The Best One Yet - 🦾 “McBot Burger-Flipper” — McDonald’s robo-restaurant. Tesla’s worst day. Google’s “code red.”

Episode Date: January 4, 2023

McDonald’s just opened its first ever robot restaurant… and it will forever kill the “soggy fry problem.” Google just issued a “Code Red” warning about its most important product (when Google goes Code Red, we pay attention). And Tesla dropped 12% to start the year, and we can trace the fall back to a strange email we got from Tesla on December 23rd.$MCD $TSLA $GOOGFollow The Best One Yet on Instagram, Twitter, and Tiktok: @tboypodAnd now watch us on YoutubeWant a Shoutout on the pod? Fill out this formGot the Best Fact Yet? We got a form for that tooLearn 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. It's Wednesday, January 4th, and today's pod is the best one yet. It's a T-boy. It's a T-boy. Jack, how did it stock do to kick off the year? The same thing they did last year. They fell. Do less 20-23. Do more 20-23. Dual actually do a lot more. That would be much better for us. Jack, what's our first story for today's pot? McDonald's just quietly opened the first ever robot restaurant. And this new robot restaurant is going to finally kill the soggy French fries. Our second story, Tesla stock plummeted by 12% to kick off the year. And it all began with a strange Tesla email that Jack and I both received. And our third and final story is Google.

Google just issued a code red thread alert about its most important product. And when Google issues a code red, you pay attention to that code red. But Yeties, before we hit that wonderful mix of stories. Fantastic mix of stories. Very curious about the French fry. What's the healthiest New Year's resolution? Jack, it's a fair question. Are you thinking what I'm thinking?

Is this going to be fitness related? 100 push-ups a day, walk 10,000 steps a day, climb 10 stories a day. The juice cleanse here, maybe a salad binge there. No, no, no, no, no, no. The healthiest New Year's resolution is actually the calendar purge. The calendar purge clear every single appointment out of your brand new annual calendar. Well, the CEO of Shopify, the e-commerce company, just canceled every recurring meeting in every worker's calendar.

I'm sorry, Jack, can you please repeat that one for us over here? The CEO literally cleansed every work calendar of his entire worker base. Yetis, if you worked at Shopify, that weekly one-on-one, it is now done. That monthly management meeting, it's finished. Because get this, Yeties, on average, we all spend 18 hours a week stuck in meetings. That's according to meeting maestro Stephen Rogelberg, professor. We're talking 18 hours a week. That is half of your work week stuck in a meeting mania.

Half of your career is stuck listening to like Bob's weekly blabber session you don't care about. Half of your work is wasted at some Wednesday all hands, man. Yeties, let's stop pretending to be present at meetings you don't want to be present at. Bestie's the best way for you to add to your life is to subtract from your schedule. In 2023, clear your meetings, clear your mind. Reject the invitation, accept the aspirate. You know what, Carol? I can't connect on that accounting call this week.

I'm sorry, Bob. It's going to have to wait until 2024. The top New Year's resolution, it's not a fitness surge. It's a calendar purge. Let's in our three stories. 15 years before this song, two boys from the Northeast met in the dawn. They had an idea that caused a cultural storm.

It's the best one yet, but the best is an norm. Jack Nick, that's it. I don't even think they need to practice. 50% that's a fat tip. B-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, McDonald's just opened their first ever robot restaurant. Because profits always beats PR. All right, Eddie's Jack and I got to open up to you about something. There was like one thing that was kind of bothering us over the holiday break. All vacation, right? It was like that one thing. Wasn't it one thing? It was that 2022 prediction about the all-robot restaurant that did.

didn't happen last year. Jack was texting me. He was like, when is this? I thought that was going to happen. Why didn't Chipotle pull this off? Nick and I thought we were wrong. We said on our year end pod that we were wrong. Well, get this. It turns out Jack and I were wrong about being wrong. Because McDonald's announced right at the end of the year their first ever robot restaurant. This new McDonald's, it opened in December just outside of Fort Worth, Texas, and they went full R2D2 on this thing. It's not like they hired C3PO to flip the burgers and dip the chickens. Take me to your friar. No, there's still human beings in the kitchen that are making that McFlurry for you. But here's the key. Every other element of this robot restaurant is automated with a bot. If you are a customer of this McDonald's outside of Fort Worth, Texas, you're never going to see, hear, or speak to a human being. Here's what Jack and I do kind of love about this concept.

