The Best One Yet - 🤳 “The FOMO Lawsuit” — Meta sued by 41-states. Texas Roadhouse’ resurgence. Kristen Bell’s diaper dilemma.

Episode Date: October 25, 2023

41 states just filed a blockbuster lawsuit against Meta, claiming it is harmful and addictive to kids — This could be Zuck’s “Big Tobacco” moment, and it’s because of FOMO.The fastest-growing restaurant in America is Texas Roadhouse — From Applebee’s to The Olive Garden, chain restaurants are enjoying a resurgence.And Kristen Bell & Dax Shephard’s diaper startup, Hello Bello, has filed for bankruptcy — Because there’s a dirty secret about the Direct-To–Consumer business model.$TXRH $DIN $DRI $METASubscribe 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 Wednesday, Saviche Wednesday, October 25th. And today's pod, it is the best one yet. It's a T-Boy Jack. Nick, did a couple of Yetis just interrupt the recording to say hi to you in the studio? That was actually a great yet. He's a Yenai who works at a winery, actually.

Not too show me. There we go. We've got to get some peanut flowing over here. I love what besties and yetty say hi in the while. I'm only like a drive-by-Tie boy, Jack. First story for today's show. What do we got on the pod, man? For our first story, Meta is being sued in federal court for allegedly addicting children to social media with FOMO.

41 states think that Instagram deserves a big tobacco moment. For our second story, the fastest growing restaurant in America right now is Texas Roadhouse. Hey Applebee's, America's craving for chains is back, baby. And our third and final story is Kristen Bell and Dach Shepard. Their diaper startup just declared bankruptcy. Because D-to-C brands have a dirty diaper. secret. But yet he's, before we hit that wonderful mix of stories. A wild mix of stories for a Wednesday, Jack, Saviche Wednesday. You may know that I am an alum of the Olive Garden. I was a waiter

there for six months. I mean, Jack, I will whip up the accolades for you. Three-time regional wine salesman of the month for the Greater Burlington Regional Region area. That's exactly correct, Nick. And I retired on top. Now, the key to selling the most wine at the Olive Garden is offering every diner, a free sample of the wine. You just keep pouring until they stop stopping. No, it wasn't exactly kosher. Like, I'm not totally sure I was allowed to do this. But I offer them a little taste.

And then I chat them up before you know it. Everybody wants a glass. Jack, whatever you got to do to win that award. But in the meantime, Yeties, there's something about Olive Garden that not even Jack knew about the Olive Garden. The Olive Garden's famous cheese graders are for sale. We repeat the newest revenue source for the Olive Garden. What is it, Jack?

It isn't the food. It isn't the breadsticks. It's the kitchen utensils. Yeti's the classic Olive Garden cheese grater. It is a engineering marvel. Here's what you do. You insert a hunk of cheese. You start cranking the wheel and filling up that tube with grated pecorina. I follow you, man. When it's full, you dump that cheese onto your pasta. Jack, tell me what to stop. Never stop. Trick question. Go on until it's out. Turns out, Yetis, it's a little olive garden secret. They will sell you the cheese grater at your tamed. ball. Yep, it goes for $16.43 if you ask your waiter politely. So naturally, Jack and I jumped in

further T-boy style, and we learned even more. It's not just the cheese grater that's for sale. If you want the salt shaker, you can buy that too. The Olive Garden sells it. If you want that pepper grinder? The Olive Garden sells it. If you want the bowl that's holding your rigatoni primavera. They'll sell you the plate before you finish licking it. The Olive Garden isn't just dishing out food. They're dishing out dishes too. Come for the chicken. Let's leave with the cutlery. Sorry, sir, can I have another fork for my fettuccini? Absolutely not.

We're sold out. Now, yeties, the Olive Garden says availability for these utensils varies by restaurant and availability. Torto leave that cheese grater and back away slowly, sir. But frankly, why are they even charging us for these cheese grateres? Uh, Jack, when you're here, I thought you were supposed to be family. Yeah, but even family doesn't let you take graders and walk out for free. Hey, waiter, let's in our three stories. Fifteen years before this song, two boys.

from the northeast met in the dawn. 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. For our first story, 41 states are now suing Instagram because of one particular feature,

