🤠 “Yeehaw$$$” — Stetson’s cowboy revival. Luckin’ 1st US coffee. Elon’s last stand.
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This is Nick. This is Jack. It's Wednesday, so Vichay Wednesday, July 2nd. And today's pod is the best one yet. This is a T-boy. The top three pop business news stories you need to know today. What the heck? Are stocks at record high still, Jack? Of course they are. Yeah, there we go. But today's

three stories. They are fantastic as well. Jack, what do we got on the tea boy? For our first story, Luckin Coffee opens a new coffee shop every two and a half hours in China. True story. And their first U.S. location opened on Monday in New York City. Starbucks invented the third place, but Luckin invented the zero place. For our second story, the big beautiful bill just passed the Senate, and Elon and Trump are fighting about it again. Because the most controversial part of this bill is

energetic, literally. And our third and final story. We're about to enter 4th of July and one American brand is thriving right now.

Stetson. Stetson's cowboy hats ain't worn by cowboys anymore, but they are worn by Beyonces. But yetis, before we hit that wonderful mix of stories. What a mix. No one else is doing that mix. Love the mix, Jack. Look, it's July. We're officially halfway through the year, so we're going to pose an awkward question. Yes, we will. How are you doing with your New Year's resolution? Because you said you'd hit the gym, but

then you hit snooze. You said you'd quit Instagram, but you just liked our post. Your last journal entry was on Monday, January 14th. Get this, Yetis. Four out of five of us drop our New Year's resolutions within one month of the new year. The diet starts tomorrow. Except for that donut. So three years ago, Nick and I disrupted the resolution. Because Jack and I launched

A resolution revolution. Every July, we do the same thing. We call it... We do. Actually, it's pretty self-explanatory. The mid-year's resolution. Yeah, mid-year's resolution. It's the same idea as January, but we do it in July as well. And here's our pitch for why you should do it too. The mid-year's resolution is twice as easy because it's half as long. It's six times as much fun because it starts in the summer. And it's way less pressure because no one even talks.

knows about it. Do you want to know my mid-year's resolution? What is it, Jack? What do you got this? What are you writing down? Stop eating food off my kid's plates. Not a single french fry, not a single chicken nugget, no Kraft macaroni and cheese. If it's for my kid, I may not eat it. No, no, no, Jack. The calories don't count if it was on someone else's plate. That's just like a fact. No, that's like the opposite of my mid-year's resolution. Maybe I misunderstood the science experiment.

All right, Jack, my mid-year's resolution, I'm not buying any new shirts. I don't need new shirts. I have all these great shirts. I don't need new ones. Why not expand it to pants? Then at the end of the year, I'm going to buy a Rolex. Oh, with the savings you mean? Yeah. Incentive. You need to incentivize the resolution. Deny the shirts, approve the watch.

So yetis, to kick off the midway point of this year, let us know your mid-year's resolution. Drop your mid-year's resi right here in the comments. And remember, the best part of the mid-year's resolution? No one cares if you quit, because we literally made this up.

It's not a real thing. And that's why it's so beautiful. Jack, let's hit our three stories. 15 years before this song, two boys from the Northeast met in a dorm. They had an idea to cause a cultural storm. It's the best one yet, but the best is the norm. Jack Nick, that's it. 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 know, cause we ready to go. We can't wait no more, so just start the show. You can do it.

Start the show. Start the show. First, a quick word from our sponsor. Now, quick break. Switching topics to one of our favorite sponsors, Vital Proteins. All right, Eddie. So Jack has become an extreme collagen user. This guy's adding Vital Proteins collagen to each morning coffee. And Jack drinks a lot of morning coffee, I should point out. Yeah, I have three cups a day. I have a tub of mocha and a tub of chocolate. Both make my coffee taste chocolate.

And there's a bunch of protein in each scoop too. So Vital Proteins Collagen Peptides is a supplement that has four benefits all in one helping support healthy hair, skin, nails, bones, and joints. That is how my face got doodler than a donut. Mix it into your coffee, to your smoothie, or just go straight to your face. By taking Collagen Peptides daily, you can support your hair, skin, nail,

bone, and joint health. Get 20% off by going to vitalproteins.com and entering promo code T-boy at checkout. That's vitalproteins.com, promo code T-boy for 20% off. These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.

