The Best One Yet - 😎 “DTF: Down to Fail” — Snapchat’s 4th spectacles. IHOP’s flip. Super’s $50M plumber.

Episode Date: May 24, 2021

Snap just whipped up its 4th ever augmented reality glasses, but it isn’t a viable product (and that’s perfectly okay). IHOP whipped up a new version of itself so you actually spend less time at IHOP. And Super raised $500M because everyone talks about Millennials *buying* homes, but the real story is Millennials *breaking* homes.$SNAP $DIN 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 24. Happy Monday, everybody. Nick, I heard you had a couple hours of a free weekend date with Molly. It's a Tesla test drive we did.

And here's the thing, Jack. Even if you have no intent of actually getting the car, totally worth it for the date experience. Did you try to look Ma No Hand situation with the autopilot? I thought it was in self-drive. It wasn't in self-drive. Snackers, this is the best one yet. Yeah, this is our T-B-O-Y.

Jack, what did we got for the first story? Snapchat, just unveiled. The fourth version of their augmented reality glasses known as spectacles. One thing here. It's not a viable product, but that's okay. For our second story, IHOP has finally Chipotle-Fi themselves with Flipped, their fast casual restaurant concept. It's for people with no time.

So the first one, it's coming to New York City. Third and final story, Super is a fast-scaling company helping homeowners fix the stuff that breaks. So, Jack, everyone's talking millennials buying homes, but the real story here is millennials don't know how to maintain their homes. Dad, can you help me with this Alan Wrench? Before we hit that wonderful mix of stories today, Jack, really a fantastic mix. We got our Monday morning hoarders almanac.

This is week 62 of the pandemic. So we're looking at what we're running out of this week. Yeah, because Jack and I, we've been keeping a list on this stuff. Two weeks ago, it was chlorine for pool parties. Last week, it was Chick-fil-A dipping sauce, RIP. This week may be the most profound shortage of them all, cardboard. Cardboard. One out of three cardboard boxes snackers.

They're made in the U.S. by one supplier, international paper in lovely Memphis, Tennessee. And the paper and pulp needed to make cardboard? You gotta craft it. Supplies are low in this country. They are. You know, the insane spike and you ordering, I don't know, like everything, international paper just can't handle it anymore. The box machines are burnt out. Jack, the cardboard over here just pulled a hammy. So cardboard, this could be one of the most meta shortages of all the shortages of all times. So here's how Jack and I are thinking of this. Because if there's no cardboard to box up a thing, then we kind of have a shortage of everything. Okay. Hey, now Amazon Easter's out there.

Before we start freaking out, Pulpageddon is not here yet. Yeah, the CEO of International Paper said this month, the supply chain, it's very stretched. He just said it was stretched. He didn't say the supply chain was broken. Now, this cardboard crisis kind of could accelerate some more efficient boxing.

Yeah, we're running out of cardboard, and that could be a good thing because your toothbrush you got delivered, it didn't need that California King cardboard box. Or it could accelerate our long time wish that Jack and I have been wishing for. Naked Prime Shipping. No box, no problem.

Let's hit our three stories. You're tuned in to snacks daily. We spoke to the lawyers and we got to get something legal out the way. It's 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. We're not recommending any securities.

It's not a research report or investment advice. Not an offer or sale of a security. Right. Snacks is digestible. Business news for you. Robberhood Financial. LLC, member Fenra slash SIPC. For our first story out of nowhere, Snapchat just unveiled, not one, not two,

spectacles 4.0. I think we're the ones calling it 4.0. They definitely don't call it that, Jack. They're just like, these are our fourth spectacles. I like that we're running with this, though. But just like the previous spectacles, this is not really a viable product, and that's perfectly fine. By the way, Snapchat, they casually mentioned Thursday.

They're up to 500 million monthly active users, no big deal. That sent the stock up. it is very, very high at the stock. But what Jack and I found more interesting was that they also released five press releases straight out of their Santa Monica headquarters. We're focused on two that are most related. First, Snapchat has new augmented reality tools for creators. And then second, they got new spectacles.

