The Best One Yet - 🐝 “Yonce-flation” — Beyonce’s Swedish Inflation. Spotify’s YouTube strategy. Cava’s bistro IPO.

Episode Date: June 16, 2023

Beyonce’s concert in Sweden literally caused nationwide Inflation — And it’s the perfect case study to explain all Inflation.Spotify just made a complete pivot to its podcast strategy — It’s trying to be less like HBO, more like YouTube.And Cava’s stock doubled after going public in its very first day of trading — Because 2023 may be the year of the restaurant IPO (aka “The Bistro IPO”).Check out our onesie: ⁠tboypod.com/shop⁠Take our quiz: ⁠go.tboypod.com⁠$SPOT $CAVA $SG $CMGSponsor links: ⁠www.Expressvpn.com/TBOY⁠⁠www.Mudwtr.com/TBOY⁠Want 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_____________________________________0:00 - Intro1:20 - TBOY Onesie3:30 - Beyonce Raises Sweden Inflations8:00 - Cava IPO13:30 - Spotify's New Strategy17:02 - Takeaways17:39 - What Else is going on18:17 - Best Fact Yet19:41 - Shoutouts  Learn 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 Friday, the real Friday, June 16th. And today's pod is the best one yet. It is a T-boy, Jack. We got a three-day weekend beginning right now. Oh, yes, we do. Yet, he's market to close Monday for June 10th.

Not too shabby. It's the most brand spankan new of all the federal holidays, and it's the second one. Happy June 10th, happy three-day weekend. Happy early four-day work week. Friday, the real Friday is a real Friday. It is Extra Friday. First story, what do we got for the show, Jack? Get this, Beyonce's latest concert has caused inflation. Literally, nationwide inflation.

Yeties, to understand economics, you must understand yanceflation. For our second story, it's Kava. Kava, the falafel chain just went public and its stock doubled on day one. 20203 is the year of the restaurant IPO. And our third and final story is Spotify. Spotify just completed the pivot of their podcast business. Instead of being an HBO, Spotify wants to be a YouTube. But Yetis, before we hit that wonderful mix of stories.

That is how you go into a three-day weekend, Jack. That is a wonderful mix. Dude, Wilder said podcast today for the first time ever. Are you kidding? Was that his first word ever? The Podson said podcast. This is an incredible audio fan. It's a nice little segue to this next bit because A-B-L-E, A-B-L-E, A-B-B-L-E.

Yeties, that stands for always-B-L-L-L-L-E. Everything. So Yeties, Nick and Molly are launching a baby quite soon. Actually, Jack, the due date is tomorrow. Like, where is this baby? It hasn't come yet. It's not an exact signs, Nick. It can be any time.

It's true. It's true. Good point, Jack. But Yeties, I got Nick a gift. Get this besties. Jack got me a special custom tea boy onesie for the future baby. That's right. A baby onesy that says the best one yet on it.

So like when Molly and I take a photo of the baby in it, that baby is the best one yet. That's right. But Nick, you guys don't know the gender of the baby, right? No, we don't. It could be a boy, could be a girl. We don't know what's going on, Jack. That's why we made you one blue and one pink. Look at these things. Talk to me, baby. We did the whole thing. Look at that yet. He's Jack and I. We whipped up a onesie in Bestie blue and we whipped up a onesie in slamming salmon pink. But then we thought to ourselves, let's make a third onesie. So Jack and I decided to whip up a third onesie in the color Goo Goo Goo Goo Gaga gray.

Because remember last month, besties, we asked for your help in designing these baby onesies. Well, you voted online and your favorite design happened to be our gray onesie. It was a great gray onesie. But then we thought, why just one onesie? Why are Jack and I only making one onesie for my one baby? They're called onesies, but there can be more than one. Yeah, so Jack and I decided to make more onesies for all of the Yetty best babies yet out there. So Yeties go to T-boypod.com right now to check them out.

They go on sale today. The best onesies yet. These things are 100% cut. These things are made in America. These things are a soft desert. Hey, you know what we're talking about. You can see where we're going with this thing. If you know a baby, that's the best one yet.

