← The Best One Yet
The Best One Yet
⭐ “DC LIVE Show” — Cava’s secret club. Gen Z’s Mall-renaissance. F-35’s main character jet. +CIA’s spy investors
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Ladies and gentlemen, besties and yetis, the moment you've all been waiting for. It's Nick and Jack. Fifteen years before this song, two boys from the northeast met in the dawn. It's the best one yet. The best is annoying. Jack, Nick, that's the pick. I don't even think they need to practice. 50%, that's a fat tip. T boy city on your at list if you know you more come cause we ready to go we can't wait no more so just start the show, start the show. This is Nick, this is Jack. It's Thursday, the new Friday, March 12th. And today's live show from D.C. Is clearly the best one yet. It's pop T boy. The top three pop business news stories you need to know today. This is the IPO tour, our in person offer. Hey, you know what that means, Jack. So Jack, our three fantastic stories for today's show. What do we got for the yetis? For our first story, we're in the middle of a slop bull recession. But one fast casual chain is crushing it. Right now it's Kava Kava Kava is so confident it just launched a secret society. An invite only falafel club. For our second story, the war in Iran continues to be the driving force of the global stock market. And the leading actor from top gun TEHRAN, it's the F35 fighter jet. And our third and final story. For decades malls have been in decline. But the shopping mall is making a comeback. Gen Z, you're driving a mall renaissance baby. Because the most important year in modern history was 2006. But Nick, why are we doing a business show in Washington D.C? i hear you Jack. Because this city doesn't do GPUs and ROI. It does NSA and FBI. But pause the pod. We would actually argue that D.C. is the ultimate innovation hub of the United States, Jack. And I would say that D.C. is the capital of venture capital. And yes, we cleared those numbers with the CBO. The Internet. It was a 1960s Pentagon funded project GPS incubated by the military during the Cold War Ceres. First funding round came from Uncle Sam. Waymo, born at darpa, a government funded self driving competition. And Google Earth was started with CIA money. Not a compiracy theory, not a conspiracy theory. It's a paycheck. Even the Nintendo Wii controller that your mom is still using to do her workouts. Yeah, that motion sensing tech was actually invented for NASA. Your memory foam mattress. Also NASA silly putty, a wartime whoopsie. Can we go meta on this Nick, please. Jack. And we don't mean Zuck Meta. We mean meta meta. Because DC Is the real Silicon Valley. DC Created Silicon Valley when the computer chip industry launched in California. First customer, Pentagon. But we're not done yet. Microwave oven, the Jeep, 4x4, duct tape. If this town wasn't funded by everyone else's tax dollars, we call everyone else freeloaders. The CIA actually has a venture capital firm called In Q Tel. They've invested into 800 startups across 35 US states. But. What? But if one of their startups doesn't work out? They disappear. They get disappeared. The US Patent Office hits the OG A16Z and Ben Franklin, he's the beta version of Steve Jobs. No Washington. No INJ, no lobbyists. No Horowitz. Yetis of D.C. whether you're working in public service, the private sector, or a public private partnership, the Menage a P. Thank you for making the business world possible. Thank you for making it a profit, puppy. Our economy's biggest strength, our democracy. And right now, Jack, we were in the heart of this thing. It is fantastic to be whipping up the best one yet live for you right Here just outside D.C. the real capital of capital. Woo. All right, we were not gonna be at the desks the whole time. Don't worry. No, no, no, no, no, no. So the cherry blossoms haven't arrived yet, but the besties and Yetis have. Yes. This is huge, Jack. And I even got lobbied by a real lobbyist on Washington, D.C. its best athlete is actually a Russian and its wizards don't know magic. Yeah, yeah, yeah, that's true. That is true, Jack. Although we should say DMV. Cause technically, D.C. maryland. Maryland. Virgin. Virginia. Maryland does crab cakes and Virginia does crab bakes. And D.C. does think tanks. Exactly. That's what it is. Jack and I were preparing this show, actually, and we were doing it inside of a coffee shop that was inside of a spin studio that was inside of a sweetgreen. But to sprinkle on some logistics. Yetis, if you're just listening to the show on your podcast app or YouTube right now, you should know we're live in Arlington Drafthouse, just outside D.C. Anyone here from this side of the river? How