The Best One Yet - 🩲 “Kim’s gravitational force” — Skims WNBA win. Made In China’s 100% tariff. Pizza Hut’s burger strategy.

Episode Date: May 15, 2024

Kim Kardashian’s Skims just announced a WNBA partnership — Because Skims is competing where Victoria’s Secret and Spanx won’t play.Pizza Hut is launching its first… hamburger — But 30 years ago, McDonald’s tried launching a pizza. And it’s a case study in getting out of your comfort zone.And the White House just quadrupled tariffs on EVs, batteries, solar panels, and chips from China — Because “Made in China” doesn’t mean cheap anymore.Plus, Utah is getting its 1st NHL team and fans get to choose the name — What would you name Salt Lake City’s pro hockey team (our money’s on “Yeti”)? Vote here: https://nhlinutah.com/$VSCO $YUM $MCDSubscribe to the best newsletter yet: 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 Wednesday, Wednesday, May 15th, and today's pod is the best one yet. This is a T-Boy. We're serving up the top three pop business news stories

you need to know today. But first, Yettys, open up your latest issue of Vanity Fair magazine, baby. This week's edition talks about fashion, parties, people, and T-Boy. Yeah, because Vanity Fair just ran an article on podcasting,

and the best one yet is in it. We were quoted twice for this Vanity Fair article. I mean, Jack, T-Boy, we've never looked so glam. You're glowing over there, man. Yeah, I'm going to expense my outfit that I was wearing during the interview. You know, Jack, I know like you're supposed to act like you've been there before, but we've never been in Vanity Fair. Check out our Instagram at T-Boy to see the Vanity Fair article.

In the meantime, Jack and I got a fantastic show for you. Three stories for today. Jack, what do we got? For our first story, Kim Kardashian Skims, just celebrated the WNBA season tip-off with a splashy new photo shoot. Because Skim's knows where Victoria's Secret doesn't want to play. For our second story, the White House just quadrupled tariffs on EVs, solar panels, and chips from China. Because Made in China doesn't really mean what you think it does anymore.

And our third and final story, get this, Pizza Hut is launching a hamburger. So what are we going to do, Jack? We're going back to 30 years ago when McDonald's launched a pizza. Pizza Hut's launching. burgers, McDonald's launching pizzas, the world's upside down, we're upside up, and what is going on, Jack? But yeties, before we hit that wonderful mix of stories. Lovely mix.

Love the mix today, Jack. We're whipping over to Utah, the home of skiing, Mormons, and the great salty lakes. The home of sweets, Sundance, and Steve Young's left arm. But Utah's newest import, maybe its biggest import yet. Because Utah is about to get its first ever professional hockey team. Here's the news, the Arizona Coyotes of the NHL. are moving north to Salt Lake City. Moving to Salt Lake City, so Utah is about to get enough body checks to make Brigham Young blush.

Now, we should point out about our Utah listeners. They're the most grateful fan base in the country in Utah. Jack and I jumped in T-boy, styling, what do we discover, man? Utah only has one big four professional sports team. It's the Utah Jazz. But what else do we discover, man? They love the Utah Jazz so much in Utah. They have sold out 300 straight home games.

So the new Utah NHL hockey team is going to be greeted in Salt Lake City, kind of like a second child. But here's the surprise. The new hockey team's name. There is no name. There is no name. The owners can't decide what to call the team, so they're letting their fans choose what the mascot is. Yeah, what we're saying yet is is that Utah just launched the biggest crowdsourcing event in history. You can choose the name of the new Utah NHL team.

This is the biggest decision for Utah since they chose to join the union back in 18th. It's the biggest decision for Utah since Alta forbid snowboarders. Yeah, we went there. Now, the team is presenting fans with 20 different options that you can choose from. Yeah, you can vote. Now, most of the options are snow-related. Like the Utah Ice or the Utah Blizzards or the Salt Lake City Glacier. Other options you can vote for are ski-related.

Yeah, like Utah Black Diamonds, the Utah Mountaineers, the Salt Lake City Powder. Now, we'd vote for the Utah Saltines if it were an option. But there is one option that is one option that is a lot of the Utah. It happened to be very, very, very related to this podcast. The clear favorite Yetis is clear. It's the Utah Yetis. One of the options for the name of this new Utah hockey team is the Utah Yetis. Fans are going to vote.

