Local Entrepreneur Brings Social Benefits to Coffee Sales with Innovative Product

It took root when he was a 9-year-old earning nickels and dimes at the Hartford Regional Market,  gained impetus at Hartford High School and was cultivated at the University of Richmond.  By the time Ray Fraser graduated college in 2011 with a business degree in marketing and finance, he was convinced that his life’s work would not center solely on making a profit, but on simultaneously making the world a better place.  He’s doing just that, one tree at a time.

With a relentless work ethic and an engaging, easy-going personal style, Fraser’s start-up business – growing rapidly in just a few months – is called Tree Sleeves.  His mission:  to produce and sell reusable cup sleeves that combine comfort and utility with charity – “to help eradicate the cycle of deforestation affecting our planet.”

 For every Tree Sleeve sold, a tree is planted in a part of the world affected by deforestation.  It is a simple but profound concept, and the reaction has been overwhelmingly positive from a rapidly growing roster of retailers and consumers.  With a retail price of only $2.00 - a Tree Sleeve is perfect for daily use while on the go, quite affordable, and reusable.

Fraser has never shied away from challenges – in fact, he has consistently sought them out since he first visited the local Regional Market and asked what he could do to earn some money.  Told he needed to dump some boxes, he did – and came away with a nickel for his efforts.  Thus began a working relationship – and first-hand glimpse of what it takes to succeed in business – that continued as a part-time job through high school.  (The pay improved somewhat over time.)

As a teenager, Fraser was an Eagle Scout (his Eagle project was organizing a blood drive accompanied by a canned food drive for a homeless shelter) and an athlete who excelled in football, wrestling and track.  He discovered a knack – and enjoyment – in working with people, as well as an aptitude for business.  He would be the first in his family to attend college, encouraged by his parents, a machinist and teacher who resettled in Hartford from the West Indies and took education and diligence seriously.  Missing a day of school for being sick, Fraser recalls, was simply not an option.

In college, he developed an affinity for brands with a cause, and in addition to working as a Resident Assistant on campus, had motivating internships with United Technologies in Connecticut and Saks Fifth Avenue in New York City.  Both would express interest in hiring him after graduation, but by senior year Fraser had decided to chart his own entrepreneurial path, the example of Tom’s Shoes founder Blake Mycoskie (the subject of a college research paper), among others, serving as his frame of reference.

“I had looked at the corporate ladder,” Fraser recalled recently, “and I wanted to have a bigger impact, to do more than just bring home a paycheck.  I wanted to expand my mind, and make a difference.”

Innovative Idea

After graduating from college and returning to Hartford, Fraser tried to develop an entrepreneurial business with friends that didn’t quite come together, stymied by software development issues.  Then one day in January, in a local Starbucks working on elements of that initial attempt at enterprise, the frequency which employees needed to empty trash cans overflowing with disposable cardboard sleeves caught his attention, and imagination.  He thought there must be a better way, and then went about inventing it.

“They’d empty the trash, and then two hours later they’d do it again.  The waste was astronomical.  When I looked into the numbers on paper sleeves, I was shocked.  We throw away 3 billion a year,” he emphasized.  “That translates into thousands of trees cut down needlessly each year.”

The traditional disposable cardboard cup sleevemakes carrying easier and holding the cup possible by providing an extra barrier to reduce the heat from the cup. Based on his extensive and resolute research, Fraser has done the disposable cup holder one better, with purpose.

It didn’t happen overnight.  He visited local coffee shops to talk to owners about their business, customers, and interest in a potential product.  He had informal conversations with friends, inquiring whether they’d buy a reusable sleeve, and what attributes would make it attractive.  (Being good for the environment was a recurring theme.) He scoured the internet in search of potential manufacturers, first in this country, then overseas.  He taught himself about nations that produce coffee, and learned of the challenges many face due to deforestation.

Building A Business

Fraser carefully nurtured relationships, engendering trust and crafting a business that he sees as having limitless potential – and enduring impact.  He developed and produced an attractive, lightweight design made of 100% food grade silicone, a reusable sleeve that makes going green easy.

Research completed and initial business relationships established, it was time to take a leap of faith.  With initial start-up funds borrowed, the 24-year-old ordered 1,000 silicon sleeves in July.  He was quite optimistic that he would be able to sell them to retailers.  But not certain.

After printing some promotional signs from his computer, buying handful of baskets at the local dollar store and a fistful of rubber bands at an office supplies store, Fraser set out to area coffee shops, bundles of product in hand.

