The Best One Yet - 🌴 “You can never leave” — Squarespace’s Hotel California. Intel’s freedom chip. Mystery’s corporate happy-hour.

Episode Date: February 16, 2022

You’ve probably heard a Squarespace ad on a pod… And they’re doing more podcast ads than any other company because of the “Hotel California” strategy. Mystery just hit a $100M valuation after pulling off not 1 but 2 great pivots. And Intel is dropping $26B on computer chip manufacturing because America needs Freedom Chips.$SQSP $INTCGot a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYorkWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Got a SnackFact for the pod? We got a form for that too:https://docs.google.com/forms/d/e/1FAIpQLSe64VKtvMNDPGSncHDRF07W34cPMDO3N8Y4DpmNP_kweC58tw/viewformLearn 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. And this is Snacks Daily. It is Wednesday, February 16th. This pod, Nick, I'm telling you. Yeah, talk to me, Jack. It's the best one yet. It's a TVO.

By the way, you know what the happiest person in America is right now? It's my mom. Because we've finally covered the container store. She's got that Marie Condo feeling right now. She does. She's been waiting years for this. She used to, like, go in there and guide people around. It was like a dosage.

I used to do the same when I had a small apartment need to organize. When you go to the container store, you just feel it home. Do we hit our first story? What's in our first story? What's our first story? If you've heard a podcast, you've heard an ad for Squarespace. Squarespace is spending more money on pod ads than any other company. Because Hotel California.

Such a lovely place. Such a lovely face. For our second story, Intel is spending $20 billion to build freedom chips. Freedom chips. Intel's making patriotic computer chips in Ohio that taste like freedom. Our third and final story is about mystery. It is. This is a startup that was a dating out app.

Okay. It became a dating in-app. Interesting. And then became a corporate dating app. Two pivots later, Mystery has found the best kind of customer. But Snackers, before we hit that wonderful mix. I love this mix, yeah.

The most popular mattress and bed in America next. It is? It's the queen. It's the queen-sized bed. It's the most popular. It's not the biggest mattress. It's not the smallest mattress either. Right in the meaty part of the curve.

It barely fits two people. a queen size, it does not fit two people in a dog. I can tell you that. No, no, it does not. You've spoken from experience here, I imagine. Oh, yeah. Oh, yeah. You feel like you're back in college when you have two people in a dog on that then. You should know, we were roommates. But Snackers, funny thing that's been going on during the pandemic. The king bed is becoming the king bed. Yeah, according to the Wall Street Journal, the classic 76 inch king mattress, it's now the fastest growing mattress anywhere. Our buddies at Temporetic, they were selling 40% of their mattresses were king size. But Jack, where are their king mattress sales now?

50% of sales today. And the reason for this total change of the king mattress, Jack? Couples are sick of each other. Yeah, Snackers, you're spending eight hours together working from home. You spend an eight hours together Netflixing from the couch. And then eight hours uncomfortably schvitzing on a tiny mattress rubbing up on each other when you don't want to be. Look, you need some space. Literally, you need some space. You need less cuddling, more. Get on your. side of the bed. That king bed, that is valuable real estate. Oh, it's the most valuable real estate. The king bed is the western plains of mattresses. I can't endorse a king size bed enough, Snackers. The king bed is its own geography. You want that land. So the pandemic, it may have brought you

closer together to your significant other. So your mattress, it should bring you further apart. Jack, what's the takeaway with our buddies who are doing king mattresses? The solution? The lowest hanging fruit solution to a relationship problem? Long live the king. The king-sized mattress. Let's hit our three stories. Mattress, mattress, mattress. You're tuned in the snacks daily.

We spoke to the lawyers and we got to get something legal out the way. The snacks about the hearing food is air candy. They don't reflect the views of the robberhood family. It's all informational just so. We're not recommending any securities. It's not a research report or investment advice. Not an offer or sale about security. Right.

Snacks is digestible. Business news for you Rapper Her Financial LLC Member Fenra Slash SIPC For our first story Jack, do you smell that?

The warm smell of Kalitas rising up through the air? Carnitas. It's pronounced Karnitas. I said it was Kalitas. Snackers' first story, Squarespace, Squarespace,

has quietly become the biggest advertiser in the entire podcasting industry. It's all part of their Hotel California strategy. Yeah, if you know, you know. First of all, Squarespace,

you've seen Squarespace? You've used Squarespace. You just didn't realize it was Squarespace. They make websites. And a year ago, it was a private startup worth $10 billion. Yeah. And today, Jack, what kind of a company are we talking about here? It's a public company worth half that.