Spectacles. Snapchat's not that smart, smart glass. It's like a camera with an attitude. It was like they duct tape the little camera to some rebounds. Now, last year, Jack and I were opining that Snapchat dominates augmented reality, period. That was the takeaway. We wrote the word period. That was just punctuation, Nick was described. This is one of the challenges of podcasts. The reason we were so confident in that bold claim, while Facebook, Apple, and others are reportedly

developing, like, huge augmented reality products, Snapchat's the only one actually doing it. I mean, so true. Lenses, those are used by millions of people right now. Lenses on Snapchat, they let you overlay hilarious dancing hot dogs on your snaps. Cameos, Bitmoji, a couple other widely used augmented reality feature, Snapchat Pioneer. And they have a new try-on feature that lets you. you put that blouse onto your body before you tap the buy button on your phone. I mean, I'm not buying khakis unless my avatars tried them on chat. Now, this isn't world-changing technology, but it's practical, delightful, augmented reality.

Snapchat's not doctors without borders over here. Now, the other reason we think Snapchat dominates augmented reality is spectacles. Yeah, Snapchat designed glasses with built-in connected cameras for the easy snapping check. All right. the latest version that was announced last week. Just came out. They have three-dimensional capabilities. Yeah, they do.

And they include a lot of baked-in hardware. Four built-in microphones, and that's just the start. Two speakers, a touchpad. A whole bunch of equipment. You want to ensure this thing. Jack, this is like an IMAX for your face. Evan Spiegel, the CEO, he demonstrated how these spectacles work. Here's the idea.

Mid walking through a field, you can touch your spectacles, and it will overlay butterflies flying on the field that aren't actually there. You can always take them off and look for the real butterflies, though. So, Jack, what's the real butterflies? The takeaway for our buddies over at Snapchat. Willingness to fail is crucial to building something big. Snackers, all three versions of spectacles from Snapchat so far, they've basically been failures. In 2017, Snapchat took a $40 million loss because they couldn't sell 150,000 pairs of spectacles that nobody wanted.

Jack, Jack, Jack, this is my favorite part. This fourth version of spectacles is so commercially unviable, they're not even putting it up for sale. The battery life is 30 minutes. What is this? A leaf blower? Now, is Snapchat discouraged by this? Now, they're not. On the contrary, they're more encouraged than ever.

They're putting more money into these spectacles. Despite four versions of spectacles that don't really sell, they just acquired the company that makes them for a half a billion dollars. Snapchat's biggest deal ever. Snackers, it took the Apollo program 11 tries before they could get the man on the moon. Snapchat's at Spectacles 4.0. And it's willing to fail in pursuit of long-term success. For our second story, IHOP, it is fast casualing its restaurants with grab and go versions of pancakes.

Maybe the biggest change in IHOP history, Jack. But how fast this actually happens is totally out of IHop's control. All right, Jack, the number one business team we've seen in quick service restaurants, a.k.a. fast food restaurants. What is it? Breakfast. Breakfast, fast. Turnover, habit forming, consistent. These restaurants love it. And the number one thing IHOP does, Jack, breakfast. Breakfast. Pancake is in its name. Snackers. IHop. It's owned by Dine Brands, whose stock was, I think the right word choice here is massacred at the onset of the pandemic. I had to sit down and stay down when I saw

this stock. It fell by 82% Dine Brand stock in one month from February of last year to March of last year. Now, it's because IHop focuses on Dine-in table service restaurants and that scared investors. Yeah, I think a lot of investors were thinking about the B-word bankruptcy. Now, IHop stock, it is chugged all the way back to where it was from before the pandemic. Very impressive. But IHOP, despite pancake being in their full name, it's not dominating breakfast. No, it's not because the pandemic accelerated the trend of to-go and delivery. And Jack, maple syrup really struggles with to-go and delivery.

If you get maple syrup on your fingers, just a little bit. Maple syrup's going to be everywhere. You're sticking to stuff for like the next three weeks, Jack. Okay, so IHOP is finally launching a new fast casual spinoff called Flip. Or the way, Jack, and I like to think of this, this is Chipotle for pancakes. Yeah, it's going to feature digital kiosk. It's going to be grab and go food. I know what you're thinking.