Then that baby needs the best onesie yet. Nick, I'm excited for you and mom. Jack, I'm excited it could happen this weekend. We have no idea. It could happen in the middle of the pod. Yeties, let's set our three stories. We may not have time. Phone call.

15 years before this song, two boys from me. the Northeast met in the dawn. They had an idea to cause a cultural storm. It's the best one yet, but the best is an norm. That's it is. 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, the country of Sweden just saw inflation caused by Beyonce. And they call it the Beyonce effect. If we understand Beyonce Sweden, we can understand the rest of the So, Jack, let's kick it off to the summer tour. Beyonce, she's on World Tour for the first time since 2016.

There we go. I was actually at the 2016 World Tour in Gillette Stadium. You're like waved goodbye. You were like, oh, that's you for seven years? I didn't know it would be seven years, but it was seven years. It turned out being seven years. So Yeti's this concert, with all this pent-up demand, it's expected to gross $2 billion. Can we sprinkle on some context, Jack?

That would be double the current record for a world tour. And who's got that? Good trivia. Elton John, his final tour. But like we said, Yetis, there's a lot of pent-up demand for this concert. So there is a lot of people who want to spend a lot of money, especially for the first show. And the first show happened on May 10th, and it was followed the next night by the second show on May 11. Beyonce grabbed some pickled herring, grab some meatballs, and decided to step on stage for the first time in seven years.

In Sweden. She's in Sweden. Yes. Get this, Yeties. Beyonce was such an echo. economic force there? Such an economic force. It affected the nation's inflation figure for the month of May.

If you like it, then you better put some GDP on it. Yet it is. We've talked about the Taylor Swift economy before. Yeah, we have Swiftinomics. We've totally done that. But Yance just moved an entire nation's economy. Jack, let's hit the numbers. We learned this week that Swedish inflation came in at 9.7% for the month of May.

That is double what we have in the United States. That is much higher than was expected by economists. And the reason inflation spiked, they're calling it the Beyonce effect. The Beyonce effect, because two back-to-back Beyonce concerts caused that high inflation. Those two concerts caused Stockholm to experience an intense imbalance of supply and demand. So Jack and I had to jump in T-boy style. Jack, let's start with the demand. Let's talk about the demand for that concert series.

The high willingness to pay from Beyonce's most hardcore fans overwhelmed the city of Stockholm. Because it wasn't just Swedes who were going to these concerts. concerts. Who was it, Jack? People from across the world came to see her in her first show. 50,000 people entered Stockholm just for this concert over a two-day period. The population for the city of Stockholm grew by 5% in that one weekend. All right, that's the demand situation. But Jack, we got to talk about the supply. Well, the supply is fixed. There's only so many hotels and restaurants and flights available in the city of Stockholm. You can't just whip up a new Hilton because Beyonce is in town.

So everyone wanted to buy a finite number of things, and there simply wasn't enough. So what happened? Prices rose. Hotels in a 30-mile radius outside of Stockholm all saw prices jump. That is the economic splash caused by Beyonce. Jack and I were looking at this situation. And we weren't sure if we should cover this story, but then we were like, we have never seen a single event like a concert affect an entire nation's economic numbers. We've seen a World Cup effect an economic, but a World Cup is different than a concert.

Right. This was literally four hours of entertainment. Because Nick, who runs the world? Yonts. So, Jack, what's the takeaway for our buddies? Over in everyone who cares about the economy. If you want to understand inflation, just take the Beyonce effect and multiply it by a billion. Yet is this is why we wanted to cover the story. This is the beauty of economics.

Studying a small model enlightens us about the big picture. So let's just extrapolate the micro-Bioncé effect to understand the macro-Bioncé effect to understand the macro rest of the world situation. During the pandemic, demand for buying things surged, just like Stockholm saw during the Beyonce visit. But during the pandemic, supply actually shrank for most of the world. Supply chains broke, and the war on Ukraine made it worse. So too much demand, not enough supply?

That was how Beyonce caused inflation in all of Sweden. During the pandemic, it's simply a bigger version of that that caused inflation across the whole world. So besties, to understand global inflation, simply look at a Beyonce concert in one country. It's the same thing just on a smaller scale. For our second story, Kava, the fast casual food chain. They just became the first big IPO of 2023.

