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UEFA Votes to Boycott World Cup in Protest to FIFA Selloff · Bloomberg Intelligence

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  Speaker 2: Let's go back to the big headline that we were
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  Speaker 2: just talking about UEFA members, and this is, of course,
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  Speaker 2: the European body that governs football has agreed to boycott
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  Speaker 2: the World Cup. There's a lot of conditions here, so
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  Speaker 2: I want to bring in Randall Williams.
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  Speaker 3: He is our global Business of sports reporter here.
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  Speaker 4: In New York.
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  Speaker 3: Randall, they had threatened to do this, to boycott the
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  Speaker 3: World Cup.
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  Speaker 2: And this is if FIFA moves ahead with spinning off
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  Speaker 2: this commercial and media rights arm the way that the
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  Speaker 2: PGA Tour has done with its businesses. Just walk us
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  Speaker 2: through how significant this is.
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  Speaker 5: It's huge.
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  Speaker 4: So you think about the members of UEFA. It is
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  Speaker 4: the world champion, Spain is one of the final four,
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  Speaker 4: two three of the final four. And now that I
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  Speaker 4: think about it, it is England, it is France, it
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  Speaker 4: is Croatia, it is Portugal where Christiano Ronaldo plays and
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  Speaker 4: so a lot of the superpowers in the global business
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  Speaker 4: of football and the global sport of football are saying,
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  Speaker 4: you did this and we're out. That strips the World
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  Speaker 4: Cup of a lot of its popularity. And I do
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  Speaker 4: think that in the matches that I went to, they
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  Speaker 4: have a different culture than what we see in South
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  Speaker 4: America that is more tribal in nature, and so I
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  Speaker 4: think it's huge. It is a very very big deal
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  Speaker 4: that UEFA is saying no, absolutely not. Now the next
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  Speaker 4: question is what is CONCACAF going to do. And CONCACAFF
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  Speaker 4: is over North America, Central America and the Caribbean. But
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  Speaker 4: this is a huge deal.
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  Speaker 6: So how radical is it for FIFA to propose selling
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  Speaker 6: a steak in itself?
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  Speaker 4: It's huge. I mean, look with the PGA Tour and
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  Speaker 4: Live Golf comparison, the PGA Tour had to write some
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  Speaker 4: things and Live Golf was exploiting some of maybe the
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  Speaker 4: flaws previously in the PGA Tour. Now the PGA Tour
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  Speaker 4: is writing is wrong. A lot of the players are happy.
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  Speaker 4: There haven't been that many complaints on FIFA's side in
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  Speaker 4: terms of how this tournament went. There are European nations
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  Speaker 4: who weren't happy with it expanding the forty eight, but
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  Speaker 4: now they're talking about going to sixty four. What does
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  Speaker 4: that mean for those superpowered countries is that they play
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  Speaker 4: more smaller teams and the group sty just get larger,
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  Speaker 4: which you know, of course, we'll grow the money, but
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  Speaker 4: it's growing the money that way the way that it's
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  Speaker 4: supposed to happen. I'm not so sure. And that's what
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  Speaker 4: UEFA is looking at this and saying, if we're going
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  Speaker 4: to grow the business of soccer, in the business of football,
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  Speaker 4: then we need to do it the right way, and
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  Speaker 4: this is not the right way.
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  Speaker 3: So the feud is escalating.
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  Speaker 2: FIFA must have anticipated this, I mean, I can't imagine
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  Speaker 2: that they didn't think UFA was going to blow up
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  Speaker 2: in fury over this. What are you looking for in
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  Speaker 2: terms of response from FIFA, how they navigate this well.
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  Speaker 4: I would say UEFA and FIFA's relationship has long been strained.
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  Speaker 4: They have always been going back and forth and this
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  Speaker 4: was the last straw for UEFA And so at this point,
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  Speaker 4: what I'm watching next is to see what Gianni Infantino does.
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  Speaker 4: Like of course JP Morgan, who is running this deal
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  Speaker 4: with Thrive Capital and Kushner. Of course they are the
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  Speaker 4: recipients of this, They're the ones who are giving money.