Pancakes aren't really grab and go. They managed to turn a pancake kind of into a burrito. Yeah, they tachofide the waffle. They made the pancake rollable. And they're really channeling their inner Chipotle. Oh, they so are. The burrito chain, it stormed America with the Build Your Own style dishes. They're basically just borrowing that formula.

And what jumped out from the menu at me is build your own signature pancake balls that you'll be able to find it flipped. You're walking in. And you're going to get the pancake or the oatmeal or the yogurt base. Which do you want? The pancake bowl does not need to have pancake. And I am so excited about this oatmeal. And Nick, frosting is not necessary.

I'm worried you're going to knock the mic over. I mean, I'm excited for you. I'm just excited you're excited. I think this is actually a great feature. But here's what fascinated Jack and me about how they're doing this. It's classic Inception retail. Inception retail, a store within a store. A dream within a dream.

But we don't usually see this in the food. industry. Yeah, typically you see it with like Target. Target stuck at Disney store within a Target store. Best Buy stuck a Sony store within its Best Buy store. Now, many IHop of these flipped locations, they're actually going to be in quick stops within mini-marts. Quick stops and mini-marts are convenient stores also owned by the same parent company. And the funny thing here, it's not just breakfast. Now, this was the most I-hoppy thing in their press release. They said they're going to serve breakfast, but also ultimate steak burgers and buttermilk crispy chicken. Because IHOP. So Jack, What's the takeaway for our buddies over at the International House of Pancakes?

The franchise model. It's more profitable, but it means you have less control. Snackers, the first flipped location, it's going to be in New York City, grab and go, fast casual. I assume it's going to be on the East 14th Street location. We lived right next to you, Nick. We rarely went in. We were mostly at the beauty bar, but it was still great. Now, that location in 14th Street, New York, it's owned by a small business, a franchisee. Yeah, and they were on the restaurant as efficiently as possible. They're paying fees to IHOP for the menu, for the rest. recipes for the marketing. That's how the deal works.

IHop Corporation and Dine Brands, IHop's owner, they're not the boss of these restaurants. No, they're not. And even though they think that flipped is the future of the franchise, the franchisees aren't so sure. Get this Snackers. IHop is reportedly paying $150,000 to any franchisee who will open up a flipped location. That's the incentive. $150,000 to flip your IHOP to flip. There are only four flipped locations planned so far. The franchisees just aren't on board yet.

So IHOP has been big on Flipped, but Flipped is actually totally out of IHOP's control. For our third and final story, we got our almost unicorn of the day. Super, it's going to fix your sink because you don't want to and you don't know how to. Super has raised $100 million because new millennial homeowners, they need help owning their home. Interesting thing about the real estate business here. You buy a home once, but then you have to maintain it forever. And during this work from home fueled real estate craze, there's been a surge of new millennial home. buyers. Here's the problem, though. The extent of our house knowledge is limited to lefty,

lucy, righty, tidy. That's it. That's all we now. Jack, my fridge, it's making a noise. I'm learning to just live with the noise. That's what I'm doing. Unplug it and plug it back in. It'll be fine. Actually, I'm going to do that right after this. Snackers, we've been renting for 10 years since college. If something breaks, you call the super, he'll fix it. For a new millennial homeowners, though, something breaks. You're calling your dad. You're freaking out. So Jack and I got fascinated with the latest moves made by Super, which has a monthly subscription superintendent, for your home. Here's how this app works. You pay a monthly subscription between $64 and $120 depending on the size of your home, the amount of coverage you want, and the cost of the city you live in.

And then when something breaks, you open the super app, they schedule someone to come in and fix it. So the people behind this app, they're going to use a gig network of fixers to send someone to your home to fix your broken gasket. And here's the interesting thing about the business model. Like Uber, they're using independent contractors. But unlike Uber, you pay a monthly fee and that's it. It doesn't matter how many times you use it. Not per transaction. So like if nothing breaks in your home, you're overpaying that month. If nothing breaks, you're still paying $64 to $120 a month.

