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Charles Schwab, Manufacturing Data, IPO Market · Bloomberg Intelligence

0:02
Speaker 1: Welcome to the Bloomberg Penl podcast. I'm Paul swing you.
0:05
Speaker 1: Along with my co host Lisa Brahmas. Each day we
0:07
Speaker 1: bring you the most noteworthy and useful interviews for you
0:10
Speaker 1: and your money, whether at the grocery store or the
0:12
Speaker 1: trading floor. Find a Bloomberg Penl podcast on Apple podcast
0:16
Speaker 1: or wherever you listen to podcasts, as well as at
0:18
Speaker 1: Bloomberg dot com. Let's switch gears, though, sticking with Wall
0:22
Speaker 1: Street and talk about broker commissions today. This morning there
0:26
Speaker 1: was news that Charles Schwab is eliminating commissions for stocks,
0:30
Speaker 1: ETFs and options listed on US or Canadian exchanges. The
0:34
Speaker 1: race to the bottom accelerates. David Ridder, Payments and specialty finance,
0:38
Speaker 1: analyst for a bloomersig Intelligence, joining us from Princeton, New Jersey. David,
0:42
Speaker 1: what do you make the news? Well, it's been something
0:46
Speaker 1: that's been a long time coming. I mean, obviously speed
0:48
Speaker 1: compression and brokerage and an asset management more broadly is
0:52
Speaker 1: nothing new. I mean, interactive brokers made their own move
0:55
Speaker 1: last week to cut commissions to zero for basic stock
1:00
Speaker 1: trades um So I think it's going to have a
1:03
Speaker 1: very different impact on the different players in the market.
1:06
Speaker 1: In Schwab's case, um, you know, they only earned about
1:11
Speaker 1: their net revenue from trading commissions versus um E Trade
1:15
Speaker 1: and TD merrit Trade, where it's more than thirty five.
1:18
Speaker 1: And I think you're seeing that reflected in the action
1:20
Speaker 1: this morning. But but Schwab is really more an asset
1:23
Speaker 1: gatherer than anything, and so I see this move for
1:27
Speaker 1: them is a recognition of the fact that, you know,
1:30
Speaker 1: we don't want to lose customers and assets in a
1:33
Speaker 1: long term to these new stock trading apps, whether it
1:36
Speaker 1: be robin Hood or whether it be JP Morgan's. You invest,
1:40
Speaker 1: because that's how they make money. They make money on
1:43
Speaker 1: new net new assets coming into the company. Uh. And
1:47
Speaker 1: then you know of their revenue is net interest incomes.
1:51
Speaker 1: So they're essentially a bank, right, so they're paying low
1:54
Speaker 1: interest and reinvesting that money and safe security. So that's
1:58
Speaker 1: the real driver, not trading missions. Insentially, look at the
2:01
Speaker 1: stocks you mentioned, Dave Schwapp down nine, TD America trade
2:04
Speaker 1: down about today in each trade down, so kind of
2:08
Speaker 1: right in line with what you were saying. And my
2:10
Speaker 1: question is kind of talk to us about some of
2:12
Speaker 1: these new technological competitors that you mentioned kind of robin
2:16
Speaker 1: Hood and things like that give us a sense of
2:18
Speaker 1: what they are and what kind of market share are
2:20
Speaker 1: they taking. Yeah, well, in the case of robin Hood,
2:23
Speaker 1: you know, very rapid growth company, several million customers already
2:29
Speaker 1: offering quote unquote free trades. I think what's under recognized though,
2:33
Speaker 1: is uh nothing's free, right in the case of all
2:36
Speaker 1: of these retail brokers that charge the customer of zero trading, See,
2:41
Speaker 1: they're sending those trades to market makers, so companies like
2:44
Speaker 1: Citadel and they're getting paid what's called payment for order
2:48
Speaker 1: flow for those transactions. So in their release last week,
2:53
Speaker 1: Interactive Brokers was very candid. They said, well, you know,
2:56
Speaker 1: this is how we get paid. And if you still
2:58
Speaker 1: want best, best execute ship, you can take our uh
3:02
Speaker 1: four feet product instead of our free products. So I
3:06
Speaker 1: just thought that was an interesting way to approach it.