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For our first story, just in time for the 4th of July, Luckin' Coffee has arrived in America. China's biggest coffee chain just opened up in New York City, and they're doing the opposite of Starbucks. All right, Eddie, eight years ago, when I was in business school, I used a QR code for the very first time. Revolutionary. Do you remember what I texted you, Jack? You told me that you bought a latte in Beijing at a Luckin' Coffee store.

Using your QR code. Luckin Coffee, the biggest coffee chain in China. These guys are putting up numbers that would melt the Frappuccino. They have grown so much since Nick was there. For instance, in 2023, they opened nine new stores per day.

That's one new grand opening every two and a half hours. Luckin opened 9,000 stores in 2023. Jack, could you sprinkle along some competitive context for us, please? That is more locations opened in just one year than Starbucks has opened in China in 25 years. No.

serving decaf over at Luckin headquarters, man. I think they work a 24-hour workday over there. Well, Luckin's coffee, it happens to be priced 30% lower than Starbucks. Plus, there's no delivery fee. More on the delivery part in a second. But add it all up, and Luckin is basically the Shein of coffee. Yeah, they ain't serving double-digit lattes. They're serving single digits. They're cheap, they're fast, and they pair well with a cute top. And here's

On Monday, Luckin opened their very first location in America in New York City. Actually, the first two locations. One in Chelsea and one in Greenwich Village right next to NYU. Which makes some strategic sense. And why is that Greenwich Village location particularly smart, Jack? NYU has the most Chinese students of any other American university, so they'll feel right at home with their local Luckin coffee. You're ordering the coconut latte if you know, you know. First QR code. But the real...

competitive situation for Luckin' Coffee isn't on the street corner. It's in the app store. This is what Jack and I found fascinating, besties. Get this. Starbucks has the biggest food app in America, right, Jack? Launched in 2009, Starbucks' rewards app has 34 million active users. But Luckin'

has nearly four times that. The Luckin app is used by 120 million people in China. Those are like social media app numbers, not coffee numbers. Totally, Jack. And the reason why is that 100% of the orders for Luckin take place online.

in the app. You must order in the app. You can't walk up to the desk and order a cheese foam espresso. You have to look down at your phone and tap, tap, tap away your order. By the way, Luckin isn't just doing all this in the app so you don't chit-chat with the barista and waste everyone's time going on about origins of the beans from Ecuador or whatever. Luckin requires all orders happen in the app

because of the data. They're doing it for the data. Luckin's former CFO said this, we started as an online model so that 100% of the transactions give us data. For example, Luckin knows that you didn't order a coffee in the last 10 days, so they'll send you a half-off deal when you walk within five blocks of a Luckin. That's the power of data. Kind of like TikTok, Luckin knows you better than any other app,

and they'll find more ways to get you to buy more. They're putting the algorithm in the macchiato. So Jack, what's the takeaway for our buddies over at Luckin? It's Starbucks' third place versus Luckin's zero place.

Hey, yetis, let's talk numbers here. Luckin, they did $1.2 billion in revenue last quarter. That is still a fraction the size of Starbucks. It's just one-tenth the market value. But Luckin's real threat to Starbucks is that they're betting on the opposite coffee experience.

Because Starbucks invented the third place. Not home, not work, a welcoming sanctuary in between. And just last week, Starbucks doubled down on the third place. They said that they want you to stay and linger longer. But we think that Luckin invented the zero place because it's grab and go only. In fact, a huge percentage of their revenue is delivery. Luckin thinks you don't care about a third place. No.

The most important thing is getting your coffee fast and not interrupting your plans to go from A to B. So while Starbucks focuses on coffee culture, Luckin focused on coffee logistics. The new coffee battle in America won't be Starbucks versus Luckin. It'll be third place versus zero place.

For our second story, Elon Musk is going all out in opposing Trump's big, beautiful bill. But Tesla's not the only company that would suffer. The biggest target of Trump's big, beautiful bill is the clean energy industry.

