The Best One Yet - 🇮🇱 🇵🇸 “From Blockade to Siege” — Gaza’s Economic War. The French Fry Index. Metropolis’ $1.7B parking lot.

Episode Date: October 10, 2023

After the surprise attack from Hamas, Israel is responding with punishing economics — It’s escalating its blockade on the Gaza Strip to a siege.The biggest potato company in America? It’s $13B Lamb & Weston, and its potato stock is at an all time high because we’re ordering more fries — Call it the French Fry index: The purest measurement of consumer confidence.And the biggest VC fundraise of the year is $1.7B for a parking lot — Metropolis is using billions to techify 3,300 parking garages (just 1 problem: But garage owners).$LW $SPYSubscribe to our newsletter: tboypod.com/newsletterWant merch, a shoutout, or got TheBestFactYet? Go to: www.tboypod.comFollow The Best One Yet on Instagram, Twitter, and Tiktok: @tboypodAnd now watch us on Youtube Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. It's Tuesday, Tea Boy, Tuesday, October 10th, and today's pod is the best one yet. It's a T-boy. Yesterday, investors shook off the new war that's happening in the Middle East. Doc, surprisingly rose despite our first story. Jack, what's our first story for today's show? Israel has officially turned from defense to offense in its war against Hamas.

So Jack and I are looking at the biggest of all economic punishments, the siege. For our second story, America's biggest potato producer just gave us a new stat. We call it the French Fry Index. Because Yeties, there is a relationship between your French Fry order and economic health. And our third and final story, it's the biggest venture-back deal of the year, and it's a parking garage. A parking garage. So Jack and I are looking at the unicorn of parking lots. But Yeties, before we hit that wonderful mix of stories.

Wonderful mix of stories, Jack. Yeties, if you're applying for a job right now, we know what you're doing. You're networking, your interview, and you're shaking, and you're lying. Because get this, Yetis, according to a survey by resume lab, 70% of U.S. workers have lied on their resumes. 70% of us are listed lies like their bullet points, Jack. For instance, that job title you put on there? Senior executive bus boy.

Oh, the work experience, you slipped in there, Jack, Then you had an extra year or two on that thing? I'm sorry. Was your GPA a 3.4 or a 4.3? I don't really remember, frankly. But here's the wildest part, Yadis. The more educated the worker, the more we lie on our resumes. For workers with a master's degree, 80% of them lied on their resumes. So let me get this straight.

The smarter you got at school. The more you lie about that school? Now, Yaddies, it's just Nick and Jays. It's just us. We've all done a little rounding up on the old job application. We've all whipped out the old thesaurus for a couple of, you know. For example, you don't complete a project. Oh, you proactively conceptualized, navigated, and managed that project.

We've all said we're proficient in Spanish. Because you successfully ordered a taco once and you happened to know the lyrics to Shakira. One time you ran a three-mile jog on the weekend, you were proud of it. Boom, Jack, that is a passion for long distance running if I've ever seen one. Have you ever read a resume where you weren't fluent in Microsoft office? I mean, I'm pretty sure the entire all of us is fluent. went in that office, Jack. Because you double-spaced your English essay one time

to hit five pages long. Boom, proficient in Microsoft Word. So, Yeties, what's the one old resume embellishment that you're willing to share publicly? Besties, what is the one accomplishment that you may have? Exaggerated. Because sometimes you just have to round up.

Jack, let's hit our four stories. Fifteen years before this song, two boys from the Northeast met in the dorm. They had an idea to call. a cultural storm. It's the best one yet, but the best is a norm. Jack Nick, 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. 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. For our first story, after the weekend terrorist attacks, Israel just hit Gaza with the biggest

economic punishment there is. A siege. As we're recording this, more people are being killed in Israel in the Gaza Strip. Israel suffered a truly horrific terrorist attack with at least 800 people dead. This is Israel's Pearl Harbor. And the culprits of this, it's Hamas. More on them in a second. But let's keep going, Jack. This conflict between Israel and Palestine goes back decades.

It's extremely complicated and we can't cover that whole story in this story. Now, the latest news Tuesday is a siege, which is economic warfare. But Jack and I want to start with the setting. And the setting is the Gaza Strip. It's one of the most mentioned places in the world, but it's actually pretty hard to describe. If you want to start simply on it, you can look on Google Maps, and this actually says a lot. The Gaza Strip is a piece of land in southern Israel on the Mediterranean coast 140 square miles. It's about the size of Washington, D.C., but Google marks the border it has with Israel with a dotted line.

And the reason they do that is because the Gaza Strip does not have a typical border. The Gaza Strip is part of the state of Palestine. The other part of Palestine is the West Bank. And that's because when Israel won statehood, Palestinians got pushed into two sides, either the West Bank side or the Gaza Strip side. So the Gaza Strip, it's tiny physically, but it's got a huge population. Two million people actually fit into the Gaza Strip. And the government of those two million people?