many of you are from the other side of the river? Anyone here from out of state? Wow, what kind of states we talking? New York. There we go. Florida. Are we gonna. Texas. Okay, I was gonna say time zones, but. Wait, did you go to the Austin show? Okay, just throwing this out there. Anyone from another country out here? So, Yetis, you Should. If you're listening, here's what you're gonna get tonight. Our three fantastic stories that you know and love, plus the takeaways, but performed live. And tomorrow, you will hear the interview with our special surprise guest. And if you're here in person, you're gonna get some special Sprinkle, dinkle and Razzle dazzle. That's right. For example, we got a little T Boy insider trivia inspired by insider trading. We're also going to do our T Boy quarterly earnings report for Q4 with an investor Q and A to follow. And spoiler, the surprise guest. It's Kara Swisher. Kay Swish herself. She's here tonight, but before the night is over, we need several of you to come up on stage and help us whip up the takeaways. We do, Jack. Yes, we do. Although this is the IPO tour, Jack, so we also got to ring the bell. We have an opening bell. We have a closing bell. I already did the opening bell. That's true. Should I do it again? You should just check. You gotta double check these things, right? Yeah, it works. It works. Oh, and one of you is going home with the T Boy IPO bell tonight. I see those hands. Hang on to that for a second. But, Jack, we've got three fantastic stories for today's show. I think we did promise that. I believe we did. Yes, we did. We did. We did. We did. We did. So, yetis and besties, introduce yourself to your fellow yeti or bestie next to you. Say hello for the next 15 seconds, and Jack and I will whip up your first story. For our first story. I'm sorry, am I reading this right? Is Kava crushing it right now? Because in a world where slop bowls are struggling, Kava is financially dominating. So Cava launched a falafel club, because where there's mystery, there's margin. Oh, it's a secret falafel club. But full disclosure, before we start the story, the term slop bulls. We don't really like it. I've never liked it. It's an offensive term. It feels a little bit like fast casual bigotry. I think Burger King planted that in the media. Yeah. What did he said? Yes. Bulls. Because when you're at Cava, you say yes to everything they said. Yeah. It's a true story. And Jack does. Well, one city happens to be queen of the slop bowl power salad heap. And it is Washington, D.C. the capital of Kale, because get this, both Kava and sweetgreen were founded in here. Yes, they were. But in this economy, fast casual is being squeezed like a lemonade. Like an organic Meyer lemon. Jack, Sweetgreen stock, it's down 90% from its all time high. Chipotle shareholders down 50%. And the reason, believe it or not, is AI because the white collar workforce is anxiety maxing. They're cutting back on their $19 lunch grain bowl. Okay, but there is one wild exception to the slop bowl recession, and it's Kava. 21% jump in Q4 revenue, a 21% profit margin. I'm sorry, Jack, toss some paprika on that popularity. Mediterranean chain is quietly crushing it right now. And Jack and I were fascinated in particular that their profitability at Cava is twice that of their fellow peer, Sweetgreen. So we jumped in t boy style to find out why. Turns out hummus bowls are simply more efficient to produce than salads are. Yeah, but hummus, it can be made in one central kitchen and salads, and they gotta be made on site. Hummus also has really long shelf life, whereas Sweetgreen's arugula is very high maintenance. Oh, it spoils in like two days. Oh, yeah. So Kava, they made a 21% of profit for each dollar of sales. And Sweetgreen is making just $0.10% profit on each dollar of sales, which is why stock of kava is up 80% since November. Okay, but besties, this is what we find fascinating. The real Kava surprise is something we shouldn't even be talking about right now. A secret club. In the Kava earnings call last week, the CEO referenced the word oasis twice. Not the band Oasis, by the way. A secret Kava club. If you know, you know. Now, it's the first time the CEO acknowledged this new loyalty tier that's so exclusive, it's by invitation only. Now, as we all know, the first rule of Falafel Club is you don't talk about falafel club. Which is why there was no press release, no pr, no advertising, Just some obscure screenshots posted on social media by some confused Kava customers. Okay, On Reddit, there were a handful of Kava crazies who were humble bragging that they got the call. Hint. And this is a hint as to, like, what the call is about. That