The Best One Yet - 🥶 “Call us Cooli Vuitton” — Yeti’s luggage. Airbnb’s life moment. The Wage Wars experiment.

Episode Date: May 17, 2021

Shares of Yeti Coolers have quintupled in the last year, but now it’s coming for your Away suitcase. Airbnb just revealed that it knows your life more than it knows your travel. And the Wage Wars have officially kicked off with this summer’s Great Wage Experiment.$YETI $ABNB $CMG $MCD Got a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYorkWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Got a SnackFact for the pod? We got a form for that too:https://docs.google.com/forms/d/e/1FAIpQLSe64VKtvMNDPGSncHDRF07W34cPMDO3N8Y4DpmNP_kweC58tw/viewformLearn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. And this is Snacks Daily. Welcome back. It is Monday, May 17th. Before we start, sage advice we found on Twitter from Travis Hellwick. Yes, it was. Summer's hottest accessory is wearing a mask around your wrist.

So people know your mask conscious, but vaccinate. Yeah, they do. Also, this pod, Jack, so much better than what we did Friday. It's a T-boy. This is the best one, yeah. The best one, yeah. First story, what do we got, Jack? Yetty Coolers, the statement gear, so you stand out at the tailgate.

Jack's slight correction here so you can stand out at the Delta Sky Lounge. True. Second story, Wendy's is Panymore because McDonald's is Panymore, because Amazon is Panymore. Wage Wars, they have commenced, which lead to this summer's great minimum wage experiment. For our third and final story, Airbnb knows where your parents traveled recently. Yeah, they do. And it knows where you're about to travel.

Don't call it a vacation company. Snackers, this just became a life company. But Snackers, it's Monday. It is. So we got the latest chapter of Horters' Ammanac, Week 16. of the pandemic. That's right. Jack's had his college in latte. I've had my peanut butter and here's the hoarder's almanac for week 61.

Last week, it was chlorine. We got a chlorine shortage and it's resulting in a major price price. Puck. Pandemic pool parties could become pandemic pool apocalypses. Now, this week's shortage is even scarier. Sauce. Sauce, specifically chick filet dip in sauce. They're running out of

this stuff over a chick filet. Chick-fil-A signature sauce. Chick-fil-A poulay mayo. They're all like running out. Honestly, it has become harder to find Chick-fil-A mayo than an Intel Pentium processor. Get this, Snackers. The chain Chick-fil-A is now rationing sauce to customers like Sandra Bullock in gravity. We're talking one sauce pack per an entree as you re-enter the Earth's atmosphere.

But you know that your Robin Hood Snacks co-hosts are coming to you with a solution. Jack and I always have your back. Jack, you want to take the honors of delivering this one? B-Y-O-B. Yeah. Bring your own bottle of sauce. That's right. You're going to roll up to Chick-Flei.

Here's how this will go down. with a 12 ounce of sweet baby, raise baby. Make somebody's day. Supplement their one packet with a big old dollop of free sauce. Why wouldn't you? Because remember Snackers,

sauce controls the taste, but you control the sauce. Don't let the sauce control you. Walk's always extra. Let's hit our three stories. You're tuned in the snacks daily. We spoke to the lawyers and we got to get something legal out the way.

The snacks about to hear ain't food. It's air candy. They don't reflect the views of the robberhood family. It's all informational just so. You know, We're not recommending any securities. It's not a research report or investment advice. Not an offer or sale of a security.

Snacks is digestible. Business news for you. Rob of her financial, LLC, member FINRA slash SIPC. For our first store, Yeti Coolers has thrived by selling very expensive coolers. Yeti went deep into coolers vertically. And now they're growing by going horizontal. Yeti Coolers founded just down the street, we assume, from Bumble in Austin, Texas, 2006, a lifestyle brand from day one.

Here's the thing. You're living the Yeti lifestyle. That's anti-chugie. That's how this goes down. That's right. The co-founders were outdoorsmen who hated the cheap plastic gear that kept breaking on their equipment. You're not going to watch Friends, Jack, with a Yeti Tumblr in your left hand. It's not how this works.

