OpenAI's board temporarily removed him as the company's chief executive, thrusting its nonprofit governance into the spotlight.

While Altman was ousted for a few days, he returned as CEO, and many of the company leaders who pushed him out have since left their roles and new board members were added.

Now, OpenAI said the AI race has proven more costly than anticipated, which requires a structure more amenable to investors.

"The hundreds⁠ of billions of dollars that major companies are now investing into AI show what it will really take for OpenAI to continue pursuing the mission," OpenAI wrote in its latest blog post.

"We once again need to raise more capital than we'd imagined," it said. "Investors want to back us but, at this scale of capital, need conventional equity and less structural bespokeness."

• Big Lots, Party City, and The Container Store reported either bankruptcy or store closures recently.
• It's a cap on a tough year for many retailers.
• Shoppers of almost all income levels have been watching their spending in 2024.

Trouble for a trio of retailers at the tail end of 2024 is a sadly fitting end to a tough year for retailers.

Home storage chain The Container Store filed for Chapter 11 bankruptcy on Sunday. The retailer plans to reorganize and its CEO said that the company "is here to stay," but it said in May its full-year consolidated net sales dropped almost 20% year-on-year, and in October that second-quarter sales on the same basis fell 10.5%.

A day earlier, Party City said it would wind down operations and close all of its stores. That's on top of Big Lots, which said last Thursday it would start store-closing sales at all of its locations after its planned sale to a private equity firm fell through.

The few days of bad news caps a rough year for many retailers. Over 2,000 stores have closed this year in the US, by Business Insider's count.

Among the companies that have shuttered stores are drugstore chains CVS and Rite Aid, Family Dollar, and convenience store chain 7-Eleven.

Even some big-name chains that aren't closing stores are still having trouble. Starbucks' sales fell in the latest quarter, showing that new CEO Brian Niccol — brought in abruptly to help revitalize the company — has plenty to address at the chain in 2025.

Starbucks store employees have told BI that the coffee chain has operational issues to work out, from not scheduling enough workers at busy times to finding a better way to fill mobile orders.

Big Lots, Party City, and The Container Store all have pointed to recent economic factors, namely inflation and consumers who are less willing to spend.

In its statement on Saturday, for instance, Party City cited "an immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors" in explaining the decision to wind down operations.

Satish Malhotra, CEO of The Container Store, referenced a "challenging macro-economic environment" in an email to customers this week.

Big Lots, meanwhile, has been saying for months that consumers were buying fewer couches, dining room sets, and other high-priced home furnishings. The chain saw "a significant consumer pullback in big-ticket items, particularly within the furniture and patio furniture categories," CEO Bruce Thorn said during an earnings call in June — the last one that the company hosted before announcing its now-scrapped deal to sell itself to Nexus Capital Management.

Inflation has decelerated this year for many items, yet shoppers are still cautious about what they buy, and prices for many items are still proportionally higher than before the pandemic. Many low-income consumers are having trouble stretching their paychecks to cover expenses, a development that has hurt Dollar General and other dollar stores.

More affluent consumers have also slowed their spending, turning away from stores where they have to pay full price and toward off-price chains like Nordstrom Rack as well as store-brand groceries at Walmart.

Even Target reported last month that many of its customers were sticking to buying essentials and shying away from impulse buys and more expensive items, leading the big box chain to cut its forecast.

So far, the outlook for 2025 isn't great. Advance Auto Parts and Walgreens have plans to shut 1,200 stores between the two chains, for example.

To be sure, all three retailers who reported bad news over the last few days faced challenges well before this month or even this year. Big Lots has been closing stores since last year. Party City filed for bankruptcy in January 2023. And The Container Store has reported quarterly drops in same-store sales for several consecutive quarters.

But if shoppers remain value-conscious and stick to stores they perceive as offering the best deals going into 2025, retailers could continue to have a tough time in the new year.

Do you work at a major retailer and have a story idea? Reach out to this reporter at [email protected]

• OpenAI reached new funding and valuation heights in 2024.
• The ChatGPT maker also saw longtime employees depart and a legal fight with Elon Musk.
• Here are the biggest moments from OpenAI's roller-coaster year.

OpenAI cemented its place as the most valuable name in artificial intelligence in 2024 — and set itself up for more growth. The path wasn't entirely smooth.

After starting as a nonprofit almost a decade ago, OpenAI officially started moving toward converting to a for-profit company this year. It also wrapped up a historic funding round. All that came as CEO Sam Altman emerged with his role at the company intact after his temporary ouster last year.

But legal challenges remain for OpenAI, including court battles with Elon Musk, who co-founded the startup, as well as some of the nation's largest newspapers. The company also lost several high-profile employees, including some who were there at its start in 2015.

Here are the highlights of OpenAI's rocky year.

At the start of 2024, OpenAI was still reeling from the attempt to oust CEO Sam Altman.

OpenAI's board of directors removed Altman as CEO in November 2023, saying it didn't have "confidence in his ability to continue leading OpenAI."

A few days later, though, Altman was back as the startup's chief executive, and there was a new board, too. OpenAI employees reportedly refer to the period as "The Blip."

Details about the drama, such as exactly who had pushed for Altman's ouster, tricked out over the following weeks and months.

In December, Altman told Time that the ordeal was tough for him but that OpenAI emerged more unified than before. "I wouldn't wish it on an enemy. But it did have an extremely positive effect on the company," he said at the time.

Elon Musk's xAI raised billions to take on OpenAI

The Financial Times reported in January that xAI was seeking to raise as much as $6 billion at a valuation of $20 billion. Founder Elon Musk has framed the company as a challenger to OpenAI, which he co-founded with Altman. Musk left OpenAI's board in 2018.

OpenAI reached an $80 billion valuation in February

A deal valued OpenAI at $80 billion, about triple its last valuation, The New York Times first reported in February. Company employees could cash out their shares as part of the tender offer.

Elon Musk sued Sam Altman and OpenAI in February

Musk sued Altman and OpenAI in February, saying that the company "has been transformed into a closed-source de facto subsidiary" of Microsoft. That meant that OpenAI was now generating profit in violation of its nonprofit mission, Musk said in the lawsuit.

Altman and other OpenAI executives responded in a blog post in March. The post said that Musk himself had talked to the company about making OpenAI a for-profit entity, including potentially merging it with Tesla.

Musk withdrew his lawsuit in June, though the issue would resurface in the fall.

An SEC investigation into OpenAI came to light in February

The SEC investigation was focused on whether OpenAI misled investors, The Wall Street Journal reported.

Unnamed sources told the Journal that the investigation was a response to the former OpenAI board's statement in November that Altman was not "consistently candid in his communications" before he was temporarily ousted from the company.

Sam Altman won a return to OpenAI's board in March

OpenAI's board "unanimously concluded" that Altman and President Greg Brockman were "the right leaders for OpenAI," Chair Bret Taylor said in March.

Altman rejoined the board as three new members, all women, also took seats.

OpenAI cofounder Ilya Sutskever announced in May that he was leaving OpenAI

Sutskever, also chief scientist at OpenAI, was one of the group that attempted to push Altman out of the company in November. He later said that he regretted being part of the movement to oust Altman.

In a farewell post on X, formerly known as Twitter, Sutskever said he was confident that OpenAI would create artificial general intelligence that would be "both safe and beneficial."

OpenAI swiftly stopped using ChatGPT's "Sky" voice in May after claims it sounded like Scarlett Johansson

OpenAI pulled the voice from ChatGPT amid a public furor, adding that it wasn't an imitation of the movie star but belonged to another actor.

Some users had compared Sky to the voice of an automated assistant in the 2013 movie "Her," which Johansson voiced.

Johansson said that Altman had asked her to voice ChatGPT but that she declined. When OpenAI went ahead with a voice that sounded like hers, Johansson said she was "shocked" and hired legal representation.