screenshot we saw on Reddit, the Oasis member had 48,000 loyalty points from Kava. Jack, could you sprinkle on some context, please? That requires nearly 300 kava bowls to be eaten in one year. Wow. Which is more than five bowls per week. It's like the rewarding frequent flyers with the falafel. And according to the CEO, this summer, Oasis, it's gonna get you access to secret events if you've been chosen by the company. Okay, but there are no deets. We don't even know. It seems to be Bas Amex's black card. But for Muamara. Yeah, you need Cava to open an airport lounge. Next, please. Now Cava's you. You would love that, Nick. Now, Cava's loyalty program is already generating one third of total revenues. The super secret version could drive even more loyalty as a percentage of sales. Hold on to your pretty peas. So, Jack, what's the takeaway for our buddies over at Kava? Where there is mystery, there is margin. Now, yes, we've told you before, where there's mystery, there is margin. We may stick it on a hat pretty soon. For instance, wine, perfume. The mystery behind the label is what gets US customers to pay more. But Cava's mystery tier is a new twist on that because it keeps the criteria to get into the club a mystery. Just like an airline, the existing loyalty program is clear for Cava. Spend 200 bucks, you hit the first level of loyalty. But by keeping the finishing line unknown, you may need to spend endlessly just to get that. Oasis, you don't know where the finish line is. So even if you have breakfast, lunch and dinner falafel, there's no guarantee you'll get the call. So unlike any other chain to add it all up, Kava is capitalizing on demand to unleash a profit puppy. A secret invite only loyalty club. And that's a reminder that where there's mystery, there's margin. For our second story, for the eighth straight day, the war in Iran is the story driving the entire stock market and the economy. But what's driving the war in Iran? It's actually America's F35s. Look, Yetis, we're start by sprinkling on some context. The big news today as it's been for the last two weeks covered on the show, it's the warning you can't escape. Oil and stock markets have been pretty chill this week, believing the President's claim that the war is almost over. But to make sure, 32 countries just announced yesterday the biggest ever release in oil reserves. 400 million barrels are going to be released by those 32 countries. That would be twice as big as the emergency release that happened when Russia invaded Ukraine. Speaking of Russia, Jack, Russia happens to be a huge winner of this war. The US Unsanctioned Russian oil last week. The EU badly needs it and the price that Russia can sell oil has nearly doubled in just two weeks. Meanwhile, we got cargo ships getting attacked and we're talking about underwater mines in the Strait of Hormuz. Serious stuff. That poses big risks to human health, of course, but also US and global economies. As we've said before, oil seeps into everything. And this is a key story here in D.C. in particular. But what Nick and I find fascinating about this story is the main character of this war, because it's the F35. The F35, the flying workhorse of America's air power. The US Marines, Air Force and Navy each owned their own fleet of F35 Lightning IIs. Jack, if I could put this in Lord of the Rings terms, this would be the one plane to rule them all. And it's not just the United states. There are 17 allied nations that have bought F35s. This is NATO's number one machine. Jack, could you sprinkle on some financial context for us, please? $80 million each to purchase, plus $40,000 more per hour flown. And the US already has 630 F35s with 1800 more on order besties. When this plane is retired in the year 2080, the F35 will have been the most expensive weapon in world history. $2 trillion, to quote Dr. Evil. $2 trillion. That's like Napoleon's impressment. Now that is a bigger expense than the Apollo program and it costs more than like all 12 of the fast and the Furious movies. Now that huge price tag has led to a lot of criticism, wondering if we can spend the money better, including from Elon Musk. Plus you got geopolitics causing some countries like the Swiss to cancel their F35 orders. But put all that aside, because right now the F35 is America's key weapon in the air, on Wall street and in culture, actually. Yeah. Funny thing is you probably picture the F35 when you think of Tom Cruise and Top Gun. Right? Like that. Look. That's what he's flying. That's what I assumed. That's what it looked. No, the big reason the F35 is not on the cast of characters in Top Gun is that the F35 is a single seat aircraft. Yeah. So you wouldn't have had