One of the coffee shop owners he visited months previously to engage in speculative conversation was not surprised when he returned with a well-produced product – but he didn’t necessarily expect he’d be back.

“He was a nice polite young man, but I didn’t know that he’d actually do something.  We try to encourage renewables, so I thought I’d buy some, and if people liked the idea, they’d buy it,” said Bill Sze, owner of Jojo’s Coffee Roasting Company, with locations in Hartford and New Haven.  His initial order was for 100, this summer.  “I’ve been going through them at a good rate.  Most people like the idea.”  Sze just re-ordered, another 100 for each location.

Within a couple of months, Fraser – pounding the pavement and meeting with coffee shop owners – had Tree Sleeve locations grow from a handful, to a dozen, to now nearly 30.  By late October, he ordered the second batch of 1,000 to be manufactured, and continues to visit coffee shops personally, extolling the virtues of a product that allows purchasers to impact the planet, and people’s lives.

Along the way, he has patched together an informal set of advisors, including two of his former professors at Richmond, two volunteers from the Hartford chapter of SCORE (Senior Corps of Retired Executives), a local marketing professional that he learned of through CT NEXT, and a growing array of local coffee shop owners willing to give the product a try.

Another of the initial locations, J. Rene Coffee Roasters in West Hartford Center, has also re-ordered in recent weeks, based on solid sales.  Current locations include Avon, Stamford, Windsor, New Haven, Middletown, and Shelton.   But Fraser’s sites are set on a broader reach, and impact.

Having An Impact

The initial tree planting is being handled by Eden Reforestation Projects.  Since 2005, the California-based Eden has employed thousands of workers in Ethiopia, Madagascar, and Haiti who have planted millions of seedlings that are growing into healthy forests. They will be planting trees quarterly for Tree Sleeves, and Fraser now looks forward to 2,000 trees being planted in December.

Eden’s website explains that radical deforestation is a major cause of extreme poverty and oppression in impoverished nations, and that deforestation, which can result in soil erosion and destructive flooding, contributes to the climate change crisis.

The local start-up company’s slogan of “Grab 1 Plant 1” is quite concise: GRAB 1 - customers purchase tree sleeves and the company provides the necessary funding to a non-profit tree planting partner; PLANT 1 - Tree Sleeve's nonprofit partner plants and nurses tree seedlings in greenhouses located within deforested parts of the world. Upon maturity, trees are then transported and planted in areas most affected.

With patent pending, Tree Sleeves are currently manufactured overseas, but Fraser hopes that as the business grows he will be able to bring manufacturing to the U.S., while keeping prices affordable for consumers and continuing to impact the environment and vast populations.  Not unexpectedly, he is optimistic.  “Our generation wants to make a difference.  Impact is huge for me, and this is a huge issue.  I want to be the one who helps to solve it.”

Always looking ahead, co-branding, college stores and internet sales may be on the horizon, Fraser says, and perhaps a college intern to provide support.  Right now, to help pay for the gas his car requires to get him around the region, Fraser is working an overnight job at a local warehouse distribution center while building his own business by day.

Don’t even ask when he manages to sleep -that’s not a priority.  Fraser has been taking samples of Tree Sleeves to retailers since early summer, shows no sign of slowing down, and is encouraged by the response.  He’s also quite proud to be launching his business in the city where he grew up.  “It feels good.  I went away to school, I came back.  We certainly have the resources here to get this off to a great start.”

Virtual Wedding Planning Website Wins Top Prize in Entrepreneurial Competition

The entrepreneurial spirit of a Connecticut-based business was the big winner as Voncierge, a virtual wedding planning start-up seeking financial resources to expand its innovative services nationwide, earned the top prize in a “Shark-Tank”-like competition at the Western Mass Business Expo in Springfield, MA. 

Founder and CEO Mee-Jung Jang impressed a panel of expert judges and an enthusiastic audience of business professionals in her spirited “pitch” highlighting the fledgling company’s business plan and growth-to-date.

In winning the First Annual Pitch Competition – besting nine other entrepreneurial companies – Voncierge won $1,500 to assist the company and one year’s worth of free space at the Business Growth Center at Springfield Technology Park.  

The company is striving to change the way brides plan their wedding. Jang, a Harvard undergrad and Yale Law School graduate, was working as an intellectual property attorney in Manhattan when she got engaged, and her wedding-planning experience proved to be a challenge – and thus, Voncierge was born. 