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  Speaker 4: And so this is on FIFA and Gianni to try
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  Speaker 4: to get this thing across the finish line. But if
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  Speaker 4: your superpowers, if England, France, Spain, Portugal, Croatia and so
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  Speaker 4: many of them don't participate in the World Cup, is
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  Speaker 4: anybody going to watch? Is that money that you're spending
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  Speaker 4: that you could potentially be spending if they say we
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  Speaker 4: don't want it?
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  Speaker 5: Okay?
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  Speaker 4: Now what you're going to do a World Cup with
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  Speaker 4: a lot smaller nations? I just don't think that that
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  Speaker 4: would be successful. Wow.
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  Speaker 7: Interesting? All right? This is what I call.
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  Speaker 2: Developing story, helping story, especially considering, like you said, three
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  Speaker 2: out of the four countries that made it to the
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  Speaker 2: finals were part of UEFA.
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  Speaker 4: So the thought is that this money would be spent
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  Speaker 4: to develop programs. But is this the right way to
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  Speaker 4: do it? How many conversations did JP, Morgan and FIFA
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  Speaker 4: have with other suitors? Did they go to private equity?
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  Speaker 4: Did they have you know, billionaires who are interested in
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  Speaker 4: this and not so sure? It looks like that, you know,
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  Speaker 4: Bloomberg reported a couple of days ago, or maybe this
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  Speaker 4: morning that this was already agreed to or where we're
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  Speaker 4: talking about it long before the World Cup begins. And
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  Speaker 4: that's a problem because for Uafoso stay with us.
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  Speaker 3: More from Bloomberg Intelligence coming up after this.
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  Speaker 2: Looking at the markets right now, we have green on
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  Speaker 2: the screen in terms of equities, with the NAZAC leading
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  Speaker 2: the way up two and a half percent. Within the NASAC,
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  Speaker 2: one of the big decliners is Meta, although its losses
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  Speaker 2: have been.
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  Speaker 3: Moderating.
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  Speaker 2: I guess that's the way to put it there. It's
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  Speaker 2: down less than it was before. Meta currently down nine
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  Speaker 2: percent right now. Investors not liking what they're hearing, So
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  Speaker 2: let's bring in David Kirkpack, founder of Economy, also wrote
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  Speaker 2: the book on the company formerly known as Facebook. His
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  Speaker 2: book was The Facebook Effect, The Inside Story of the
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  Speaker 2: Company that is Connecting the World. And David, you point
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  Speaker 2: out that Meta disappointing investors not meeting financial expectations even
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  Speaker 2: marshally is a major change because Mark Zuckerberg has run
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  Speaker 2: this company to consistently and relentlessly top investor estimates.
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  Speaker 3: What do you think is going on there?
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  Speaker 7: Well, thanks so much for having me, Scarlett and Paul.
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  Speaker 8: Well, we are in an extremely precarious time for any
• 5:34
  Speaker 8: of these tech giants, with the scale of capital investment
• 5:38
  Speaker 8: that they're throwing towards AI these days. And the precariousness
• 5:42
  Speaker 8: of the moment is compounded in the case of Meta
• 5:46
  Speaker 8: because among other things, they're being sued right and left
• 5:51
  Speaker 8: for many things, but especially for harming the mental health
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  Speaker 8: of teenagers. I mean, it was interesting that among the
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  Speaker 8: one analysis of these results yesterday was that if they
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  Speaker 8: hadn't set aside to a zero point four billion for
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  Speaker 8: legal contingencies, they would have made their earnings number, which
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  Speaker 8: they missed. So that's a you know, two point four
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  Speaker 8: billion for most companies would be a really serious problem
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  Speaker 8: that you're expecting to pay that kind of money out
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  Speaker 8: because of legal settlements for a company with sixty billion
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  Speaker 8: in profits annually, that's not so huge, but it just
• 6:29
  Speaker 8: goes to underscore the complexity of this company's position in
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  Speaker 8: society and business.
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  Speaker 7: So did they continue to say.
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  Speaker 8: They're going to spend one hundred and thirty to one
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  Speaker 8: hundred and forty five billion on capital expenditures.
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  Speaker 7: For data centers this year. So wow, So I can.