Ironically, McDonald's newest restaurant is its emptiest restaurant. If you walk into this place, you're gonna be like, is this place closed? There's nobody here. Silent. No one is interacting there. Now, if you want to order, you do so either on your phone or on a touchscreen kiosk inside the restaurant. If you want to smile, if you want to compliment, if you just want to say thank you, you did cook the burger medium well done as no one asked for, you can't do that. Because your food is prepared by people in the back, but it's delicious.

delivered to you by conveyor belt. And McDonald's launched a series of patented ropes and pulleys that are moving the food from a counter inside to the drive-through window outside, like some kind of star cruiser ship. If you pull up at the drive-thruiter window, there's not a person there. It's just a brown bag sitting on the conveyor belt. But yeah, can we please talk about like the actual biggest innovation out of all this stuff? It's what McDonald's calls the tracker. The trackers. McDonald's knows you ordered a head on your phone, so they track your estimated arrival time to the restaurant to pick it up.

Okay, here's where things get kicked up a notch. They time the cooking of your meal to align with where your smartphone is. Right, so they won't fry the fries until you're close to the restaurant. That way, it's hot and ready every time. So what Jack and I are trying to say here is that McDonald's just killed the soggy French fries. R2D2, he did it. You're never going to have a soggy fry again, baby. So Jack, what's the takeaway for our buddies over at McDonald's?

Profits Beats PR. Yet he's funky thing that Jack and I noticed about this McDonald's location. McDonald's is kind of embarrassed about this new store. Like, they are not boasting about this brand new robot restaurant. It was actually hard to confirm from McDonald's that this actually happened because it, like, wasn't press released, it wasn't in the news section of their website. We were this close to literally calling McDonald's corporate headquarters to find out if this was a real thing, because they, like, weren't really acknowledging it.

We finally found a blog post, and McDonald's emphasized this is just a time. test, and we only have it at one location so far. And the reason that they took this strange approach to a new innovation is because the public relations blowback would have been bad. It was bad. It was predictably bad. Because conveyor belts, they're replacing human workers. Oh, and if your order is wrong, you can't talk to a human being to fix it. But here's the thing. McDonald's isn't focused on short-term PR. They're craving long-term profits. Because over time, robots are cheaper than $15 an hour human workers. Because over time, they staff fewer people at this location.

The real estate is 26% smaller and 26% cheaper. And because robots are moving the food, each order interaction is quicker, which means they can boost sales. Now, McDonald's hasn't shared the numbers yet, but this robot restaurant, it looks, it smells, it tastes like a profit puppy. And profits beats PR.

For our second story, the worst stock of 2023, It's Tesla. It's already Tesla. It's only been one day. But Tesla is facing a multi-year problem. All right, yeah, he's time for a little storytelling. Back on December 23rd, just a couple weeks ago, Jack and I both got a strange email from Tesla. Nick and I subscribe to Tesla updates,

but we've never seen a Tesla update like this one. Okay, I got it right here, Jack. It says... Here it is, here it is. Take delivery of your Model 3 or Model Y Tesla before the new year and get $7,500 toward your purchase. Is that a discount? That is a discount on a Tesla. Jack, they are selling Teslas like they are cardigans at Macy's.

They're offering $7,500 off the price of a Tesla. Tesla sounded like a used car salesman in that email check. What do I got to do? Come on down to Rick's Tesla. 0% down, 0% APR financing. $7,000 of free cash. Son, touch that chassis. That is 100% American-made.

If this ain't the best ride you've ever had, I'll give you the keys to my home. Going down to Rick's down in Wichita, herb chambers just outside of Boston. Now, there is some rationale behind this discount because starting this year in 2023, Teslas are now eligible again for a $7,500 tax credit thanks to the Inflation Reduction Act. So Elon was basically offering that same discount, but he did it a week early because he really wanted you to buy a car as soon as possible. He wanted the fourth quarter numbers to look good, and we got those fourth quarter numbers on Monday. Peking of fourth quarter numbers, Jack, can you share Tesla's big numbers that we just got? Tesla delivered 40,000 fewer cars than it produced in the fourth quarter. Okay, Yetty, so let's

sprinkle on some context here. That means for the third straight quarter, Tesla produced more cars than it could actually sell. Add together that deficit in deliveries, along with the email that Nick and I got, those are signs of weakening demand for Tesla's electric cars. And you know what? We can already see this in Tesla's stock price. Last year, Tesla was the fifth worst stock in the S&P 500. And we are one year into 2023. And how is Tesla doing this year, Jack?