And its stock just doubled because IPOs are like penguins on an iceberg. Gettys, Kava, the Chipotle of chickpeas, right, Jack? It's a fast casual Mediterranean chain that has modeled everything based on Chipotle. Basically, these guys have scaled the falafel. That's the goal. Just replaced the tortilla with tahini. Now, we covered this company a month ago when they announced that they were going to go public very soon. Yeah, we told you they had a half a billion revenues last year, which is about one-tenth as big as Chipotle.

Now, yeah, if you're trying to picture this company when you walk in, they've got enough hummus that they could drown you in it. Yeah, if you're wondering, Nick's love language is HAVA. Add some pistachios? I'll take it six out of seven days, Jack. And Kava pursued the suburb strategy. Yeah, that was the competitive advantage here. While all their competition focused on cities, Kava focused on the suburbs. Kava is less Manhattan, more Massapequa.

They're less Bronx, more Bronxville, right, Jack? That's exactly right. And here's the news. The stock began trading yesterday under ticker symbol Kava, and the stock doubled on day one. It's like less flat iron area, more Fairfield County. That's right again. Yeah, their stock doubled yesterday. That was a huge jump, like 100% in a single day.

It's very first day. Pavel was worth $1.5 billion in the private markets last week. But after the stock price jump, they're worth almost $5 billion on public markets today. Which is more than one lift. Now, that surge by Kava stock on day one, it's a huge deal. Because we think 2023 could be the year of the restaurant IPO. There's actually a few major restaurant chains that have all filed to IPO, like Panera bread, Johnny Rockets and Twin Peaks.

Or Fatburger, Fogood the Shelfare. Brazilian Steakhouse, Gen Korean Barbecue. All six of those chains are looking at IPO right now. Like we said, tastes like a restaurant year. It's the year of restaurant IPOs. So, Jack, what's the takeaway for all our buddies in the stock market? IPOs are like penguins on the edge of an iceberg. No one jumps in until one brave sold us. Yeah, do we talk about this for a second. We are halfway through the year, and yet there's a record low number of IPOs. Only 44 companies have gone public this year. To sprinkle on some context, in 2020, 400 companies IPOed. In 2021, 900 companies IPOed. Last year, things dropped

off, but this year, there's been like nothing. And here's the reason why, besties, IPOs are all about timing and comfort, just like penguins waiting on an iceberg to jump in the water. And just like penguins, there's safety in numbers. Right, because other penguins won't jump in the water until one penguin is confident enough to do so. And then all the other penguins see that it's okay. There's no shark in there. Yeah. Well, you know what? So far this year, no big companies have been confident to jump in the IPO waters. And it's understandable why there's a dearth of IPOs this year. We got inflation. We got high interest rates, low stock prices, war in Ukraine, China uncertainty. It is not comfortable out there. But Kava was a brave soul.

They took the big jump into public stock markets and that could lead to other companies jumping in. Because the way Jack and I see it, IPOs are just like penguins. After one jumps in, everyone jumps in. And now a word from our sponsor, Mudwater. Yeties, Jack and I took a couple Econ classes together back when we were in college. Yeah, we did. And the key to an economic study is to isolate a variable. Well, Jack and I both isolated one variable when we tried mudwater. We kept the rest of our lives the same, but we switched from coffee to mud water. Okay, frankly, mud water? Simply the best coffee alternative. It just is. Sip a hot cup of mud water in the morning. Get the energy you need without the caffeine rush.

Mud water. It's made of four adaptogenic mushrooms and Irovedic herbs. You can add half and half. You can add honey. You can even add butter, which is my favorite. Yeah, can I drop the pro tip? We got that pro tip. What do you got? Okay, maple syrup in the mud water. That's what I do. Maple mud water. I like it. Yiddies, we ran an economic study on our bodies by isolating what's in our mugs. And we liked the results. mudwater.com slash T-Boy to support the show and use code T-Boy for 15% off.

