The Best One Yet - 🥃 “Negroni Hotel” — Death & Co’s hotel chain. Costco’s 9am DINK hour. Apple acquires Intel? +Ad-supported Toilet Paper

Starting point is 00:00:00 This is Nick. This is Jack. Welcome back. It is Monday, September 29th. And today's pod is the best one yet. This is a T-boy. The top three pop business news stories you need to know today. Welcome back to everyone's favorite business show. Jack, the stories are so good today. What do you say we just hit the pod? For our first story, Death & Co. is the bar that started the craft cocktail trend 20 years ago. And today, they run 50 bars worldwide. But now Death & Co. is launching hotels. And if you help fun, them, they'll name a cocktail after you. For our second story, everyone says that Apple is in a slump. The stock has been flat this year, they've lost their IMOjo. But we think Apple can make a surprise move to become the ultimate American brand. Acquire

Starting point is 00:00:44 Harley Davidson. No, just kidding, just kidding. Acquire Intel. Very interesting story, Nick. And our third and final story. Last quarter, Costco ran an experiment. Would you pay extra to shop at Costco when it's less crowded? Because every young Costco member said yes, so we're calling it the early dink special. But yeties, before we hit that

Starting point is 00:01:07 wonderful mix of stories. Fantastic mix of stories to kick off the weekjack. Have you ever walked into the bathroom, done your business, and then reached for the TP? And then you have to wait? Because before you get the toilet paper, you must watch an advertisement. No TP until you finish the commercial? What's going on? This has never happened to me, but did they at least give you the skip this ad in five seconds button. Besties, it's bizarre, but for some public bathrooms over in China, the toilet paper is now ad-supported. True story, and it's actually even worse than it sounds, because first, you must scan a QR code with your phone, and then you have to watch the commercial. And then 30 seconds after all that, does a door finally open revealing the TP? And not a whole roll. Just three

Starting point is 00:01:53 sheets of TP, to be precise. Only three squares to spare Jack. And if the barbecolo from last night's really bothering you. Can you need more toilet paper next? Oh, then you're going to have to watch more ads, my friend. This sounds like a black mirror episode, but in the form of an onion post on Instagram. Apparently, Jack, the only thing standing between you and buttoned those pants back up is watching a 30 second Jeep commercial. Although, yes, you can pay to skip like a Netflix ad-supported tier. And I guess you can always B.YO toilet paper, right? But in theory, besties, we got to admit, you know what? Ad-supported toilet paper, it makes sense. Someone going to the bathroom is the definition of a captive audience.

Starting point is 00:02:33 I mean, Jack, at no point in your life, are you more captive than when you are sitting on a toilet, hopefully. So probably they could force you to watch 50 commercials per TP. So that's from the business perspective, but from an ethical perspective, what are we thinking, man? We hate this. Feels like a crime against humanity. I'm sorry, Jack. Can't you spare a square? Sorry, Nick. I can't spare a square. There's no square to spare.

Starting point is 00:02:54 Yeties, let's get our three stories. These met in the dorm. They had an idea to cause 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. Tea boy city on your at list.

Starting point is 00:03:14 If you know, you know, because we're ready to go. We can't wait no more, so just start the show. First, a quick word from our sponsor. For our first story, Death and Co. is the East Village bar in New York that started the craft cocktail movement and now they're pivoting to hotels. But Death & Coe is doing something surprising.

Starting point is 00:03:48 The hotel chain they're launching has no brand. Zero brand. Yeah, it is, if you were hanging out in downtown New York, circa 2010 to 2015 like we were in the East Village, Jack, what was the trend you noticed? The city didn't run on Duncan.

Starting point is 00:04:02 It ran on expensive craft cocktails I could not afford. We're talking eight ingredients in a drink, 15 minutes to make, and minimum $34 for that puppy. The kind of cocktail that you wake up the next morning, you're not like, I can't believe I ordered three cocktails. Why did I offer to pay for that round? I'm sorry, Jack, did he just crack a raw duck egg into that thing?