With its 12% drop yesterday, it is officially the number one worst stock in the S&P 500 in 2020. So, Jack, what's the takeaway for our buddies over at Tesla? Record bests aren't enough for Tesla. All right, any, these funny thing about Tesla's disappointing numbers, they were actually Tesla's best numbers ever. Investors were disappointed by Tesla's best-ever delivery quarter. It almost doesn't make any sense, but here's the reason why. Tesla is actually the most valuable car company on planet Earth by far despite last year's stock drop. So Wall Street expects not just best ever numbers, but dominating growth numbers from Tesla.

And Elon has promised and delivered until recently 50% annual sales growth for Tesla. That is a huge number. So Tesla's dominant stock price demands dominant growth. Not the measly 11% growth like last quarter. We're at a point where record bests are just not records for Tesla anymore. Its high stock price means it can't merely set records. It must smash them. Now a word about our sponsor, Robin Hood.

You know, honestly, your salad, it says so much about you. You like to blaze your own trail at the salad bar. Yeah, I'm ordering a salad. I go off menu, man, like a combo of kale and croutons that has never been made before. Me? I'm not reinventing the wheel. I like to go classic. If you're squeakerian thinks it's a good combo, Jack's not going to change that.

Kind of like investing strategies. Someone to build a custom portfolio of stocks, crypto, and options. Others don't want to reinvent. Just give me the most standard ETF. Whether you're tweaking your one-of-a-kind portfolio every day or prefer a more hands-off approach, Robinette has the tools. If you're not investing on Robin Hood yet, to get started, go to robin hood.com slash T-Boy to choose your free stock.

That's robinood.com slash TBOI. Limitations apply. Stocks offered by Robin Hood Financial LLC, member SIPC. Crypto offered through Robin Hood crypto. All investments involve risk. By the way, this podcast is not owned or part of Robin Hood, and we are not employees of Robin Hood. For our third and final story, Google CEO just declared a code red warning because of a single startup. Because of a tiny startup.

Because of one startup. Unlike Diamond's, Yeti's, Monoplies aren't forever. Okay, Bessie's just a month ago. Jack and I decided that he's something a little different. We mixed things up. Remember, Jack, we asked a robot to do our podcast. That's right. We asked Chat GPT, a chatbot, to write the script of the best one yet.

Yeah, it did. But with a Charles Dickens style. I was like, this is Nick, this is Jack, and this is Tony Team. Yeti's Chat GPD. about it. This is a chat bot that launched publicly in December and became a top tech story of 2022. God bless our takeaways, everyone. Now, our first thought about chat GPT was that this is the threat to creative industries. Because this chatbot could write poems. It could write movie scripts. It could even write TV ads. It even wrote part of our podcast. But according to the New York

Times, Google's CEO, Sundar Pichai, considers it a grave threat to Google. Okay, Google, Google doesn't just consider it a grave threat. It issued a code red warning about this chat bot. Code red. All hands on deck, fire alarm. This is not a drill. Chat GPT is actually the first major threat to Google search that we have seen in our lifetimes. Now we know what you're thinking yeties. How is chat gbt a chat bot? How is that a threat to Google search? It's a threat to Google search because it's a different technology that delivers you information better. Yet is. A chat bot delivers one exact answer to your question in a conversational format.

On the other hand, a search engine delivers you a range of top answers in a list format. For instance, we've all Googled how long and what temperature do you roast a bone-in chicken thigh. You wanted to make a slamming salmon, but instead you're cooking up a chicken thigh this evening. Now, chat GPT is going to tell you very simply, put it in the oven at 400 degrees for 40 minutes. It's going to say it like you're talking to a person. It'll literally say like put it in the oven, wait a little bit, and then enjoy the chicken later. Hope you have a great dinner. Google search, on the other hand, is going to deliver you a long list of links,

half of which are paid ads and some of which have like 3,000 words on the history of the chicken breast. All you're going to do, you're going to click on the link. You're trying to get the recipe. Instead, you hear about like Sarah's great. grandmother loving this chicken and how she decided to use garlic ones. It's a huge pain so you finally call your mom instead, which you should have done right from the start. And honestly, chat GPT is going to be easier to talk to maybe than your mother.