It's Hamas. Hamas, Hamas labeled by Israel in the United States as a terrorist organization. This terrorist organization also governs those two million. million people in the Gaza Strip. This is where we have to make an important distinction. Hamas is not Palestine. Hamas is the terrorist group in charge of part of Palestine, and Hamas's goal has been to eliminate Israel.

Now, we should also point out, there have been no elections for the past 15 years in the Gaza Strip. But Hamas is in charge, and Hamas wants to wipe out Israel. So Israel treats Hamas as their enemy, which is why they've blockaded the entire Gaza Strip. Exactly. Israel controls what gets in and what gets out of Hamas's territory with a border wall and highly militarized checkpoints. Now, human rights watch calls the Gaza Strip an open-air prison. And the reason they call it that is because Palestinian people can move freely within the Gaza Strip, but they can't leave the Gaza Strip. They can't even get over to the West Bank to visit their

fellow Palestinians. Gaza is not allowed to build an airport, a seaport. Israel controls the entry and the exit of goods and people. You might be asking. Why is the blockade so intense? Well, it's because Hamas, who runs Gaza, has a history of violence against Israelis. Like we said, their goal has been to eliminate Israel. And this weekend's attacks are not the first time Hamas fired rockets into Israel. But it was the worst one, with gruesome consequences to innocent human life on the Israeli side. Like we said, that surprise attack was Israel's Pearl Harbor.

And it's been tough to see the more information that comes out. So, Jack, what's the takeaway for our buddies who are, everyone trying to figure out what's happening in the Gaza Strip. Israel just declared the ultimate economic punishment, a siege. Yeties, Jack and I mentioned that Israel controls what gets in and what gets out of the Gaza Strip with a blockade. But on Monday, Israel escalated the blockade to a siege. With the blockade, Israel severely limited what could get in and what could get out. That hamstringed the Gaza economy.

But with a complete siege, it will completely cut off supplies from the outside. To disarm Hamas, Israel will allow no electricity, no food, no water, no fuel into the Gaza Strip right now. That means many innocent Palestinians will suffer too. They could even starve with those conditions. But Israel says this is war. They already lost 800 people in a horrible way and 2400 have been wounded. Israel says it has no choice but to cripple the Gaza Strip to protect itself from more terror. That's why Israel's first phase of retaliation against Hamas is economically. warfare. It's a siege. For our second story, when restaurants ask you, would you like fries with that?

One company is tracking your answers. Introducing the French Fry Index. It's the latest econ data you need to know. Jack, we're waiting five years to cover the state of Idaho on this podcast. I've been waiting five years to go there. I've never been. Have you? Should we expense a tea boy trip to Idaho? Is that what you're telling me? I want to see that blue turf. I want to see the valley that sunny. I want to see that sliver of Yellowstone. National Park that crept into the state of Idaho. Well, the biggest publicly traded company in Idaho, we just found it. Jack, it is Lamb and Weston, the $13 billion pure play potato stock worth

three lifts. I love that they do potatoes. And they don't just do them. They have a potato processing plant on four different continents. They've processed eight billion pounds of potatoes at those four different processing plants on four different continents. Founded in 1950 with a simple and an optimistic slogan. Seeing possibility in potatoes. Yeties, Bubba from Forrest Gump loves shrimp, lamb and Weston loves potatoes. Jack, let's jump into the numbers here. A hundred percent of the revenue. Where is it coming from? Roasted potatoes. Toasted potatoes. Upped potatoes. Butter potatoes. Waffle fries, shoe string fries, curly fries, steak fries. Fried, French fried, baked, double baking, potato, they make that potato. This company also has some IP. They invented what they call the lamb water gun knife.

Which sounds highly threatening and I'm scared. It's actually the, best way to slice a potato into french fries. Yadis, Jack and I jumped in tea boys. Now, every fast food restaurant we could find is using a potato slicer and a potato from lamb in Weston. In fact, 10% of lamb in Weston sales went directly to America's McDonald's restaurants. Yeties, if you're eating French fries, you're eating a lamb in Weston fry. This is the only stock we've ever researched, whose investor relations page has a list of recipes. It does. Jack, did you see the CFO's favorite recipe, by the way? No, I didn't.

He says his favorite is, I got it right here. It's a dessert of cinnamon sweet potato mousse. Potato dessert? Only in Idaho. And business, how's it? Looking for this $13 billion potato company, Jack. Sales jumped 48% last quarter to $1.6 billion and profits are at an all-time high. But yet, here's what Jack and I found fascinating about America's biggest potato company.