Yetis, yesterday Jack and I used an ice cream sundae to explain the big, beautiful bill to you. Great episode. You should check it out after this one. But in just the last 24 hours, we have two big updates to report. Yeah, first, Republicans in the Senate passed the biggest bill in our lifetimes, that big, beautiful bill on Tuesday. It was a 50-50 tie that was broken by the Vice President, J.D. Vance. Now the bill goes back to the House, which could accept the Senate's changes or reject them.

The second big update is on the Real Housewives of Mar-a-Lago. Yeah, the new real-time Bravo show. You got the world's most powerful man versus the world's richest man. Here's the latest: Now, in response, President Trump mused on social media about cutting all of Elon's government contracts for his businesses. Trump even said, "We will see."

when asked by the press if he would try to deport Elon back to South Africa. Trump is saying that Elon is butthurt because this bill would end the subsidies for EVs, which Tesla enjoys. And Tesla stock did fall 5% on Tuesday, but the reality is way bigger than Tesla. And Jack, how exactly would you describe the reality? Trump's big, beautiful bill basically throws the clean energy industry under a gas-powered bus.

Yeah, because besties, yesterday we covered the biggest part of Trump's big, beautiful bill. Four and a half trillion dollars of debt finance tax cuts. But the big, beautiful bill would also cause huge financial damage to America's clean energy industry. The highlight you've probably heard about is the end of the $7,500 tax credit for buying an electric car.

That's going to hurt all electric car makers. But here's what Jack and I found fascinating. It really goes even further. Get this. The big, beautiful bill also ends tax credits for wind and solar energy as well. And without those tax credits, wind and solar energy don't really get built. There was even a new tax on solar and wind energy projects until it got removed in the final

minutes of the debate last night. So basically this bill is rolling out the red carpet for fossil fuels. Coal is getting a tax break, but it punishes clean energy. Solar and wind are losing their tax break. Solar stocks have fallen 30% in the last month in anticipation of this bill. But in

But interestingly, nuclear stocks have been up in the same period. That's right. Nuclear happens to be the one big clean energy exception in the big beautiful bill. Because remember, nuclear is carbon-free, and it is getting a lot of support from this administration. Maybe also because big tech is...

is very interested in nuclear for powering artificial intelligence. But nukes and artificial intelligence aside, renewable energy bankruptcies loom if this bill becomes law. And you can see it in the stock prices. So Jack, what's the takeaway for our buddies over in the energy industry? In energy, do we compete with China or do we concede?

Honestly, Eddie's, Jack and I never would have thought five years ago that the United States would be abandoning its transition to clean energy. Now, nonprofits and many private companies are still committed to the transition, but the US government is about to abandon it. And what we think is so striking is the contrast because our strategy is now the opposite of China's strategy on energy. For years, China has invested big

money in clean energy, considering it an industry of the future. Jack, you want to share the two wild stats we discovered on Chinese energy? Half of the world's solar electricity is now generated in China, and clean energy is 10% of China's GDP. We repeat, clean energy.

10% of China's economic output. Elon tweeted this weekend that abandoning solar is a massive strategic error that leaves America extremely vulnerable in the future. So the question we got to ask for U.S. energy is this, do we compete with China or do we concede? Now, a quick word from our sponsor.

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Every big moment starts with a big dream. But what happens when that big dream turns out to be a big flop? From Wondery and At Will Media, I'm Misha Brown, and this is The Big Flop. Every week, comedians join me to chronicle the biggest flubs, fails, and blunders of all time, like Quibi. It's kind of like when you give yourself your own nickname and you try to, like, get other people to do it. And the 2019 movie adaptation of...

Like, if I'm watching the dancing and I'm noticing the feet aren't touching the ground, there's something wrong with the movie. Find out what happens when massive hype turns into major fiasco. Enjoy The Big Flop on the Wondery app or wherever you get your podcasts. You can listen to The Big Flop early and ad-free on Wondery+. Get started with your free trial at wondery.com slash plus.

For our third and final story, Stetson, the original American cowboy hat, has jumped from Bull Riders to Beyonces because Stetson figured out how to sell Americana style from blue collars to white.