• 6:47
  Speaker 6: Say, yeah, David was injuring last night for investors the
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  Speaker 6: comparison to comparent contrast of Microsoft with their results and
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  Speaker 6: the stock trading up dramatically today fourteen to fifteen percent,
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  Speaker 6: yet Meta down about nine.
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  Speaker 3: What is metas ai strategy?
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  Speaker 5: Do you think?
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  Speaker 7: Oh?
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  Speaker 8: That's a great question, and I think a lot of
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  Speaker 8: analysts on the call with Zuckerberg yesterday would have liked
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  Speaker 8: to have gotten an answer for that. I mean, for example,
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  Speaker 8: recently Bloomberg broke the news that they were considering renting
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  Speaker 8: out data center capacity to other companies like possibly Anthropic
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  Speaker 8: or open Ai, which they haven't yet done, and he
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  Speaker 8: didn't say anything about it on the earnings call yesterday.
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  Speaker 8: If they did, that would be a good way of
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  Speaker 8: monetizing these extraordinary capital expenditures.
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  Speaker 7: So far as Zuckerberg keeps.
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  Speaker 8: Making funny noises about Hi, we probably have enough uses
• 7:42
  Speaker 8: for this capacity ourselves.
• 7:46
  Speaker 7: That wasn't a clear answer.
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  Speaker 8: They have begun charging money for a lot of things
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• 7:53
  Speaker 8: fifty dollars a month and get access to a human
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  Speaker 8: if you have problem with your Instagram. If you don't
• 7:59
  Speaker 8: pay fifty dollars a month's good.
• 8:00
  Speaker 7: Luck on that.
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  Speaker 8: But the answer is I don't think they fully know,
• 8:06
  Speaker 8: because I think they're waiting to see how the whole
• 8:09
  Speaker 8: industry settles out. But I do think that Zuckerberg published
• 8:14
  Speaker 8: a very strident and optimistic op ed in the Wall
• 8:18
  Speaker 8: Street Journal this week's talking about he believes personal superintelligence
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  Speaker 8: is going to be the transformative force in the world
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  Speaker 8: and people have to have individual access to that, and
• 8:31
  Speaker 8: big companies can't be gatekeepers into that sort of capability.
• 8:36
  Speaker 8: So if you read between all these lines, I think
• 8:39
  Speaker 8: their strategy is they want to more or less compete
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  Speaker 8: head to head with companies like open Ai and dropic
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  Speaker 8: by using advertising to subsidize the offering of free AI
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  Speaker 8: services that they believe ultimately will go to individuals all.
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  Speaker 7: Over the world to enhance their lives.
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  Speaker 8: That's a long term statement, but I think that would
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  Speaker 8: be a summary of how Zuckerberg thinks about.
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  Speaker 2: And does Zuckerberg and Meta have the track record for that?
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  Speaker 2: I mean, it does selling ads very well, but does
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  Speaker 2: it do other things just as well.
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  Speaker 7: No.
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  Speaker 8: In fact, it has never done anything well aside from
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  Speaker 8: sell ads. It's never had a growing business of any
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  Speaker 8: size that really wasn't ad based.
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  Speaker 7: I mean, they had sixty and.
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  Speaker 8: A half billion in revenue and fifty nine point three
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  Speaker 8: billion of that was advertising this quarter. So, but ads
• 9:35
  Speaker 8: can be used to pay for a lot of things.
• 9:37
  Speaker 8: And I think that's what I was trying to say
• 9:39
  Speaker 8: before that. You know, we've seen open ai, for example,
• 9:42
  Speaker 8: talk about how we're going to try to become an
• 9:44
  Speaker 8: AD company. They can do that, and they are already
• 9:46
  Speaker 8: doing it a tiny bit, but really that's a really
• 9:50
  Speaker 8: hard transition for a company like that to make. It
• 9:53
  Speaker 8: is the easiest thing. Zuckerberg and Meta are the in
• 9:57
  Speaker 8: some ways the world's best advertising base company, and as
• 10:02
  Speaker 8: they grow in other areas, if they can continue to
• 10:06
  Speaker 8: use that or competence, it could be a tremendous asset
• 10:11
  Speaker 8: in expanding out in the AI arena. Right now, they're
• 10:15
  Speaker 8: just using AI to make the ads more seductive and
• 10:18
  Speaker 8: their services more addictive. And I mentioned when I sent
• 10:23
  Speaker 8: you a note earlier, I think it's highly ironic that
• 10:26
  Speaker 8: they're being sued for making young people's lives worse because.