OpenAI faced fresh criticism over safety as summer began

In addition to the "Sky" voice incident, a New York Times report in early June added to OpenAI's image problems. It featured concerns from current and former OpenAI employees that the company wasn't doing enough to prevent its artificial intelligence from harming or destroying humanity.

An OpenAI spokesperson at the time reiterated to Business Insider the company's commitment to safety, highlighting an "anonymous integrity hotline" for employees to voice their concerns and the company's safety and security committee.

A Vox report also said that OpenAI pushed restrictive NDAs on departing employees and put their vested equity at risk if they didn't agree to them. The company told BI it would make " important updates to our departure process."

All of that created a public relations challenge for Altman.

Apple said it would integrate ChatGPT into its software in June

During its annual Worldwide Developer Conference in June, Apple said it would offer ChatGPT within its software, such as through Siri.

The partnership gives OpenAI potentially vast reach, with ChatGPT now within easier reach of millions of iPhone users.

Musk filed a new lawsuit against OpenAI in August; in November, he amended it to include Microsoft as a defendant

In August, Musk filed another lawsuit in which his lawyers argued that OpenAI executives "deceived" Musk into cofounding the company by playing on his concerns about the existential risks AI poses.

In November, Musk added Microsoft as well as one of its board members, Reid Hoffman, who also used to sit on OpenAI's board, as a defendant in the suit. It alleged that Microsoft was working with OpenAI to create a monopoly in the artificial intelligence world and extend "lavish compensation" to employees.

Musk also named Shivon Zilis, a former OpenAI board member and mother of three of Musk's children, as a plaintiff.

In September, OpenAI announced that it would become a for-profit company

OpenAI was founded as a nonprofit in 2015, but the company said that it would change that status over the next two years.

The process will involve multiple steps, such as giving OpenAI's investors equity stakes in the new entity and earning government approvals, Business Insider previously reported.

The plan has drawn pushback, including from Musk and Meta CEO Mark Zuckerberg.

CTO Mira Murati said in September that she would leave OpenAI

Chief Technology Officer Murati said she was leaving OpenAI "to create the time and space to do my own exploration."

Murati reportedly played an important role in the attempted ousting of Altman from OpenAI. She served as CEO temporarily before Altman was reinstated.

President Gregg Brockman also said in August that he would take an extended leave of absence; he returned in November.

Other OpenAI executives and employees left the company throughout 2024

Including Sutskever, at least nine notable OpenAI employees have left the company in 2024, Business Insider found. Among them were OpenAI co-founders Andrej Karpathy and John Schulman.

OpenAI raised a $6.6 billion funding round in October — the biggest in Silicon Valley's history

The funding round valued OpenAI at $157 billion, putting it on a similar footing with Uber and AT&T.

Thrive Capital led the round. Other major investors in OpenAI's round included SoftBank, Tiger Global, Microsoft, and Nvidia.

In November, xAI told investors it had raised $5 billion at a $50 billion valuation, The Journal reported.

In November, OpenAI allegedly deleted legal data in its legal fight with The New York Times and other newspapers

Lawyers for the newspapers were reviewing OpenAI's training data as part of the lawsuit.

In November, they learned that "OpenAI's engineers erased all of the News Plaintiffs' programs and search result data," according to a filing in the case. OpenAI did not respond to a request for comment at the time.

• Nordstrom's founding family is taking the retail chain private with help from a Mexican retailer.
• Bruce Nordstrom, whose grandfather started the department store in 1901, died in May.
• Here's how Nordstrom grew from a single location in Seattle into a fashion empire.

The descendants of John W. Nordstrom are taking the eponymous department store chain private.

Nordstrom's great-grandsons Pete and Erik, who are now the company's President and CEO, respectively, are working with cousin Jamie Nordstrom, the company's chief merchandising officer, and Mexican retailer El Puerto de Liverpool to purchase the company at $24.25 per share, the group said on Monday. The deal gives Nordstrom an enterprise value of $6.25 billion and should be completed in the first half of 2025, the group said.

Earlier this year, Pete and Erik's father, Bruce, died at the age of 90 after a long career with the company.

The grandson of founder John W. Nordstrom, Bruce was instrumental in bringing the retailer to international prominence in a career that spanned four decades.

Here's how the Nordstroms built their empire from a single shoe store in Seattle to one of the biggest names in fashion retail.

Nordstrom was founded as a shoe store by John W. Nordstrom and Carl F. Wallin in Seattle in 1901.

Two decades later, the partners opened a second store in Seattle's University District.

John Nordstrom retired in 1928 and sold his share to his sons Everett and Elmer.

Wallin retired soon after and sold his share of the company to the Nordstrom sons too. John's third son, Lloyd, later joined the team.

John Nordstrom's sons focused on expanding into women's clothing.

Nordstrom purchased the Seattle-based clothing store Best's Apparel in 1963. Three years later, the company purchased a Portland, Oregon-based clothing store and began offering both shoes and apparel under the name Nordstrom Best. The company added men's and children's apparel in 1966.

In 1968, the three Nordstrom brothers handed the company over to the next generation.

Everett's son Bruce, Elmer's sons James and John, Lloyd's son-in-law Jack, and family friend Bob Bender became the new heads of the company. The third generation of Nordstrom chairmen took the company public in 1971, formally renaming it Nordstrom Inc.

The first Nordstrom Rack opened in the basement of the downtown Seattle store in 1973.

That same year, the company became the largest-volume fashion specialty store on the West Coast, with sales surpassing $100 million. The chain continued to expand throughout the next several decades.

In 1995, Nordstrom's third generation handed the reins over to the fourth.

The elder Nordstroms retired as co-chairmen, but remained on the Board of Directors, and Bruce's sons, Blake, Pete, and Erik, took over the company in 1995.

Bruce's oldest son Blake became co-president in 1995.

Blake began working in the family business when he was about 11 years old. His first role with the company was in the stockroom, and he went on to hold many positions with the company, including merchandise buyer, regional manager, and then vice president in charge of stores in Washington and Alaska.

Erik Nordstrom worked for his older brother in various positions at the company as the two rose through the ranks together.

"It was always the best working for my brother because he had more confidence in me and gave me more autonomy than anybody I had ever worked for," Erik Nordstrom said in his father's 2007 book, "Leave It Better Than You Found It."

Bruce returned as chairman in 2000, retiring for a second time in 2006.

Bruce and his sons were credited with turning the company around after several years of underperformance by non-family leadership.

Throughout the 2000s, Nordstrom partnered with fashion brands like Façonnable, Topshop, HauteLook, and Jeffery.

In 2014, the company started expanding internationally. It opened stores in Canada and the US territory of Puerto Rico.

Nordstrom opened its first menswear-only store in 2018 and a flagship womenswear store in 2019.

The concept combined in-store services, such as tailoring, shoe shining, and food, with high-tech digital ordering and returns systems.

Blake died in 2019 at the age of 58, passing control of the company to his brothers.

"Blake was the best big brother, friend and mentor anyone could ever ask for," Pete and Erik Nordstrom said in a note to employees. "One of the things that brings us some comfort is that Blake's values, character and passion can still be reflected in what this company does — how we treat each other, our customers and our communities. Building on that is the best way we can think of to honor his legacy."

In April, Pete and Erik revealed that the company was exploring options to go private.

In regulatory filings, the brother said they had not yet received any financing commitments to complete such a deal.

In May, Bruce died at his home at the age of 90.

Nordstrom died on May 18.

"Our dad leaves a powerful legacy as a legendary business leader, a generous community citizen and a loyal friend," Pete and Erik said in a statement.

In December, Erik, Pete, and other Nordstrom family members reached a deal to take the company private.