Starting point is 00:04:24 Dude, I have had, like, raw egg white cocktails. I don't know how those are sanitary. Full disclosure, ladies. Jack and I have both been to death and co after waiting hours in line to get in. It is the impressive date-night spot of the East Village when we were living there. We can vouch. The cocktail menu is longer. than Moby Dick. I ordered a Sazirac there once, Jack, and the list of ingredients had its own bibliography.

Starting point is 00:04:44 It was like a Supreme Court ruling. Picture this, Yetis. A moustachioed bartender dressed as a 19th century chemist. Okay, my martini is garnished with a gooseberry? I don't even know what that is, but I will try it. So, this bar on East 6th Street in New York City near Tompkins Square Park started the craft cocktail trend back in 2007. It wasn't started by business guys, MBAs, or anyone with a business plan. It was founded by two art students who had no idea what they were doing, but they did know what they were doing. Because they anticipated the millennial trend of craft everything that was about to come. Well, two decades later, Death & Co has now opened 50 bars worldwide. It's one of the most successful chains of bars in the world. If you've been to a boutique hotel with an intimate bar

Starting point is 00:05:28 with great lighting that made you feel like James Bond meets Wes Anderson, these guys designed that bar. But here's the news. Now the Death & Co guys are launching their own hotel chain. Two craft mixologists with no experience outside of the bar. Mm-hmm. They're taking on Ritz Carlton, Nick? They're trying to make the four seasons of old fashions out there. And it actually makes sense. They understand hospitality. They have opened 50 bars in other hotels before. And Death and Co owns four bars here in America today that are doing 14 million bucks in revenue. But they just did an interview on CNN that surprised us. They decided to fund the construction of there are dozen hotels that they want to build, they're turning down venture capital money and asking the customers to fund it instead.

Starting point is 00:06:12 That's right. As they go from martini to motel, they want the customers to pay for the expansion. And honestly, it's the biggest crowdsourcing we've ever seen. You used to imbibe at Death & Co. Now you can invest in Death & Co. And get perks if you do invest. Okay, get this. What happens if you invest $5,000 in the new Death & Co hotel jack? 10% off drinks at any Death & Co forever. What about $50,000 investment? A cocktail named after you at that hotel bar for one year. The Jack Tini, I'll take two.

Starting point is 00:06:42 What about a half a million dollar $500 grand investment in Death and Co's hotel? You'll be listed as a co-founder of that hotel. You'll get 25% off everything for life for you and your family. You'll get a cocktail named after you. A permanent private table you can use. And you basically get to pick the next city that they expand to. No, you do. You get to like steer where your money's going.

Starting point is 00:07:03 like Detroit, for example. But besties, before you just choke on that sprig of rosemary in your drink, the biggest surprise here isn't the custom nicronies. It's the name of Death & Co's first hotel. So, Jack, what's the takeaway for our buddies over at Death & Co. Death & Co's pioneering, an anti-brand brand. Now, yeties, when Jack and I first heard that the creator of the craft cocktail movement was opening a hotel chain, we were intrigued.

Starting point is 00:07:31 But our surprise was that the best of the best thing, biggest name in cocktails is not going to use their name for the hotel chain. Because get this, none of the new Death & Co hotels or bars in those hotels will be called Death & Co. Instead, each of the new hotels will have its own unique name unlike all the other ones. That is a totally different strategy than the other boutique chains out there, like the W, the standard, or the ace. Death & Co wants each of their locations to have an authentic name relevant to that hotel's story. Yeah, like their first one is going to be the municipal grand hotel because it's in a building in Savannah, Georgia. They used to be a municipal building. Each location will have a totally different name, different style. You'll have no idea this is part of a train.

Starting point is 00:08:15 And that's the risky but clever move here. You see, despite the brand equity of death and co, they are prioritizing individuality and authenticity instead. I like it. I'd love to think that my hotel is one of a kind. You're just trying to get a cocktail named Matthew right now. Besties added up and death and co is pioneering a new thing, the anti-brand brand. For our second story, Apple is in talks to follow Nvidia and the United States of America's lead by investing in Intel. We'll do you one more. Apple should acquire Intel and finally become a made-in-America company. Now, yeties, the biggest stock market surprise of this year. It isn't Build a Bear, although that toy stock has surged, as we told you last week, Build a Bear. The biggest stock surprise of this year is boring old Intel.