• 10:30
  Speaker 7: Of the addictivity of their services.
• 10:32
  Speaker 8: And yet what they're spending all their AI money on
• 10:34
  Speaker 8: right now is making their.
• 10:35
  Speaker 7: Services in effect more addictive.
• 10:38
  Speaker 8: So they're paying all this money to make their services
• 10:41
  Speaker 8: do more of what they're being sued for in some
• 10:44
  Speaker 8: weirdly ironic way.
• 10:46
  Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this.
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  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
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  Speaker 6: All right, let's switch gears. Get back to the market
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  Speaker 6: here again. The SMP's up sixty points, the NASHDAK one
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  Speaker 6: feigner ninety points two percent, and the Nasdaq one hundreds
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  Speaker 6: H If what's a typical or who is a typical
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  Speaker 2: Okay, so that median and customer, you were just describing
• 14:15
  Speaker 2: what is their interest level towards prediction markets? And you know,
• 14:18
  Speaker 2: when I ask about this, I'm curious beyond sports the
• 14:21
  Speaker 2: World Cup. You know, what is their interest in trading
• 14:24
  Speaker 2: futures contracts or these event contracts on I don't know, GDP,
• 14:27
  Speaker 2: the FED, inflation, something other than sports.
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• 14:40
  Speaker 5: customers just a few weeks ago, so growing really nicely.
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  Speaker 5: We are seeing customers use it for a wide variety
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  Speaker 5: of things. So you mentioned economics, yesterday was Fedday. You
• 14:48
  Speaker 5: tend to see a lot of contracts around interest rates
• 14:50
  Speaker 5: when there's a cultural moment, so whether it was the
• 14:52
  Speaker 5: World Cup, Taylor Swift's wedding, things of those natures you
• 14:55
  Speaker 5: send to do it. Their elections are really popular. So
• 14:58
  Speaker 5: we're starting to see a lot, not just for the midterms,
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  Speaker 5: what primaries. We think we are at the beginning of
• 15:02
  Speaker 5: prediction markets supercycle, that this could actually be bigger than
• 15:05
  Speaker 5: the equities market. The fun part is use cases are
• 15:08
  Speaker 5: coming up out of the woodwork. So an example I've
• 15:10
  Speaker 5: shared before is last winter we saw a lot of
• 15:12
  Speaker 5: customers trading weather contracts. We were trying to for what
• 15:14
  Speaker 5: they were doing. They were hedging their flights. They were
• 15:16
  Speaker 5: waiting for way to delays and they thought that be
• 15:18
  Speaker 5: another way. We also saw that in a certain state
• 15:21
  Speaker 5: they were using it during hurricane season. They were supplementing
• 15:23
  Speaker 5: their home insurance. Now customers won't explicitly saying I'm buying insurance,
• 15:27
  Speaker 5: but that they were starting to use. So there are
• 15:29
  Speaker 5: so many different use cases. There's no doubt sports has
• 15:31
  Speaker 5: found product market fit. But if you look overseas, actually
• 15:35
  Speaker 5: the majority of contracts are nonsports and it tends to
• 15:37
  Speaker 5: be cultural moments, lifestyle things of that nature. What we're
• 15:40
  Speaker 5: really excited is for how do we make our brokerage
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  Speaker 5: product better. Say, for example, you have a view on Apple,
• 15:45
  Speaker 5: you can buy the equity, you can buy derivative or
• 15:49
  Speaker 5: in time you should be able to buy an event contract. Well,
• 15:51
  Speaker 5: Apple be earnings, how many iPhones where they ship? That's
• 15:53
  Speaker 5: where we think it's going. And so again sports is
• 15:56
  Speaker 5: a great use case, but there are a lot of
• 15:57
  Speaker 5: other areas that we're starting to see.