The deal with Mexican retailer El Puerto de Liverpool was developed over several months. Once completed, the Nordstrom descendants will own 50.1% of he department store chain, with the other 49.9% in the hands of Liverpool, Nordstrom said on Monday.

Jessica Tyler contributed to an earlier version of this story.

• Gig work has expanded to include nurses at hospitals and medical facilities, per a new report.
• Many nurses who work this way face challenges similar to Uber drivers, the report found.
• Nursing represents a high-stakes use case of gig work apps, one of the researchers said.

Gig work has expanded to the nurses who care for patients in hospitals and care homes — and it's coming with some of the same challenges that delivery and rideshare contractors have already pointed to, according to a new report.

Apps like CareRev, Clipboard Health, and ShiftKey have taken an approach similar to the one companies like Uber and Instacart have used to build up their workforces, and applied it to nursing at hospitals, care homes, and other medical facilities.

But the report, which the Roosevelt Institute released a summary of this week, found that medical facilities often turn to gig nursing services as a way to cut expenses, especially under the tutelage of private equity firms.

Medical professionals on the apps, which the report collectively calls "Uber for Nursing," also face many of the same issues that other gig workers do, from low pay to having their accounts on the platforms deactivated with little or no explanation.

The apps make pitches that are attractive to the nurses themselves, Katie Wells, a senior Fellow at think tank Groundwork Collaborative and one of the report's authors, told Business Insider in an interview. Wells wrote the report with Funda Ustek Spilda, a senior lecturer at King's College London and a research associate at the University of Oxford's Oxford Internet Institute.

Full-time nursing jobs often involve putting in long hours as well as working night or weekend shifts. COVID's strain on hospitals and other medical facilities also pushed many nurses to quit or consider finding other work.

Like rideshare and delivery companies, the apps say that they offer nurses more choices over how and when they work. ShiftKey's website, for instance, says that its users have "the freedom to make choices best suited to their lives" including how much they earn and "their relationship with work."

For a burned-out nurse, that can be an appealing pitch, Wells said.

"There is almost no flexibility and control," Wells said. "So it is no wonder that these apps become attractive."

Wells and Spilda interviewed 29 nurses and nursing assistants for their study. The interviewees all used at least one gig work app to find nursing shifts.

Like delivery and rideshare contractors, nurses who use the apps must claim jobs through them. The nursing apps often charge a fee for access, and workers bid with their pay rates. The user who offers the lowest pay gets the shift, according to the report.

Working the shift, however, can be tricky. When they show up for a gig, the nurses often have to navigate the facility themselves — even if they have never worked there before.

"At most hospitals and medical facilities, no orientations are required for gig nurses and nursing assistants," the report reads. "Workers do not know where supply closets are located, how to access patient portals with medical histories and current medication lists, and whom to contact in the chain of command."

And like Uber drivers or Instacart delivery workers, nurses who use the apps don't have a boss to contact when things go wrong. One Oregon-based nurse interviewed for the study said that she was barred from Clipboard Health's app for two weeks after she had a hernia on the job and had to leave early.

In another instance, the same nurse said that she went to work with COVID after learning that she couldn't cancel her shift without losing "attendance points" and hurting her chances of getting gigs in the future, the report reads.

"It sucks that there's nobody that you can get ahold of immediately," the nurse told Wells and Spilda.

"It's really as if AI has eaten the managers," Wells said.

The apps also advertise that nurses can make more on their platforms than at other jobs. One nurse interviewed by the researchers said she made gross pay of $23 an hour on ShiftKey. That dropped to around $13 an hour after accounting for fees that she paid to ShiftKey.

Despite the challenges, the report found that 19 of the 29 people interviewed planned to continue working for the apps, though some also said they also had jobs in other industries to make enough money to live.

The report says that gig nursing apps are often used by facilities that are trying to save money and are under pressure to produce returns for investors.

Wells told BI that bringing the gig economy to medical care creates risks not present in food delivery or rideshare.

"The stakes are higher because this has to do with patient safety, and the immediacy of health and care makes things more palpable," she told BI.

ShiftMed, which employs its nurses as W2 employees but still offers them much of the flexibility of gig work, said that it deactivates nurses' accounts for various reasons, from patient safety to legal violations.

"Nurses file an appeal by submitting a formal review through the app or support channel, after which ShiftMed conducts an internal investigation, reviews records, and determines the next steps," CEO Todd Walrath said in a statement to BI.

The company said that it also offers an orientation so that users "are fully prepared for any clinical setting by aligning health system-specific requirements, such as training or shadowing before they begin shifts," Walrath said.

CareRev, Clipboard Health, and ShiftKey did not respond to requests for comment.

Are you a nurse who works as an independent contractor with a story idea to share? Reach out to this reporter at [email protected]

• FedEx will spin off its freight business into a new publicly traded company.
• FedEx Freight will separate from FedEx over the next 18 months.
• Express delivery services have seen slowing demand for their services.

FedEx is spinning off its freight arm into a new publicly traded company.

Called FedEx Freight, the new company will handle large cargo, while FedEx will continue to handle the parcel shipping business that shoppers might be more familiar with as their holiday packages arrive.

The separation will happen over the next 18 months, FedEx said in a statement on Thursday. Shares of FedEx jumped about 9% in after-hours trading.

"Through this process, we will unlock value for our Freight business and position FedEx to create even greater value for stockholders," CEO Raj Subramaniam said in the statement.

FedEx also cut its profit estimates for its 2025 fiscal year in earnings released on Thursday and cited a "challenging demand environment." It said it had seen lower-than-expected FedEx Freight revenue and profit as "sustained weakness in US industrial production continued to pressure less-than-truckload industry demand."

The spinoff will allow FedEx to focus more on the parcel shipping market, it said in its statement.

Bloomberg reported in October that the company, along with rival UPS, has faced less demand this year for next-day shipping as many customers look to save money with slower options.

• Amazon workers at several warehouses went on strike on Thursday.
• The strike comes in the middle of Amazon's key holiday shopping and shipping season.
• Amazon said that it wasn't seeing an impact on its operations.

Amazon workers at seven Amazon fulfillment centers went on strike Thursday, though the retailer said it wasn't seeing effects on its holiday delivery operations.

The workers are walking off the job after Amazon refused to bargain with them over a contract, according to a statement from the Teamsters, which represents the employees.

The strike will affect three Amazon fulfillment centers in Southern California as well as one each in New York, Atlanta, San Francisco, and Illinois, according to the Teamsters. The union said it will also set up picket lines at other Amazon facilities.

The action comes in the middle of the key holiday shopping season. Amazon's highest quarterly revenue has historically come during the final three months of the year. This year, that period included the company's October Prime Day as well as deals for Black Friday.

"If your package is delayed during the holidays, you can blame Amazon's insatiable greed," Sean O'Brien, general president of the Teamsters, said in the statement.

O'Brien said that the Teamsters "gave Amazon a clear deadline to come to the table and do right by our members."

"They ignored it," he added.

An Amazon spokesperson said Thursday morning that the company hasn't seen its operations affected by the strike.

Spokesperson Kelly Nantel said in a statement that the Teamsters recruited non-employees to participate in the strike and intimidate Amazon employees. When Business Insider asked for evidence of those claims, an Amazon spokesperson said, "We know our employees, and we know they are not out there. Our employees repeatedly claim to management that they experience harassment from activists."

"We appreciate all our team's great work to serve their customers and communities, and are continuing to focus on getting customers their holiday orders," Nantel said.

Workers at some Starbucks stores were also preparing for a potential strike this week. On Tuesday, a union representing about 10,000 baristas said its members had voted to authorize a strike, though negotiations with Starbucks have continued and no strike date has been set.

