The Best One Yet - 💆‍♀️ “AI-ahhhhhh” – Equinox’s AI masseuse. Robinhood’s QB sneak. Millennials’ tantrum tax. +9/9/9 Hot Dog strategy.

Starting point is 00:00:00 This is Nick. This is Jack. It's Friday the real Friday, August 22nd. And today's pod is the best one yet. This is a T-boy. The top three pop business news stories you need to know today. One week, Jack. We are one week to the baby due date. Wow. I know. Molly's doing amazing. She's floating in a pool downtown right now. I'm so glad she's treating herself. You know what we're doing this weekend, Jack? What? The baby name brunch. You know what that is? Tell me. Okay, we're basically just having brunch and just talking baby names the whole time. We've got to finalize this thing. Wait, I thought you already had.

Starting point is 00:00:35 I know, I thought it too, but there was a left field idea. Yet these, we're still crowdsourcing names. If you got a baby name idea, drop it in the comments for us for the brunch. Wait, are you going to call her a skibbidi? It's scabidi, Jack. Three stories for today's team boy. What do we got on the pop-biz pod, Jack? For our first story.

Starting point is 00:00:53 Equinox, the Luxe Gym Chain, has installed AI robot masseuses at 60 of their location. But Jack and I think AI robots are actually a feel-good story. Literally. For our second story, Robin Hood just launched football betting. I mean, football predictions. Can't say betting. If we still were working at Robin Hood, legal would have us in their office right now. Robin Hood just pulled off the quarterback sneak of finance.

Starting point is 00:01:22 And our third and final story, get this. millennial parents spend up to $147,000 for the first five years of their kid for child care. Jack and I call it the tantrum tax. And solving this child care crisis starts with business. But Yeties, before we hit that wonderful mix of stories. Whoa, fantastic mixes stories, Jack, perfect mix to go into the weekend with. This weekend, you may be challenged to the 9-99 challenge. 9-9-9 and 9 hot dogs, 9 beers, 9 innings. Can you consume 9 dogs, 9 bruskees in 9 innings of baseball? It's kind of like the ice bucket challenge or split in the G, but with a side of cracker jacks.

Starting point is 00:02:06 The triple 9 is going viral across stadiums from Brigley Field to Yankee Stadium. Can you crush 2,664 calories watching the game? While players burn as many calories playing the game. Although Jack Babe Ruth kind of did the challenge and play the game at the same. time, didn't he? He didn't use steroids. He used schlitz. The 999 challenge is the ultimate celebration of athletic gluttony. But this 999 challenge is becoming more challenging. Yeah, yeah, the challenge just got challenged, right, Jack?

Starting point is 00:02:39 Because first, baseball's gotten faster with the pitch clock. So that's 30 fewer minutes to finish the food and beer of the challenge. Second, baseball is getting more expensive to watch. Yeah, the price of nine beers and nine dogs at a San Francisco giant's This game, $227.69. I hope they have a buy-now-pay-later option. And third, drinking alcohol in America just reached an all-time low. I mean, you were already going to be that guy, Jack.

Starting point is 00:03:06 But now you're really going to be that guy. Yeah, the kiss camera is going to censor out whatever you're doing down there in the box seat. I'm off-camera, man, I'm off camera. And it doesn't count unless you eat all nine buns. But yeties, don't forget that the 9-99 challenge isn't just for baseball. Right, Jack? Have you heard of the 999 spa challenge?

Starting point is 00:03:27 Well, you probably haven't because we just made it up. Nine sips of rosé, nine mini cupcakes, over a 90-minute facial. Challenge accepted. Yes, put it on the company card. We'll take two, Jack. Let's hit our three stories.

Starting point is 00:03:41 Fifteen years before this song, two boys from the Northeast met in the dorm. They had an idea to cause a cultural storm. It's the best one yet, but the best that's it. I don't even think they need to practice. 50% that's a fat tip. Tea boy city on your at list.

Starting point is 00:03:59 If you know, you know because we're ready to go. We can't wait no more. So just start the show. Start the show. First, a quick word from our sponsor. Our first story. The big new thing in AI, massage robots. So we gathered the reviews, the financials, and the details on these masseuse bots.