M-U-D-W-T-R.com slash T-B-O-Y and use code T-Boy for 15% off your order. ExpressVPN. So Jack and I, we both work at a co-working space. And sometimes we whip up a takeaway from a coffee shop on the way to work. And sometimes we craft a story from a flight at 30,000 feet. And sometimes we record the show from a hotel during a buddy's wedding. But there's one thing we do, no matter where. prepping this podcast. We use a VPN. In fact, for a few years now, we've used ExpressVPN.

Yeties, when you log into an unencrypted Wi-Fi, your online data, it's just not secure. So anytime we're away from home, we open the ExpressVPN app and we click on. ExpressVPN, it creates a secure encrypted tunnel between your device and the internet so that hackers can't steal your data. We wouldn't want someone stealing our podcast stories, and we don't want someone stealing our personal data. We would not want someone stealing our podcast stories. Secure your online data today at ExpressVPN.com slash T-Boy and get three extra months free. That's ExpressVPN.com slash T-B-O-I. ExpressVPN.com slash T-Boy. For our third and final story, Spotify's podcasting pivot is complete, from an HBO strategy to a YouTube

strategy. Spotify's podcast push, it benefited podcasting more than it benefited Spotify. Jack, nothing like a podcast story on a podcast about podcasts. It just feels so right, doesn't it? Yet he's four years ago. Spotify realized that the economics of music streaming, their core business, were tough. But the economics of podcasting, their new business are strong. Yes, podcasting let Spotify double dip. Jack and I love talking about the double dip. This is the unique thing about the podcasting business model, the double dip. Podcasting let Spotify make both advertising revenue and subscription revenue. From the $10 a month that they're charging you for Spotify.

So Spotify spent a billion dollars, acquired three podcast studios, invested in podcasting technology, and bought the exclusive rights to a bunch of big shows. A little more context? They spent a quarter billion dollars on Collar Daddy and Joe Rogan. Just those two shows. That's it. But last week, Spotify announced 200 podcast people were getting laid off, and they were merging all their studios into one Spotify podcast studio.

Yeties, Jack and I are in the pod industry. You're listening to a podcast. We're thinking this is an interesting strategy story. We thought you might be interesting. Yeah. So we follow a reporter on Bloomberg named Ashley Carman, who only covers podcasting and the audio industry. And here's what she's thinking,

that this move by Spotify represents something bigger. She thinks Spotify is pivoting its entire podcasting strategy. From an HBO strategy to a YouTube strategy. First, let's look at the HBO strategy. HBO, Jack, what do you think of when you hear? hear HBO style content. The top quality shows. Stuff that you're willing to pay $15 a month to subscribe and watch.

That was Spotify the last few years. Wasn't it, Jack? HBO style. Spotify splurged on top podcasts and hoped that as a result, you would subscribe to listen exclusively on Spotify. But yet he is not anymore. Spotify is pivoting from HBO to YouTube. Right.

A YouTube strategy. And Jack, when you hear YouTube strategy, what kind of content are you thinking of then? Not premium content. In fact, anyone can publish on YouTube. And most stuff is not exclusive to YouTube. An HBO strategy, it focuses more on like Michelle Obama's podcast. But a YouTube strategy, it focuses more on like Michelle Obama's hairdresser's podcast. Or anybody's podcast.

To wrap it up, Yeti's, Spotify is done paying big bucks for HBO quality podcast. Instead, Spotify's going to focus on the ad revenues from a YouTube style strategy. So, Jack, what's the takeaway for our? Our buddies over at Spotify. Spotify's podcasting push benefited podcasting more than it did Spotify. Yeti's on a company level, it doesn't look like Spotify's podcast business ever helped the company make a profit. Spotify spent a billion dollars on podcasts but didn't get a clear return on that investment.

However, on an industry level, Spotify succeeded in bringing a lot of cachet to all of podcasting. Spotify's splurge attracted talent and listeners and production quotes. to the young medium of podcasts. Spotify brought a little razzle dazzle and sprinkled dinkle to all the podcast. Didn't it, Jack? There we go. Which makes Spotify's podcast situation a rare, interesting phenomenon.