And if they become the Utah Yetis, we're going to DM the owners about making the team color slamming salmon. Jack, if people vote and the name of the team is the Utah Yetis, we are flying to Salt Lake City the very next day. 100%. We're going to record a podcast from the ice, okay? Or at least we're going to try to. So besties, we'll leave a link in this episode description for you to vote on the Utah Yetis.

Whoever wins, we're going to pop some champagne. Or if you're in Utah, pop some Pepsi. Here we go, Yetis, here we go. Bang-Bah. Jack, let's talk through stories, baby. 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 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. First, a quick word from our sponsor.

For our first story, Kim Kardashian Skims, they're making their biggest move yet. And that move is the WNBA. Because Skim's shapewear is borrowing a lesson from Newtonian physics. All right, Jack, to kick things off, I've got to ask you a question here. What do you get when Lulu Lemon and Victoria's Secret have a baby? Apparently?

Skims. Skims because Skims just conquered another corner of American culture, the basketball court. Kim Kardashian shapewear and clothing brand. Skims just launched a big marketing campaign featuring the WNBA's top stars. Jaggles whip out the roster. We got Kelsey Plum, Candice Parker, Cameron Brink, all just posed wearing two things, two things only at the season tip-off. And what were they? They were wearing skim's underwear and they were holding basketballs.

Yet he's, you know what? Honestly, this kind of looks like ESPN's the body issue. But instead, this was sprinkled with nude-colored Skims shapewear. And yeties, we're not talking some kind of victorious secret angel boardwalk walk walk runway over here, are we, Jack? We're talking about Olympic gold-winning championship athletes. Step up to the podium and congratulations. So Skims is actually the official shapewear brand of the WNBA as of this season. So they launched this marketing campaign just in time for tip-off.

But yet,ies, here's what Jack and I found fascinating about this story. In order to understand how skims got to become so big, so fast, we need to discuss Newtonian physics. Because Kim Kardashian has her own gravitational force. And gravity is the most powerful force in marketing, baby. Yeties, Skims launched in 2019 to fill the vacuum left by Victoria's Secret's downfall. Jack and I called it the Victoria Void. Basically, Victoria's Secret was pushing push-up bras in a brawl at world and it didn't work out. Now, Skims is a private company, so we don't have their financials.

But here's what we know about Skims as of last year. Skims has raised $300 million. They did $750 million in revenue last year, and they're valued at a cool $4 billion. And just five years after founding the company, Skims has become the number 13 most searched fashion brand in the world, according to List Index. Forever 20 Wahoo.

It's all about Skims right now. And Skims did it with Kim Kardashian, the most marketable person on the planet. But Jack, if we're going to explain how Skims did this with Skim Kardashian, it feels like we need to whip out the old physics textbooks. Objects with marketing mass attract other objects of marketing mass. That is Sir Isaac Newton's 12th Law of Marketing right there. Jack, could you repeat it for the audience, please?

Objects with marketing mass attract other objects with marketing mass. It's gravity. Yeah, it's gravity, inertia, centrifugal force, all that good stuff. I think it's just gravity, actually. Okay, it's just gravity. because Kim Kardashian's cool cachet has pulled stars from every corner of culture to collab with her on her Skimms brand. Skims has done collabs with musicians, with sports stars, with podcasters, with movie stars, and yes, also with lingerie supermodels. And it's all thanks to that gravitational pull of one single creator at the source of it all.

Kim Kardashian. That's how Skims became the $4 billion thongopoly in just five years after launching. Thongopoly gets us every time. So, Jack, what's the takeaway for our buddies over at Skims? There's more value in being different than being better. Yeties, for decades, Victoria's Secret was number one in the underwear market because they focused on the bedroom. Then Spanx came around and they focused on social activities. But Skims is doing something different for underwear than either of those two companies. And what is that, Jack?