On the Voncierge website, brides can search for vendors — bridal salons, florists, stationers, bakeries, officiants, photographers, venues and planners — in their city and schedule appointments with them.  They can also view a list of all confirmed, requested and past appointments – and also keep track of favorite vendors and wedding dresses. To aid their search, they can submit their wedding date, budget and dress size. Voncierge has a unique search and tag feature where every image is tagged with the relevant vendor.

“In this modern day and time, brides still need to sit by the phone all day to book their bridal appointments. How annoying! We decided someone had to do something about it. So we built Voncierge,” the company’s website explains. The start-up was initially named Little Dress Book, but has since been renamed as Voncierge (for “virtual concierge”). It was launched in New York City last year, and Jang has since relocated to Hartford as she continues to grow the business from Connecticut.

The company is expanding its site and services city-by-city, with a smattering of listings in distant locations from Las Vegas to Dallas to New York – and more in-between.  Even at this early stage, more than 100 wedding vendors are already listed. 

“The plan is to make Voncierge available to people all over the country,” Jang explains. “We are talking with salons, venues and vendors across the country, and are continuing to add to the site.  It is tremendously well-received wherever we go, and we’re confident that the site will scale effectively and bring brides and businesses together in mutually beneficial ways.”

To participate on the site, vendors pay a fee for every appointment booked. The service is free for brides. Each vendor has a profile on the site displaying relevant information and photographs that brides can review before booking.

“When I started planning my wedding, I was still working as an attorney at a corporate law firm, which meant I barely had time to sleep or eat—so sitting by the phone playing phone tag with vendors did not make me happy,” Jang said.  “I knew there had to be a better way, so I set out to create it.” 

In her formal pitch presentation, Jang said she was seeking to have the Voncierge site become “ubiquitous,” with a strong presence on social media.  Joining her in developing Voncierge is chief technology officer Morry Belkin, a Carnegie Mellon graduate with more than 15 years of business experience ranging from start-ups to Fortune 500 companies. 

If the successful pitch in Springfield is any indication, prospects for the start-up appear promising.  To build a sales and marketing team and advance product development, Jang is currently seeking investments in the company. She is also looking to hire a sales associate to join her team.

The Business Growth Center at Springfield Technology Park – where Voncierge now has a year’s worth of free business space – offers a range of business services, including access to the Small Business Development Center Network, the U.S. Small Business Administration, and Business Growth Center Affiliates Program, all aimed at supporting and assisting start-up businesses.  Center Director Marla Michel was on-hand at the Business Expo November 6 to congratulate Jang and personally extend the free space offer. 

The entrepreneurial competition at the Business Expo was coordinated by Valley Venture Mentors, which provides a range of mentoring services for start-up businesses, including the ten companies that participated. They offer support to the entrepreneurial ecosystem by uniting carefully selected startups together with high quality business mentors at structured monthly pitch and planning sessions.

The other start-up businesses recognized by the judges and audience as the top presenters were Celia Grace, Kloudbook and PeopleHedge.  The Western Mass Business Expo was developed and coordinated by the publication Business West, the business journal of Western Massachusetts.  It was produced by Connecticut-based Rider Productions.

CT’s Workforce in Leisure & Hospitality Industries Among Smallest in U.S.

The percentage of Connecticut’s workforce in the leisure and hospitality industries is among the smallest in the country.  New data indicates that the state ranks 45^th, with 9.6 percent of all workers employed in  the field.  The national average is 11.4 percent of workers.

The top-ranked state in leisure and hospitality workers is Nevada, with 28 percent, followed by Hawaii with 18 percent and Montana at 14 percent.  Just behind the top three states are Wyoming, Florida, Maine, Colorado, South Carolina, South Dakota, Rhode Island New Hampshire and Vermont, among the 17 states exceeding the national average.  Massachusetts ranks at #23, just under the national average.

Workforce in leisure and hospitality is defined as the percent of employees (on nonfarm payrolls) who are employed in leisure and hospitality, including arts, entertainment, recreation, accommodation and food service.  Earlier this year, published reports indicated that employment in this sector – then at 10.5 percent of the U.S. workforce – was at a record high since the government began tracking such data in 1939.

Connecticut in recent years has dramatically stepped up efforts to promote the state to visitors, launching the “Still Revolutionary” marketing campaign slogan and increasing the state’s tourism budget which had been all but eliminated by the previous state administration.  Increased tourism is said to impact the leisure and hospitality industries.

The only states with a smaller percentage than Connecticut in the leisure and hospitality industry are Iowa, Nebraska, Kansas, Arkansas, and North Dakota.