Starting point is 00:09:09 The flailing chipmaker is up 76% this year. Intel, it's like the Laboubood doll of the tech industry these days. First, because the U.S. government became a big shareholder, now owning 10% of the company, and then because Nvidia bought 4% of the company. Intel inside? Yeah? Intel's got insiders. But in the last week, Intel's chip stock.

Starting point is 00:09:31 has jumped another 20% because of one big surprise. Apple. Here's the report from Bloomberg. Intel approached Apple about making an investment into America's biggest chip maker. Now, best, you'd sprinkle on some context here. Apple and Intel, they actually go way back, don't they, Jack? They've got a history. From 2006 to 2020, Intel was the chip that was inside Macs and MacBooks. But then Apple broke up with Intel because their chips just weren't cutting it. Now Apple does its own cooking and designs its own chips. But Apple's problem today isn't chips. Its problem today is China and India and the fact that no iPhones are made in the United States.

Starting point is 00:10:10 Which leads not to the news, but to our bold statement for all the intelligentsia intel workers out there. Here's what we're thinking. Apple shouldn't just invest in Intel. Apple should buy Intel. Yeties, Intel is now Trump's company after his administration bought 10% of the stock. But if Apple acquired Intel, then Apple could become Trump's company too. Apple acquiring Intel could get Apple out of the White House doghouse. After all, Jack, in order to please Trump,

Starting point is 00:10:39 Tim Cook, CEO of Apple, did pledge that he would invest $600 billion in American manufacturing. Instead of doing that, which sounds like a lot of work. They could just acquire intel, which would cost far less, probably $200 billion or so. $200 billion, that's like Tim Cook's budget for the landscaping bill at Apple headquarters these days. Apple's valuation moves $200 billion in one day sometimes. This acquisition would not be that big a deal. That's what Zuck spends on a few AI talents over the weekend, easy. And if Apple did it, it might stop getting all the tariff threats every day.

Starting point is 00:11:12 What's the worst that could happen with a deal like this? Apple weighs $200 billion. But what's the best that could happen with Apple acquiring Intel? Apple becomes Captain America. And gets its IMOGO back. So Jack, what's the takeaway for our buddies over at Apple? could reverse the script on, designed in California, made in China. Yeties, those six words, they're on the back of basically every Apple device, and they sum up the modern American economy.

Starting point is 00:11:39 We design it, but China makes it. We design it. China makes it. Has been extraordinarily lucrative for shareholders of Apple, and it's given Americans low-priced iPhones. But that arrangement has also given us massive inequality, economic anxiety, and the new trade war. With Apple, helping guide R&D, maybe Intel could return to being a great tech company. For national security, America needs a chip champion, and Apple could raise that champion. And for Apple, it could go from China and India outsourcer to U.S. manufacturing leader. Now, yeah, Apple would still make their iPhones abroad, right, Jack? But if the chips were made in the USA, that'd be a huge change.

Starting point is 00:12:23 It would earn Apple major political brownie points. It could boost Apple's brand perception here in the States, and it might even be a profitable move, too. Besties buying Intel. That could begin to reverse the script on the six words that have defined Apple's success for two decades. Designed in California, but made in China. Now a quick word from our sponsor. For our third and final story, last quarter, Costco ran a very interesting experiment. Would you pay extra money to shop at Costco when it's low? less crowded. And because every young Costco member said, hell yeah, I would.

Starting point is 00:13:04 Enthusastically. We're calling it the early dink special. Now, Basties, before we begin the story, a quick update, we still don't know if the Costco Nike collab sneaker shoe is real, right, Jack? Well, since neither company has confirmed it, I think it's not real. But we do know that Costco just did $86 billion in sales last quarter. Jackie, sprinkle on some context, please. That's almost enough to acquire Nike, like the whole company. Amazon calls itself the everything store. Costco is the anything store. So let's dive into those earnings,

Starting point is 00:13:34 because sales rose 8% last quarter to that $86 billion, but Jack, where was the growth that Costco interestingly coming from? Youths. The youths. The CEO of Costco highlighted young people three times in the earnings call we noticed. He pointed out that the average age of a Costco member has come down significantly, and today, half of new members are under the age of 40. But besties, here's what Jack and I found fascinating about this story.