Here's the thing, though, those upgraded cooler handles that these brother co-founders applied to their coolers, That doesn't justify Yeti's $500 cooler sticker. No, we're talking here about the escalate of iceboxes, the Cadillac of Coolers, the Cooley Vita. Ron Wade, we saw you tweet that at us. We liked it a lot. Also, Bentley of Vince, that works too. We called a lifestyle brand because Yeti gear, it nudges you toward a more rugged,

high-end outdoorsy lifestyle. I mean, I know who you're picturing, and it's not Timmy Jack. I saw my buddy Mike, he's wearing a Yeti hat. I'm like, Mike, you're a Yeti guy? He goes, I just have the hat. The cooler's aspirational. for me. Some people live the slim fit lifestyle. Some live the Yeti lifestyle. So we're talking about the 30-liter, $250 jetty-coucler. This isn't a trend. No, it's not a trend, but it's an

accessory to a trend. And that part is key snackers. Because you see, Yeti's business, it correlates with outdoor activities and the stock market simultaneously. Because who owns Yeti Coolers, not just the hat? People of means who like the great outdoors. Can you see my Venn diagram I got going on here? I bet there's a lot of lot of Patagonia overlapping with the Yeti Park. We got a money and flannel situation. Boom, it's right in the middle. Now, the stock market climbs 16% in 2020,

and it's climbed 13% in this young 2021. Jack, perfect timing, because millennials have been splurgeoned on camping gear instead of the clubbing gear. The number of Americans who went hiking at least once last year grew by 16%. Remember when I almost did that 14-mile hike, Jack? And then you reminded me it was 14 miles. Well, I asked, have you ever done a seven-mile hike? And you said, no.

I hadn't. The number of fishers last year also grew by 16%. I'm willing to say this on this pot. I think you saved my life. I think I did do. Or at least your relationship, because Molly would have been furious. She was on the hike with me. It was close.

Now, funny thing about the stock market here, too, when it comes to Yeti Snackers, back in 2018, this company IPOed. And then the stock was like, honestly, flat did nothing for the next two years until 2020. But in 2020, when Yeti's customers enjoyed a huge stock market run and a lot more outdoorsiness than usual, well put. The stock has grown by five times in the past one year. Let that sink in. It's quintupled, and this company just reached a billion dollars in annual sales for the first time ever. And last week, they announced their first quarter sales. Sales are still cruising, growing by 42%. So, Jack, what's the takeaway for our buddies over at Yeti living the Yeti lifestyle?

You earn their love with one high-quality product and then expand the brand to more. You go deep vertically before you grow horizontally. Snackers, Yeti Coolers, rugged. Aggressive. That 500 bucks, it comes with a five-year warranty. Yes, it does. And those first-time hikers and fishers in 2020, they're not going to buy again for like another five years. So the big risk for Yeti is that demand for coolers got pulled forward last year and now there's going to be a dearth of growth. That's a problem. So here's what Yeti did. They expanded horizontally. Dog bets. Yep. Waterproof bags. Why not? Blankets and camping chairs. Yeti does them all now. Oh, their latest expansion, Jack. You ready for this? Luggage. Backpacks. Duffel bags. Suitcases.

all by Yeti. Snackers, the thought here is simple. Apply the same high quality outdoorsy brand to other products that outdoorsy customer of means really need. I'll tell you, away suitcases for swivel wheels, they must be trembling in their nervousness right now. They don't like that Yeti went horizontal. Full disclosure, I'm team away. You know, I love dancing with that suitcase down the aisle. For our second story, corporate America is finally in a wage war. We got a wage war, Jack. Yeah. And we also have a very interesting experiment coming with 15 states versus the other 35 states. Okay, Jack, existential question of the economy right now. How do you attract more job applicants? Easy. You pay them more. People don't want swag. They want salaries.

They want cash money. And McDonald's needs 20,000 more workers. So they're boosting their minimum wage from between $11 an hour to $17 depending on the city. It's only their company owned stores, though. So this is like 5% of McDonald's locations out there. Chipotle is boosting their average minimum wage to $15 an hour to attract workers. Oh, I'm sorry. Mr. Kramer, can I see your resume? Because guess what? Chipotle's offering a three-year manager track to get you to an $100,000 salary. Plus free burritos. Free quack? For life. No such thing.

No such thing. But Amazon, they're like, hey, we see you. We're going to raise you. We're hiring 75,000 more workers in the U.S. and we're going to give them a little special something. To get you to actually sign up because we're not getting the applicants we need, we're offering a $1,000 signing bonus. and for Amazon Prime. Just kidding about that last part. But Snackers, there's a weird thing going on in the economy right now that we kind of have to break down. Nine million people are still jobless. They're out of work. And yet, companies are struggling to fill their open job positions.

It's like a weird opposite magnet thing. They should be attracting, but right now these sides are repelling each other. There are two theories from economists that help explain this strange situation. All right, Jack, let's hit the whiteboard with theory number one. the pandemic. We're still in the pandemic and the she session it caused hasn't ended. Okay, that part's very important because for some, especially women, there's still a whole lack of available and affordable childcare that makes going back to work even harder. Or maybe you're vulnerable because you don't have the vaccine yet and you don't want to stand shoulder to shoulder wrapping a burrito next to somebody. So that's theory number one. But then there's theory number two about unemployment benefits.