• 15:59
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  Speaker 5: plug into your MCP and you have to your own
• 16:16
  Speaker 5: LMS such as Codex or clock Code. Even with that,
• 16:18
  Speaker 5: we still one hundred thousand customers to sign up. Where
• 16:21
  Speaker 5: we're going is we're going to make it more native
• 16:23
  Speaker 5: in the app. What does an agent actually do? All
• 16:25
  Speaker 5: it does it eb stracts away a pain point. Let's
• 16:28
  Speaker 5: say you're a customer and you have a view I
• 16:30
  Speaker 5: want to buy energy stocks. Okay, can you help me
• 16:32
  Speaker 5: do research on that. Great, here's a list of things
• 16:34
  Speaker 5: you could do. Now, can you help me actually execute
• 16:36
  Speaker 5: the trade. That's the next step. And so we're not
• 16:39
  Speaker 5: building agents just for the sake of agents, it's how
• 16:41
  Speaker 5: do you solve customer pain points. So we started with
• 16:44
  Speaker 5: the really techno native. Now we're going to make it
• 16:46
  Speaker 5: native in the app, and then going forward, we have
• 16:48
  Speaker 5: some really fun things that we're cooking. I don't want
• 16:50
  Speaker 5: to front on the products side, but we think across
• 16:52
  Speaker 5: all of our products, not just brokerage, payments, banking, credit card,
• 16:56
  Speaker 5: et cetera. There's a lot of things you could do.
• 16:58
  Speaker 2: I'm glad that you mentioned the Trump accounts, and I
• 16:59
  Speaker 2: just want to circle back to that momentarily because you
• 17:02
  Speaker 2: said that this is something that we're focused on bring
• 17:05
  Speaker 2: in customer retention, of course, and let's see this as
• 17:08
  Speaker 2: a driver of future growth. What's the timeline for a
• 17:11
  Speaker 2: meaningful contribution from the Trump accounts roll out?
• 17:13
  Speaker 5: Yeah, so it just start in early July, and the
• 17:15
  Speaker 5: uptick has been phenomenal. So some numbers we shared yesterday,
• 17:18
  Speaker 5: over seven million children have already signed up and about
• 17:20
  Speaker 5: one and a half billion of contributions have already been made,
• 17:22
  Speaker 5: So in the first three to four weeks of being live,
• 17:25
  Speaker 5: that is phenomenal. We are getting in balanced on so
• 17:28
  Speaker 5: many different use cases. So employers, for example, Robin Hood
• 17:30
  Speaker 5: said we will match any of our employees. Many other
• 17:33
  Speaker 5: employers have come out and said that, so we're building that.
• 17:35
  Speaker 5: Donors Michael Dell and Susan Dell have said they're going
• 17:38
  Speaker 5: to make a big donation, so we're building that. We
• 17:40
  Speaker 5: think this will be one of the most powerful ways
• 17:42
  Speaker 5: to help children grow their wealth. The US stock market,
• 17:45
  Speaker 5: as you guys will know, is the greatest creator of
• 17:47
  Speaker 5: human wealth and history. Getting customers to start early is
• 17:50
  Speaker 5: so impactful.
• 17:52
  Speaker 3: Stay with us.
• 17:53
  Speaker 1: More from Bloomberg Intelligence coming up after this to the
• 18:00
  Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am
• 18:04
  Speaker 1: Eastern on Applecarclay, and Android Auto with the Bloomberg Business App.
• 18:08
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• 18:11
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• 18:13
  Speaker 6: Red Brown Joints to hear. A consumer reporter for Bloomberg News,
• 18:16
  Speaker 6: Hey covers all these consumer companies talk to us about Starbucks.
• 18:19
  Speaker 5: Read what did you see? What did you hear?
• 18:21
  Speaker 6: With their earnings?
• 18:23
  Speaker 9: Yeah, I mean, I think Starbucks is a story of
• 18:24
  Speaker 9: just sort of continuing on this turnaround plan and it
• 18:26
  Speaker 9: seems to be really gaining some momentum. Now we've seen
• 18:29
  Speaker 9: a couple of quarters now of them out performing on
• 18:33
  Speaker 9: the top line and profits are going to start growing.