Do you work for Amazon and have a story idea to share? Reach out to this reporter at [email protected]

• Starbucks CEO Brian Niccol has talked about improving conditions for baristas.
• A potential strike at some Starbucks stores represents a test on that front for the new CEO.
• Niccol has made some operational changes, but Starbucks Workers United wants better pay.

Starbucks CEO Brian Niccol has talked about improving working conditions for the company's baristas.

Now, as thousands of them prepare for a potential strike, Niccol faces a test of that commitment.

Baristas who are part of Starbucks Workers United, which represents about 10,000 Starbucks workers in the US, voted to authorize a strike, the union said on Tuesday. About 98% of members voted in favor of action, though they haven't selected a walkout date, according to the union.

The union said Tuesday that it's focused on winning better raises for its members. It also wants to resolve hundreds of unfair labor practice charges, or ULPs, filed with the National Labor Relations Board.

The contract negotiations predate Niccol's arrival at Starbucks in September. Starbucks and the union have been at odds for three years. The first Starbucks store to unionize — a location in Buffalo, New York — was organized in 2021. The parties restarted talks in April after about a year of no meetings and have struck agreements on some provisions of the contract.

Starbucks and union representatives continued to bargain on Wednesday, a spokesperson for Starbucks Workers United told Business Insider.

"It is disappointing that the union is considering a strike rather than focusing on what have been extremely productive negotiations," Starbucks spokesperson Phil Gee said. "Since April, we've scheduled and attended more than eight multi-day bargaining sessions where we've reached thirty meaningful agreements on dozens of topics Workers United delegates told us were important to them, including many economic issues."

Since becoming Starbucks CEO, Niccol has said he sees opportunities to improve some operational aspects of baristas' working conditions as part of a broader push to revitalize sales. In an open letter in his first week as leader, he said the company would focus on "empowering our baristas to take care of our customers" and that he wanted to make it "the best place to work, with career opportunities and a clear path to growth."

Some Starbucks workers have told BI that their stores are understaffed, including during some of the busiest times of the day, such as the morning and after-school rushes. Other workers have said that Starbucks' frequent promotions for app users result in a crush of mobile orders that they struggle to prepare in just a few minutes.

Niccol's early actions at Starbucks have included fixes to some of those issues, such as rolling back the frequency of promotions and adjusting staffing, he said on an earnings call in October. Starbucks also plans to bring back self-service milk and other condiments at its stores in 2025 to lighten some of the barista load.

One sign of progress came on Monday, when Starbucks said it would offer employees up to 18 weeks of paid parental leave — triple its current benefit of six weeks. Employees represented by Starbucks Workers United had previously proposed doubling the paid time off for parents.

On Tuesday, Starbucks Workers United said that the company had yet to agree to make changes to other aspects of workers' jobs. The union represents baristas at about 500 Starbucks stores.

"It's time to finalize a foundational framework that includes meaningful investments in baristas and to resolve unfair labor practice charges," Silvia Baldwin, a Starbucks barista in Philadelphia barista and bargaining delegate, said on Tuesday.

Starbucks spokesperson Gee said: "We remain committed to working together and committed to reaching a final framework agreement. This is our goal."

Do you work at Starbucks and have a story idea to share? Reach out to this reporter at [email protected].

• Many major companies are requiring employees to return to the office full or part-time.
• Business Insider compiled a running list of the companies calling employees back.
• The list includes companies like Starbucks, Amazon, and BlackRock.

In September, Amazon mandated corporate workers return to the office five days a week beginning January 2.

In December, Business Insider first reported that AT&T is following suit and expecting employees to be in the office 40 hours a week starting in the new year.

The two business giants are just one of the many companies calling their employees back to the office following the pandemic as COVID-19 restrictions have eased.

The Washington Post, which is owned by Amazon founder Jeff Bezos, told employees this week they would be required to return to the office five days a week, according to a memo obtained by Business Insider.

Other major employers, including JPMorgan and Goldman Sachs, have also abandoned the hybrid attendance policy they adopted during the pandemic and instead implemented full return-to-office mandates.

Several executives and leaders have said they believe productivity increases when workers are in the office together, while others hope to increase in-person collaboration. Even some CEOs who previously praised the flexibility of remote work have started backpedaling, pressuring workers to comply with RTO mandates with threats to track attendance or even fire employees who don't comply.

Here's a list, in alphabetical order, of major companies requiring employees to return to offices. Business Insider will update this list regularly.

Amazon

CEO Andy Jassy wrote in a September 16 memo that Amazon would be pulling the plug on remote work starting next year.

"We've decided that we're going to return to being in the office the way we were before the onset of COVID," Jassy said. "When we look back over the last five years, we continue to believe that the advantages of being together in the office are significant."

The CEO cited easier employee collaboration and connection and said in-person work would strengthen the company's culture, echoing his February 2023 memo, which mandated employees spend at least three days a week in the office.

Not everyone agrees. Some Amazon employees have taken to an internal Slack channel to criticize the new RTO policy, Business Insider's Ashley Stewart first reported, with one staffer writing that it is "significantly more strict and out of its mind" than pre-Covid operations.

"This is not 'going back' to how it was before," they wrote. "It's just going backwards."

The critical reaction is reminiscent of employees' response to last year's surprise return-to-office rule. Thousands of Amazon workers joined a Slack channel to share their thoughts, with some even organizing to file a petition against the change.

Apple

In August 2022, Apple's senior leaders told workers they had to return to the office at least three days a week after previously requiring two days a week. CEO Tim Cook said the decision was meant to restore "in-person collaboration." Some employees fought back and issued a petition shortly after the announcement, arguing that staffers can do "exceptional work" from home.

Despite the pushback, Apple's hybrid work program launched the following month and is still in place.

AT&T

AT&T confirmed to Business Insider that it's requiring all office employees to work on-site five days a week starting in January.

The change follows about a year of AT&T accommodating a hybrid schedule in its widely publicized office push.

"The majority of our employees and leaders never stopped working on location for the full work week — including during the pandemic," a spokesperson for the telecom giant told BI.

AT&T told BI it's updating its facilities amid the policy change.

"As we continue to evolve our model, we are enhancing our facilities and workspaces, adapting our benefits programs, and incorporating best practices to ensure our employees are best equipped to serve our customers," the spokesperson added.

BlackRock

Last year, BlackRock mandated employees return to the office four days a week. The investment firm, which is headquartered in New York City, intended to bring employees into its then newly leased office space — which spans 1 million square feet across 15 floors, according to Hudson Yards.

In a May 2023 memo sent by the company's COO, Rob Goldstein, and the head of human resources, Caroline Heller, the execs wrote: "Career development happens in teaching moments between team members, and it is accelerated during market-moving moments, when we step up and get into the mix. All of this requires us to be together in the office."

Additionally, the memo notified staffers that the firm is giving them the opportunity to work remotely for two weeks during a time period that is relevant in their country, in an effort to offer "seasonal flexibility."

Chipotle

The fast-food chain announced last summer that corporate workers work in the office four days a week, Bloomberg reported. Chipotle had previously required workers to show up three days a week, according to the report.

Citigroup

Citigroup asked its 600 US workers, who were previously eligible to work remotely, to return to the office full-time, Bloomberg reported. In a memo released by the investment firm in May, the majority of staff are reportedly still able to work a hybrid schedule, with up to two days a week outside the office.

HSBC Holding Plc and Barclays Plc also followed suit, mandating workers to come into the office five days a week, according to the report.

Vaccinated Citigroup employees across the US were asked to return to the office for at least two days a week in March 2022, an internal memo obtained by Reuters said.

Dell

Dell told its sales staff to return to the office five days a week starting on September 30. Previously, the company let US employees pick between working remotely or following a hybrid schedule with about three days a week in the office.

September's sales-team mandate came with just a few days' notice, sending employees with kids into a hurry to find childcare, Business Insider reported.