Yetis, a little funny thing Jack and I have noticed. You know the most successful companies from the great gold rush of the 1840s? Who are they, Jack? They have nothing to do with gold. Yeah, like Levi's Jeans, Wells Fargo Bank, Ghirardelli Chocolates. All of those companies were famous for originally selling to gold miners, but unlike gold miners, all those companies are still around and thriving today. Gold!

and air gold. Jack, the other company we almost forgot is Stetson, the 1865 founded OG cowboy hat. Stetson, the most disruptive hat in the history of heads. We say that because before the cowboy hat, you had to wear a raccoon-tailed hat. What's the problem, Jack? Well, first of all, they looked ridiculous. Yeah. Oh, yeah.

Sorry, Ethan Allen. No judgment. Yeah, sorry, Davy Crockett. They also didn't provide any protection from rain or snow. So to avoid that fashion faux pas, John B. Stetson of a New Jersey hat-making family invented a precipitation-proof streamlined hat design we now call the cowboy hat. It's basically a hat with an all-around brim that goes 360. But it's not a bucket hat. Call it a bucket hat.

You're going to get kicked by that Bronco. Well, 160 years later, the cowboy hat company Stetson should have been out of business by now, right, Jack? I mean, there aren't that many cowboys these days, so. And yet, Stetson's brand is hotter than ever, and we were fascinated by that.

Because again, gold miners, cowboys, pioneers, not really occupations these days. You can't check that on the census, can you, Jack? No, you cannot. So for decades, sales of Stetsons were slowing. But then get this. In 2019, this family business rebranded. They rebranded Stetson from Western to Americana. They realized that Western is a niche brand that's kind of impractical and kind of outdated.

But Americana is a brand that's bigger, more aspirational, and as relevant as ever. And what was the result of this rebrand pivot jack? Stetson's cowboy business has been growing double digits every single year since 2021. And driving all that have been some key obvious partnerships. What hat does the Dutton family wear at Yellowstone Ranch? Stetson hats. But also some unobvious partnerships. What hat were Ken and Barbie wearing in the Barbie movie?

I think that's a black Stetson, Jack. And what was Beyonce wearing for her Cowboy Carter tour? I believe that's a Swarovski crystal Stetson hat. All three of those cultural icons the last few years all rocked Stetsons. What's so shocking is that Stetson is now selling both blue-collar worker hats and white-collar luxury ones without diluting the brand. Mexican ranchers buy Stetson hats as part of their standard uniform.

But Stetson also sells a $5,600 diamond crusted hat that's popular with the Aspen crowd. You're wearing that to the app, right? So this brand, they've expanded so much culturally since the pivot that their cowboy hat is now just 15% of their sales. Stetson's fragrance and perfume business just passed $100 million a year. Okay, their fastest growing division is boots. Fashionable women's boots. Cowboy boots. And they've also expanded to alcohol with Stetson branded bourbon.

Which makes sense. And even Stetson branded bedding. Which makes less sense. Is that leather sheets? Because I don't want to sleep in leather sheets. If you can't handle the cow hide, then the sleepover is off, Butch Cassidy. So Jack, what's the takeaway for our buddies over at Stetson? Founding dates are a competitive advantage.

Yetis, Birkenstock, Levi's, Carhartt, and now Stetson. All of their sales are surging for these older brands. And all of those older brands straddle both working class consumers and premium consumers. And a key reason, we think, is age. Carhartt founded 1889. Stetson founded 1865. Levi's founded 1854. And Birkenstock founded 1774, before the United States of America. Yee-hee!

Yee-haw, Jack! Right now, consumers are putting a premium on legacy. As long as a product still provides value, it's not seen as old-fashioned, it's seen as historic. Legacy brands are realizing that their age isn't a liability, it's actually a branding advantage. Because anyone can change their design, their price, their location, or their logo to compete with you. But they can't change their founding date.

Jack, could you whip up the takeaways for us for Savice Wednesday? China's Luckin Coffee has finally arrived in America, with two locations in New York City. The way we see it, it's Starbucks' third place versus Luckin's zero place. For our second story, Trump's big, beautiful bill was passed by the Senate, but Elon is fighting tooth and nail to kill it. And the big loser in this bill is clean energy. Do we compete with China, or do we concede? And our third and final story is Stetson.