They're connecting undies with everything else. For example, Alex Cooper, the podcaster, got a skim shoot to celebrate her wedding. Lana Del Rey, Cardi B, and Siza all got Skim's marketing shoots to focus on their music. And even athletes from the NBA and the NFL got a skim shoot focused on sports. And now Skims is going where Victoria's Secret and Spanx never did the WNBA. Because when you only focus to be better, there's plenty of competition. But when you focus to be different, there isn't.

For our second story, President Biden just effectively bad. and Chinese cars by quadrupling the tariffs on all Chinese cars. The bigger news here, made in China, isn't what you think it is anymore. No, it is not. But this news is big. So, Jack, why don't we just kick off with the big news? President Biden just quadrupled tariffs on Chinese cars from 25% to 100%. I'm sorry, Jack, I already got to pause the pot on you for a second.

You might be thinking that is what Chinese cars exactly? Because you can't think of any Chinese car brands. And that's a good point. because China doesn't sell cars in America yet. Besties, earlier this year, we covered BYD's Segal, a car that American carmakers are terrified of because it's $10,000, it's electric, and it's made in China. And just last week, Zeker, a new electric car brand went public on the New York Stock Exchange, and it's also made in China.

And finally, Neo. They plan to sell their luxury electric cars in the United States next year, and you guessed it, they're made in China. Yeties, in five years, check your chassis. That thing was probably going to be made and designed in Beijing. Except it might not because of the news yesterday from the White House. Yeties, this huge tariff move from Biden effectively bans any of the cars that we just mentioned from hitting the roads in the United States. Because if China sells a car for $10,000, Americans will actually have to pay $20,000 for it. Right, because $10,000 you'll pay is for the car price. But then another $10,000 you'll pay is to cover the tariff on.

on that Chinese-made car. It's effectively a hundred percent tax on things we import from China. Oh, plus, the news didn't stop there with this effective electric car ban from China, did it, Jack? The White House also announced their tripling tariffs on electric car batteries and doubling tariffs on chips and solar panels coming from China. But yeties, we know what you're thinking. What went into this huge decision of these huge tariffs?

We think it was half driven by politics and half driven by economics. Half politics and half economics, and here's why. First, let's talk about the politics, Jack. Donald Trump's tough on China trade war strategy has been very popular. So Joe Biden seems to be adopting it. Most Americans want China tough talk these days. So both presidential candidates are doing some tough China tough talk. But the economic part of this story is really interesting. Yeah, because American companies struggle to compete with Chinese companies for two very particular reasons. The first reason is that Chinese workers will work for much lower pay. And that's actually fair game when it comes to global trade.

But what's not fair game is the government subsidies that Chinese companies receive. Yeties, how does the electric car, the B-YD-Cagle, how does it cost just $10,000? Because the government's probably covering half the cost. China has used that subsidy strategy to dominate industries of strategic importance, and they've been doing it for decades. General Motors, Ford, Chrysler, Tesla, they could go out of business if they're forced to compete with China's cars who have that unfair advantage. That's the economic reason for these tariffs.

But Yeties, there's also another reason why Jack and I wanted to cover this news. And that reason happens to be a sticker on a whole bunch of products in your home. So Jack, what's the takeaway for all our buddies who are everyone in America? Made in China isn't cheap anymore. Yeti's phase one of China's economic rise was driven by low-quality products. Anything cheap and made a plastic was probably made in China. Phase two of China's economic rise was high-quality products, but designed in the West. Just about every iPhone ever made was designed in California, but made in China.

But phase three of what China's entering today is something entirely new. High-quality products and also designed in China. Because Yonis from Huawei smartphones to Xiomi laptops to B.D's $10,000 electric cars. Chinese designed and Chinese made products are now undeniably high quality. So besties America, we've played a key role in China's economic rise. But now we kind of face an uncomfortable reality. Because made in China isn't cheap anymore. Now a quick word from our sponsor.