What we're trying to say is chat GPT may also replace your mother, but always call your mother. Yeties, now you see why Google is calling a code red to suck chat GPT before chat GPT destroys Google Search. Because Chad, GPT, it's definitely not perfect yet. It gives some wrong and sometimes offensive answers to questions. It may even think that chicken was a slam and salmon at some points. But if they perfect that technology, it could solve the same problem as Google Search, but better. Yeah. So, Jack, what's the takeaway for our buddies going Code Red over at Google? Monopolys are almighty, but they're not immortal. Okay, honestly, besties, Kind of shocking that a $20 billion startup is a code red threat to $1 trillion Google.

Google is mighty. For 20 years, it has been the world's front door to the internet. Honestly, based on the numbers, Google is basically a monopoly. It handles 90% of all searches on planet Earth. It's one of the most almighty tech powers in the world. But history is littered with once almighty monopolistic businesses that are now bankrupt businesses. Kodak in film, Xerox in printing, Blackberry in smartphones.

Not just successful, they held monopolies on their industries just like Google does in internet search. But now those three companies are tiny, bordering on irrelevant. Because monopolies, they're almighty, but they are not immortal. Jack, can you whip up the takeaways for us over there? McDonald's launched their first robot restaurant just outside of Fort Worth, Texas. Because profits beat PR.

For our second story, that, Tesla email that Nick and I got. In the fourth quarter of numbers, they show weak demand for Tesla's. Record best just aren't enough for Tesla. And our third and final story is Google. They've declared Code Red to defeat or destroy

chat GPT. Because monopolies are almighty, but they are not immortal. Now time for the best fact yet. This one sent in by Amit Batia from lovely Cleveland, Ohio. You ready for this? Hit us, Jack. Asia is bigger

than the moon. Boom, that's it. Can we repeat this one? It's pretty straightforward, actually. Asia is bigger than the moon. The continent of Asia is larger than the moon in outer space. That's what we're trying to say here. There is geographically more surface area from Turkey to Siberia than on the moon. There is geographically more land from Russia to India than on the moon. Now, what is the surface area of the sphere, by the way? Four-thirds radius to the fourth. It is. And that's what we're completely. comparing to Asia, right? The bigger question, is it called land if it's on the moon? We need someone with basic geometry and someone with basic geology to get together and answer these questions for us.

Meanwhile, the moon's like, wait a second, I'm bigger than six other continents. I get no credit for this. Yeties, you looked fantastic today. Actually, if you want another New Year's resolution, here's what it could be, H-Y-H-T-B-O-I. Have you had the best one yet? Ask your buddies. That's how we grow the pot. If you know, you know, we'll see you tomorrow.

And before we go, happy birthday to Yeti Chuck Mullet, turning 30 in Hagerstown, Maryland. And Sparsh Patro in Dublin, Ohio. We're looking at you. Congrats on turning the big one-one. And we got a birthday for Hunter Stanford over in Lehigh, Utah, too. And congratulations to Joe Neumann for graduating for the business school over in Illinois. Oh, we want to wish a good luck to all of the Chicago booth MBAs who are interviewing at BCG today.

You're going to get the job. Psh, psh, psh. The answer to the case study question? Yeah, it's C. And to anyone else celebrate something today, make it a T-boy. Celebrate the wins. This is Jack. Nick and I both own stock of Shopify and Robin Hood,

and we both own ETFs of the S&P 500. Now a word about our sponsor, Robin Hood. Okay, so Jack and I both worked in finance for a while. And we know the six-monitor Bloomberg jockey, with charts, numbers, balances, and more charts. They got coffees in both hands while they're executing some complex trade on a soybean future. Well, we're not trying to impress with our mission control trading center. Just give us an app, please. Robin Hood with its mobile first and intuitive design, it lets you

trade with just a few quick taps on their app. And even if things still don't seem easy, Robin Hood has your back 24-7 with its live and robust customer support. If you're not investing on Robin Hood yet, to get started, go to robin hood.com slash t-boy and choose your free stock. That's robinood.com slash T-B-O-Y. Limitations apply. Robin Hood Financial LLC, member SIPC, all investments involved for risk. By the way, this podcast is not owned by or part of Robin Hood, and we are not employees of Robin Hood. If this ain't the best ride you've ever had, I'll give you the keys to my home.