Right. They think that unemployment benefits are too generous. And we're basically got the situation where the government is paying people not to return to work. That theory is based on the fact that some low-wage workers are actually making more money by not working. So the question is, why would you wrap burritos when you make more money staying at home playing Fortnite? Jack, have you seen Wilder's Robux account? Still empty, actually.

I only want to tell you you're going to get too excited. So, Jack, what's the takeaway for our buddies over in the entire economy? This summer, we will see the grand wage experiment. And that experiment is higher minimum wage versus whole. lower minimum wage. The CDC just announced that fully vaccinated people can live without masks in most situations. Pandemic, the end is within sites. You can taste it without the mask on, Jack. But a key part of the pandemic is the enhanced unemployment benefits. And those will continue through September 6th, 300 extra bucks a week for people who are unemployed. But here's the think, Snackers. There are 15 states

in growing, mostly Republican-led, that are canceling those benefits. Those Republican governors think that the money from the government is incentive for people not to work. On the other hand, you got 35 states that are keeping those benefits. They're effectively having a higher minimum wage than the 15 were cutting. How will economic outcomes differ in the two sets of states this summer? Well, you got conservative economists who think that a lower minimum wage is going to lead to higher job growth. You got liberal economists that think higher minimum wage reduces income inequality. It's the perfect experiment. In this summer, we may get some evidence on who's right in the grand wage experiment. For our third and final story, Airbnb is calling this, get this, the travel rebound of the century.

Funny because most people at Airbnb have been alive like a quarter of a century. It's a young team. It's a very young team. Well, Airbnb has gone from vacation company to living company. It has. And Airbnb was very excited to deliver their earnings last week, probably because it's like one the second time they've done that publicly. Well, the earnings before this one was the end of 2020 when revenues were shrinking by 22%. Alan Hertz. And then last quarter, revenue grew about 5%. Not too shabby.

Big deal because the pandemic was brutal for travel. But still, Airbnb had a big Uber-sized loss of $1.2 billion. They lost a billion dollars last quarter. Let's not forget that. But let's remember, they had to take out emergency loans in April of 2020 during the pandemic when people thought they might go under. So last quarter, they spent $669 million paying those loans back. Now, here's what Jack and I find fascinating about Airbnb right now.

You can't think of Airbnb as just a travel company. Airbnb's results are a window into how and where people are living and adjusting in the pandemic. That's what we're learning when we jump into the earnings. For example, Airbnb's earnings basically explain vaccination pattern. That's right. Seniors got access to the vaccine first. and last quarter searches on Airbnb by people over 60, surged by 60%. Jack, can we call it the boomer spring?

Are we calling it the Berber Spring? We should because these boomers got vaccinated and were eager to finally travel. Every single airline this spring was carrying baby boomer parents from like the East Coast all the way out to the West Coast. You couldn't walk around San Francisco without seeing a child reembracing with their parents. I bet you some of them were coming from the West Coast to the East Coast too. Actually, these were my parents too. These were pretty much my parents. Airbnb's results also showed us something kind of new,

which is traveling for vacations in packs. All right. That's right. Jack and I were shocked by this new thing. The pandemic's still lurking. Families, though, are booking these big Montana ranches with six bedrooms on Airbnb, even though they only have like three family members. Here's the rationale. The heads of the families, they're inviting like everyone in their family pod because, like Nick said, the pandemic's still lurking and you want to keep everyone safe in one place for the summer vacation. Basically, the Airbnb guests are becoming hosts of someone else's Airbnb. That's right. And the third trend we saw.

Jack, this one hits close to home. Airbnb's gone from where you vacation to where you just live. Wild stat here. A quarter of Airbnb bookings are now for longer than a month. This isn't a weekend thing. No, it's not. This is a I live in an Airbnb kind of thing. Jack, this is a moment you should be doing a disclosure.

This is Jack. I'm recording this pod from my second consecutive three. month plus Airbnb. By the way, the wood beams, I love the wood beams in this one. I can't take any credit for these gorgeous exposed beams above my head. The pine is fantastic and it's like you're recording from a chapel. Now, Snackers, we've got a couple of Airbnb pro tips for you. We do, we do.