• 18:36
  Speaker 9: Is the idea, you know, of off the back of it.
• 18:38
  Speaker 9: So there was a lot of skepticism I think around
• 18:41
  Speaker 9: this turnaround plan. It's just you know, moving this behemoth
• 18:43
  Speaker 9: that is Starbucks. But some of the changes that they're making,
• 18:47
  Speaker 9: which is kind of really focusing in on kind of
• 18:49
  Speaker 9: you know, making their their product more valuable for customers,
• 18:52
  Speaker 9: especially when they're feeling this pinch, does seem to be resonating. So, yeah,
• 18:56
  Speaker 9: it seems like it's kind of full steam ahead for
• 18:58
  Speaker 9: Brian Nickel and Starbucks the moment.
• 19:00
  Speaker 6: It's interesting because I'll see, you know, when I come
• 19:02
  Speaker 6: up to my Starbucks, the drive through line is crazy long,
• 19:06
  Speaker 6: you know, and people they gotta be waiting. I think
• 19:08
  Speaker 6: for like, I don't know, ten fifteen minutes, I walk
• 19:10
  Speaker 6: into Storre, there's only like a handful of people in there.
• 19:12
  Speaker 6: It's crazy how the experience has changed since you know,
• 19:15
  Speaker 6: the last twenty twenty five.
• 19:16
  Speaker 9: Years with this yeah company, absolutely, and I think that's
• 19:19
  Speaker 9: kind of part of what they are kind of navigating,
• 19:22
  Speaker 9: is like the different ways that people consume coffee, you know,
• 19:24
  Speaker 9: like Starbucks needs to be able to do it across
• 19:26
  Speaker 9: all of the different platforms. And I think that's also
• 19:28
  Speaker 9: where they've made a lot of investments. I think we
• 19:29
  Speaker 9: just heard Brian nicol talking about how, you know, even
• 19:32
  Speaker 9: into shaving seconds off, you know, they do so you know,
• 19:36
  Speaker 9: probably millions and millions of transactions a day, like it
• 19:39
  Speaker 9: equates to a better experience for everybody. But look, they're
• 19:41
  Speaker 9: they're investing kind of across the board, across all of
• 19:43
  Speaker 9: their different channels, be it drive through, so they're definitely
• 19:46
  Speaker 9: trying to make some technology improvements there. You heard them
• 19:48
  Speaker 9: talk about about the staffing and stores things like that
• 19:51
  Speaker 9: that also kind of improves the experience. And then also
• 19:53
  Speaker 9: they're digital, they're trying to kind of find ways that
• 19:55
  Speaker 9: the digital experience is still quite seamless for people as well,
• 19:58
  Speaker 9: so they're not waiting for those drinks because these people
• 20:00
  Speaker 9: are obviously in a rush, just like the drive through line.
• 20:02
  Speaker 6: Yeah, and I would say again, just about my experience
• 20:06
  Speaker 6: at my local Starbucks, ninety five percent of the in
• 20:10
  Speaker 6: store orders are picked up.
• 20:12
  Speaker 7: Yeah, digital.
• 20:13
  Speaker 6: I'm the lone dude who goes up to the cashier
• 20:16
  Speaker 6: and actually orders it directly from the barista. And they're
• 20:19
  Speaker 6: kind of like a little shocked when they look up
• 20:20
  Speaker 6: and there's actually a person standing there.
• 20:22
  Speaker 3: Yeah, an old dude, yes, but with great hair.
• 20:24
  Speaker 5: But that's just the way it is.
• 20:26
  Speaker 6: And I think they've it's gotten so much better, I
• 20:28
  Speaker 6: think over time.