FOMA. Some are calling this lawsuit Facebook's big tobacco moment. Getty's a bombshell lawsuit was dropped yesterday in federal court by 41 states against Mark Zuckerberg and meta. It all started two years ago when whistleblower Francis Hogan leaked internal Facebook reports to the public. The Wall Street Journal got him. They were called the Facebook files. And basically,

they showed some damning internal research from Facebook about Facebook and wasn't that good stuff about Facebook. Here was the key finding. The 22 million teens who log into Instagram every single day are addicted to Instagram and Facebook knows it. They also found that Facebook and Instagram have a toxic impact on the mental health of young people, especially with teen girls. Well, that leak sparked an investigation in 2021, which resulted in the huge lawsuit today. And here's how the California Attorney General summarized this 233-page lawsuit. Meta exploits the psychological vulnerabilities of young users through false promises. Now again, this was a 233-page lawsuit. So Nick and I grabbed some reading glasses, grabbed a cold brew, and we've read this thing.

for you. We jumped in T-boy style because Yetis, you know what we discovered is different about this meta case? The 41 Attorneys General highlighted specific tactics that Facebook and Instagram used, specifically FOMO tactics. They literally were talking about the fear of missing out as a Facebook strategy. The attorneys general used the term FOMO nine times in their complaint about meta in federal court. Literally in this 233-page lawsuit, they described how Zuck built features to drive teen phoma. For example, in 2016, instead of populating your feeds chronologically, meta switched them all to populate by popularity.

The top post on your feed, it's not the one that happened like 10 seconds ago. It's the ones that are going to most likely keep you scrapping and scrolling, even if that was like a couple days ago. And then meta unveiled a feature called Infinite Scroll. Infinite Scroll, Jack. Not going to lie, that does not sound like a healthy thing. Meta strategically showed you part of a post when you all. open up Instagram. Not the whole post. Exactly. So in order to see Cindy's party picks, you have to keep

flicking your thumb and scrolling down because they only showed you part of the picture. And then they only showed you part of the next picture. So you have to keep scrolling to entice your curiosity. Which then shows you half of the next picture, which leads to the infinite scroll. The lawsuit shows that Instagram created a hamster wheel-like effect to keep you in the app scrolling and scrolling and scrolling. Powered by FOMO. 41 states are saying that Facebook, intentionally used the fear of missing out to addict teens to use their apps. Because there's a very clear correlation. The more you're using the app, the more they profit.

Now, Meta spokesperson said this about the lawsuit that dropped yesterday. Hey, attorneys general, maybe you should have helped us write the new rules instead of just suing us. They were probably too busy swiping Zuck's apps because they're addicted too. And it's the first time we've ever seen FOMO in a lawsuit. So, Jack, what's the takeaway for our buddies over at Meta? This could be Zuck's big tobacco moment. but against kids.

Yeties, that's the analogy here. Big tobacco lied for decades about the impact of cigarettes on physical health. This lawsuit says meta did the same thing, but lied about mental health. Does scrolling on Facebook and Instagram improve your psychological state? Probably not. Very certain not. Now, you might say, I'm an adult. It's a free country.

I can make my own decisions about what apps I use and for how long. And you know what? You're absolutely right. That is totally true for adults. But it's not the same when it comes to kids. So 41 states are arguing that Zucks meta manipulated kids with addictive FOMO features that they were powerless to resist. That's the damning argument that Zuck's legal team has to defend themselves against in court. For our second story, the fastest growing restaurant brand in the world?

It's Texas Roadhouse. Casual restaurant chains are experiencing a comeback. Nobody saw coming. The Yetis, you know the casual restaurant chain because you can smell it before you can even see it. The waiter has a mandatory uniform that includes a vest and dozens of buttons on the front. If you don't have 37 pieces of flare, what are you even doing there, Jack? Every one of these restaurants has a happy hour neon sign that's always on. Jack, if the menu isn't laminated in plastic on both sides, I'm not even going to eat there. And of course, the bus boy is flirting with the server as they both roll silverware into cloth napkin rolls.

It's a romantic business model. From the Capitol Grill to the Olive Garden to TGI Friday, sales for these casual restaurant chains fell from 2010 to 2015. Because of millennial tastes. Because of Nick and Matt. Basically, we wanted something different. We wanted un-corporate ambiance. We wanted farm-to-table local experiences.

Nick and I were ordering the sizzle sampler platter for lunch. Instead, we got like the $14 organic quinoa Boodabal. The casual restaurant chain. Added to the list of things are generated. had killed. But here's the news. Chili's and their baby back ribs are back, baby. Yeah, casual chains. Apparently they're having a comeback and it's not just nationwide, it's worldwide. Because the fastest growing restaurant brand in the world right now is Texas Roadhouse. Texas Roadhouse, according to the brand finance annual report, Texas Roadhouse is surging the most of any restaurant chain when it comes to brand recognition and overall sales.