One specific statistic from Lamb and Weston that is just wild. It's called the fry attachment rate. Jack, could you define the fry attachment rate for us? What percent of fast food orders included fries? Jack, could you translate the fry attachment rate for us? When they ask you at McDonald's, do you want fries with that? Did you say yes or did you say no? Dahlene, I'll take the curly ones.

Here's the news, Yeties. America's biggest potato and French fry company just said that the fry attachment rate is holding steady at record high levels. I mean, Jack, that's not all, though. You got to go all in on this. else did they say? The percent of diners adding fries is well above pre-pandemic levels still today. Now, Basties, Jack, and I were curious. We didn't totally trust them on the fry attachment radar. So we double-checked their numbers. We cross-referenced what Lamb and Weston said

with McDonald's. And McDonald's confirms it. We are supersizing our fries at record levels. Back in April, they had an earnings call. McDonald's indicated that Americans are ordering more fries with their Big Macs. Burger and fries. Fried chicken and fries. Fries. Fries with tater tots and the side of fries. Yeti's the fry attachment rate for American diners is rockingly high right now. And that is why Lamb and Weston stock jumped 9% last week. But you know what? There's actually more to this story. Smells like our takeaway. It does. It does, Jack. So Jack, what's the takeaway for our buddies over at Lamb and Weston? The best way to measure consumer confidence it's whether you ordered fries or not. Yeties, funny thing. That fry attachment rate,

we just told you about? It's actually a sign of broader consumer confidence. Because saying yes to fries is like saying yes to buying lipstick. It's a little splurge for yourself. You don't treat yourself unless you got a good paycheck and some good vibes. Then you're getting fries. Traditionally, though, economists measure consumer confidence different. They measure it by simply asking them. Traditionally, they would say, hey, are you confident in the economy? And what's the problem with that question, Jack? That question has become politicized. So instead, whether or not you order French fries is the better. economic signal. Let's call it the French Fry Index. Because the purest way to measure consumer confidence, it's actually with this one fantastic question. Would you like fries with that?

For our third and final story, a parking garage startup just raised $1.7 billion for completely frictionless parking garages. The only thing standing between you and heavenly parking is a lord. But check all year long, we've been talking about how there's like hardly any venture investment going on. But there's one territory venture capital just wrote a huge check for. Yeti's the biggest venture capital-backed acquisition of the year. It's parking garages. Enter Metropolis.

This is the AI-powered parking garage startup that just raised a whopping $1.7 billion. This is wild. This parking software company is using the $1.7 billion to buy physical parking spaces across the country. Metropolis is buying 3,300,000. physical parking garages across America. We saw the news and Jack and I were just, we sat down, stood up and put the car in park again. Jack, what is going on here? Why does venture capital want to put their money in parking garages?

Because parking spaces, besties, are real estate. They're boring real estate, but they're real estate for your car. And nothing brings in the cash like real estate, doesn't Jack? Parking as a service. It's been around for centuries. Hey, Andreessen Harwitz, you may want to get the valet. But yet, it is, before we go further, let's admit what we're all thinking. And parking spaces, it's also the most frustrating form of real estate, isn't it, Jack? We all know the literal pain on your ribs as you try to pay for parking.

Yeah, the check-in, check out with the gate and the guard. It is awkward. It is awful. You can't drive further because there's an arm in the way of your car. So you search for your tickets. Where did I put that ticket? Then you got to pull out your credit card. Oh, wait. Oh, they don't take MX. They don't take AMX, honey. I'm sorry. And then you realize you didn't park close enough to the machines. You have to awkwardly open. open the door a little and stick your torso at the window. I resubmitted it. Can you turn it off and turn it back on? Meanwhile, it's freezing out. Your fingers are numb by this point.

Oh, and guess what? They don't have change for a 20. Yet he's getting into and then out of a parking garage is one of the clunkiest consumer experiences that we have today. It's full of friction. So Metropolis uses a system of cameras to track your car. They get the spot, they get the timing, and they capture your license plate. They know when you entered, they know what your car is, and they know when you leave. So this is the wild thing.

You can just drive out of the garage. No gate, no guard, no drama. You know that Amazon hand-free just walk-out technology at grocery stores? I know exactly what you're describing here. You go into the store and you walk out. You never take out your wallet. You never have to pay. Metropolis is that, but for cars in garages.

Okay, another example here, Yeties. You know the easy pass or fast pass that you use instead of doing a toll these days? If we can drive into and then off a bridge without stopping. Why can't we do it with parking lots? So what this tech is doing is eliminating the friction of parking. And as Jack and I have always said, the goal of tech is to eliminate friction. Now, as a driver who parks sometimes, this sounds like a no-brainer. Why doesn't every garage have this technology?