Starting point is 00:04:30 And they show the optimistic outcome of an AI world. Yeti's Equinox Gym. It is owned by the real estate giant related properties. The gym last valued at $8 billion. They also own SoulCycle. Yes, they do. But besties, this Balenciaga of the bench press has a new feature right over there by the Pilates Studio. Here's the news. Equinox has added robot masseuses. I think it's called Robo Souses Jack. Basically, the C3PO of the Swedish massage. They're at 60 Equinox gyms and growing. Now, we should point out, each of these AI robot masseuses is made by a startup called Escape. This bot maker raised $83 million this year, and they're now valued at a quarter of a billion. And they are expanding from Equinox gyms to four seasons hotels.

Starting point is 00:05:20 Basically, they are scaling the AI deep tissue baby. If you live near a boutique wellness center, they've probably got one of these two. But besties here's what Jack and I find fascinating about this story. You see, most AI robot technology is not consumer-facing, right, Jack? For example, Amazon has nearly one million robots, but they're all working in the warehouses. So to us, an AI-robomassousse is the rare robot you could actually encounter the next time you got some tightness in your back over there. Now, this is such new technology. We should explain how it works. These are both robot, which are the hands, and artificial intelligence.

Starting point is 00:05:59 Which is the brains of the robot. Although it's not a human form. It doesn't have legs, a body, and a head. It's just two robotic arms that come out from under the table. Like the thing that performs surgery on Anakin Skywalker to turn him into Darth. It is borderline scary, but here's the surprise. Shockingly, no, you cannot just strip down naked in front of your robo masseuse. Yeah, it's not as risque as you think.

Starting point is 00:06:23 You have to wear specialized, special clothing for the massage. Escape gives you stretchy spandex gear so that the robot camera can build a 3D model of your body and know what to target. And that spandex is also anti-friction for when the rubbing begins. No lotion here. Now, once you're on the table, you're facing down over a floating screen that shows you where the bod is needing and where it's going to go next. Because you might not be comfortable with a robot.

Starting point is 00:06:46 It's nice to know what's happening next. It's an intimate experience, but here's the catch. This robo masseuse only does your shoulders to your knees. Your neck, head, and feet are considered too sensitive at the moment. But that screen that's lying beneath your face, it also lets you adjust the headrest if it's too high or too low, lets you adjust the music, and it lets you control the pressure, more or less. Although you didn't even mention the best part, Jack, did you? Oh, yeah, there's no awkward small talk. Yeah, it's not like, oh, yeah, I'm from out of town,

Starting point is 00:07:13 I assume you are too. No, let's talk pricing. The Equinox charges $60 for a 30-minute massage from one of these things, which is 48% less than the human massage option if you include the tip. That's right, this T-1-000 robo masseuse doesn't get a tip. But for Equinox, these masseuses have generated some revenue. $23 million in just the first six months of operation. Equinox has done 400,000 AI robot massage sessions already. So if robots are on pace to do a million Swedish massages this year, should the massage therapy industry be scared? Is no job safe or sacred right now, Jack? Actually, we have a surprise take on this. So Jack, what's the takeaway for our buddies is curious about AI. When it comes to the economy, Robo AI massages hit the sweet spot.

Starting point is 00:08:04 Yetis, the immediate concern about any AI robot is that it's zero sum. It'll take human jobs and replace us. But the massage industry is an interesting example, because there's a shortage of massuses. Yeah, yeties, have you noticed you can never book the massage time you actually want? Well, it's because there are 29,000 unfilled positions for massage therapists right now. Even though there's high demand for massages and low-supply massages, and that's pushed the price of a massage up, it hasn't drawn enough people into the industry of massage therapy. So AI masseuses are a rare example of AI bots doing a consumer job humans don't want to do. The AI masseuse isn't taking human jobs. It's filling a gap in the labor market. Plus, we think this could also increase the

Starting point is 00:08:50 size of the whole massage market. Like, we all love massages, but it is an expensive special occasion thing right there. Robots can do them cheaper, though. So they might offer a 20-minute massage for 20 bucks, something a normal human-run masseuse wouldn't do. Look besties. Sometimes you want a two-hour spa experience. Sometimes you just want a 20-minute backbuster. That's why when it comes to the economy, robo-AI massages could hit the sweet spot. For our second story, to quote the great artist Hank Williams Jr., are you ready for some football? Because Robin Hood is. Get this. The stock trading app just launched prediction markets so you can bet

Starting point is 00:09:32 on pro and college football. Don't call it betting, Nick. It's not betting. Oh, I shouldn't have called it betting. I forgot. I forgot. I'm sorry. We call it a financial QB sneak. Yeah, it is this Saturday. Stanford is playing Hawaii in college football's opening weekend. Neither team, by the way, is ranked.