Texas Roadhouse is a publicly traded company with 700 restaurant locations. It's worth $7 billion on the stock market. It's worth two lifts. Now, Jack, have you jumped in T-boy style on this place or what? I went to one in North Carolina during a business trip. You walk in and you see all this raw red meat behind a piece of glass. It is an experience. And you have to pick the steak that's going to be yours.

And then they cook it for you. Not exactly the cliche plant-based millennial experience we were used to. And yet, Texas Roadhouse is thriving. And it's not just Texas Roadhouse, which is dominating the food scene right now. Other old school restaurant chains are thriving too. Applebee's just had its best sales growth in nearly 20 years, all thanks to that wedge salad. The Olive Garden is creating their own Roman Empire, adding 100 locations this year. And the never-ending pasta bowl is consistently become a viral hit on TikTok with nearly 2 billion views.

Americans want mozzarella sticks and blooming onions right now. by enthusiastic flair-dawning waiters. Casual restaurant chains. They're eating your lunch. Literally. Actually, we're eating their lunch. Literally. So, Jack, can you grab a blooming onion

and tell us the takeaway for our buddies over at Texas Roadhouse? Three megatrends are saving the chain restaurant. N-O-M. Nommi-dies. After a decade of decline, three megatrends have come together to save the restaurant chains.

First is N. N. Nostalgia never dies. In times of discomfort. We crave comfort. Second is O, office workers. Return to office, it means the return of the corporate lunch. And the third is money matters. Inflation anxiety.

It has people looking for value. And big chains are better at controlling prices than mom and pop bistros are. So best, he's at it all up 10 years ago. The casual restaurant chain concept was dying. Today, it's thriving. Because the three megatrends are saving the casual restaurant chain. NOM, nom, nom, nom. For our third and final story, Kristen Bell and Dax Shepherd, their diaper company just declared bankruptcy.

If you live by the Facebook ad, you die by the Facebook ad. Yeties, you are not a celebrity couple these days until you launch a direct-to-consumer candle startup with a sansara font. Enter Hello Bello. It launched in 2019 with a noble mission. Let me read it to you, Jack. Premium diapers for all babies. The first two words on the website of Hello Baby are premium and affordable. Heck, that is not a value proposition. That is a contradiction. How do you offer a premium product at an affordable price?

Well, there's actually an answer, Yeties. And that answer is the direct-to-consumer business model. The D-C millennial business model. By cutting out the middleman, we can offer the same product as luxury diaper companies, but for a lower price. D-to-C direct-to-consumer. But that's not exactly how it's. went for Hello Bello. Yeah, four years in, this week, Hello Bello just announced bankruptcy.

And now Hello Bello will continue operating as it moves to a private equity ownership. Now, interesting thing Nick and I noticed about this story. Hello Bello is a celebrity-founded D-to-C failure. One day after, we covered a story about a celebrity-founded D-to-C success. Just yesterday, we were covering a direct-to-consumer success. We covered skims, which was expanding to menswear from Kim Cardone. Skims now offers body suits for bros. A cute top for a cute us.

Kim Kardashian skins. It's worth $4 billion. They started with underwear. Now they do like everything. Their sales are up 50% this year. They're planning to IPO. They've become a direct-to-consumer success story, led by a celebrity. So an early takeaway here, having an A-list Hollywood founder does not guarantee you success.

Kim Kardashian and Kristen Bell, they are both wonderful, talented superstars. but only one of them has made a startup work. That's the early takeaway. Another takeaway is the dirty secret of the direct-to-consumer business model. Jack, let's talk about that dirty little secret. So, Jack, what's the takeaway for our buddies over in the entire D-to-C business?

If you live by Facebook ads, you die by Facebook ads. Yet is, according to a reporter from the information, a key reason for Hello Bellow's bankruptcy, it was Facebook ads. In fact, most of the direct-to-consumer brands Nick and I grew up with, they depended on Facebook and Instagram ads early on to grow their business. Jagals, what about the whiteboard here? Allbirds.

Casper, Warby Parker, Parade, Outdoor, Voices, wonderful brands, but they all depend on Facebook ads for marketing. Because they didn't have brick-and-mortar retail stores, they targeted new customers through social media. But besties, here's the plot twist. In 2021, Apple updated their privacy settings on iPhones. and Facebook ads became less effective. So overnight, starting in 2021, the flow of new customers coming from social media to these direct-to-consumer brands, they plummeted. And for the past two years, that single change by Apple has hurt Facebook and now hurt direct-to-consumer startups the most.