For our third and final story, Pizza Hut just made the most surprising product launch of the year. Pizza Hut is making burgers. To understand Pizza Hut burgers, we're looking at a similar idea from 30 years ago. And what was that, Jack? McDonald's pizza. But Yetis, Jack and I want to set the seed for you because fast food is slowing down right now. Starbucks, KFC, McDonald's, their sales are all slowing as low-income Americans are feeling the budget squeeze. And a big victim of the fast food sales slowdown happens to be Pizza Hut. Pizza Hut sales fell by 6% last quarter. So Yeti's Pizza Hut just had its worst quarter since the pineapple pizza. Jack, what is

Pizza Hut solution. It's the opposite of pizza. Their solution is hamburgers. Yeah, Pizza Hut just announced the cheeseburger melt at Pizza Hut, a parmesan-crusted thin crust melt folded and loaded with beef. Picture a burger melt, but with a bunch of pizza ingredients mixed inside there along with the beef. Jack, somewhere in Naples, Italy right now, Leonardo da Vinci is like rolling over in a grave. But still, Pizza Hut is stepping out of their comfort zone. You've got to be impressed. Pizza Hut's making a burger? Yeah, this is like an econ major taking a. poetry class. Jack, this is like Krispy Cream launching a salad. True. That is what this is like. Plus, Pizza Hut just unveiled the most aggressive advertising strategy we've ever seen.

Pizza Hut is sending cars through rival restaurants drive-thrus to announce to the customers there that Pizza Hut as a burger. Daddy's, if you're in a Burger King right now, you may see a Pizza Hut car roll through the drive-thru with a sign that says, want a better burger? Come over to Pizza Hut. It's like a disc track, but from a fast food restaurant to another fast food restaurant. Feels like Kendrick Lamar is going to get in on this, Jack. But yeties, here's what Jack and I found fascinating about this story. And here's why we wanted to cover it. Pizza Hut's shocking burger launch has a wild precedent from 30 years ago.

Because back in the 1980s, before we were born, just like Pizza Hut is launching burgers, McDonald's launched a pizza. 30 years ago, the McPisa was a real product that was launched. It's like the reverse of the Pizza Hut burger. This feels like we've stepped into some kind of time vortex, Jack. Because back in 1989, McDonald's was facing more competition, higher prices, slowing sales just like Pizza Hut today. So in 1989, to kickstart sales again, McDonald's created the McPisa.

Now, Jack, can you jump in T-boy style to describe the McPisa for us? Because probably none of us have ever seen it. It looked like what you'd think it'd look like. A thick 10-inch pizza crust that was very dense and had so much cheese and toppings on top. This was like so thick you had to cut it with a steak knife. The carbs were extra, but the revenues weren't. It's kind of like a sparrow slice, if you remember sparrows, Jack? I thought it was pronounced Sabaro.

Potato, potato, tomato, tomato, sparrow. But yet he's like Jack was saying, this McPisa launched and the sales, how did they look, Jack? They did not look good. This was one of the first ever McFailures. Yeah, the McPisa turned into a McPherson. failure. So it's been gone since the year 2000. Although, Jack, there is one McDonald's location out of all 30,000 that happens to sell the McPisa. And do you know where it is? Disney World. Did you just guess it? It's Orlando. It's Orlando. Oh, man. Everything fun is happening in

Orlando. So Jack, what can the Pizza Hut burger learn from the McDonald's pizza about getting out of its comfort zone? It can take a bite of our takeaway. So Jack, what's the takeaway for our buddies over at Pizza the Hut. Process can eat the product. Yeties, in general, we all tend to focus on the final product. The end, the user-consumed ultimate finale of the product. But in reality, the most make-or-break part of a product can be the process. Yeah, the process. And that is what killed the McDonald's McPisa. According to New York Times reporting, the reason the McPisa was killed, it just didn't bake fast enough. It wasn't the flavor. It wasn't that it was all brand for McDonald's. The McDonald's

McPisa simply couldn't be made in a fast enough speed for fast food McDonald's. It just took too long and McDonald's customers were annoyed. Well, clearly 30 years later, Pizza Hut noticed. Pizza Hut learned the lesson that process can eat the product. Pizza Hut's burger actually uses a thin

pizza crust as the burger buns. So they kept to their process. It's easier and faster for Pizza Hut to make burgers since it's made with the same ingredients as pizza. If Pizza Hut tried to make a burger like McDonald's does, then that new cooking process could have doomed it. And that's the lesson that McPisa's failure has taught us.