3:08
Speaker 1: But uh, you know, certainly these things are having an impact,
3:13
Speaker 1: and for Schwab, they finally said to themselves, look, we
3:15
Speaker 1: we don't want to lose uh these customers because they're
3:18
Speaker 1: young people, right, so they're really the future drivers of
3:21
Speaker 1: their growth. Right now, I'm looking at Schwab shares down
3:24
Speaker 1: now more than nine so shareholders aren't buying it. Yeah.
3:29
Speaker 1: I mean, I think for both of them. When I
3:32
Speaker 1: described a minute ago what percentage of revenue they get
3:34
Speaker 1: from trading commissions, um, I think the market is pricing
3:37
Speaker 1: in perhaps half of that revenue going away. It's interesting, though,
3:42
Speaker 1: because the last round of price cuts was a couple
3:44
Speaker 1: of years ago. Fidelity sort of kicked it off by
3:46
Speaker 1: going to four trade and Schwab matched them. What happened
3:50
Speaker 1: across the entire industry was fascinating is that the net
3:54
Speaker 1: inflows to the companies and the trading volumes increased, so
3:58
Speaker 1: it actually drew in more customers. And so again I
4:01
Speaker 1: think that Schwab's rationale here is we're trying to remove
4:05
Speaker 1: any impediment to folks either getting more active or becoming
4:11
Speaker 1: active in the markets for the very first time, and
4:14
Speaker 1: then going forward into the future. So I'm not sure
4:17
Speaker 1: we'll see exactly that again this time, but that's what
4:20
Speaker 1: we saw last time. David Riddard, thanks so much for
4:22
Speaker 1: joining us David's payments and specialty finance analysts for Bloomberg
4:25
Speaker 1: Intelligence and joining us from the Bloomberg headquarters in Princeton,
4:29
Speaker 1: New Jersey. I want to read a a tweet from
4:42
Speaker 1: President Trump. Quote, as I predicted, j PAL and the
4:45
Speaker 1: Federal Reserve have allowed the dollar to get so strong,
4:49
Speaker 1: especially relative to all other currencies that are manufacturers are
4:53
Speaker 1: being negatively affected, fed rate too high. They are their
4:56
Speaker 1: own worst enemies. They don't have a clue, pathetic clamation
5:00
Speaker 1: point end quote. So let's dig a little bit deeper
5:03
Speaker 1: with that asset background. Uh. Tim Fury, chairman of the
5:06
Speaker 1: Manufacturing Business Survey for the Institute of Supply Management, joins
5:10
Speaker 1: us on the phone from Florida. So, Tim, quite, the
5:14
Speaker 1: manufacturing data for the month of September much much lower
5:18
Speaker 1: than people were looking for. What's your takeaway, Yeah, Hi, Paul, Yes,
5:22
Speaker 1: So, so so it was a disappointment for sure, and it's
5:24
Speaker 1: been driven by demand. For the second straight month we
5:27
Speaker 1: had demand in the contraction mode. And more importantly this
5:31
Speaker 1: month compared to last month, is that the three sub
5:34
Speaker 1: indexes that support that demand number we're all in negative
5:37
Speaker 1: territory two, which is a concern. So let me let
5:40
Speaker 1: me just talk quickly about the new export order down
5:42
Speaker 1: to forty one, which is a pretty heavy contraction. We've
5:45
Speaker 1: had two prior months of contraction, but not to that level.
5:48
Speaker 1: And about eighteen percent manufacturing GDP is exported, So without
5:52
Speaker 1: that new export order coming up, I don't I would
5:55
Speaker 1: be very surprised if that new order number currently or
5:57
Speaker 1: forty seven point three gets above the fifty point. How
6:00
Speaker 1: much is the decline in exports due to the stronger dollar, Well,
6:05
Speaker 1: it's you know, it's hard to tell. I get comments
6:07
Speaker 1: about that. Percent of my comments are tariff and trade related. Uh,
6:12
Speaker 1: we're talking low single digits on the on the currency side.