Disney

In a January 2023 memo obtained by Business Insider, CEO Bob Iger told workers that starting that March, any Disney staff member working "in a hybrid fashion" would need to return to Disney's offices four days a week.

In response, over 2,300 employees signed a petition asking Iger to reconsider the mandate.

"This policy will slow, or even reverse, our post-COVID recovery and growth by creating critical resource shortages and causing irreplaceable institutional knowledge loss," signees wrote, according to The Washington Post.

Goldman Sachs

In March 2022, CEO David Solomon told Fortune that the company was asking employees to return to the office five days a week. Seven months later, he told CNBC that about 65% of staffers were working in the office.

However, some staff have failed to follow the policy a year into its implementation, causing senior managers to become frustrated and Goldman Sachs to further crack down on employees to return to the office full-time.

Google

In March 2022, Google employees in the San Francisco Bay Area and "several other US locations" were told to return to the office for at least three days a week starting the following month.

Last year, however, the company tightened RTO expectations, telling staff in an email that office attendance would factor into their performance reviews.

Google's Chief People Officer Fiona Cicconi told workers in the memo that requests to work remotely full time will now be considered "by exception only."

Some employees expressed feeling "frustrated" with the new policy. One staffer previously told Business Insider, "We don't like being micromanaged like school kids."

IBM

IBM has made its feelings on in-person work strictly clear — telling managers to either come into offices or get out.

The company asked all its US managers to report to an office or client location at least three days a week, according to a January memo viewed by Bloomberg.

A source told the outlet that staff would have to live within 50 miles of an IBM office or client location. The memo reportedly told employees they had until August to complete their relocation arrangements, and those who were unable to comply with the new policy must "separate from IBM."

CEO Arvind Krishna previously told the news outlet that employees' careers could suffer if they work from home. He said that although he wasn't forcing his own staffers back to the office, he thought remote workers may struggle to get promotions.

JPMorgan

In April 2023, JPMorgan announced to employees in a memo that all managing directors must work in the office five days a week. The memo also reminded other workers of the current policy of working in-person a minimum of three days a week.

Despite some pushback from employees, CEO Jamie Dimon doubled down on the policy, saying disgruntled workers can choose to go elsewhere.

"I completely understand why someone doesn't want to commute an hour and a half every day, totally got it," he told The Economist. "Doesn't mean they have to have a job here either."

The company has also been collecting data on staff activity, including tracking attendance.

Meta

Meta updated its remote work policies in September 2023, requiring employees to head into the office three days a week.

It had also stopped offering remote work in new job listings. People familiar with the company previously told BI that hiring managers could no longer post new jobs that list the work location as "remote" or outside of an existing office.

The company doubled down on its RTO efforts in June of this year, telling workers that their attendance would be tracked daily and failure to comply could lead to termination.

However, some employees returning to the office said they were met with a lack of space and privacy, with one worker calling the mandate "a mess."

Redfin

In April last year, real estate company Redfin announced an updated return-to-office policy via a memo from CEO Glenn Kelman.

The memo noted that starting July 2023, Redfin would require "headquarters employees" who live within 20 miles of the company's Seattle, San Francisco, and Frisco offices to work from the office for a full day on Tuesdays and Wednesdays.

Those who live beyond the 20-mile radius are required to visit the office in-person once a quarter for a day or more of meetings, the company said.

In order to hold employees accountable, the memo included a "no-exceptions" section, reading that "to determine your distance from an office, we'll use Google Maps, with the distance from your home address measured in miles driven over roads by car."

Salesforce

Salesforce told employees in an internal memo seen by The San Francisco Standard that the majority of workers have to be in an office four to five days a week as of October 1.

The new policy is mandated for select staff in sales, workplace services, data center engineering, and on-site support technicians, according to the memo.

Early last year, Salesforce CEO Marc Benioff revised the company's annual strategic plan, including return-to-office mandates, according to a draft shared in an internal Slack message viewed by Business Insider.

The updated draft return-to-office policy required nonremote employees to work three days a week in the office and employees in "non-remote" and "customer-facing" roles to work four days a week. Engineers must work from the office 10 days per quarter, down from 20 in the initial draft, which was updated based on employee feedback.

Snap

Snap implemented a new mandate in September 2023, requiring employees to work in an office at least four days a week. The change represented a shift from the company's former "remote first" policy, which allowed employees to work from home or elsewhere.

Employees previously told BI that some managers told them the company is able to track workers' WiFi connections to see who is complying.

Starbucks

In a January 2023 memo to corporate staffers, then-CEO Howard Schultz said employees within commuting distance would be required to return to the office at least three days a week.

Schultz said some staff had failed to "meet their minimum promise of one day a week" and also pointed out that Starbucks baristas didn't have the "privilege" of working from home. The executive had previously said he "pleaded" with workers to come back to the office.

Starbucks employees responded by signing an open letter protesting the company's return-to-office mandate.

In September, former Chipotle CEO Brian Niccol took over as CEO of the coffee chain.

In October, the company threatened to fire staff if they did not comply with the RTO policy, Bloomberg first reported, citing an internal memo.

Beginning in January, the company plans to initiate a "standardized process" to hold workers accountable to the hybrid schedule at the team level, where consequences will cover "up to, and including, separation," according to the email obtained by Bloomberg.

Employees, however, may request exemptions due to physical or mental medical reasons.

Tesla

In June 2022, Tesla employees were notified of a mandatory return-to-office policy.

The email from Elon Musk included wording such as "If you don't show up, we will assume you have resigned," and noted that everyone at Tesla must work from the office at least 40 hours a week.

Musk, who has called remote work "morally wrong," nodded to his frequent presence at Tesla factories as the reason for the business' success. "If I had not done that, Tesla would long ago have gone bankrupt," he wrote in the email.

Ubisoft

In September, Ubisoft, the France-based maker of the popular "Assassin's Creed" and "Far Cry" video game series, ordered its staff worldwide to return to the office three days a week.

French workers at the video game maker went on strike on October 15 over the RTO mandate.

X

After buying X, formerly Twitter, in 2022, Musk told employees that not showing up to an office when they're able to was the same as a resignation.

Musk also told staffers in an email that remote work was no longer allowed and that employees were expected to be in the office for at least 40 hours a week unless given explicit approval to work elsewhere.

In 2023, X, then Twitter, National Labor Relations Board filed a formal complaint saying that X had illegally fired an employee who complained about Musk's RTO policy.

The complaint said that Yao Yue, a principal software engineer, criticized the mandate, tweeting, "don't resign, let him fire you." She also posted, "don't be fired. Seriously" in a company Slack channel.

Yue was then fired five days later and told it was due to violating an unspecified company policy.

Uber

In a memo obtained by Business Insider, CEO Dara Khosrowshahi told employees that beginning in April 2022, Uber staffers in 35 of the company's locations were required to return to the office at least half the time. He added that on other days, staffers were allowed to work remotely and that some could be entirely remote if they got clearance from their managers.

CEO Dara Khosrowshahi recently said remote work took away some of Uber's "most frequent customers," adding that "there is an audience who kind of stopped using us as frequently as they used to."

Walmart

Along with slashing hundreds of jobs, Walmart also asked previously remote employees in the US to move to offices.

Staffers located in smaller offices in Dallas, Atlanta, and Toronto are additionally being directed to the company's central hubs, including its headquarters in Arkansas or New Jersey, The Wall Street Journal reported.

The retail giant will still permit hybrid schedules as long as workers come in-person most of the time, according to the outlet.

The Washington Post

William Lewis, CEO and publisher of The Washington Post, told staffers in early November that they would be required to return to the office five days a week, according to a memo obtained by BI.