Starting point is 00:13:59 Costco pulled off a timing experiment last quarter. They basically tested out an early bird special and wondered how people would react. We're calling it the early dink special because Costco executive members can now get special access to the stores before they open at 9 a.m. From 9 to 10 a.m.,

Starting point is 00:14:18 executive members can shop at Costco without the, not to be crude here, refraff of regular old Costco members like me. Now, I am a regular member. And Nick, shop there, I have to like tell my family to stay near me and be safe. Their shopping carts are everywhere. They're huge. You have to look both ways before you cross an aisle. Jack's a people pleaser, so he does not like confrontation in aisle six, right? Jack does not want to toss elbows for a 12-pack

Starting point is 00:14:45 of Kirkland tequila. Honestly, dude, it's become such an ordeal shopping there that we actually use Instacart now. They let me get my Costco discount, and it's like not an expensive fee at all to do delivery, which has led Jack to this early dink special. How did Costco's experiment go when they offered this opportunity? People liked the idea so much. Costco saw a 9% jump in membership upgrades to the executive tier. And now besties, remember this. The membership fees at Costco are pretty much where Costco makes all their profits every quarter. Yeah, everything they sell in the store, they sell it at close to break-even prices. Therefore, the 9% jump in membership upgrades for this service of early bird special, it resulted in an equally sized jump in the profits. So it appears

Starting point is 00:15:28 young people like me upgraded their Costco membership to executive so they could shop there when it's less crowded. Plus, Costco added an extra open hour on Saturdays to all their members as well. And spoiler, that hour is now packed Saturday nights. Probably could upgrade your membership. Jack, what's the takeaway for our buddies over at Costco? There's a bigger trend here, and we call it clubification. Clubification. Yetis, it's not just Costco where people are willing to pay a premium these days to get exclusive treatment. It's a trend we've been talking about for a couple of years now, clubification across America, across many different industries. For example, the Amex fee. It's gone up to $895.005. That credit card is basically a shopping club now with exclusive lounge access.

Starting point is 00:16:13 In New York City, there's been a huge rise in members-only clubs. There's the chief club, the Kith Club, more Soho houses, more Casa Chippriani's. Goodness, Jack. Country clubs are booming. Surf clubs are now a thing. And the pickleball clubs, get in line if you want to get in. Bestie is the rise in demand for exclusivity. It began during the pandemic, but back then, it was for safety concerns. And it's only accelerated since. More people want to be with fewer people and are willing to pay for it. That's clubification. Jack, could you whip up the takeaways for us to kick off the week? Death and Co. Started the craft cocktail trend, and now they're launching a hotel chain. But it's the first hotel chain with no name.

Starting point is 00:16:57 They're pioneering the anti-brand brand. For our second story, Apple shouldn't just invest in Intel. We think they should acquire the company and rescue America's only major chipmaker. That would begin to reverse those six words we've all seen, designed in California, but made in China. And our third and final story, Costco is now open from 9 to 10 a.m.

Starting point is 00:17:18 just for executive card holders, which led to a surge in membership. upgrades. This is the clubification of America. People are paying more to be with fewer people. But Yeties, this pod's not over yet. Here's what else you need to know today. First, the big news that Wall Street is watching this week, it's the government shutdown. The government must pass a new funding bill before October begins. So the government funding deadline is midnight, Tuesday night. And here are the two sides. The Democrats are demanding a restoration of the one trillion dollar Medicaid spending that was cut by Trump's big, beautiful bill.