Now, so far, Super is just in eight cities right now. A few cities in Texas, in Chicago, and some others. And it's because the business model requires a lot of customers clustered in a small geography in order to really be viable. This isn't coming to the woods in Vermont. But it's been grown quickly found in 2015. They just raised $50 million to keep expanding, adding more cities. Super is a private company, so they're not obligated to show numbers, and they haven't voluntarily

shown numbers either. A little frustrating. We'd like that. But they did share something. Revenue has grown 7x higher in just two years because lefty, lucy, righty-tidey is not going to fix your fridge. I tried. It didn't work. So, Jack, what's the takeaway for our buddies over at super? With assets come responsibility, and millennials are about to find that out. Funny thing here, Snackers, for a decade, our whole generation saw Uber and Airbnb lead a way to an Asset light lifestyle. And thanks to those on-demand sharing apps, you didn't need to own a car and you didn't want to own a house.

And then the pandemic, it led this surge in sales of physical things. Boats, homes, RVs, pools, bikes, they all got snatched up by first-time millennial buyers. So here's the way Jack and I are seeing this. The generation used to not having a responsibility of owning any kind of valuable is now doing exactly that. Combine that with millennials' extremely acute awareness that time is money and you see businesses like super can boom.

Many are going to happily pay to outsource that responsibility. Jack, can you whip up the takeaways for us to start the week, please? Snapchat is dedicated to AR glasses, and they just unveiled their fourth try. Honestly, it took the Apollo program 11 times to get to the moon. You've got to fail to scale. IHop is trying to transform the restaurants from sit down to grab and go. Franchise is more profitable, but less control. Super is trying to save millennial homeowners from the hassle of fixing stuff.

I mean, Jag, Jag, our asset life lifestyle. It meant no responsibility, and apparently that's over now. Now, time for our snack fact of the day. This one sent in from Amy's a wiki over in lovely Troy, Michigan. Amy heard us say in a couple different pots that inflation is kind of like Godzilla. Yeah, everyone's afraid of it, but we haven't seen it in a whole long time. So that inspired this. Hey, Snackers.

On April 9, 1954, the first Godzilla film was released. 61 years later, on April 9, 2015, the King of Monstos became a citizen of Japan. Godzilla has also been appointed the tourism ambassador for the district. A 12-meter replica of Godzilla's head was placed on the Shinjuku-Toho building in honor of his residency. Okay, tourism ambassador, citizen of Japan. Amazing. Did he get a key to the city? I mean, you should have this guy earned it.

Snackers, you look fantastic to start the week. Jack, I think we just made a new thing, the self-drive test drive date. Yeah, we're doing. It's a great date. A lot of material for you to talk about afterwards. All you need is a driver. license. You could probably say that way up. We're like, oh, what are we doing?

It's like, yeah, we're going to test driver a car. Definitely can't afford it. Snackers, we'll see you tomorrow. And before we go, happy anniversary to Bryce and Irene. Co-workers now dating long distance in New York and L.A. You know, my wife and I were long distance for two years, and now she's

my wife. Crete de Serrana, congrats on starting the internship at Uber. Tanner and Victoria are both doing their bachelor and bachelette parties right now. His in Vegas, hers in Nashville. love the coordination here. Congrats to Page Jewett for having the word oat tattooed on her hand, not as the result of us covering Oatley, but it's just cool. As I said earlier, I'm obsessed with Oatmeal. And happy birthday to Jake Hoffman, turn in 22, down in Dallas. And Steve Doyle in Korea Town, L.A.

And Cindy Peasley in Richmond, Virginia. And Jeff Wang in Las Vegas, Nevada. And Elizabeth Eukzer in Spring, Texas. Jeff, I'm sorry if I mispronounced Nevada. And happy birthday, Samantha Hastings from Newburn, North Carolina. And Cassie Ware Camp from Newport Beach, California. And Wang Ling from Sugarland, Texas. And Jod Tangi Tranboom in San Francisco, California. And happy birthday, Grant Helton, down in San Francisco, too. And quick shout out to Katya Juarez, who is visiting Lake Tahoe for the first time. You're going to love it.

I had my honeymoon there. I'm mentioning a lot about my relationship as part. This is Jack. Nick owned stock of Chipotle and Apple, and we both own stock of Airbnb. The Robin Hood Snacks podcast you just heard reflects the opinions of only the hosts 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. Lefty, Lucy, righty, tidy.