Starting point is 00:09:48 But we know who's more likely to win. It's Hawaii. And we know because of Robin Hood's prediction markets. Because on Robin Hood, you can now buy a futures contract for either Stanford or Hawaii to win that one game. And if your selected team wins, the contract is worth $1. That's how prediction markets work.

Starting point is 00:10:05 Yeah, well, let's break it down a little further, Jack. How did the numbers go out there? Well, Hawaii's contract is 56 cents right now, and Stanford's contract is 45 cents. If your team wins, it's worth a dollar. That's how you make money. Robin Hood users are betting that Hawaii is going to win. Oh, shoot. It's not technically or legally betting.

Starting point is 00:10:22 They are predicting. Because the news, Robin Hood announced on Tuesday this prediction. market for pro and college football. Just in time for touchdowns and tackles returning to your living room this weekend. Okay, but Jack, let's channel our coach Andy Reid here and go full financial philosopher on this thing. Gambling versus prediction markets. Yeah. Is there a practical difference?

Starting point is 00:10:46 Not really. Is there a legal difference? Absolutely. Because besties, online gambling has exploded since the 2018 Supreme Court decision. Draft Kings is worth $22 billion bucks now. like five lifts. But sports betting companies like Draft Kings are highly regulated and shockingly highly taxed. Get this. Licensed sports betting apps in New York, New Hampshire, and Rhode Island, pay 51% of their revenues in state taxes. Fifty-one percent. That's like the highest tax in this

Starting point is 00:11:17 country on anything. We repeat, over half the money Draft Kings makes in the state in New York on your bets end up up in Albany. But what Robin Hood's offering is technically not that. They're offering prediction contracts powered by Kalshi. Now, you got to know prediction contracts during the 2024 election when they helped forecast who would ultimately win. You see, Kalshi found a clever workaround. Even though like gambling, you put money on a speculative event and hope that your pick wins. What Robin Hood's offering is technically an event contract. So it is subject not to gambling regulation, but to financial regulation. Financial regulation is less onerous and less costly. And what

Starting point is 00:11:58 way lower taxes than gambling regulation. And that is why Robin Hood can suddenly offer this football betting. Not betting. I mean predicting and bypass those state-by-state gambling laws. It's like a QB sneak. That's what they're pulling off here. Yeah. It's like a tush push.

Starting point is 00:12:14 And they're sneaking right past all the regulators who are trying to stop. So Jack wants the takeaway from our buddies over at Robin Hood. Putting a bookie next to a financial advisor, that's mixed messaging. Now, Yetis, as Robin Hood shareholders and former Robin Hood employees who sold a company to Robin Hood, Jack and I see the opportunity that Robin Hood is pursuing right here. Sports betting is a huge industry, and Robin Hood found a way into it that sneaks past the costly regulations. QB sneak. But you know what? Jack and I also can't help but notice that the messaging has a bit of a contradiction here, right, Jack? On the one hand, for a few years now, Robin Hood has been pushing to become your number one

Starting point is 00:12:55 financial firm. They got bank accounts, credit cards, even retirement accounts, in addition to stock and crypto trading. But on the other hand, Robin Hood's now offering the same thing as your neighborhood bookie. You can put your next paycheck on the Red Sox and let it ride. When we worked there, we noticed Robin Hood hated when it was described in the press or compared to gambling or casinos. Robin Hood never wanted to be compared to gambling. They wanted to be seen as a legit financial institution that they are. But setting up sports betting within this financial app, It undermines the message that they've been working on, that Robin Hood is your trusted financial institution. Do Americans want their sports bookie in the same building as their financial advisor?