The data on workforce in leisure and hospitality were collected as part of the Current Employment Statistics (CES) program, a monthly survey of about 141,000 businesses and government agencies, in order to provide detailed industry data on employment, hours and earnings of workers on nonfarm payrolls. The workforce data are updated monthly by the U.S. Bureau of Labor Statistics (BLS).  The data used is updated through September 2013 and published by Bloomberg Visual Data.

Nationwide employment in the leisure and hospitality sector rose to 13.66 million jobs in August, based on seasonally adjusted data from the U.S. Bureau of Labor Statistics, the Business Journals reported.

The BLS reports that the arts and entertainment sector generally includes (1) establishments that are involved in producing, promoting, or participating in live performances, events, or exhibits intended for public viewing; (2) establishments that preserve and exhibit objects and sites of historical, cultural, or educational interest; and (3) establishments that operate facilities or provide services that enable patrons to participate in recreational activities or pursue amusement, hobby, and leisure-time interests.

The Accommodation and Food Services sector, according to BLS, comprises establishments providing customers with lodging and/or preparing meals, snacks, and beverages for immediate consumption. The sector includes both accommodation and food services establishments because the two activities are often combined at the same establishment.

Note:  Concerns have been raised regarding the manner in which casino employees are categorized, which may impact the data.

CT Drops Among States But Exceeds National Average in Opportunities Available to Residents

A new report and analysis focusing on four “impact areas” of daily life – opportunity, economy, education and community - has determined that Connecticut exceeds the national average in each category, by at least five percentage points and as much as nearly seven.  Overall, the state ranked 13^th in the U.S., with a score of 56.9 out of 100 in the study's index, designed to measure economic, academic, civic and other key factors.  The state ranked 10^th a year ago, and is the only state to fall out of the top 10.

The top 10 states in the latest analysis are Vermont, Minnesota, North Dakota, New Hampshire, Nebraska, Iowa, Massachusetts, New Jersey, South Dakota and Maryland.   In addition to Connecticut, three other states (Montana, Oregon and Pennsylvania) dropped as many as three slots in the state-by-state rankings.

According to the report, developed by Measure of America  and Opportunity Nation, Connecticut did better than the national average in  mean household income, the number of banking institutions, and the percentage of households with high speed internet.  The state also exceeded the national average in the percentage of 3- and 4-year olds attending preschool and the percentage of the population (age 25 and older) with an associate degree or higher.  The unemployment rate in Connecticut was higher than the national average, but the percentage of the population with earnings below the poverty line was less than the average nationally.

Perhaps surprisingly, the percentage of students who graduate from high school on time (within four years) is below the national average – 75.1 percent in Connecticut as compared with 78.2 percent nationally.

The Opportunity Index focuses on the conditions present in different communities and is designed to connect economic, academic, civic and other factors together to help identify solutions to lagging conditions for opportunity and economic mobility.  From preschool enrollment to income inequality, from volunteerism to access to healthy food, expanding opportunity depends on the intersection of multiple factors, Opportunity Nation's website explains.  The Index is designed to provide policymakers and community leaders with a powerful tool to advance opportunity-related issues and work, advocate for positive change and track progress over time.  

In the area of community health and civic life, the level of volunteerism among Connecticut residents exceeds the national average, as does the   number of primary care providers (per 100,000 population) and the percentage of adults who are involved in social, civic, sports and religious groups.  Violent crime is below the national average and the percentage of youth, ages 16-24, not in school and not working is also below the national average, at 12.3 percent as compared with 14.6 percent nationwide.

Nationally, almost 6 million young people are neither in school nor working, according to the study - almost 15 percent of those aged 16 to 24 nationwide who are neither employed or in school, the Associated Press reported.  In Connecticut, 12.3 percent of those aged 16 to 24 are not working either at a job or in class, the study found.

The study also determined that 49 states have seen an increase in the number of families living in poverty and 45 states have seen household median incomes fall in the last year, the AP reported.

Social Enterprises Honored at Statewide Event; New Entrepreneurs Lead the Way

Six outstanding new Connecticut-based social enterprises, led by entrepreneurs in a range of businesses and industries, earned public recognition – and cash prizes – at the Third Annual Social Enterprise Awards held by reSET, the Social Enterprise Trust.  Nearly 200 people were in attendance for the awards ceremony, held at The Society Room in Hartford.

There were 54 social entrepreneurs from across the state vying for recognition in the 2013 Social Enterprise Challenge; applicants were narrowed down to 10 finalists who were evaluated by a panel of business experts.