It's the dirty secret about D to C millennial unicorns. They lived by the Facebook ad, but now some of them are dying by the Facebook ad. Jack, can you grab that Olive Garden cheese grater and whip up the takeaways for us over there? Meta was just sued by 41 states for features designed to addict kids. So some are calling this Zuck's big tobacco moment, but for kids. For our second story, Texas Roadhouse and its casual chain brethren are the fastest growing restaurants in the business. It's thanks to three things. Nostalgia, office workers, and money. NOM, num, num, num, num, num, num, num, num, num, num, num.

And our third and final story is Kristen Bell and Dack Shepard. Their diaper startup, Hello Bello, just declared bankruptcy. Because Yeties, if you're D to C, you live by the Facebook ad and you could die by the Facebook ad. But Yeties, this pod's not over yet. Here's what else you need to know today. First, down in lovely Washington, D.C., we are more than three weeks in without a Speaker of the House in Congress. The latest Republican candidate, Tom Emmer, dropped out of the running because he failed to unite his party. And second, big earnings week continues. Microsoft stock jumped yesterday after reporting strong growth

in cloud computing. And Google stock fell yesterday after reporting the opposite. Weak growth in cloud computing. Well, that's awkward. And finally, Bitcoin has surged this week past $35,000. The price of Bitcoin has now doubled so far this year. And it seems to be driven by hype for a Bitcoin ETF that is getting close to approval. Our buddy, Ben, the Bitcoin, he's never looked better this year. Now, time for the best fact yet. This one sent in by Michelle Novelli from lovely Flagstaff, Arizona. Push and play. Here we go. This is Michelle Novelli from Flagstaff, Arizona. I have the best teacher fact. You mentioned that some teachers spend their own money on their classroom. That number actually exceeds 90% of teachers, and 47% of teachers feel guilty for not spending more money on

their students, but we know teachers are terribly underpaid. With Halloween coming up on a Tuesday, Day, show teachers you know some love. Get them a gift card and some caffeine. They'll need it. Okay. When I was a student, I loved my teachers. Now that I'm a father, I adore the teachers that are teaching wilder. And Jack, that fact from Michelle, that was sent in after the story we just did on the impact of teacher pay. Yeties, Jack and I did a pod last week on the number one elementary school in America. It's shockingly run by the Pentagon. They pay the teachers double and the results speak for themselves. It's honestly, it's the best one yet.

You got to check out that episode. Takeaway here, we got to pay teachers more. Yeties, you look fantastic for Saviche Wednesday. Jack, do you want to share where you took me when we did our first visit to Brattleboro to see your home? I took him to Applebee's, right? I thought you were taking, like, a lovely local institution when you brought me into your home.

You brought me to the Applebees. The menu was triple laminated. I don't know why I brought you the Applebee's. That was so embarrassing in hindsight. It was a fantastic burger. Nick was a good sport. This Manhattan night pretended to have fun at Applebee's with me. I was like, has this wedge salad been poached?

I didn't want to take it to the OG where I worked. Do you understand? No cruditate? Nick, they don't call it a bignet. They called it donut. Yeties, the best way to grow this show is to ask your buddies, H-Y-H-T-B-O-I. Have you had the best one yet?

If you know, you know. Nick and I, we'll see you tomorrow. And before we go, a congratulations. to Yeti, Cade Odette, who just passed the Series 7 exam down in lovely Utah. Next up, the Series 66. You got this, Kate, you got this. And Nicole and Raleigh are celebrating an anniversary and listening right now in the shower. We see you guys.

Not really, but almost. And happy 32nd birthday to Nikki Knocker-Lazano, who's also getting married over in Mesa, Arizona. And Megan Martin is turning 33 with her husband and her Frenchie over in Chicago, Logistics. Happy birthday to Meredith Brooks, who's having a queso cake over in Cincinnati. The Paris on the River. And Julie Kramer Damdar, a long time Yeti, he's got a birthday in Rochester, New York. Happy birthday. Happy birthday to Sophie Marshner and Connor Marshall. Two B-School buddies celebrating at Emory. And Alicia Stone is turning 32 in Melrose, Massachusetts. Have a happy birthday. And to anyone else, celebrating something today,

Make it a T-Block. Celebrate the wins. This is Jack, Nick and I both on stock of Apple, and we both own a Bitcoin. A Bitcoin named Ben. Three-time regional wine salesman of the month for the Greater Burlington Regional Region area. That's exactly correct, Nick. And I retired on top.