Starting point is 00:13:36 Now a quick word from our sponsor. For our third and final story, Yetis, if you don't have kids, you didn't realize this. And if you do have kids, you didn't know how crazy it had gotten. Childcare costs are now up to $30,000 bucks a year. So we found three states solving the child care crisis and the one common element in each of those solutions. All right, Jack, let's share the catch 22 of having kids in America. What is it, man? Our low birth rate threatens the long-term health of our economy.

Starting point is 00:14:13 But having kids often requires one parent to leave the workforce. So the money ain't math in right now. Basically, we need more babies, but we can't afford to actually have those babies. Yeties, when you consider the costs of child care, if you're like a young couple, thinking about having a kid, you might just get a Labrador and call it quits. Yeah, yeah, keep dinking it over there. The median cost of child care where Jack lives, get this, it's $21,000. Where Nick lives, it's $28,000 a year. Okay, Jack, our son, little Maximus, is doing a part-time preschool program this fall, three days a week, like four hours a day, $19,000. Nick, we have

Starting point is 00:14:51 two kids getting child care. That's 42 grand a year, and eventually Oakley's getting need to child care. I'm not trying to compete with you here, Jack, but he's also got a nanny, and the preschool's an outdoor preschool. It doesn't have a roof. There's literally no overhead, and it's $19,000. And if you consider the taxes, then Nick needs to make $50,000 of income to pay for that $28,000 a year for child care in San Francisco. Now, Bessies, we should point out, the national average is lower about $9,000 a year for child care, but it's easily $2x,000, that in places where young people want to live most. We call it the tantrum tax. It's the hit in huge cost that every millennial parent is paying right now. By the way, kindergarten, remember,

Starting point is 00:15:33 that's when your kids are five. So having a kid means five years of all this child care. So for someone in San Francisco, it's 140 grand to pay for your child to get from zero to five. That's why Jack and I are launching a third podcast. But besties, we know what you are thinking right now. Why is child care so expensive? Because people are expensive. And child care depends on a lot of people. Yeah, it's a peoplely business model. You see, AI can't change diapers and remote workers, they can't sue the one-year-old to nap. Elderly care, child care, and schools, they're all expensive because people in this country just get more and more expensive. But as Jack and I dove in T-boy style, we noticed that child care in particular is person expensive. Because many states regulate a

Starting point is 00:16:20 staffing minimum. There can be no more than four babies per adult at the child care center. And that's why, according to the Wall Street Journal, your typical daycare spends 70% of its revenue just on wages. The other 30% is on Hot Wheels cars, by the way. And yet, here's the most, like, brutal insult to injury. Those childcare workers, they get close to minimum wage. Yeah, like their average pay is $15 an hour, usually with no benefits. Because when four tiny people need one big person's full-time attention, it's tough to make the economics work. So, Jack, what's the takeaway for our buddies who are everyone, curiously?

Starting point is 00:16:55 about child care. This is a business problem, not a baby problem. Businesses are part of the solution. Yetis, the cool thing about our country is that there are 50 states and each one can experiment. And then the other 49 states can learn from a successful experiment in the one. So here are some child care solutions we've noticed. In Florida, the state offers tax breaks to businesses that offer on-site child care. In Michigan, if an employer pays one-third of an employee's child care cost, the state will pay another third of it. In Vermont, a payroll tax funds 10 hours per week of free child care for all three and four-year-olds. And a key reason those laws got passed in those states, businesses were convinced to support those laws. Because solving child care

Starting point is 00:17:39 with these ideas actually boosts the broader economy. According to KPMG, over one million parents in America would be working right now, but they can't because child care is either unavailable or unaffordable. Millions more parents are working, but they're frequently absent or late because their child care is unreliable. The crazy cost of child care is called the tantrum tax, but businesses are part of the solution. Jack, could you whip up the takeaways for us for the real Friday. Equinox's robot masseuses are on pace to do a million massages this year at their 60 gyms. The AI Robo masseuse. It fills a gap in the job market, and you know what? It hits the sweet spot. For our second story, Robin Hood launched prediction.