The top five social enterprises were honored at the Social Enterprise Awards celebration for having the best and most sustainable social enterprise business plans, and for effectively demonstrating that their businesses could improve the community and create jobs, and generate both purpose and profit.

reSET also honored the renowned social enterprise Honest Tea with the reSET Social Enterprise Innovator Award for its community impact and corporate conduct, which has inspired others.  Honest Tea values simplicity, fair dealings, partnerships, the environment, and sustainability.  Dr. Barry Nalebuff, Milton Steinbach Professor of Management at the Yale School of Management, and co-founder of the company, accepted the award on behalf of Honest Tea, and conducted a presentation outlining the company's early years and evolution.

The winners of the Social Enterprise Challenge were:

Ray Xiong, New Haven, Farmivore (The Boehringer Ingelheim More Health through Innovation Award) Farmivore offers community supported agriculture co-ops with affordable e-commerce and marketing platforms, and provides consumers with an easy way to search, pay for, and join a community supported agriculture program. Ray.xiong@aya.yale.edu

Lon Seidman, Ivoryton, Windsor, and West Hartford, Independent Media Network, LLC (The reSET Community Impact Award) Independent Media Network provides training sessions and informational meetings with community members while providing accurate and valuable information to the community, in order to preserve independent media. lon@imnct.com

Leslie Krumholz, Guilford, Good Streets. Good Streets is a social enterprise that brings Main Street businesses on line to help consumers find great local establishments. Neighborhood business owners and customers can use this trusted site and in so doing receive authentic reviews, which helps to create dialogue and collaboration between local businesses and their customers. leslie@imbya.com

Rodger LaChance, East Windsor, Yummy CT.  Yummy CT takes a farmers market and puts it on an old school bus to help distribute fresh, Connecticut- grown fruits, vegetables, and specialty foods to Connecticut communities that are considered food deserts. The objective is to provide fresh healthy foods to communities that otherwise would have limited access. reldistributors@gmail.com

Dr. David Shearer, Old Saybrook, Therapeutic Research Foundation. TRF’s mission is to develop innovative, affordable, and therapeutic medical solutions to address the unmet global health needs of all people, even the solutions considered less profitable by other mainstream medical research companies. dshearer@tr-f.org

For the first time this year, reSET added an award to reflect the community’s voice through a People’s Choice Award. The public was able to vote on their favorite among the 10 finalists by viewing videos created by finalists and posted on reSET’s website. The People’s Choice winner was:

David J. Rubin, Simsbury, ElectroSpin University. ElectroSpin University is promoting a healthier, more fit, and eco-friendly culture through a one-of-a-kind group indoor cycling class titled Rage and Recharge that uses electric dance music to make playlists scientifically designed to improve exercise efficiency. The team is also working on ways of recapturing energy expended through exercise and pumping it back into the community’s electrical grid. rubin@electroSpinu.com

“reSET was so pleased to celebrate the accomplishments of entrepreneurs across Connecticut who demonstrate a deep commitment to helping out communities become safer, happier, and healthier places for all of our citizens,” said Program Director Michelle Cote.  “Each awarded business reinforces the idea that it is possible to generate profit and serve a social purpose at the same time.”

In the spirit of growing social enterprise in Connecticut, “A Taste of Social Enterprise” also celebrated locally-grown food and featured local farms and businesses that served up a menu showcasing Connecticut-grown foods, from the Kitchen at Billings Forge and The G Stream.

reSET has supported the launch of 19 new social enterprises in Connecticut  and supported the success or growth of nine social enterprises. reSET has also established the Social Enterprise Investment Fund, which will begin to offer loans to investment-ready social entrepreneurs in January 2014.

Photo:  Dr. Barry Nalebuff accepts the reSET Social Enterprise Innovator Award from reSET CEO, Kate Emery.  [Editor's Note:  CT by the Numbers is a member of the Independent Media Network.]

Biking, Walking Gain Traction Around Connecticut; Training, Gala Upcoming

November is shaping up to be another busy month for Bike Walk CT, a member-supported non-profit organization making cycling and walking safe, feasible and attractive for a healthier, cleaner Connecticut. Bike Walk CT is once again offering the League of American Bicyclist-designed Traffic Skills 101 program, a day long course to give cyclists the skills, knowledge and confidence to handle on-road cycling in traffic. The program will be held on Sunday, November 10 at Bishops Corner in West Hartford.