Okay, first, Airbnb Pro tip, look, only book places that have an Instagram account. Boom, done. You're going to love it. That A-frame and Tahoehm's gorgeous, Nick. That was fantastic. Pro tip number two, Airbnb will not block your Instagram handle if you send it in a direct message. This is key. So you could move the conversation about your booking over to Instagram DMs and potentially cut out that 10% service fee.

Yeah. And this is coming from Jack and me, both Airbnb shareholders. We're just trying to have your backs. We're just trying to save some money, Snackers. This could hurt Airbnb's profits, but it could help the snack. You are our priorities. So, Jack, what's the takeaway for our buddies over at Airbnb? Airbnb has achieved its post-marketing price.

That's right, Snackers. Airbnb, it already became a verb. Like, Jack, my mom can't Venmo, but she can Airbnb. The next goal after becoming a verb was to become enough of a household name that you don't even need to advertise anymore. No, no. And the last time we covered Airbnb on this pot, we mentioned that they had shockingly cut their advertising spending by a whopping 66% last year. Well, they cut it by another 50% this quarter. Also wild. And we're seeing some results from those decisions.

And here are the results, Jack and I found 90% of the web traffic to book on Airbnb last quarter was direct and unpaid. Airbnb didn't pay for it. That's crucial because Marriott and VRBO, they're probably paying Google big money to become the ad at the top of a Google search for something like vacation rental. We're talking to mattress, mattress, mattress situation. Airbnb, meanwhile, just sits back and waits for travelers to come to Airbnb.com. Jack, last year, Airbnb hoped to hit its post-marketing prime. Looks like it just did. Jack, can you whip up the takeaways for us to start the week? Yeti Coolers had a great 2020 catering to well-off outdoors he does.

It went vertical to horizontal. So now it's doing luggage. Look out of way. Look out of way. Second story, employers are finally in an all-out wage war because higher pay is what workers want. And this summer, we're going to see the great wage experiment. Third and final story, Airbnb finally returned to growth last quarter as people returned

to travel last quarter. It also reached its post-marketing prime. Now, time for our snack fact of the day. This one sent in by legendary snacker Chase McElroy from lovely Los Angeles. All right. Your dirty laundry. and medieval bruskeys. I're connected.

True story. Laundry, it isn't measured in shirts or loads or towels. It's measured in bushels. That's right. One laundry basket is actually like one to two bushels in size. Go check the label. And bushel is a unit of measuring, much like our lift as a unit of value. That's true.

That's good point. But bushel goes all the way back to 1266. That's right. Under King Henry III, the bushel became the legal measurement for English wine, beer, and grains. Snackers, before we go, if you haven't yet, Drop down, you can give us five stars, leave a review. We want to hear from you. He'll look fantastic today. Drop down and give me five. And share this with your buddies because that's the best way we grow. And if you give someone a dollop a sweet baby race today, please send Jack and I the video.

We would love to see this. A good old dollop. We'll see you tomorrow. And before we go, congrats to Enyo graduating from B-school in lovely Fortaleza Brazil. Congrats to Jag and Shamu, who just got a puppy over in Chicago. Great logistics. Samma and Omar also engaged over in Gilroy. Congrats to Jordan and Rachel, who just got married in Fayetteville, Arkansas. And Carissa and Duncan, wedding anniversary one year in Westerly Rhode Island. Great Amtrak stop. Farewell to Varroi, who's heading off to London School of Business. We're going to miss you. And Abro Das, congrats on the new job in Microsoft.

Happy birthday to Javier Gaegos in Hermos, Mexico. And happy birthday Shannon Hensel in Brattleboro, Vermont. B.HS, class in 2006. Go Colonels. Shannon. And happy birthday, Grace Orteleara in Burlington, Vermont. and Raich Masha in Atlanta, Georgia. And Carmen Shelley in Navar, Florida. And Matt De Silva in Northridge, California. Great guy.

And happy birthday, Nick Uliah in West Milford, New Jersey. And Shreya K in Edison, New Jersey. And Elia Adler in Philadelphia, Pia. Happy birthday. And to anyone else who celebrating something today, make it a T-B. Celebrate the wins. This is Jack. I own stock of Airbnb.

So it is Nick. I own stock of Amazon and Nick own stock of Chappole. The Robin Hood Snacks podcast you just heard reflects the opinions of only the host. who are associated persons of Robin Hood Financial LLC and does not reflect the views of Robin Hood Markets, Inc. or any of its subsidiaries or affiliates. The podcast is for informational purposes only and is not intended to serve as a recommendation to buy or sell any security and is not an offer or sale of a security. The podcast is also not a research report and is not intended to serve as the basis of any investment decision. Robin Hood Financial LLC, member FINRA, SIPC.