Besties Jack and I are sitting here wondering, how has frictionless parking not been around already? And why do you park in a driveway but drive in the parkway? Well, I don't know the answer to that, Jack, but we do have the answer to the first two questions. And that is our takeaway. So, Jack, what's the takeaway for our buddies over at Metropolis? Innovations are slowest in a Lord industry. Yeties, in order for Metropolis to scale beyond their own garages, they must convince other garage owners to adopt the technology.

But since parking lots are some of the most profitable real estate, there's no incentive for garage owners to switch. Because parking lot landlords aren't in a competitive industry that's fighting for your customer love. And that's key yet. parking garages, it's a landlord industry. A landlord industry. It's got big profits, big demand, and undifferentiated competition. So Metropolis is beautiful, frictionless parking.

It sounds like a dream for drivers, but it may not get broadly adopted by the garage owners. Because landlords don't ask what's best for a customer. They ask what's best for themselves. Because the parking garage industry is a lord industry. And no one's slower to adopt innovation than a lord. Jack, can you whip up the takeaways for us for T-Boy Tuesday? After the surprise attack from Hamas, Israel is responding with punishing economics. It's escalating its blockade on the Gaza Strip with a siege.

For our second story, Lamb and Weston stock has had an all-time high because we're ordering more French fries. Call it the French Fry index. It's the purest measurement of consumer confidence. Jack, it's like French fries are bad for our physical health, but they're great for our financial health. Exactly. They should be financially subsidized. And our third and final story is Metropolis. They just raised VC money to techify 3,300 U.S. parking garages. But garage owners are landlords, and nobody adopts innovation slower than a lord. But yeties, this pod's not over yet.

Here's what else you need to know today. First, Birkenstock, the 249-year-old shoe company, is going public on Wednesday this week. We're planning to cover that IPO with clogs on our feet. And clogs in our hearts. And second, Harvard professor Claudia Golden just became the first woman to win a Nobel Prize in economics solo. Her research identified the structural differences that create pay gaps between men and women. And finally, it's official. SNL returns this weekend for its first show since the writer's strike.

The host? Pete Davidson. The musical guest? Ice spice. I know you're Googling her right now, Jack. No, my brother was telling me about it. She was like just a regular person in New York two years ago. Now she's the musical guest on S&L.

Absolutely insane. She's team Nikki Minaj. She's got a whole thing going on. Now time for the best fact yet. This one sent in by Jason Geiger from lovely Buffalo, New York. I love the city of Buffalo, New York. And you know what? They didn't just invent Buffalo sauce and the Buffalo wing.

Apparently Buffalo is behind all the food innovations you're enjoying on a carboloaded evening, Jack. They kind of invented. the donut too. Get this yet. He's the original glazed Krispy Kreme Donuts, which is fantastic, was created upstate in Buffalo, New York. By a man named Frederick Meyer, a Ukrainian immigrant who started Freddy's donuts in 1924. He only had a ninth grade education, but he designed and patented the first donut machinery that has become the standard donut machinery. He eventually sold that patent to Krispy Kreme, and the rest is glazed. Literally. Yeties, you look fantastic for T-Boy Tuesday.

And remember, if you've ever rounded up on the old CV resume, maybe let us know. We'd be curious what you did on that one. Says here you have a passion for Marvel films. Actually, that's not rounding up. That's probably honest. Senior executive VP of the interns. That's interesting.

Wine salesman of the year at the Olive Garden. You know it was just a month for me right now. Interesting. Sell out of Cabernet in August do you guys? Yetis hit us up at T-boy Pod. It's a safe space. You can just let us know what you exaggerate.

Hashtag round-up resumes. Send it our way. If you know, oh, you know. Jack and I, we'll see tomorrow. And before we go, a happy birthday to Adriana Carvallo, a Yeti who's turning 10 on 10-10 right now. That's called the golden birthday.

Happy birthday, Adriana. And a happy birthday to Yeti McGill Ramirez in Kazan City in the Philippines waiting for us to write a book, by the way, Jack. Miguel, don't hold your breath, but we... Are working on it. Yeah, we're working on it. And happy birthday to John Gustafson in Omaha, Nebraska. And Cody Rhodes is celebrating a birthday over in Germany. Jack, hit him up.

Send him some wrecks. Oh, yeah. And happy birthday to Alex Lord in Washington, D.C. And a happy 13th birthday to Alex Faye and 10th birthday to Lucas Faye, now twin Yetis in Rain of Massachusetts. Just that's our boss. And happy two years together to Joel Kramer and Madison Kramer Kral. Celebrating with their cat named hot dog in New Jersey. It works.

Oh, it works. Oh, it works. Send us a pick of that hot dog, please, by the way. This is Jack. I own stock of Amazon and Krispy Kreme. Burger and fries. Fried chicken and fries. Fries with tater tots.

And the side of fries.