Starting point is 00:18:22 contracts for pro and college football games. But putting a bookie next to a financial advisor, to our buddies over Robin Hood, a little bit of mixed messaging right there, if you know what I mean. And our third and final story is the tantrum tax. Childcare costs between $9,000 and $29,000 a year in this country because child care is a very peopley business. But besties, this ain't a baby problem. It's a business problem. And solving it unlocks a million workers. But Yeties, this pod's not over yet. Here's what else. you need to know today. First, congratulations to the great state of Wyoming. You are the center of America today. Most important state in business right now. First, Wyoming was the first date to launch a

Starting point is 00:19:04 state stable coin. It's called the frontier coin. Ticker symbol, FRNT, short for frontier. We don't know what they're going to do with it, but they did it. Plus, the Federal Reserve has a meeting in Jackson Hall that ends today. Jerome Powell speak about interest rates, inflation, tariffs, and the economy in a press conference. So we're bullish on those Wyoming ranches, literally. Second, how is the biggest retailer in the world dealing with America's big tariffs? Surprisingly well. Yeah, Walmart says it's paying more tariffs than ever because a third of their merch. Yeah, shocker, comes from overseas.

Starting point is 00:19:35 But Walmart only raised prices by 1% last quarter in response to those tariffs. Why? Because they're going on the offense, as they put it. They're not raising prices much because they can and Target can't. They're stealing market share. And finally, Starbucks is doubling down on coconut wall. as it leaps into health and wellness, baby. 2025 is the year that Starbucks is trying everything and anything

Starting point is 00:19:59 to bring back that coffee house vibe, including coconuts. The new CEO is throwing the kitchen sink at, well, the kitchen in this case. Now, time for the best fact yet. This one sent in eloquently by James Polk, a Yeti, from Bridgewater, Massachusetts, just outside Boston. Push and play. Hey, T, boy, team. Love today's episode, but I had to chuckle when you guys pronounced

Starting point is 00:20:22 a kushnet as a kushnet. As someone from Massachusetts, I can confirm the locals would be giving you a kush for that one. It's actually a kushnet, where kush rhymes with push, not you. Maybe it's time for a golf ball size correction here. Keep up the great work, and don't worry, we still love you, even if your pronunciation is little loppa.

Starting point is 00:20:42 Jim's basically like, hey, you can't pack the kai here. Yeah, yeah, you did that well. You did that well. I think we're good for all. We never have to do another Boston correction again, Jack. Hey, Jim, when we come to a Boston for a live show, we're getting you a dunkin on us. If you know, yeah, you know. But before we go, Yetis, another quick shout out to Nick. This man is technically disabled, according to the laws of the state of California.

Starting point is 00:21:07 Yes, technically. And yet, he's produced four fantastic podcasts this week. And I also got to thank you, Jack. Thank you for leading the charge on the show over the last week and making every day a T-Boy. Yetty, celebrate the wins this weekend. Nick and I definitely will. will be. If you know, you know. Before we go, happy birthday to Yeti Maxine. Katie's down in lovely Cape Town, South Africa.

Starting point is 00:21:35 Happy birthday to Gereach in St. Thomas. And Jocelyn Kohler's turning 31 years old doing some logistics up in Chicago. Happy 28th birthday to Caroline Ruthven in Asheville, North Carolina. And Ritu Agarwal, happy birthday just outside Boston. In Boston. Happy 59th birthday to Sandy Shack Lady White. in Coatsville, Pennsylvania. And Jack, we got a 14th birthday for Will celebrating the big one over in Galena, Kansas.

Starting point is 00:22:03 Happy 40th birthday to Matt in Arlington, Virginia. And Catherine Huppinger is 21 years old celebrating big with the Eagles of Idaho. And congratulations to Claire Grigo on the soft opening of Cafe Calaveras in Seattle, Washington. It's lovely. And Cadell Crisp and Kenosha Baker are getting married this weekend. Have a blast. You look fantastic in Chesapeake, Virginia. And finally, a big shout out to Chris Carpenter, a man who's born and raised in Maui.

Starting point is 00:22:30 Now, besties, this absolute legend of a Yeti sadly passed away earlier this year. But Nick and I are honored to pay tribute to this man from his buddy and his business partner, whom he converted to the show. Celebrate that life of wins, and we'll take a little moment of silence before we head out for the weekend. If Chris were here, he'd make it a tee boy. This is Jack, Nick and I both on stock of Robin Hood.

The Best One Yet - 💆‍♀️ “AI-ahhhhhh” – Equinox’s AI masseuse. Robinhood’s QB sneak. Millennials’ tantrum tax. +9/9/9 Hot Dog strategy.

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