Just days later, bicycling and walking enthusiasts will celebrate the progress made by Bike Walk CT at the organization’s Annual Dinner and Silent Auction, to be held on Tuesday, November 12 at Central Connecticut State University.

During the evening celebration, Department of Economic and Community Development Deputy Commissioner Kip Bergstrom will lead a discussion of the important and growing role of active transportation and bikeable, walkable communities in Connecticut's economy and tourism industry.

Bike Walk CT works locally to increase grassroots efforts to make communities better places to bike and walk; at the state legislature to advance laws that protect the rights of cyclists and walkers, and at the DOT to make sure that policies and engineering practices that will improve conditions for cyclists are implemented. The organization is also active at the federal level, working cooperatively with national organizations to ensure continued funding for biking and walking projects.

Bergstrom has 30 years of experience as a strategist, business executive, economic development professional and place-maker. His DECD portfolio includes the development of the innovation economy, statewide branding, as well as the arts and culture, historic preservation and tourism functions.

Bike Walk Connecticut was formed in 2005 as the Central Connecticut Bicycle Alliance (CCBA), with a mission to advocate for bike-friendly facilities and policies in central Connecticut to benefit all bicyclists, both recreational riders and commuters. CCBA received 501(C)(3) status in January 2006. In April 2010, CCBA broadened its mission to include walking issues, adopted a statewide focus, and changed its name to Bike Walk Connecticut.

The National Highway Traffic Safety Administration (NHTSA) reports that 618 cyclists were killed in the United States in automobile accidents in 2010 (the last year for which statistics are available). That same year, 32,885 bikers were injured in traffic crashes. Although the numbers have declined since 2005 — when 43,510 bikers were injured, 786 of them fatally — these rates of injuries and deaths highlight cyclists' continued exposure to serious risks.

Stamford is #1 in USA in Workers with College Degree; Geography Key to Job Prospects

Stamford ranks first in the nation in the percentage of workers with a college degree, according to a  book that features an analysis of  the influences of geography on jobs, highlighting tremendous disparities that exist in cities across the country and citing innovation as a key jobs driver.

 “The sheer size of the differences between American communities is staggering," the book stated. " Stamford, Connecticut, the city with the largest percentage of college-educated workers in the United States, has five times the number of college graduates per capita as the city at the bottom, Merced, California.”

The New Geography of Jobs, written by Enrico Moretti, a professor of Economics and the University of California, ranked 306 of the nation’s metropolitan areas.  In the ranking, Waterbury was among the metropolitan areas with the smallest share of workers with a college degree, at 15 percent.

Stamford, with 56 percent, led the list, topping Washington, DC (49%), Boston (47%), Madison (47%) and San Jose (47%), which rounded out the top five metropolitan areas in the country.  Completing the top 10 metropolitan areas with the largest share of workers with a college degree is Ann Arbor (46%), Raleigh-Durham(44%), San Francisco-Oakland (44%), Fort Collins-Loveland, Colorado (44%), and Seattle-Everett, Washington (42%).  Yuma, AZ and Merced, CA, both at 11 percent, ranked last.

Moretti’s research and analysis reveals that the “new geography of jobs is benefitting centers of innovation,” and “among the beneficiaries are the workers who support the idea creators.”  He indicates that “for every new innovation job in a city, five additional non-innovation jobs are created, and those workers earn higher salaries than their counterparts in other urban areas.”

According to the book, the average salary of college graduates in Stamford is $133,479 and the average salary of high school graduates is $107,301.  Moretti points out that “the more college graduates there are (in a metropolitan area) the higher the salaries for high school graduates are.”  Overall, “the earnings of a worker with a high school education rise by about 7 percent as the share of college graduates in his city increases by 10 percent,” a statistical analysis indicates.

Morelli also notes that the education level of the workforce not only impact salaries, but also the level of charitable contributions.  “Among large U.S. metropolitan areas, charities in five brain hubs – Stamford, Boston, Raleigh-Durham, Washington, D.C., and New York – receive the highest contributions relative to their population.”

The book also ranks Stamford as the metropolitan area with the second highest cost of living in the nation, behind only San Jose, CA, and just ahead of San Francisco-Oakland-Vallejo, California.  Also in the top 20 cities with the heist cost of living is Bridgeport, at number 17.

The New Geography of Jobs was published by Houghton Mifflin Harcourt in 2012. Moretti is Professor of Economics at the University of California, Berkeley where he holds the Michael Peevey and Donald Vial Career Development Chair in Labor Economics. He is the Director of the Infrastructure and Urbanization Program at the International Growth Centre (London School of Economics and Oxford University).

