Economics in the News – Nov. 24-30, 2025
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o American-based food and beverage chains are facing increased competition, as numerous Chinese food and beverage brands are debuting in the United States. From tea shops to chicken fast-food chains, numerous establishments have opened in New York and Los Angeles. For the businesses expanding operations in the United States, they must deal head-on with geopolitical tensions with conducting business with an economic rival. They must also deal with cultural differences between consumers in the two countries, as some businesses have learned that their model that works well in China won’t have the same effect with American consumers.
The competition comes as the Chinese economy isn’t growing as rapidly as it was several years ago. With an overabundance of fast-food competition in China – there are three times as many fast-food establishments per capita in China than the United States -- many businesses are undercutting each other on prices. Milk tea shops have become especially popular in China, with stores selling drinks for less than $1. [The New York Times]
o Americans spent more on Black Friday deals than they did last year. According to Adobe Analytics, shoppers spent an estimated $11.8 billion in online purchases, a 9.1 percent increase from 2024. In addition, $6.4 billion was spent on Thanksgiving. And according to MasterCard SpendingPulse, apparel and jewelry were the top spending categories. In addition, more retailers are partnering with OpenAI to provide shoppers with shopping assistants to personalize the shopping experience and make product suggestions.
Despite the encouraging Black Friday weekend numbers, economists warn that it may be too early to be bullish on holiday spending. It may not be a strong indication for how retailers are set to perform during the holiday season. The National Retail Federation indicated earlier in November that holiday sales were expected to climb 3.7 to 4.2 percent over 2024. [The New York Times]
o America’s top fast-casual restaurant chains have been struggling in 2025. The stock prices for Chipotle, Cava and Sweetgreen are all down for this year. Analysts suggest that because most of the clientele at the popular chains are either Gen Z or millennials, and they are feeling the impact of the economy – student loan payments, higher rent, and worsening job market.
However, experts also believe strong days are ahead, as Americans enjoy the bowl that offers fresher food for only a few dollars more than typical fast-food. The fast-casual restaurants make up roughly 15 percent of the restaurant market in the United States, up from six percent in 2008. Cava, in particular, has grown significantly in popularity in recent years and analysts believe the company can more than double the number of its restaurants in five years. [The Wall Street Journal]
o President Donald Trump’s tariff policies has created more difficult jobs for custom brokers in charge of checking each shipment of imports for the many tariffs that might apply. Now, with the help of artificial intelligence, companies are seeking ways to redesign products to avoid the highest tariffs.
Some companies are reducing the use of heavily tariffed materials such as stainless steel in favor of alternatives that are not as heavily tariffed, such as plastic. Using the technology, one footwear company by altering the design of a women’s sandal. [The Washington Post]
o Americans throw out a tremendous amount of food each year. Thanksgiving is the biggest day of food waste each year with 200 million pounds of turkey meat finding its way to the trash, according to the Natural Resources Defense Council. Food waste accounts for nearly 25 percent of the total waste at landfills.
New York City is hoping to address the food waste problem, wanting to turn food waste into usable compost that residents and businesses can collect. Composting turns organic materials and convert it into plant fertilizer. The New York City council voted last year to mandate residents into separating food waste from lawn waste, with fines set to be enforced to boost the current 10 percent participation rate. [NPR]