"I want that great office energy for us every day," Lewis wrote, referring to the energy in the office during election week. "I am reliably informed that is how it used to be here before Covid, and it's important we get this back."

All employees were expected to return to the office by June 2, 2025, while managers were expected to return by February 3, 2025.

After starting remote work in 2020, the Post previously required employees to return to the office three days a week in early 2022.

The announcement at the Post came shortly after Amazon's return-to-office mandate. The Post is owned by Jeff Bezos, Amazon founder and executive chairman.

Zoom

Zoom, the darling of remote work, said in 2022 that less than 2% of staffers work in person full time. However, last year, the video-calling company asked employees to return to the office.

Workers living within 50 miles of one of its offices were mandated to work there at least two days a week.

"We believe that a structured hybrid approach – meaning employees that live near an office need to be onsite two days a week to interact with their teams – is most effective for Zoom," a spokesperson previously said in a statement. "As a company, we are in a better position to use our own technologies, continue to innovate, and support our global customers."

• Value meals at Chili's have boosted the restaurant chain's sales lately.
• Chili's chief marketing officer says the deals aren't leaving the menu anytime soon.
• Competitors like McDonald's and Wendy's also offer value meals amid inflation challenges.

Appetizers and value meals are bringing customers to their local Chili's Grill & Bar in droves — and they're not leaving the menu anytime soon.

Deals like the Triple Dipper and the 3 for Me combo, both of which allow customers to get sit-down meals for under $20, have helped Chili's parent company, Brinker International, beat quarterly expectations recently. Same-store sales grew nearly 15% at Chili's during the company's latest quarter, which ended in September.

Those affordable deals are standing parts of the restaurant's menu, not temporary offers, George Felix, chief marketing officer at Chili's, said.

While some restaurant chains are "scrambling to throw a low-priced offer out there and try and compete," the 3 for Me deal "is something we believe in," Felix told Business Insider.

3 for Me offers diners a starter, an entrée, and a drink for as little as $10.99. Chili's has offered the combo for about two years, and it added a smash burger as an entrée option in April — a move the company said took "aim at fast food" at the time.

Other restaurant chains have ramped up deals this year to attract customers, including many whose budgets have been stretched by inflation, back to their dining rooms. McDonald's, for instance, is planning to launch a new value menu in 2025 after extending a limited-time $5 meal this year. Burger King and Wendy's have also offered their own value meals.

Meanwhile, Red Lobster discontinued its $20 endless shrimp deal, which was meant to be a permanent menu item, and ultimately blamed the promotion for an $11 million loss in Q3 2023.

For Chili's, offering food options that range from less than $11 to over $30 allows diners to choose what sort of experience they have, Felix said.

"We believe value is not about the lowest price point," Felix said. "We believe value is what you get for what you pay."

The Triple Dipper is an appetizer sampler that's been having a viral moment on social media recently.

Many Chili's customers who come in for such deals return and order higher-priced items, such as a margarita, which can cost as much — or more — than some of Chili's value meals, Felix said.

"You bring them in with the Triple Dipper, but then they come back again and it's the Don Julio margarita — they treat themselves," Felix told BI. (That margarita cost $12 when ordered for pickup in New York on Tuesday.)

It shows that even diners looking for good deals will splurge, CEO Kevin Hochman said on Chili's October earnings call. "The price-quality equation is critical for this guest," Hochman said.

Are you a Chili's customer or worker with a story idea to share? Reach out to these reporters at [email protected] and [email protected]

• Big Lots' plan to sell itself to a private equity buyer fell apart last week.
• The retailer is starting store closing sales but trying to find another suiter, it said.
• I visited a Big Lots store in Maryland in September to see what it's like to shop there.

Big Lots is fighting to survive.

The discount retail chain had won court approval to sell itself to private equity firm Nexus Capital Management this fall after filing for Chapter 11 bankruptcy in September. But the deal fell apart last week, leading Big Lots to start store closing sales at the locations it hasn't already shuttered.

In a statement on Thursday, Big Lots said it hopes to find another buyer by early January.

Big Lots cited high interest rates and inflation among the factors that have held back its sales in a statement announcing the Chapter 11 filing earlier this year. Many of its customers have cut back spending on home decor and other non-essential purchases that make up most of what Big Lots stocks, the company added.

Plenty of shoppers are trimming their budgets, especially for purchases they can live without, like eating out or upgrading their home appliances.

But Big Lots has long marketed itself as a place to find great deals. The company has said that it buys products cheaply from suppliers and other retailers, which enables it to keep prices low. That seems like a model that should be working at a time like this. Big Lots did not respond to a request for comment from Business Insider.

To see what shopping at the chain is like, I went to a Big Lots store in the Washington, DC, area after the company filed for bankruptcy in September.

Here's what I found.

I visited a Big Lots store in Waldorf, Maryland.

When I visited this store, located in a strip mall about an hour outside of DC, it was one of a few in the DC area that Big Lots planned to keep open.

After Big Lots' deal with Nexus fell through, through, the retailer said it would start store closing sales at its remaining stores, including this one, putting its future at risk.

I noticed these bags of potting soil and wood pellets for smoking meat.

It definitely wasn't peak planting or grilling season anymore when I visited this store in mid-September.

This Big Lots store had a lot more food items than I expected it to.

This Big Lots store had several aisles of shelf-stable grocery items, from chips to cake mixes.

Big Lots acquires many products from closeouts, which happen when the retailer's suppliers get rid of something at a sizable discount.

That strategy extends to food, which Big Lots acquires "for a variety of different reasons, including other retailers canceling orders or going out of business, production overruns, or marketing or packaging changes," the company wrote in its latest annual filing with the SEC.

I found condiments, including ketchup and mustard...

I recognized some big food brands, such as Hellmann's mayonnaise. Others, such as "Totally Tomato" ketchup, were foreign to me.

...as well as bottles of Prime, the line of energy drinks that Logan Paul cofounded.

Prime is facing several lawsuits, including at least two that claim the brand's sales this year have been slower than anticipated, BI reported.

Big Lots also had a selection of cleaning and personal care products, such as this store-brand toilet paper.

I found it interesting that a store focused so much on selling closeout merchandise also has so many products under its own brand. Besides this toilet paper, I also found Big Lots-branded paper plates, markers, and puppy training pads.

I found a wider selection of products at Big Lots than I'd expected for a store of this size.

On average, Big Lots stores had an average of 23,000 square feet of selling space in 2023, according to the company's annual filing with the SEC. That's tiny compared to almost any big-box store: The average Walmart takes up 105,000 square feet, according to a company filing.

Yet Big Lots had a lot of departments, from kitchen supplies to furniture to groceries. The selection within each was limited, and it felt to me like the store was trying to be everything at once.

This display of products that cost less than $5 reminded me of a dollar store.

The 99-cent Halloween-themed socks were similar to what I've seen at Dollar General and Dollar Tree stores.

There was also a decent selection of furniture, from bed frames and mattresses...

Signs on the mattresses advertised Big Lots' own credit card, which offers interest-free payments on big purchases.

...to this TV stand.

It reminded me of Ikea's Kallax shelving units.

Even though this store wasn't closing when I visited, I spied some empty shelves.

These shelves were next to a selection of plastic storage containers and other home goods.

Some of the products at this Big Lots store were from a different era.

I found this selection of DVD movies, including "Inception," released in 2010, and "War Dogs," which came out in 2016.

It's been at least a decade since I saw this many DVDs in one place.

This puzzle featuring characters from John Hughes' "Sixteen Candles" was a prime example.

I found this puzzle in the toy section for $6. It was one of the most unusual things I found in the store, both because "Sixteen Candles" came out forty years ago and because the manufacturer leaned on the Blockbuster name.

It wasn't just the products: Shopping at Big Lots felt like stepping back in time.

