Jake Howe

I did a little retail. You did a little retail side quest.

I did a little retail. You did a little retail side quest.

Well, I mean, my kids love Starbucks. We are regular consumers. The app is extraordinary. And I think the key issue here is obviously the inputs and inflation. That's a major driver. But wage inflation is a critical piece of this. Here's a chart for you, just in terms of weekly earnings of full-time workers since Q4 2019.

Well, I mean, my kids love Starbucks. We are regular consumers. The app is extraordinary. And I think the key issue here is obviously the inputs and inflation. That's a major driver. But wage inflation is a critical piece of this. Here's a chart for you, just in terms of weekly earnings of full-time workers since Q4 2019.

Starbucks started having a lot of labor movements, a lot of unionization, a lot of complaints from the green aprons, and they have massively raised salaries. They were at $15, $16, $17. A lot of people were going into gig work, door dashing, Uber.

Starbucks started having a lot of labor movements, a lot of unionization, a lot of complaints from the green aprons, and they have massively raised salaries. They were at $15, $16, $17. A lot of people were going into gig work, door dashing, Uber.

And so this competition for entry-rung employees forced Starbucks, and I know this from the Uber experience and then DoorDash, people wanted to set their own schedules, not be like in a shift work. And so- You could make $20 working for Uber and DoorDash. You're making $15 and you have to drag your ass into Starbucks at 5, 6, 7 a.m. and work a shift and not be able to pick up your kids.

And so this competition for entry-rung employees forced Starbucks, and I know this from the Uber experience and then DoorDash, people wanted to set their own schedules, not be like in a shift work. And so- You could make $20 working for Uber and DoorDash. You're making $15 and you have to drag your ass into Starbucks at 5, 6, 7 a.m. and work a shift and not be able to pick up your kids.

That led them to go to like $20, $22 per hour for these baristas. And they continue to raise those rates. They've been very generous with employees. And so I think that's a key piece of it. I think the big story here is going to be automation. I think you're going to see a lot more robotics in these. If you look at, I just had the CEO of what's the salad company that people, sweet greens.

That led them to go to like $20, $22 per hour for these baristas. And they continue to raise those rates. They've been very generous with employees. And so I think that's a key piece of it. I think the big story here is going to be automation. I think you're going to see a lot more robotics in these. If you look at, I just had the CEO of what's the salad company that people, sweet greens.

I just had the CEO of sweet greens on this week in startups. And he is all in on automation and they are making salad robots and they've already got two or three stores with them. And his whole concept is it's going to take $3 out of every salad. We have an investment in a company called Cafe X. Nick, you can play a clip of it.

I just had the CEO of sweet greens on this week in startups. And he is all in on automation and they are making salad robots and they've already got two or three stores with them. And his whole concept is it's going to take $3 out of every salad. We have an investment in a company called Cafe X. Nick, you can play a clip of it.

These two machines in FSO have broke a million dollars a year in revenue. They are serving a massive number of them, and they've sold a dozen of these to other people. So I think automation is what's going to come to this. I don't think you can sustain it. And the money has to come out of somewhere. And the two big costs it can come out of is the real estate and the employees.

These two machines in FSO have broke a million dollars a year in revenue. They are serving a massive number of them, and they've sold a dozen of these to other people. So I think automation is what's going to come to this. I don't think you can sustain it. And the money has to come out of somewhere. And the two big costs it can come out of is the real estate and the employees.

And I think that's what we're going to see in the very near future is Dunkin'.

And I think that's what we're going to see in the very near future is Dunkin'.

You were doing it at Eatsa, right? Were you doing?

You were doing it at Eatsa, right? Were you doing?

So- Explain how that might work and impact a business like that. Unpack a person.

So- Explain how that might work and impact a business like that. Unpack a person.