Starting point is 00:17:53 Republicans are threatening that if the government shuts down, they'll fire a whole bunch of federal workers. Wall Street will be watching. And second, the hottest new investing trend abroad is K-pop bands. Korean pop bands were already publicly traded entities on the Korean stock market, interestingly. We found a couple of them. But now smaller K-pop bands are getting venture capital funding, and yeah, they're making bank. And it all may be thanks to Netflix's K-Pop.

Starting point is 00:18:21 demon hunter that a lot of our Yetis and besties love. If you want a K-pop bubble like butter. And finally, Hershey just won its biggest lawsuit in years, the false Halloween advertising lawsuit. Last year, an angry trick-or-treater sued Hershey's for misleading them on the packaging of a bag of Halloween candy. Okay, apparently the package looked like a pumpkin-shaped chocolate, but the reality was like the chocolate just looked like a circle, not a pumpkin. Which is kind of true. The judge rules that Hershey's did not violate name, image, and sweetness rules. Yeah, apparently the pumpkin-shaped ball was actually close enough to a pumpkin. The circle was close enough to a pumpkin that the judge thinks it wasn't misleading.

Starting point is 00:19:03 It's a round-up situation. I don't know about that, but I'm not a judge, apparently. Now, time for the best fact yet. This one sent in by Smokey Bear, because this is the last day to vote for Fat Bear Week. Fat Bear Week. A competition to see who is the fattest-looking bear in America's national parks. Tomorrow is the last day to vote in the most important election of our lifetimes. And it's basically a body-positive competition, right?

Starting point is 00:19:28 Jack, we'll put a link in the episode description for you. But here's a fun fact about bears. The reason they're so fat is that they're preparing for hibernation, which begins in October. That's right. For the next five to seven months, bears will not eat, drink, urinate, or defecate for that hibernation period. How their bodies are able to just sit in that status quo for five to six, seven months. That's a story for another pod.

Starting point is 00:19:48 Oh, yeah, yeah, bear hibernation. In corporate America, this is called a quiet quitting, by the way. In academics, it's called a sabbatical. Yetis, you look fantastic today. And Jack, what do you think? What should we ask the Yetis in the poll today on Spotify? What should we go with today? How about should Nick join Costco?

Starting point is 00:20:09 I mean, obviously the answer is yes. So if you agree, give us a specific reason. Nick is persuadable on this. I mean, you know I have nothing against Costco. Huge respect for Costco, but Jack, I am I am saving my membership money for another lover. Oh, God. I'm waiting for an Erdogan membership because I'm just a sucker for smoothies.

Starting point is 00:20:27 Nick also has huge pantries, but for some reason, they're not full. You know, when you grow up in New York, you don't grow up with a pantry, Jack. So, like, the pantry we have now, I feel like it's spoiling. I'm not comfortable with it. Sounds like you've worked that through with your therapist. In the process. Yeties, you look fantastic. Remember to tap to follow us to get us every single day.

Starting point is 00:20:47 And Jack and I, we'll see you tomorrow. Before we go, a congratulations to legendary Yeti's Dirk and Emily, who got married over the weekend in lovely Park City, Utah. Happy 60th birthday to Dr. David Kohler in Jacksonville, Florida. And a happy birthday to Yeti Pratu Ram Kumar, who's celebrating the big one over in Mumbai, India. And happy 30th birthday to Ashley Andrea in New York City. And Alicia Wren is celebrating the best birthday yet down in Fremont, California.

Starting point is 00:21:20 And a happy ninth birthday to Evie in West Dundee, Illinois. And Jack, you better jump on the Metro North because Tate Bridges is turning 21 years old over in Palisades, New York. Congratulations, Tate. Upstate. Oh, upstate. Upstate. Dude, I can see the Palisades from Manhattan. It's not upstate. Pretty far north, Jack. And to anyone else who's celebrating something today, make it a T-Buy.

Starting point is 00:21:46 You can't take a subway there. Celebrate the wins. This is Jack. I own stock of Amazon, Intel, Netflix, and Instacart. And Nick and I both own stock and Apple.

The Best One Yet - 🥃 “Negroni Hotel” — Death & Co’s hotel chain. Costco’s 9am DINK hour. Apple acquires Intel? +Ad-supported Toilet Paper

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