room for Goose if they'd had the F35 and Tom Cruise. The plot required a two seat aircraft. Also fascinating is that the F35 is actually a rare frenemy product because it's made by three different rivals. Lockheed Martin, Northrop Grumman, BAE Systems. They all co produce, co parent. Really? Yeah. 35 and Jack, they all have huge headquarters right here in the DMV area. Dc, Maryland and Virginia, just outside the Pentagon. So honestly, if a lobbyist from one of those companies doesn't buy us a drink after this, I'm going to be disappointed because they're everywhere. So Jack, what's the takeaway for all our buddies curious about the F35? Old industries die slow Now. Yetis Elon Musk has tweeted that manned fighter jets are obsolete. Which by the way is actually basically the plot of Top Gun 2. And last week we did tell you about Iran's $35,000 drones. That's like 1/10,000th the price of an F35. And shooting those drones down has cost us billions of dollars already. But we have also covered Anthropic's beef with the Department of War. How Anthropic refuses to let weapons be fully autonomous. Yeah, so the F35 is far from obsolete. Far from it. It's been described as the invisible fighter that's evading radar and dropping missiles ont Iranian targets. In fact, F35s have shot over 3,000 payloads in just two weeks. And investors interestingly have noticed the stocks of Lockheed Martin, northrop Grumman and Bae have each driven at least 25% so far this year. And they're all at all time highs. And who does that remind us of, Jack? The oil industry. Reminds me of the whole story. Reminds me of the oil industry. Totally. Totally. Ten years ago it seemed that oil was on the outs globally with electrification to replace. Okay. But with another Middle east war, Exxon's at all time highs. Turns out that oil prediction dead wrong. So it appears to add it all up that Elon was wrong that F35 jets are obsolete today. And we were wrong that oil was on the outs 10 years ago. Because oil. Because old industries die slow. And sometimes disruption takes a lifetime. Now a quick word from our sponsor for our third and final story. The most dissed business model is back baby. Shopping malls. They are enjoying a renaissance as Gen Z rejects E Commerce. You see, 2006 was peak shopping mall and it also happened to be the last year before the iPhone. That combination is what Gen Z wants right now. Besties. Exactly 20 years ago, shopping malls held a powerful grip on culture and commerce. Simon Property Group reported in 2006 record sales per square foot of their 295 different shopping malls. Abercrombie Spencer's, Claire's 2006. That was the zenith of the Zara. But then the financial crisis, smartphones, Amazon, Temu. It triggered a 20 year shopping mall slide. Oh, forever 21. Not forever. Shopping malls became literally the sets for zombie movies. But Jack, jump into your buddy's 2000 Ford Honda and get Stacy's mom back on the CD player, man. Because the 20 year rule of nostalgia strikes again. It is 2026, but the food court feels like it's 2006. You smell that, Jack? That's the Auntie Anne's pretzels. Nature is healing. The Wall Street Journal reported last week that mall rat culture has returned. But surprise, it's being led by Gen Z. Jack, could you sprinkle on the hero stat for us, please? Shoppers between the ages of 18 and 24 years old did 62% of their spending in store last year. Physically, in person, that is a full 10 percentage points higher than people 25 and older. It's like making us millennials look bad. But it's fascinating. The first digitally native generation Gen Z is being less digital and asking to be less digital in their shop. Okay, pacsun, which is a store I was not aware of, but Jack fully explained to me this kid's never been to a shopping mall. He was born in New York City. Right. Jack said it's like Madison Avenue, but compacted. They've actually added stores in the last year, which is a big deal if you know PacSun. It's the first time they've added a store in 18 years. And stock in Simon Property Group, which I mentioned earlier, it has doubled since 2022. We need to let this sink in for a second. Like, pause the pod. The most cliche case of zombie retail, the shopping mall. It's now a stock market winner. Nice little Saturday. I'm gonna go to Cinnabon, Hollister, maybe the Rainforest Cafe. I don't know if I'll have time. But Jack, it is not 2006. You will notice that the Internet has found a way, though, to seep its way into these mall stores. Yes, stores in malls must be photogenic with built in colorful selfie stations and Hollywood level lighting and clerks. They're carrying tablets around now to show you what that cute top actually looks like