Maybe it was just the rows of fluorescent lighting on the ceiling, but this Big Lots store felt like something out of the 1990s.

The deals didn't impress me, either.

Big Lots customers should still expect "extreme bargains" at its stores despite its ongoing bankruptcy, the company says on a website with information about the filing.

But this 2-for-$5 deal on two-liter bottles of Coca-Cola sodas was representative of the prices I saw at this Big Lots store: Big Lots' pricing was mostly in-line with other places where I could buy similar stuff.

I headed toward the checkouts with two purchases in hand.

In addition to the $6 puzzle, I found a pack of 100 disposable gloves for $1.99, a slightly better deal than I've seen elsewhere.

I left confused about the role that Big Lots is trying to play for shoppers.

Big Lots had the range of products that I'd associate with a big-box store like Walmart or Target. But it didn't have the same selection within each category that I'm used to at those stores.

The company's focus on closeout merchandise also reminded me of off-price retailers like T.J. Maxx and Ross, but those stores seem to have a narrower focus on home goods, clothing, and accessories than Big Lots does.

And if you need ketchup, chips, or other groceries, there's no shortage of supermarkets near this Big Lots. I counted at least seven within a mile of the store, including an Aldi, a Safeway, and a local organic market — and each has fresh produce and meat as well.

Lots of retailers have gone through bankruptcy or closed stores over the last 20 years.

From Sears to Bed Bath & Beyond, plenty of once-prominent retailers have gone through bankruptcies, closed stores, and, in some cases, shut down completely. At the same time, Walmart, Target, and Amazon have continued to attract customers.

Based on my trip there, I don't see a reason to keep shopping at Big Lots. If the chain wants to survive — and avoid the fate of Sears — it will need to offer shoppers something that they can't get anywhere else.

Do you work at a major retailer and have a story idea to share? Reach out to this reporter at [email protected]

• Shoppers are still buying store brands at the grocery store and beyond to save money.
• However, many store brands are now as good as the name brands that they're meant to compete with.
• Retailers from Walmart to Amazon Fresh have launched new store brands this year.

Shoppers are still reaching for store-brand items to save money on everything from organic milk to business casual clothing as inflation slows.

However, store brands aren't just about saving money. Many are the same quality as what national brands offer.

For many shoppers, one response to inflation has been buying more store-brand items to save money instead of choosing big-name brands produced by the likes of Unilever, Procter & Gamble, and many others. Food inflation hit 1% in October, according to federal data. While that represents a slowdown from the peak rate of over 10% in 2022, shoppers are still spending historically high shares of their budgets on food.

Increasingly, though, store brands at Costco, Nordstrom, Aldi, and other retailers are also arguing that they're every bit as good as those national brands.

Costco, which has long sold products under its Kirkland Signature store brand, started selling Kirkland Signature Oxi Powder and Kirkland Signature Food Storage Bags, "both offering significant value to the national brand alternatives," CFO Gary Millerchip said on an earnings call earlier this month.

"Kirkland Signature continues to grow at a faster pace than our business as a whole," Millerchip said.

Other major retailers have launched new own brands this year. Amazon launched Amazon Saver, a brand meant to "help grocery budgets go further," the company said in September.

Walmart announced in April that it would launch Bettergoods, a new store-brand line that includes organic milk and plant-based shredded mozzarella. The goal is to expand the number of "trendy, health-conscious offerings" among Walmart's own brands, CFO John Rainey said in June.

Walmart reported earlier last month that the number of customers who purchased its store-brand products grew during the company's third quarter.

The expansion isn't just limited to food. In February, Target announced Dealworthy, a store brand for non-food items, including electronics and toiletries, with most priced under $10.

Meanwhile, Nordstrom had "double-digit" sales growth for its own-brand clothing during its third quarter across both its department stores and Nordstrom Rack, its off-price chain, the company said last month. Nordstrom's own-brand products carry "lower price points that oftentimes are more attractive to the young customers," president and chief brand officer Peter Nordstrom said on an earnings call.

Sales of store-brand groceries — or "private-label" items, as they are known in the grocery industry — rose 6.3% in value to $216.8 billion in the US in 2023, according to Circana.

Circana said store brands made up 25.5% of grocery items sold in 2023, up from 24.7% the previous year.

Over the last few years, discount grocery chain Aldi has attracted some customers looking for low food prices. Studies of Aldi's prices regularly find that its prices undercut rivals, including Walmart.

One of the main reasons is that the chain sources 90% of everything at its stores from its own brands, Scott Patton, a vice president of national buying and customer interaction at Aldi USA, told Business Insider in an interview. Using private brands gives Aldi more say in setting prices than it would with national brands, Patton said.

Aldi quality tests 35,000 products a year for its store brands, Patton said. Many of the items that make it to the shelves at Aldi don't look much like own brands, though. One of the retailer's best-selling items is its Choceur dark chocolate, which comes in a pack of five bars for just over $2, Patton said. "You might even not know it's a store brand," he said.

In the past, many customers viewed own brands as cheap — both in terms of price and quality. However, Patton said Aldi views its own brands as a chance to win over budget-conscious customers while also offering decent quality.

"We are not going to skip on quality just to get a lower price, period," Patton added.

Do you work in the grocery industry and have a story idea to share? Reach out to this reporter at [email protected]

• Elon Musk's xAI is reportedly close to unveiling a chatbot app similar to OpenAI's ChatGPT.
• The app could arrive as soon as December, The Wall Street Journal reported.
• It would be another sign that Musk and xAI want to challenge OpenAI directly.

Elon Musk's xAI is reportedly planning an app that could expand its chatbot's reach to a much wider audience and take on ChatGPT.

xAI could release the chatbot app as soon as December, The Wall Street Journal reported on Wednesday. The company did not immediately respond to a request for comment from Business Insider.

The app, if it materializes, would be another sign that xAI and Musk are trying to take on ChatGPT-maker OpenAI. Musk co-founded OpenAI but left the company in 2018. He has sued OpenAI and cofounder and CEO Sam Altman twice, most recently alleging he was "deceived" into confounding the company.

Musk founded xAI last year. Since then, the company has provided services to his other ventures, such as AI customer support for Starlink, and Grok, a chatbot only available to paid subscribers of X, the social network formerly known as Twitter that Musk acquired in 2022. A chatbot app would be its first product offered directly to consumers.

xAI's valuation has hit $50 billion, the Journal reported earlier this month. The artificial intelligence startup is now worth more than the $44 billion that Musk paid to acquire X.

Investors who backed Musk's acquisition of Twitter have registered losses on paper since the deal. On Wednesday, the Financial Times reported that Musk gave a quarter of xAI's shares to those investors, a move that could make up for those losses.

xAI's valuation is still smaller than that of OpenAI, which was last valued at $157 billion in its latest funding round in October. It also generates less revenue. xAI is "on pace to surpass $100 million annually," the Journal reported on Wednesday. OpenAI, meanwhile, expects revenue of $3.7 billion in 2024, the Journal reported earlier.

Julie Herron drove by the Aldi near her home in Nashville for years before she went in. She usually shopped at Publix, but in 2021, when inflation was sending grocery prices soaring, her curiosity got the better of her. She was shocked at what she found in Aldi.

Everything there was cheap, she said. The store also had cool products, like a variety of German cheeses and $1.59 makeup-removal wipes she said were "superior, honestly," to a comparable $20 product at Sephora.

Aldi has become Herron's go-to store. "My friends say that they call me the 'Aldi Queen,'" Herron, a retired elementary-school teacher, told me. "I go every week."