Yeah, it's worth half because it's part of that 2021 IPO class, a company that went public and then saw their stocks drop. Just about every member of that IPO class, their stock is down. But despite that, Squarespace, they are loving this creator economy moment. They are loving it. According to the United States Census, there was a record number of small businesses created last year. You probably got a buddy who quit his accounting job to sell Scratch and Sniff Action Figure stickers. And he's going to need a website. That's quite a career pivot right there.

It is a pivot. And you know, Sam Slam and Sam and Sweeters, they're going to need a website too. And if those thrifty entrepreneurs need websites, they could hire an engineer out of like North Macedonia to code the website from scratch. Or they could just do the drag and drop tools from Squarespace because the business is made to not need any coding. Yeah, it makes it really easy to start a website. Squarespace is trying to get analog Andy to build their own with Squarespace. And Jack, how is Squarespace trying to get analog Andy to finally make a website with Squarespace?

Podcast ads. Yeah. There's nothing Guy Raz likes more than like interviewing a founder about bootstrapping and then dropping a Squarespace ad right in the middle of the podcast. If the word Squarespace was said, 99% chance it was by a podcast host. Because Squarespace thinks podcast listeners, it thinks. you're the young, ambitious entrepreneurial type. That might start a company and might need a website.

We're talking about you, Snack. This is who they think you are. I think this is a compliment. I like this a lot. I agree. So can I tell you about my promo code for Squarespace? Which is why Squarespace wants to offer you three months free when you set up a website using promo code something generic podcast.

Okay, but Squarespace doesn't just advertise on podcasts. No, Snackers. This is what Jack and I found fascinating about Squarespace. They're obsessed with podcast ads. have over-indulgerized in podcast ads. Jack, can we talk about what the New York Times reported? Yeah, in 2009, the Squarespace founder made a huge bet to grow his business. He decided to splurge $20,000. And remember, this was like a startup at the time on his first ever Squarespace podcast ad. It led to a ton of new users, one third of whom said, I heard about this company through the podcast that you advertised on.

So the Squarespace founder decides to start dishing out promo codes on podcast like an Oprah audience giveaway. By 2015, Squarespace was spending two and a half times more on podcasts than the number two podcast advertiser. Okay, we repeat Squarespace spending over double the amount on podcasts than any other company. At one point, 400 different podcasts were actively promoting Squarespace with those promo codes, Nick mentioned. Jack, you're like listening to something on your iPad Nano. Next thing you know, you're getting Squarespace, it doesn't even matter what pod you're listening to. And today, seven years later, Squarespace still. spends 40% of the revenue that they make right into ads to get more customers to hear about.

If Squarespace didn't advertise on it, was it even a podcast? Did Squarespace advertise on our pod when we did ads? If Michael Barbaro didn't read a Squarespace ad, was it even the daily? I think there's an active promo code out there somewhere. So, Jack, what's the takeaway for our buddies living it up with their alibis over at Squarespace? It's the Hotel California. You can check out any time, but you could never leave. Snackers, that's the strategy behind all these podcast ads. And we talked about this last year.

When there are high switching costs to ditching a product, you get a Hotel California situation. Companies are then willing to spend big money on ads to get you to be a customer because they know you can never leave. Exactly. Jack, you know, welcome to the Hotel California. That's Squarespace strategy. You can check out any time you like. You can consider switching your website to like wicks.com. But you'll never leave.

Because that would be a huge pain. Yeah, Jack. company Market Snacks, we set up a Squarespace hosted website. Like, that was our website on Squarespace. It's still there. MarketSnacks.com. It's still Squarespace hosted. Even though Market Snacks was acquired became Robin Hood Snacks, and we don't use the website anymore, we still use Squarespace.

Look, if the website's still there, somebody's paying Squarespace. I don't know who's paying for it. Snackers, when you hear a Squarespace ad on a podcast, imagine Don Henley. You can check out any time you like, but you can never leave. For our second story, Intel, they just made another huge acquisition to pursue the dream of the freedom chip. Because Team USA hasn't won gold in chips in 30 years. It's like a serious drought, man. It's like a really serious drought.

The first step to recovery, though, is admitting that you have a problem. And here's the problem, Snackers. America, we don't make critical things that our economy needs. For example, chips. Yeah, chips. Computer chips. We're just, we're not making them. We're the number one designer of advanced chips.