Subway Reaches 40,000 Locations; Growth Continues for World’s #1 Fast Food Chain

The Connecticut-headquartered SUBWAY® restaurant chain, which has been providing franchising opportunities to entrepreneurs since 1965 and is approaching its 48th year in business, has opened its 40,000th location at an Apple Green petrol station in Ipswich, England.

The opening reflects the consistent growth of the Subway brand, which has opened nearly 2,000 new locations around the world since the start of the year. In 1965, Subway was founded by 17 year-old Connecticut high school graduate Fred DeLuca, along with family friend Dr. Peter Buck. The first restaurant opened in Bridgeport in 1965 and was called Pete’s Super Submarines. The first franchised Subway unit opened in 1974 in Wallingford.

“This is certainly a testament to the dedication and hard work of the entire Subway team, who I often refer to as The Greatest Team in Franchising History,” said DeLuca. “I am proud to be part of a team that provides thousands of jobs for people at our restaurants, field, offices, headquarters and partner offices around the world.  Our franchisees are a diverse group of small business owners who take a great deal of pride in serving their customers.”

CNN Money has reported that the “home of the $5 foot-long sub” is the most popular franchise (ahead of Quiznos, the UPS Store and Cold Stone Creamery) and biggest fast-food chain in the world, with an initial franchise fee startup is $15,000, a fairly low sum compared to other brands. With fewer than 8% of SBA-backed borrowers defaulting on their loans, Subway has a better track record than similar brands -- rival sub shop Blimpie has a 46% loan failure rate, and Quiznos is also well into the double digits, according to CNN Money.

This latest milestone puts the Subway brand far ahead of its competitors in the Quick Service Restaurant industry. Of the top restaurant chains, the next closest is more than 5,500 locations behind. Beyond that, the next three are between 21,000 and 33,000 behind, the company reported.

The combination of global branding, minimal upfront outlay of cash, and low loan default rates have made Subway the most popular brand in the last decade for entrepreneurs looking to open a franchise, the CNN website reported, based on the SBA's lending data.

The U.K. is the brand’s third largest market, behind the U.S. and Canada, with more than 1,500 locations.  In all, there are 14,000 International locations in 102 countries outside the U.S.  The Eastern European nation of Estonia recently witnessed the opening its first Subway franchise.

The company headquarters remains in Milford, with additional regional and country offices in Amsterdam, Beirut, Brisbane, Miami and Singapore, employing about 1,000 people in total. Worldwide, its franchisees provide more than 300,000 jobs in the communities where they are located. With a robust social community of over 25 million, Subway engages daily with consumers from around the world.

In 2012, Subway became the first quick service restaurant to meet the American Heart Association's Heart Check Meal Certification Program nutritional criteria.  Earlier this year, the Connecticut Post reported that DeLuca plans to reach 50,000 sandwich shops in four years. The chain, which has attracted customers with lower-calorie and reduced-sodium sandwiches, is competing with Yum! Brands in India, China and Japan, as it proceeds with plans to open 300 stores in each nation in the next three years, DeLuca told the Post.

CT Should Look to New York, Aging Workforce, Urban Centers to Rebuild Economy

Connecticut would be foolish not to take greater advantage of the fact that nearly one-third of the state is within the financial orbit of New York City as it looks to rebuild its economic strength – while not overlooking the potential for entrepreneurial activity across the state.

Those were among the lead suggestions of a panel of economists and entrepreneurs at the University of Hartford looking at job prospects for today’s 20-somethings, in a program sponsored by CT Mirror.

Daniel Kennedy, Senior Economist in the Office of Research at the state Department of Labor emphasized that the strongest economic growth in the state in the years to come will be in Fairfield County, and evidence of that trend is already present in the current economic recovery.

Wayne Vaughn, president of Hartford-based Fuscient, which he launched in 1997, said the state should “play to its strengths,” in looking to Fairfield County.  He said that New York City's immense economy "bleeds over into one-third of our state."  He also called on the state’s colleges and universities to step up efforts to match students with mentors in the business community, to improve their workforce readiness.

The state’s college graduates should not sell the state short, offered Katelyn Anton, Community Manager of New Haven-based Independent Software, and a key contributor to Whiteboard, a popular blog for the technology and entrepreneurial community in the state.  “Connecticut is one of the ripest locations in the world,” for start-up ventures, she said, noting the growth of co-working spaces in New Haven, Hartford, Bridgeport, Manchester and other communities, and the numerous incubator opportunities that individuals “can tap into.”