• 20:29
  Speaker 9: Yeah, yeah, I mean they have to be able to
• 20:31
  Speaker 9: do it all right, like they they It has changed
• 20:35
  Speaker 9: a lot, obviously, and they've been probably like a big
• 20:37
  Speaker 9: part of that change, you know. I think like Starbucks
• 20:39
  Speaker 9: has done a lot in the past to like kind
• 20:41
  Speaker 9: of train consumers like this is how you consume coffee
• 20:44
  Speaker 9: to some extent, but they're they're making the investments where
• 20:48
  Speaker 9: it matters right now to make sure that no matter
• 20:50
  Speaker 9: how you come in, if you are wanting to have
• 20:52
  Speaker 9: a chow with the barista, you know, they've done this
• 20:53
  Speaker 9: whole Green Apron program and training those people to even
• 20:56
  Speaker 9: be more kind of welcoming and smiling the cups on
• 20:59
  Speaker 9: the names on the cup, things like that. Like you know, again,
• 21:02
  Speaker 9: it's like all these sort of like marginal things. It's
• 21:04
  Speaker 9: sort of one of the opposite of a death by
• 21:06
  Speaker 9: a thousand cuts, is right, success five thousand cuts. That's
• 21:09
  Speaker 9: kind of this approach for something like this size. It
• 21:11
  Speaker 9: kind of requires that sort of intention to be looking
• 21:14
  Speaker 9: at every aspect of the business and making sure that
• 21:16
  Speaker 9: it's just it's it's what the customers needs.
• 21:18
  Speaker 6: Go from coffee to Burrito's Chipotle, they also raise their guidance.
• 21:23
  Speaker 6: I'm a big fan of the Chipotle I on Third
• 21:25
  Speaker 6: Avenue me too. What's going on at Chipotle.
• 21:28
  Speaker 9: Chipotle is kind of a similar story in a lot
• 21:30
  Speaker 9: of ways, which is interesting because like obviously Brian Nickel
• 21:32
  Speaker 9: had so much success there, but they're kind of instituting
• 21:35
  Speaker 9: a lot of similar they're kind of following the playbook
• 21:38
  Speaker 9: of Starbucks to some extent. You know, they're trying to
• 21:40
  Speaker 9: get their stores faster with a lot of these upgrades.
• 21:43
  Speaker 5: It's more back of the house with Chipotle.
• 21:45
  Speaker 9: They're making sure that their kitchens are kind of upgraded
• 21:47
  Speaker 9: and able to make sure that if you come in
• 21:48
  Speaker 9: and you want the whatever the lto is of the moment,
• 21:51
  Speaker 9: it's there. But they're also doing things similar to Starbucks,
• 21:55
  Speaker 9: which is expanding the menu and and trying to get
• 21:57
  Speaker 9: people coming in in different parts of the day, but
• 22:00
  Speaker 9: doing it in a way that is gonna, you know,
• 22:02
  Speaker 9: still fit with how people are feeling their budgets kind
• 22:06
  Speaker 9: of shrinking at the moment. So one of the things
• 22:07
  Speaker 9: that start excuse me Chipotle is having a lot of
• 22:09
  Speaker 9: success with is these these protein cups. It's just a
• 22:12
  Speaker 9: cup of chicken or steak or what have you, But
• 22:15
  Speaker 9: it's helping them do two things. First of all, it's
• 22:17
  Speaker 9: helping people just come in at different parts of the day.
• 22:20
  Speaker 9: They say that, you know, during the call, they kind
• 22:22
  Speaker 9: of made this point that it's not it's not sacrificing
• 22:25
  Speaker 9: your usual lunch. It's maybe now you're coming in at
• 22:27
  Speaker 9: two o'clock when you kind of need a little extra boost.
• 22:29
  Speaker 9: Similar things at Starbucks trying to push some of these
• 22:31
  Speaker 9: lighter drinks to try to expand the occasions. But also
• 22:34
  Speaker 9: for Chipotle, they say it's it's actually driving people to
• 22:36
  Speaker 9: like add more to their meal, so you know, maybe
• 22:39
  Speaker 9: I'll get the extra scoop of chicken as well. I'm
• 22:40
  Speaker 9: trying to hit my protein goals. So some of those
• 22:42
  Speaker 9: things right, like, those things are important to people right now.
• 22:45
  Speaker 9: And yeah, so Chipotle kind of following the sort of
• 22:49
  Speaker 9: Starbucks the Starbucks playbook here.
• 22:52
  Speaker 1: This is the Bloomberg Intelligence podcast, available on Apple, Spotify,
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• 23:00
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