But we don't actually make the chips. They're designed in California, but they're made in China. Anyone can take the reservation. You have to hold the reservation. Verbs matter. What we're trying to say is verbs matter here. 30 years ago, it was different. America made 37% of the world's computer chips.

Okay, big number. Jack, what percentage of the world's computer chips is America pumping out now? Just 12%. That's it, Snackers. And that's why Intel wants to reverse the trend. And that's why the dream is the freedom chip. Okay. Here's the news.

Yesterday, Intel announced they're splurging $5.4 billion. That's a third of a lift. To acquire tower semiconductors. Tower semiconductors, chip company based in Israel, but they got two factories here in the United States. I'll take it. We'll do it. All right.

I'm down for this. Bigger news, though, last month from Intel back in January. Oh, Jack, you think in Ohio? The Ohio news? Intel is giving Ohio another chance at a title. Sorry, Bengals. There you go, Bengals fans. You're getting some there.

Intel, they're spending $20 billion. which is more than a lift on two factories to make the basic building blocks of chips, like the ingredients of chips. Fabs. Fabs. That's like what goes into a chip. Fabs are like cake batter. They are.

They could be used for a really basic twinkie. Or they could make a fancy high-end Susie chocolate marble cake with lava molten flowing out of this thing. Regardless of the sophistication of the chip, you need fabs. You do. And these two Ohio plants, they're not going to solve the chip shortage. No, because they won't be done until 2025. But Intel, they've got bigger ambitions. All you have to do is look at the blueprint of their architectural plans.

They've purchased a 1,000-acre, quote-unquote, megacite in Ohio. They're building two factories, but they left room for six more factories. Ipso facto, Intel could make Ohio one of the largest chip makers in the world. There you go, Buckeyes. Intel could build six more freedom chip factories. That would be great. But we think they're waiting for some help from Uncle Sam. What do I got to do?

Like, what do I got to do? They're kind of teasing America. Look what we could do if we got a little financial support. Would it hurt you to throw us a grant? So, Jack, what's the takeaway for our buddies over at Intel? Intel is Team USA, but it's not getting any support from the U.S. Snackers. The U.S. gaining chip independence.

That may be more important than oil independence. Even America's military depends on chips, which are mostly foreign names. Oh, and Jack, that's like not even the worst part. America's biggest chip supplier is Taiwan, which China claims is part of China. Get this, two out of three of the world's computer chips, they're made in Taiwan. And China's military is all up in Taiwan's grill right now. So Joe Biden wants to give American chip companies money, $52 billion worth so that we can get more plants like Ohio.

Yeah, this is past the Senate already, but the House hasn't passed this bill yet. So until then, Intel is on their own competing against chip companies across the world. China, they're practicing in top Chinese government facilities. They're getting some good subsidies. Intel, they're still practicing on some frozen pond in the woods. For our third and final story, mystery, just hit a $100 million evaluation to fix your awful work Zoom happy hour. Actually, your 6.30 p.m. Friday work Zoom happy hour. We should clarify. Mystery has adapted like a Galapagos finch to businesses.

Snackers, let's go back to 2018. Jack, 2018, a new dating app comes on the scene. Unusual one, though, because it's for existing couples. Yeah. Not singles. No, no, no. This is a different kind of dating app. And this company is called mystery. It sets couples up for like a fully planned date night. You and you're a significant other. You want to keep things spontaneous, but you're not spontaneous? It's like a ventprite for couples that are procrastinating. That's right. You go on mystery and you snag like comedy night, which includes two, tickets to the comedy seller, a Disney

reservation before, and rides home after. But boom, the pandemic hits. You can't go to comedy night. No, you can't. The comedy cellars closed. And you can't get the reservation at that restaurant that you couldn't have gotten on your own anyway. So mystery does a pivot. Pivot number one.

Yeah, here is pivot number one. They go from these events to becoming a curated gift box company. They're helping couples experience places they used to visit before the pandemic. Yeah, can we talk about the night in? Maybe you order their night in. It's a DIY pasta situation. The Olive Gardens closed. So they send you everything you need for that Tuscan experience.

You're getting the Bucatini, the eggs, the pecorino, and an Italian card game. So you can have a whole experience at home. I like pivot number one sounds nice. Boom. Yeah. The pandemic starts waning aggressively and people are going out. They don't want nights in anymore. Yeah.