6:15
Speaker 1: So there's no doubt that from a supply manager perspective,
6:19
Speaker 1: the trade issues are a much begger concern than our currency. So,
6:25
Speaker 1: but I can't really put it into specifics beyond that. So, Tim,
6:28
Speaker 1: the we have a you know, I guess my question
6:30
Speaker 1: is when do we have a trend here? We had
6:31
Speaker 1: August atteint one contraction and then coming in with this
6:36
Speaker 1: data at forty seven point eight even bigger contraction. When
6:40
Speaker 1: from your perspective at the Institute for Supply Management, do
6:43
Speaker 1: you start sensing a trend here? Well, last month I
6:47
Speaker 1: was asked several times about whether this was a blip,
6:49
Speaker 1: and especially to come above fifty. I was hopeful that
6:52
Speaker 1: the month of September would have a decently strong new
6:55
Speaker 1: order number, which would allow production to expand again and
6:57
Speaker 1: get us back about fifty. But I think, you know,
7:00
Speaker 1: given the week new order numbers about the same level
7:03
Speaker 1: as last month, nothing worse, nothing better, But you know,
7:06
Speaker 1: supporting that is really the backlog of order numbers forty
7:10
Speaker 1: five point one, which declined again this month. I was
7:13
Speaker 1: hoping that that would would jump back up, so but
7:15
Speaker 1: the backlog week, it means that you really don't have
7:18
Speaker 1: as much to work on next month as you did
7:20
Speaker 1: the prior month. Very concerning. And then you look at
7:22
Speaker 1: the inventory number at forty seven give or take, it
7:26
Speaker 1: says that supply managers are really watching their input materials
7:29
Speaker 1: so that they're not going to get stuck with something
7:31
Speaker 1: that they don't need. The two things that you look
7:33
Speaker 1: at from a general manager standpoint is how much materially
7:36
Speaker 1: you have taken in and the number one number two
7:38
Speaker 1: is what's your head count? And I think we're at
7:41
Speaker 1: that point where people are looking at that. We're when
7:44
Speaker 1: the planning season here, for most plans get kind of
7:48
Speaker 1: consummated by the end of November, and the employment count
7:51
Speaker 1: has to really be looked that closer here because there's
7:54
Speaker 1: no doubt we have a more production capacity that we
7:57
Speaker 1: need to meet the new order level. We've been burning
7:59
Speaker 1: into the back on now for fourth rate months. At
8:02
Speaker 1: some point you have to make a decision. Tim Furi,
8:05
Speaker 1: thank you so much, chairman of the Manufacturing Business Survey
8:07
Speaker 1: Institute for Supply Management, joining us the phone from Florida.
8:19
Speaker 1: What we've been talking about nineteen is being the year
8:22
Speaker 1: where we get a lot of big, high profile unicorn
8:25
Speaker 1: IPOs coming out of Silicon Valley, and I think a
8:29
Speaker 1: little bit of a hindsight here, it's been kind of
8:31
Speaker 1: a mixed bag. We've had some mixed performance, some real duds.
8:33
Speaker 1: We've actually had some deals pulled. Most notably we work
8:37
Speaker 1: um and um Endeavor was also pulled. To get a
8:40
Speaker 1: sense of what's going on in the US I p
8:43
Speaker 1: O market, we welcome Jackie Kelly, Jackie's America's I p
8:46
Speaker 1: O leader for Ernst and Young joins us here in
8:48
Speaker 1: our Bloomberg Interactive Broker studio. So Jackie, thanks so much
8:51
Speaker 1: for joining us. You know again, we there's so much
8:53
Speaker 1: anticipation for some of these big high profile deals coming public,
8:57
Speaker 1: Uber Lift and all those types of things. It's been
9:00
Speaker 1: kind of a mixed bag. What do you think the
9:02
Speaker 1: I p O market is telling us these days? Well, um,
9:06
Speaker 1: you know, the markets are actually the sentiments really positive.
9:10
Speaker 1: Behind the scenes, Let's just say that we have a
9:12
Speaker 1: few of the higher profile I p O s that
9:14
Speaker 1: have been working through some market issues and other things.
