TCTI: Too Crazy To Ignore
Dave Ross
hostess.jpg
Hostess may not go bankrupt after all. The judge wants everyone to sit down and talk about it. (AP Photo/file)

Saving Hostess

So Hostess may not go bankrupt after all. The judge wants everyone to sit down and talk about it. That's good. It might save those 18,500 jobs. But there's really only one thing to discuss.

According to the Wall Street Journal's MarketWatch column, Hostess's annual revenues were $2.5 billion.

$2.5 billion divided by 18,500 is $135,000 per Hostess employee. Well, there's another company with revenue figures in that ballpark: McKee Foods, makers of Little Debbie snacks -- the Cosmic Brownie, the Oatmeal Cream Pie, and the Cloud Cake, which looks suspiciously like a Twinkie, but sells for less.

McKee brings in about $1.1 billion with about 6,500 employees, which works out to $164,000 per employee. Twenty-one percent more than each Hostess employee brings in.

Now McKee has a very different history. It's still owned by the McKee family, it never sold out to venture capitalists, and it never unionized.

But there's no point in debating history, because the bottom line is they sell similar products for a lower price, and their employees are 21 percent more productive than Hostess employees.

So when everybody sits down in that bankruptcy court to figure things out, there's only one thing to discuss: how to get 21 percent more productive. When they sit down for that meeting I have a suggestion for the refreshments: Cosmic Brownies.

Dave Ross, KIRO Radio Morning News Anchor
Dave Ross hosts the Morning News on KIRO Radio weekdays from 5-9 a.m. Dave has won the national Edward R. Murrow Award for writing five times since he started at KIRO Radio in 1978.
Top Stories

  • New Look
    The Seattle Police Department unveils new uniforms, logo

  • 'It Was My Turn'
    K.J. Wright has signed a $27 million, four-year extension with the Seahawks

  • Holiday Map
    Find holiday events, Santa photo opportunities, and light displays
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.