So then mystery has to do pivot number two a year after doing pivot number one. Now, they could just unpivot and go back to. fully planned date nights. Right. Why repivit when you can unpivot? But there's a new problem they notice that seems lasting. Yeah. Remote work can really feel joyless. Yeah. So for pivot number two, they decided to switch their customer from B to C, business to consumer, to B to B, business. Instead of doing romantic dates, they're doing the corporate equivalent. Team bonding sessions. Because you're working overtime from the same table at home you ate breakfast, lunch, and dinner at every single day for two years.

Mysteries, new clients are corporations. They're connecting Amazon, Ford, Starbucks, Uber, Microsoft, with an employee activity. They're a platform for those activities. A manager needs an activity for their 20 employees at 4 o'clock on Thursday. You just enter the number of people involved, the budget you have, and the style of activity you want to do. Yeah. So Jack and I jumped in snack style to see what, like, mystery would pop out and they show some

availability for this upcoming Thursday. Carricature sketching for the whole team. That seems interesting. I like caricatures. I used to have one on my wall. Or if it's a remote team, PowerPoint karaoke. Which actually, I've seen some TikTok videos. It actually looks fun, Jack.

Living on a prayer. Otherwise, it's a joyless Thursday. So, Jack, what's the takeaway for our buddies over at Mystery? Businesses are just better potential customers than consumers are. Look, we didn't want to have to say it, but it feels like we have to say it. It's the reality. Businesses, they're less picky. And they've got deeper pockets.

Mystery tried to create a dating app. Good luck getting people to pay for a dating app. Yeah, because we're all accustomed to the insanely good consumer apps already out there like Netflix and Instagram. You'll have to hire half of Zuck's army to get something that competes with Tinder. Yeah, competition is so fierce in consumer apps that consumers are just picky and cheap. We are. We all are. We can be, you know?

Yeah, we'll admit it. The first step is admitting we have a problem. Businesses, though, if they're looking for help with like a corporate team bonding event, There aren't that many choices. And guess what? The chief engagement officer over at Big Corporation Inc. They got a bigger budget than a millennial couple trying to spice up date night. So the pandemic forced mystery to pivot twice.

But they finally ended up with a better potential customer base. Businesses. Businesses. Business. Jack, there were voices down the corridor. I thought I heard them say, can you whip up the takeaways for us over there? Squarespace is willing to spend big on. podcast ads. Because you can check out any time you like, but you can never leave.

Intel is building two new plants in Ohio and it just bought two new plants in Texas and California. Intel's on Team USA, but it needs some support from the USA to build that freedom chip. For our third and final story, mystery pivoted from dating out to dating in to corporate events. The rare life double pivot and it ended up with a better customer base. Businesses. Now time. Back fact of the day, this one sent in by Josh Mead from lovely St. Louis, Missouri. Before Oprah Winfrey, before Michael Jordan became billionaires, there was a first African-American billionaire that was someone else.

Yeah, there was the first black man to hit the three comic club, Robert L. Johnson. Robert L. Johnson. He founded the cable TV channel, BET, Black Entertainment Television. And then he sold it in 2001 for $3 billion. Beet was also the first black-owned business to go public. listing on the New York Stock Exchange just 10 years earlier. And, Jack, my school bus used to go by 106 in Park where they filmed 106 in Park on BET. Harlem? Harlem. Yeah, right on 106 and Park.

East Harlem? East Harlem. I just love proving to you that I know things about New York. Now you're just showing off. You can ask me a trivia question. Snackers, you look fantastic today. If you've got a birthday or a snack fact or a black history snack fact, we've got forms right in every podcast episode description for you to fill out.

It's a Google form. It's super simple. We particularly love voice memos. We love voice memos. This is Nick. This is Jack. This is you. But we hate Queen bands.

Yes, we do. Nick and I will see you tomorrow. Can't wait. And before we go, happy birthday to Mid Panther, Greg Conrad, over in Gloucester, Massachusetts. Big Middlebury Panther,

big fan of entrepreneurship. And Ariel Eid, happy birthday. And congrats on the dream job. And enjoy the move to New York City all in one day. Congrats to Krishna and Apeccia, who are buying their first home in Hayworth.

Oh, and then down the street, Josh and Marie, they're also buying a house, but over in St. Louis. And happy birthday to Josh Adams from Houston. And to anybody else celebrating something today, make it a T-Ball.

Celebrate the wins. This is Jack, island stock of Amazon and Netflix. Robin Hood Snacks, newsletters, and podcasts reflect the opinions of only the authors who are associated persons of Robin Hood Financial LLC

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