Process can eat the product. Jack, could you whip up the takeaways for us for Saviche Wednesday? Skims won the opening day of the WNBA season with a star-powered brand collab. Because there's more value in being different than being better. For our second story, President Biden just quadrupled tariffs on Chinese-made cars from 25% to 100%. And that reflects an uncomfortable role. reality for America. Made in China

ain't cheap anymore. And our third and final story is Pizza Hut. They launched a burger, but it's cooked more like a pizza. Pizza Hut is taking a 30-year lesson from the Mick Pizza. Process can eat the product. Are we going to eat this product? If we go to Orlando, yes we are, Jack.

Let's make that part of our process for tomorrow's pod. Hey, Ronald, extra pineapple. But yet this pod's not over yet. Here's what else you need to know today. First, one day after OpenAI's big artificial intelligence announcement. Google held their own AI announcement debt. Starting next week, you're going to see major changes when you Google something on Google.com.

Next week, when you start Googling things to Google, instead of a long list of links that we usually see, instead, we're going to see an AI overview at the top. So first, you're going to see AI's attempt at answering your question. Then you're going to see some paid ads, and then you'll see the long list of links that you know and love, or maybe don't love, from Google, cert. And second, meta is reportedly shutting down workplace, their office communication software. It was part of meta's push for the metaverse. You could wear a headset to virtually collaborate with your colleagues instead of going into the office.

But like many of Zuck's original ideas since Facebook, this one failed. Yeah, workplace, it's not getting zucked by anybody. No, it ain't. And finally, Memstock mania continued for a second day. GameStop jumped another 60% higher yesterday. GameStop stock popped. AMC stock jumped yesterday. It feels like January 2021 again. And AMC took advantage by selling $250 million of brand new stock at those really high inflated prices. But remember, Yetis, this is a FOMO rally. And FOMO can quickly become no-mo.

No-mo. Now, time for the best fact yet. This one sent in by a whole bunch of besties who had a correction for us, Jack. This week we covered the Chevy Malibu. We covered that GM was killing the final Chevrolet sedan. We did a story this week on the death of the sedan in America. The American sedan. It's going from an endangered species to an extinct species. But a few of you pointed out that General Motors still makes a few sedans.

In fact, they make them under the Cadillac brand. It's true. Cadillac still makes luxury sedans from $35,000 at the bottom to $95,000 on the high end. So while the sedan isn't extinct like the dodo, it's kind of in more of that. I don't want to say polar bear area, but you know what I'm getting that, check. Still, for GM's Buick, GMC, and Chevrolet brands, starting next year, you're only going to have trucks, SUVs, and the Corvette. Yeties, you look fantastic out there.

And if you think that Utah's new hockey team should be called the Yeties, we want to hear it. We want you to vote. We left a link in the episode description so that we can kind of sort of own an N-HATES. all team together. We kind of feel like partial owners here, even though no one will legally acknowledge this. We couldn't find a notary, but it's okay. You're our notary.

And if you've got Vanity Fair magazine, remember, act like you've been there before, except if you haven't been there before. They quoted us twice. They quoted us twice. Oh, and by the way, Yeties, if you're working at Skims, hit us up at T-Boy Pod for a collab.

Really? Skims hasn't done business news yet. Podcasters, we need shapewear. Before we go, a happy 40-year work anniversary to Fritz Baldwin in Houston, Texas. He walks in every day, radiates positivity, and everyone loves working with him. Bon voyage to Jenna Marshall, who's headed to Tokyo and Bali with her family for a great trip. And congratulations to Jonathan Young on the AI Kickstarter. Keep that campaign rolling, baby.

And congratulations to Jay Schwamm in Taipei, Taiwan, who just graduated with a master's degree from NYU. And Jay Zhang and Cassie Zhao in Portland, Oregon, have got an anniversary. They met while hiking on the Oregon coast, and that is just beautiful. And happy birthday to the food packaging master over at Target, Casey Dan Neeluk. And Jack, how about our buddy Alberto Alvarez, who created an escort, has a birthday, and is on a one-month gym streak all right now today. Happy 34th birthday to Erica Beerbauer in Orlando, Florida. The mother of two is celebrating with the fan.

This is Jack. I own stock of Victoria's Secret and Nick own stock of Lulu Lemon.