Connecticut Business and Industry Association (CBIA) economist and vice president Peter Gioia predicted that the state’s economy is “on the cusp of turning the corner,” noting that between 15 and 20 percent of today’s workforce will be retired within five years – creating job vacancies and opportunities for young people.  He predicted that as the workforce ages out of the market, the state’s workforce will need electrical line workers, plumbers, electricians, commercial loan officers, actuaries and financial planners, and some of that need is already apparent.

Gioia praised the state’s recent efforts to bolster the University of Connecticut and the state’s community colleges, underscoring the correlation between “where students go to school and where they get their first job.”  If students stay in the state for college, Connecticut businesses will ultimately benefit.

Kennedy said the state’s prolonged economic recovery is characterized by continued “demand deficient unemployment,” which is more structural than merely a reaction to the national downturn that began in 2008.  He indicated that even as some sectors are improving, many millennials remain underemployed -college graduates working in service, rather than professional, industries.

“More people are working, but they’re not making as much,” said Orlando Rodriguez, a senior policy fellow at Connecticut Voices for Children.  “For every job we lose in the financial industry, it takes eight and a half jobs in the restaurant industry.”

Rodriguez also raised a cautionary note, stating that Connecticut should be particularly concerned about young people in the state’s urban centers who do not attend college, and often are unable to obtain a first job. While statewide unemployment hovers around 8 percent, it can run as high as 40 percent among 18-24 year olds in Bridgeport and other urban communities. “Connecticut’s future,” Rodriguez said, “is in urban areas.”

Gioia was strongly critical of Congressional inaction on immigration reform, stating that the nation’s economy would be strengthened by a comprehensive policy.  “Immigrants are much more likely to start a business, and become net employers of Americans.”  He said the policy of educating foreign students, but not permitting them to then remain in the U.S., as “ridiculous.”  He also cited Canada as an example of a nation that has been more welcoming of immigrants, to the benefit of the nation’s economy.

Vaughn said that while his biggest challenge in doing business in Connecticut is retaining talent, the growth of technology in business transactions offers businesses here significant opportunities.  “Where your business is located doesn’t dictate who your customers are,” he said.

The discussion was the second of nine panels on a range of topics sponsored by The Connecticut Mirror to be held around the state in coming months.  It was moderated by Brett Ozrechowski, CEO-Publisher of the CT News Project, which operates CT Mirror.  Next month, discussions will be held  Nov. 7 at Fairfield University focused on measuring good teaching and Nov. 18 at the University of New Haven on the topic of the clean energy economy.

Independent Colleges Produce Majority of Graduates for State's Key Industries

The 16 institutions of higher education in Connecticut that are members of the Connecticut Conference of Independent Colleges are playing a pivotal role in producing graduates with expertise in precisely the industry clusters that Connecticut businesses view as the fields most likely to propel economic growth in  the state.

In one critical field, Computer & Information Sciences, three-quarters of the degrees granted in the state are awarded by the independent institutions.  And in seven key industry clusters – essential to building the state’s economic strength and job opportunities – the independent institutions award more than half of the degrees granted by colleges and universities in the state.

By offering strong academic programs – and attracting top students – the independent colleges and universities are advancing a focus on industry areas with the greatest economic growth potential in Connecticut.

The percent of statewide industry cluster degrees awarded by Connecticut independent colleges in 2012:

• Computer & Information Sciences & Support Services, 75%
• Health Professions & Related Programs, 62%
• Physical Sciences, 59%
• Engineering Technology & Related Fields, 55%
• Engineering, 53%
• Biological& Biomedical Sciences, 53%
• Business Management, Marketing & Related Fields, 52%

The 16 member institutions of CCIC are Albertus Magnus College, Connecticut College, Fairfield University, Goodwin College, Mitchell College, Quinnipiac University, Rensselaer University, Sacred Heart University, St. Vincent’s College, Trinity College, University of Bridgeport, University of Hartford, University of New Haven, University of Saint Joseph, Wesleyan University, and Yale University.

Independent institutions award 46 percent of all degrees granted in Connecticut, and enroll 30 percent of all college students statewide, including 45 percent of all minority students enrolled at four-year institutions in the state, according to a study last year by the Institute for Research & Public Service.

The study also found that Connecticut’s private not-for-profit college and university sector, on the state economy in 2010, had a total impact of $6.19 billion in sales of goods and services.  In the aggregate, the independent sector of higher education is Connecticut's third largest employer, with only the State itself and United Technologies employing larger workforces.