on. Yeah, they're like, don't take my word for it. Look how this influencer looks in that top. You're concerned, but Basti's, this resurrection of the shopping mall, this Leonardo da Vincian Renaissance, it reflects something much deeper in Our economy and in our minds. And it happens to be our takeaway. Yes, it is. So Jack, what's the takeaway for our buddies over in the shopping mall? Renaissance. Young people want to go to the B phone era, the era before the iPhone. Yetis the year 2007, that's when the iPhone came out. The year 2006, that was the last year pre iPhone and peak mall. And the year 2006 is when Nick and I were 18. Yeah. We were the last people in this world to have a full childhood without smartphones. And I am so grateful for that. What would you like, do? What would I do? I mean, my dad always took us to Barnes and Noble. Yeah. And I would go into the CD section and like test out the CDs with those nice headsets. And my brothers and I would do one earphone each and I'd be like, this is epic. Well, Gen Z wants that. They want what Jack just described because every other generation has had that, but they've been denied. So teens aren't just flocking back to food courts. That's the very first sign of this trend. Yeah, people are buying ipods so they can listen to music. Just the music. People are buying landline telephones to just make telephone and grow in demand for watch parties instead of streaming together at home. That's like now a thing. Gen Z doesn't want remote work. They want to be in the office. They don't want online dating apps. They want to actually meet people and have real relationships irl. Speaking of which, Jack, the show, the office, has been having its own renaissance thanks to Gen Z. Billie Eilish loves the Eilish and they interviewed her and they asked her why? Because Gen Z is not aware of what that office scene is. Besties raise your hand if you're in the audience and you work in marketing. Okay, so a good portion of the audience, every 10 years or so, marketers pivot their attention to the younger generation of age. Right? Well, the digitally born one is rejecting the algorithmically programmed world that they inherited. And Jack and I don't think iPhones are the problem. It would be the apps that are built on the iPhone. Some of those are the problem. The ones built to addict and distract us from the real world. And that's why young people want to go back to the B phone era. 2006, the year before the iPhone. But besties, this pod's not over yet. No, it is not. We would like to invite some of you to come on up here and help us with the takeaways and the best fact yet, Jack and Judith Anteam, can you please tell us what are the takeaways for all our buddies for Thursday? The new Friday Kava Stock is up 80% since November. So it launched a secret mystery club of loyalty. Because where there's mystery, there's profit margin. The main character of the Iran war is the F35 fighter jet whose creators are all ATHs, all time highs. That was our bad. That's like our internal code right there. It's because old industries die slow and sometimes disruption takes a lifetime. And the final takeaway, shopping malls are the hottest sector of real estate. What was once dead is alive again. The zombies are back because Gen Z wants a taste of the B phone era before iPhone. All right, now time for the best fact yet. This one from our buddy Bamlook Hilarion from lovely Falls Church, Virginia. You got it, Bamlook. All right, get this. The National Cathedral just across the river in Washington D.C. is strong with the Force, the dark side of the force. Because in the 1980s, a 13 year old named Christopher Raider entered a national geography competition for children to design new imaginative gargoyles for the National Cathedral. His submission, it was Darth Vader and it won. So the Star wars character got sculpted into limestone on the church. Darth Vader is actually looking down at you as you exit Sunday service. Nice job. It's a true story. We fact checked it. Nice job. I mean that. Guys, we just. I think we minted a few new podcasters here, Jack. Some fresh competition. Guys. Thank you so much for joining us on stage. Let's give it up for our participants. Give it up. Thank you all so much. I hope to see you guys after the show. We'll take it out. We saw your video, by the way, but like we said, this show still is not over yet, as we must end every show. We know there are some birthdays, anniversaries, bar mitzvahs, new businesses minted. Someone may have IPO'd actually during the IPO tour, we don't know, but we want to get it on tomorrow's show for everyone who did not get to be here in person. So if you could in the