Spotify's podcast push helped the industry more than it helped itself. Jack, can you whip up the takeaways for us for the three-day weekend? Beyonce's concerts in Sweden caused inflation to spike there. Yet he's to understand the world's inflation. Simply look at the Beyonce effect. bigger. For our second story, Kava just went public with an IPO and the stock doubled. IPOs, they're like penguins sitting on the edge of an iceberg. And we think a bunch of more penguins are about to jump in. And our third and final story is Spotify. They completed

their podcasting pivot from an HBO strategy to a YouTube strategy. But Spotify's podcast push helped podcasting more than it helped itself. Now, Jack, could you also whip up a few more stories that we didn't cover on today's show? Here's what else you need to know today. Yeti's Twitter just got evicted from its Boulder Colorado office. Because when Elon took over, he stopped paying rent at offices he thought were too expensive. And American Express, their stock just fell after a report about your spending. Because we haven't been putting as much money on our credit cards with high interest rates. And finally, Toyota. Their stock just had its best week since 2009. Because Toyota finally announced a plan to do electric cars.

Finally. It's about time. Speaking of time, time for the best fact yet. This one whipped up by Jack and me before your three-day weekend. There is no pod on Monday because Monday is a federal holiday. The newest federal holiday, the markets are closed on Monday. Juneteenth is the newest holiday, but it's not the youngest holiday. Right, because Juneteenth, June 19th, was actually first celebrated 100.

158 years ago. This goes all the way back to June 19th, 1865. At the end of the Civil War, when enslaved people in Texas found out that they were free. President Lincoln had emancipated all the slaves across America two years earlier. But it took two years after Lincoln's announcement for those in the far reaches of Texas to learn about it. That day was Juneteenth. It's been celebrated in black communities for decades. But last year, it finally got the federal holiday attention it deserves.

Yetis, you looked fantastic this week. Jack, this baby, I mean, this could come out. We got a lot to celebrate the new onesies. We just dropped the new onesies. Yeah, Cevice Wednesday. You're trying to make it a thing. We also got the quiz. We just launched the quiz.

True. Go. T-boypod.com. And also, again, just the onesies look fantastic on the website. We did a great job of these. Nick, we're all excited for you and my. We're all excited for the onesies. We'll see it Tuesday.

We could still be here. Have a great long weekend. Celebrate the wins. And before. we go. A happy fifth wedding anniversary to Molly, my wife, who, Molly, if you have the baby today, that would be incredible. How cool would that be? Molly, great girl, great girl. You look fantastic, Molly. And congratulations to Aaron and Wes, who are getting married this weekend just north of Boston. Okay, get this, Jack. May and June Wong are a couple of twin sisters. Both are

accountants and both are celebrating the same birthday today down in Florida. And happy birthday to Grayson and Ronan Winkert. Also twins, the Twin Nato's, celebrating their birthdays over in Utah. And Louis Frank, happy birthday down in Shoreview, Minnesota. And happy birthday to Xavier Traverzo in Davenport, Florida. And Kanah Patel is traveling to Chicago for his birthday where he's going to do some logistics. Happy 12th birthday to Ryan Carr in Tampa, Florida. And Jessica Gray of Philadelphia.

is listening to this pod on a commute and celebrating a birthday. Happy birthday to Ms. Katie Jack, celebrating their birthday on a trip to Portugal. And a happy birthday to PT Harbrant who's celebrating with a PT Paloosa down in North Carolina. And finally, a happy Father's Day to all the Yeti dads out there. And to big Ted Kramer up in Vermont and big Mike Martel down in New York City. And to you, Jack. And to anyone else celebrating something today. to T-boy.

Celebrate the wins. This is Jack Nick and I both on stock of Spotify and Chipotle. Oh, interesting. I noticed you buttoned all the way up today. I know. I know. At the wedding rehearsal party,

everyone was commenting on my chest hair. Yeah, so own it. It's great hair. I'm hairy like animal. You guys should open it up? We're an audio product. Don't even worry about it. We're a family-friendly show now.

People don't even, I'm not even wearing pants right now. That's not true. Or is it? Here we got. Three. Two.