9:18
Speaker 1: But really this is a long term game. At the
9:21
Speaker 1: end of the day. Uh, we're very excited that the
9:24
Speaker 1: pipeline is very robust and UH, despite some of the
9:29
Speaker 1: turbulence in the markets. Uh, the we still have a
9:32
Speaker 1: number of companies lined up right now in the healthcare
9:34
Speaker 1: sector that are looking to price over the next week
9:37
Speaker 1: or two. And we have a number of companies also
9:40
Speaker 1: in technology and other sectors that are getting on file
9:45
Speaker 1: and interested in going public over the next let's say
9:49
Speaker 1: six months plus. How much disappointment are you hearing from
9:54
Speaker 1: your clients at this point and fear as they look
9:57
Speaker 1: at the pipeline getting ready and then they look at
9:59
Speaker 1: the wee work and the endeavor I p O s
10:01
Speaker 1: that were both pulled or iced. Are you having trouble
10:05
Speaker 1: convincing your clients? No, it's still good. It's very interesting. So, UM,
10:10
Speaker 1: I think there's a lot of resilience to some of
10:13
Speaker 1: these the turbulence in the markets and some of the pricings.
10:16
Speaker 1: Companies are really focused, which is great, on getting themselves ready.
10:20
Speaker 1: I think they recognize and this has been a few
10:22
Speaker 1: years now that we've been in this sort of market
10:25
Speaker 1: where things can shift on a dime with you. You
10:27
Speaker 1: can be thinking you're going to price in a great
10:29
Speaker 1: market and then you know, something changes and then the
10:32
Speaker 1: market is not great. So companies are really focused on
10:34
Speaker 1: getting themselves ready. They are focused on getting into the
10:38
Speaker 1: filing process which is now available as confidential for everyone,
10:41
Speaker 1: so everybody can get into the confidential filing process, get
10:44
Speaker 1: themselves ready, and be ready to take advantage of a
10:47
Speaker 1: market window win that market window opens. What do you
10:50
Speaker 1: think some of them? What do you think the market
10:51
Speaker 1: has been telling us with some of these high profile misfires.
10:55
Speaker 1: Is our corporate culture becoming bigger part of kind of
10:58
Speaker 1: what investors are looking for? I'm thinking in Uber, I'm
11:00
Speaker 1: thinking we work you know where there's definitely been some
11:03
Speaker 1: issues with some of the insiders or maybe some of
11:04
Speaker 1: the corporate governance and think things like that. Yeahs, As
11:08
Speaker 1: we're working with companies today, we focus on a number
11:10
Speaker 1: of things and it really is about getting the whole
11:12
Speaker 1: company ready to be a public company, and a critical
11:15
Speaker 1: part of that is governance and an organization. There's sort
11:18
Speaker 1: of the traditional sort of corporate governance and a lot
11:20
Speaker 1: of us think about board governance, et cetera. But there's
11:23
Speaker 1: also just sort of the governance and oversight from the
11:25
Speaker 1: tone at the top of how you run your business.
11:27
Speaker 1: And I think a lot of times, um, you know,
11:30
Speaker 1: as companies are growing so quickly, UH, companies have to
11:33
Speaker 1: start putting in infrastructure policies, a lot of things that
11:37
Speaker 1: very mature companies are already well familiar with. But these
11:40
Speaker 1: are rapid growth companies. They're going through that process as
11:43
Speaker 1: they continue to grow. That really is it never ends,
11:46
Speaker 1: but governance as top of the agenda. I think all
11:48
Speaker 1: the companies are working on it. It is a process.
11:52
Speaker 1: It's not something to turn on overnight, but they work
11:54
Speaker 1: on it and they all have goals of having that
11:57
Speaker 1: strong governance function in place. So our own Schnelly Boss
12:01
Speaker 1: wrote a story about how a number of venture capitalists
12:03
Speaker 1: are getting together in Silicon Valley, UH, and they do
12:06
Speaker 1: not invite Wall Street because they are displeased with Wall
12:09
Speaker 1: Street's role in some of the recent I p O s.
12:12
Speaker 1: Do you think it's Wall streets fault that we saw
12:15
Speaker 1: some less than optimal performances from some of the I
12:19
Speaker 1: p O s. I think that, you know, performance is
12:22
Speaker 1: very complex. UM. One of the most important things as
12:26
Speaker 1: companies are looking to go to the public markets that
12:28
Speaker 1: they really need to get right is predictability in their business.