audience, please raise your hand if you've got a shout out you want to share with everyone in the world, please raise that hand. And we got you. All right, Jack, I got one right here to kick it off. So my name is Tomiwa Afalabi, and today is my brother's 30th birthday. I just want to wish Him. Happy birthday. So this is here to you, Muiz. Happy birthday. Have more. Welcome to more knee pains and back pains. Nick. I am right here with Tonya Turner from Atlanta, Georgia. Spoiler. I think we're coming to Atlanta next year and she is celebrating her birthday tomorrow. Happy birthday. Hi, this is Charlie Zion. I just want to shout out to my wife Dora, who's at home with our one month old. She let me come to this. I assumed I wouldn't be able to go, but she insisted that I go since I'm such a fan of the pod. Thank you. Name of the one month old, Robbie. Thank you Robbie too for. Thank you for being a good boy tonight, Robbie. Hey, Nick. I'm here with an entrepreneur who just hooked me up with dad Strength, an IPA for dads who can't have. Who are a little bit of lightweights, let's be honest. And can't have a hangover tomorrow morning. This is awesome. Can you introduce yourself? Hometown. Absolutely. I'm Craig. I'm one of the dads of dad Strength Brewing. And these beers are so you can crush a few without getting crushed. We're based in DC. Half the alcohol, 2.9% ABV. So you can catch a buzz without catching a hangover. And fewer calories than in Bickelobe Ultra. But we launched a hazy IPA today. 2.9% 94. You don't like IPAs over there? I brought you a. Well, no. Jack and I know how you can double sales. We need one for moms now. Love the idea. Then it would need to be twice as strong. Nick, I found the Washington wizard that does have magic. Thank you. That guy got a yeti right here. Hi, my name is Jolie. I'm from Connecticut and it was just recently my mom's birthday and she did not believe me when I said I wanted to come to this because I said my dad and I listen to a business podcast and she goes, oh, really? So I want to wish her a happy birthday. Happy birthday and thanks, Lenny. Come. Hi. Got two birthdays to celebrate today. My nephew Alec and my niece in law Juliana. So happy birthday to Alec and Juliana. Hi, this is Ken and just want to say to the person who actually introduced me to the show, he was supposed to be here but had unexpected knee surgery and could not make it. So to Arlen Harrell. This is for you. Thanks, Arlen. Hello. This is Abro. I'm from Raleigh, North Carolina. It's a drive. You drove here? Yeah. Yeah. Okay. The shout out is to my wife. Thank you for Coming as well. She got promoted last week and. I got promoted five minutes before her. Not bad for a couple dinks. Jack, I got one right here. I just want to do a shout out to my wife Jules. I'm Kyle, and in 11 days will be our one year anniversary. Congrats on that, guys. I'm Michael Blake. I'm from dc. I wanted to shout out to my friend Franklin. It's his birthday this weekend and he actually bought tickets for all of us to come because he loves your podcast so much. All right, Jack, I got one right here. Hi, I'm Camille from Northern Virginia, and I want to shout out our baby that's going to be one year on Friday. And also cheers to us for one year of parenthood and surviving. Huge. What's the baby's name? Julian. Julian, lovely name. Hi, everyone. Roy, Danielle, right here in the DMV area. Me and Jack actually have the Same birthday on March 5th, so just wanted to shout out. I came here for my birthday birthday twins, baby Jack. I got a bestie up here. Hi, I'm Marietta Bradbury. I'm from Arlington, Virginia, and I want to shout out to my son who's going to be 18 and he's a senior this year at Wakefield High School, so shout out to him. Nice. Awesome. Thank you. This is Alfred Guillen. I was here with my dad. He had to leave because he had to go to work, but he's the one who introduced me to the show about five years ago. So. Thanks, dad. Jorge Guillen. I love you, Jack. I got one more. Up top. Hey, everybody. Christian Navarro. I want to give a shout out to my son Sebastian, who was on stage a little earlier tonight. He just got admitted into Gonzaga High School. He worked his ass off and I'm super proud of him and he. We share the this podcast together, so I'm happy to be here tonight with him too. All right, guys, I'd like to drop in an initial baby offering in Ibo. My buddy Adam Taylor just had a new baby. Charlie is first and also Gary Wright, a Unabomb survivor and a close friend of mine. He just dropped his first podcast or it's dropping on Friday. Chaos unraveled. Congrats. Thanks, man. All right, Jack. Good night, everybody. Thank you all so much. Hope to see you soon.