As grocery prices have jumped by double digits over the past few years, people have felt the sting. For many, Aldi has been a source of solace. A recent Motley Fool analysis found that a basket of 20 products that cost about $65 at Aldi was $11 more at Kroger and about $54 more at Whole Foods. Though Aldi isn't the biggest grocery chain in the US — according to Euromonitor, it captured just 1.4% of US grocery sales last year, compared with Walmart's 25% — it offers a lot of things shoppers are looking for these days: organic meat, store brands, and a quick shopping trip. As a result, it has attracted loyal fans who proudly sport Aldi-branded tote bags, pants, and flip-flops. And it's the fastest-growing grocery chain in America by new store openings, a title it has held for five years, according to the real-estate services company JLL.

The US grocery business is ruthless. Competition is fierce, and profit margins are slim. Many have tried and failed to find success. So how did a German grocery chain find such a ravenous following in America?

From its start in Germany after World War II, Aldi's founders, Theo and Karl Albrecht, were singularly focused on keeping prices low. The brothers expanded their family-run store into a chain of 77 stores in Germany by 1954 with the aim of minimizing expenses and maximizing profit. They didn't advertise. They offered only shelf-stable items that sold well, eliminating the need to buy and run refrigerators. Shoppers even picked their own items off the shelves — a radical concept at a time when German shoppers were used to being served at a counter.

When Aldi opened its first US store in Iowa City, Iowa, in 1976, it used a similar approach. A newspaper ad at the time proclaimed that the store had "no perishables," "no fancy shelving," and "no fancy floor." It promised lower prices for a variety of items, from baby shampoo to salad dressing. The ad estimated that the cost of a basket of goods at Aldi was 18% less than at a rival.

Though that store ended up closing in 1977, Aldi kept working to perfect its formula for American shoppers, largely by going smaller. The Iowa City store was about 40,000 square feet — close in size to a typical modern US supermarket — but the hundreds of stores Aldi opened in the next two decades were just about 10,000 square feet. This meant that Aldi could carry only a fraction of the items that its supermarket rivals could, but it had a solution: Go smaller with selection, too. Instead of stocking a dozen types of ketchup, it sold only one or two. The model caught on, and by 2004 the chain had 700 locations across the country.

Over the years Aldi has found clever ways to become even more efficient. Today, for instance, produce like apples, oranges, and broccoli are sold in prepackaged units to save time weighing and pricing each item. Many shelf-stable items are put on the sales floor in the same cartons they arrived in. Employees often rotate between ringing up customers and stocking shelves. To get a shopping cart, customers have to provide a quarter, which they get back when they return the cart — a system that saves the company from needing parking-lot attendants to round up carts. Though shoppers must bring their own bags and pack them themselves, the prepackaged produce and large barcodes on products contribute to a speedy process.

A September study of grocery prices in Charlotte, North Carolina, by analysts at Bank of America found that while Aldi had raised prices by more than other grocers over the previous year, it was still cheaper than local Walmarts (which were cheaper than Kroger-owned chains and Whole Foods).

Aldi now has about 2,400 stores in the US, with another 800 planned for the next four years. Foot-traffic data from the location-data company Placer.ai indicates that the number of shoppers who visited Aldi stores in the spring of 2022 increased from the same period in 2019. This year, foot traffic at Aldi's stores has grown by 10% to 18% each month compared with 2023, more than double the rise among traditional grocery stores.

Sumone Udono, a trucker based in Wisconsin, has frequented an Aldi that's a 10-minute walk from her home for decades. She buys everything from the brand's organic pistachios to the spices she estimates would cost double at a traditional supermarket.

Selling others on Aldi, though, wasn't always easy. She recalled that in the early 2000s, when she ran a concession stand at her kids' baseball games, she tried to convince the other parents to replace Oscar Mayer hot dogs with the Aldi equivalent to lower prices. The parents were hesitant but ultimately agreed to sell both and see how it went. The Aldi dogs ended up outselling the name-brand ones.

Relying on store brands is one of the most successful cost-cutting tactics Aldi has implemented. Aldi says roughly 90% of the items in its stores are from the grocer's own brands. For comparison, about 20% of groceries sold in the US last year were store brands, according to the Food Marketing Institute.

Scott Patton, a vice president of national buying and customer interaction at Aldi USA, said that having so many private-label products saved the company costs associated with national brands, such as advertising fees. It also gives Aldi more of a say in how products are created — for instance, Aldi worked with one of its mandarin-orange suppliers to reduce the amount of plastic in its packaging, a move which helped save Aldi money, Patton said. Costco and Trader Joe's similarly use store brands to cut costs.

Patton said that relying so much on its store brands increases the pressure for Aldi to find just the right items. "If we don't have the right quality at the right price for the consumer, there's not another option for them to pick from."

To accomplish that, he said Aldi tests about 35,000 products a year. In some cases Aldi has found success designing its products to resemble more-familiar brands. For example, it sells Clancy's nacho-cheese-flavored tortilla chips, which come in a red bag with a triangle logo reminiscent of Doritos, and L'oven Hawaiian sweet rolls, which are comparable to King's Hawaiian rolls.

Phil Lempert, a food industry analyst and editor of the website Supermarket Guru, said that many shoppers used to look down on store brands. "For my parents, there was a stigma." But these days, Gen Z and millennial customers are less likely to care about brand and more likely to prioritize price.

It helps that many Aldi-brand products don't seem generic and boring. It stocks brioche, Dutch Emmental cheese, and chili-lime cashews. "It's a German company, so they have a lot of international products, especially cheese," Herron said.

She's a fan of what's known as Aldi's "Aisle of Shame" — or as the store calls it, the Aldi Finds aisle, a section in the center of most Aldi stores with miscellaneous low-cost nonfood items that change every Wednesday. The aisle's items have included rugs and Dutch ovens — and it has garnered a loyal following. The Facebook group Aldi Aisle of Shame Community has 1.5 million members, the most active of whom post photos of their finds. Recently, fall-themed scented candles were making a splash. In October, the hit find was a pressure-point massage cane.

To cash in on the growing fan base, Aldi has released two collections of branded apparel and accessories. Last fall's selection — "Aldi-das," as some on TikTok call it — included canvas slip-on shoes, travel mugs, and a backpack. Lempert said it's a big change from the Aldi of the 1970s. "Twenty-five years ago, the people who went to Aldi were just looking to save money," he said. "Now it's very hip to go to Aldi."

In 2023, Aldi agreed to buy 400 stores from Southeastern Grocers, including many run by Winn-Dixie, a Florida chain that became a household name in the South during the 20th century. Analysts at the consumer-data firm Dunnhumby said the acquisition should "raise alarm bells for retailers not only in the Southeast but throughout the US."

Of course, Aldi's expansion faces headwinds. Americans have lots of choices for where they shop, and recent entrants like Amazon and Lidl, another discount chain based in Germany that launched in the US in 2017, are competing for market share.

Devout Aldi fans might don their branded windbreakers and dart straight to the nearest Aldi, but most Americans just head to whichever store is closest, said Zak Stambor, a senior analyst who covers retail and e-commerce for EMARKETER, a sister company of Business Insider. "Even if I want to save money on groceries and I fit the demographics of the Aldi customer, if I have to drive 15, 20, or 25 minutes to an Aldi, I'm not likely to do that on a regular basis," he said. Twelve states, including Washington and Colorado, don't have an Aldi.

Then there's the fact that grocery-price inflation, which has pushed many people toward the discount grocer, slowed to 1% in the year that ended in October — though, inflation may return if the Trump administration enacts new tariffs. Walmart recently said it planned to raise prices if Trump's tariffs are implemented.

Lempert, the grocery analyst, thinks Aldi's growth is only getting started. He has met the CEO of Aldi USA, Jason Hart, and toured the company's American headquarters in Illinois. He expects to see even more Aldi stores opening. "By the end of this decade," he said, "they'll probably have 4,000 or 5,000 stores."

Alex Bitter is a senior retail reporter at Business Insider.