12:32
Speaker 1: And being a predictable business is a very challenging thing
12:35
Speaker 1: to do for some of these high growth, disruptive companies.
12:38
Speaker 1: I think what's been great is that many of these
12:40
Speaker 1: companies have been able to grow in the private markets
12:43
Speaker 1: and get funding in the private markets. We have robust
12:45
Speaker 1: private markets that has allowed them to extend and and
12:49
Speaker 1: and grow and scale without that visibility. But once you're
12:52
Speaker 1: in the public markets, a lot of things are visible
12:55
Speaker 1: and so UM, you know, I don't know that you
12:58
Speaker 1: know ultimately, UM companies own uh their decision on timing.
13:04
Speaker 1: They need to think seriously about am I ready to
13:07
Speaker 1: be a public company? Am I running a predictable business?
13:10
Speaker 1: Do I have that governance and controls and those things
13:13
Speaker 1: in place that help make sure that I can meet
13:15
Speaker 1: and beat expectations and things like that. Jackie Kelly, thank
13:19
Speaker 1: you so much. For being with us. Jackie Kelly is
13:22
Speaker 1: American's I p O, America's I p O leader for
13:25
Speaker 1: Ernst and Young, joining us here in our bloomg inter
13:27
Speaker 1: Active Broker studios. It's almost lunch here on Wall Street.
13:40
Speaker 1: I think it's time to take a look at some pizza,
13:44
Speaker 1: in particular Papa John's ticker p z Z a uh.
13:48
Speaker 1: And we are so lucky to have Rob Lynch here
13:50
Speaker 1: in our Bloomgard Active broker studios. He's CEO of Papa
13:53
Speaker 1: John's International. He's been CEO for a hot month and
13:57
Speaker 1: after coming in after a tumultuous period of time. Shares
14:00
Speaker 1: of Papa John's up this year, but that follows at
14:04
Speaker 1: nearly declined last year. What was the biggest challenge for you,
14:08
Speaker 1: Rob when you came into the company, given uh, the
14:11
Speaker 1: sort of unceremonious exit of the previous leader. Now, I
14:15
Speaker 1: think the biggest challenge has been um making sure that
14:19
Speaker 1: everyone is focused on the future. You know, we need
14:21
Speaker 1: to move beyond um those tumultuous times. And you know,
14:25
Speaker 1: I've been surprised that the resiliency of this of this company,
14:29
Speaker 1: our franchisees are employees are all ready to do great
14:32
Speaker 1: things and so that makes it a lot easier for
14:35
Speaker 1: me to come in and drive change and get us
14:38
Speaker 1: going on in the right direction. I'm a big pizza eater,
14:41
Speaker 1: huge pizza eater, that's my you know, desert island food. So, um,
14:45
Speaker 1: talk to us about the pizza business in the US
14:47
Speaker 1: is a growing how's the market share shifting around between
14:51
Speaker 1: chains like yourselves and you know, the mom and pops
14:54
Speaker 1: and so on and so forth. Sure, you know, um,
14:56
Speaker 1: the pizza business is a pretty stable business. Um, you know,
14:59
Speaker 1: I've think the the interesting thing about the pizza industry
15:03
Speaker 1: is all the technological disruption that's going on in the industry.
15:06
Speaker 1: You know, pizza has owned delivery for a long time.
15:09
Speaker 1: When you wanted something delivered, it was either pizza or
15:12
Speaker 1: you know, Chinese food, right, And today you can get
15:14
Speaker 1: anything through the third party aggregators. And so I think
15:17
Speaker 1: the challenge for us is figuring out how we continue
15:21
Speaker 1: to grow and frankly thrive in these new times. And
15:24
Speaker 1: disruption creates opportunity, and so you know, we are focused
15:28
Speaker 1: on and working with these new um companies with these
15:33
Speaker 1: new capabilities to to create a symbiotic relationship where we
15:36
Speaker 1: can both do great things. Over the next few years.
15:40
Speaker 1: So can you give us an example of some innovation
15:42
Speaker 1: I mean other than say an algorithm to better match
15:45
Speaker 1: people and and sort of the delivery individuals, etcetera. Are
15:50
Speaker 1: there any other advancements that you're looking at from a
15:53
Speaker 1: technology standpoint? Yeah, I mean I think that you know,
15:56
Speaker 1: our mobile application ordering is up about sixty sent year
16:00
Speaker 1: on year, right, so people are definitely moving into the
16:04
Speaker 1: application channel versus the phones and even the web ordering
16:09
Speaker 1: that we used to that used to be so prevalent.
16:11
Speaker 1: So you know, for us, that's a huge opportunity because
16:15
Speaker 1: we take that that customer and you know data and
16:18
Speaker 1: leverage that their purchase data to understand what their needs
16:21
Speaker 1: are and target them more effectively with offers that are
16:24
Speaker 1: most relevant for them. So we're not sending them a
16:25
Speaker 1: bunch of spam or a bunch of you know, offers
16:27
Speaker 1: that they don't care about. So um analytics and back
16:31
Speaker 1: in artificial intelligence are allowing us to serve our customers better.
16:35
Speaker 1: So what percentage of your businesses franchise e versus own stores?
16:40
Speaker 1: And how do you think about that? Because I know
16:41
Speaker 1: every you know, restaurant company has a kind of a
16:44
Speaker 1: different view on that. Yeah, you know, I I love
16:47
Speaker 1: it that we have a flexible balance sheet. We own
16:49
Speaker 1: about of the system domestically and franchise is on about
16:53
Speaker 1: and so that allows us to two seed markets with
16:57
Speaker 1: our restaurants and bring in new franchise e s or
16:59
Speaker 1: if and help some of our other French our current
17:02
Speaker 1: franchisees grow and and and really maximize the opportunity in
17:06
Speaker 1: those markets. You know, we new restaurant development as a
17:09
Speaker 1: key indicator of a healthy system. Internationally, we're all franchise
17:13
Speaker 1: We have two thousand restaurants internationally, we're number three globally
17:16
Speaker 1: and pizza delivery UM and so you know that model
17:19
Speaker 1: obviously is a franchise only model, and that allows us
17:22
Speaker 1: to find partners in the geographies that we want to
17:25
Speaker 1: move into who who know that marketplace, know the real estate,
17:29
Speaker 1: know how to do business there. So we we are
17:31
Speaker 1: definitely UM a blended company. There's a lot of talk
17:34
Speaker 1: about the tight labor market. Do you find that it's
17:37
Speaker 1: difficult to hire and retain people? Are more difficult than
17:40
Speaker 1: it than it has been previously? And you were, uh,
17:42
Speaker 1: the CEO of RBS previously, so this isn't new for
17:45
Speaker 1: you in terms of running a food services company. Yeah,
17:48
Speaker 1: it's it's definitely not a Papa John's problem. It is
17:51
Speaker 1: is an industry challenge, right, I mean record low levels
17:55
Speaker 1: of unemployment. I mean a lot of great things for
17:57
Speaker 1: our country. It makes it a little bit tougher for
18:00
Speaker 1: for companies like US and and so um. It just
18:03
Speaker 1: makes it that much more important to foster UM a
18:07
Speaker 1: culture that people want to be a part of, right
18:09
Speaker 1: and to be the kind of the employer of choice
18:11
Speaker 1: in the choice in the markets in which we compete.
18:14
Speaker 1: And so that's been a big part of of what
18:16
Speaker 1: I focused on coming in as the new CEO. How
18:18
Speaker 1: do we make sure that we move kind of past
18:20
Speaker 1: where we've been focused on the future and build, you know,
18:23
Speaker 1: a culture where people feel like they have a future
18:26
Speaker 1: that's bright. So looking forward, what's the kind of the
18:29
Speaker 1: market I know it's a competitive marketplace. What's kind of
18:32
Speaker 1: the marketing strategy that you guys like to employ to
18:34
Speaker 1: kind of establish your brand in the marketplace, maybe differentiate
18:37
Speaker 1: your brand in the marketplace? Do you use traditional media,
18:41
Speaker 1: new media? What's what's working best for you guys? Pizza pizza,
18:43
Speaker 1: Pizza pizza. That's our competitors. That's a competitor. We're better ingredients,
18:48
Speaker 1: better pizza, and I like ours a lot better. Um,
18:51
Speaker 1: but that's okay. Sorry to call you out. Please call
18:53
Speaker 1: me out every time. I love it. Uh. Now you
18:56
Speaker 1: know we we we want to communicate with our customers
18:59
Speaker 1: and the most engaging and compelling way. I mean, we
19:01
Speaker 1: still leverage television obviously is a big advertising channel. Um,
19:05
Speaker 1: but the media industry is changing almost as rapidly as
19:08
Speaker 1: the delivery industry, and so UM, we are focused on
19:11
Speaker 1: making sure that that we've made the right investments in
19:14
Speaker 1: technology and then the channels that our customers are moving towards.
19:17
Speaker 1: I already mentioned the mobile applications. So UM, we're focused
19:21
Speaker 1: on connecting with our customers across all the channels. You
19:24
Speaker 1: came in here and said that your first job was
19:27
Speaker 1: making pizzas. Is that correct? Um? And here you are
19:30
Speaker 1: running a pizza chain franchise operator. I'm just wondering what
19:35
Speaker 1: is your favorite pizza? First of all, my favorite pizza.
19:38
Speaker 1: That's an easy one. Papa John's mushroom pizza. Mushroom pizza.
19:42
Speaker 1: I don't know if you know this, most people don't,
19:44
Speaker 1: but we actually use Baby Portobellows mushrooms on our pizza
19:48
Speaker 1: Like that's a testament to the kind of quality, right,
19:50
Speaker 1: and we chop them fresh in our restaurants every day. Okay,
19:53
Speaker 1: do you ever make pizza. I've made probably about a
19:57
Speaker 1: hundred and fifty thousand pizzas in my life, I know,
19:59
Speaker 1: but yeah, Ceo. So, I have spent the last three
20:03
Speaker 1: or four weeks going around this country meeting with my
20:05
Speaker 1: franchise ease and every time I get there, you know,
20:08
Speaker 1: they're expecting me to be kind of afraid of the
20:11
Speaker 1: back of house, right, And I walk in and you know,
20:13
Speaker 1: I've got my my shirt and my I roll up
20:15
Speaker 1: my sleeves and I'm like, okay, let's sling some dough
20:18
Speaker 1: and I started making pizza. I love it. I absolutely
20:22
Speaker 1: love it. I got, you know, I got Like yesterday,
20:24
Speaker 1: I was here in New York. I was up on
20:26
Speaker 1: Fourth Street at one of our great franchisees restaurants, and
20:30
Speaker 1: you know, I walk in and I've got my suit on,
20:32
Speaker 1: I take the jacket off, but I walk, you know,
20:34
Speaker 1: back back of house, make a pizza. Finish up. I've
20:37
Speaker 1: got flower all over my slacks and shoes. Yeah, I'm like,
20:40
Speaker 1: if you know, if you're not gonna to have flower
20:42
Speaker 1: on your shoes. You're not a pizza maker. So yeah,
20:45
Speaker 1: that's it. That's the story. That's a takeaway. Love it.
20:47
Speaker 1: You don't have flower on your shoes, you got some
20:50
Speaker 1: other business. Robert Lynch, chief executive Officer Papa John's International,
20:55
Speaker 1: joining us here on our Bloomberg Interactor Broker Studio giving
20:57
Speaker 1: us the up to date on Papa John's International. P
21:01
Speaker 1: z z A is the symbol. Thanks for listening to
21:04
Speaker 1: the Bloomberg pen L podcast. You can subscribe and listen
21:06
Speaker 1: to interviews at Apple Podcasts or whatever podcast platform you prefer.
21:10
Speaker 1: I'm Paul Sweeney. I'm on Twitter at p T Sweeney.
21:12
Speaker 1: I'm Lisa abram Woyit's I'm on Twitter at Lisa abram
21:15
Speaker 1: wits one Before the podcast, you can always catch us worldwide.
21:18
Speaker 1: I'm Bloomberg Radio