The OG cowboy hat is hotter than ever, selling to both blue-collar workers and Aspen fashionistas. Because a founding date is a competitive advantage.

But yetis, this pod's not over yet. Here's what else you need to know today. First, Lululemon is suing Costco over alleged knockoff activewear. This isn't a lawsuit, this is a dupesuit. Yeah, Lulu says Costco copied the look and the feel of their ABC khakis, their scuba hoodies, and their defined jackets. And the product in question is Kirkland-branded clothing.

Nick, I got a feeling Lululemon just picked a fight with every Costco card holding American. If you want these leggings, you better come and take them. And second, Uber's CEO just basically said you shouldn't tip your Uber driver. Here's what he said. You should only tip if you feel like you got your money's worth and then some. Yeah, that sounds like not tipping. Like drivers are probably going to hate this comment, Jack. Why would Uber risk making such an important group, the drivers?

Well, Yetis Jack and I were talking about it, and we think that self-driving cars are coming so quickly, the riders will matter more than the drivers, and Uber is picking sides. And finally, the WNBA isn't just setting record attendance, it's getting record team...

And May, 400,000 people attended a WNBA basketball game, the most in 20 years. And half of all WNBA games right now are sold out. So here's the update. Cleveland, Detroit, and Philadelphia, congratulations, you are now getting your own WNBA teams. Which means it's time for the most exciting parts of the sports industry. Yeah. Coming up with the names. Name-storming, baby. The Philadelphia She-Gulls. Here we go, Jack. Ha!

Now time for the best fact yet. This one sent in by Pat Meehan from lovely Bradenton, Florida. Get this, there are 60 million pickup trucks on the road to America. But here's the kicker, seven out of eight of those trucks were not bought for work. That's right. According to registrations and usage data, only one out of eight pickup trucks are actually used for job-related purposes. Like construction, farming, or hauling equipment. The rest...

They're lifestyle pickups used for like commuting, grocery shopping, and flexing at tailgates. What you're saying, Jack, is that pickup trucks are basically America's favorite fashion statement? Rugged and rarely dirty. Yeah, our buddy Timmy, he's never hauled lumber, but he has parallel parked an F-150 at Trader Joe's.

- Yetis, you look fantastic today. And if you have got a mid-year's resolution, we wanna hear it. Drop it right here in the comments. I think every dad listening to this show should follow my lead and not have a single piece of food off their children's plates. Okay, Jack, do you remember what your resolution was last year? - Yeah, to only eat ice cream if it's eaten on a cone.

Yeah, there's kind of a theme here of you and this uncertainty with other people's food and maybe a bizarre relationship with eating other people's food. Yetis, you look fantastic. Drop down to follow the show so you get us every day. And Jack and I will see you tomorrow.

And before we go, a happy birthday to Yeti Jose Estrada in New York City who just got a toothbrush sales internship. Congratulations, Jose. And a happy birthday to Binte Abiola of Milton, Ontario, Canada, the mother of Tariq.

the mother of a deal and the wife of uzman and rohit sharma is turning 30 years old down in washington because the roses are red the skies are blue the love is prismatic just because of you and congratulations to adele and justin silver for getting married congratulations guys and khaled from

Kuwait has a fantastic T-boy Flamengo t-shirt he sent us. Thank you for the creativity and support, Colin. And a big shout out to Shreyash Kulkarni, who's listening during his workout. Long time bestie. Hit us up in the DMs. 45 pushups in a row. And Matt Newsome, who brushed shoulders with Jeff Bezos while in Milan last week, sent us a video of it. And Matt,

you're the next level paparazzi right there. And a shout out to G with the Girls Club Company for sharing her T-boy routine with all of her besties on Instagram. G, we see you. Thanks for being a fan. This is Jack. I own stock of Levi and Birkenstock and Nick owns stock in Lululemon and Luckin.

If you like the best one yet, you can listen ad-free right now by joining Wondery Plus in the Wondery app or on Apple Podcasts. Prime members can listen ad-free on Amazon Music. And before you go, tell us a little bit about yourself by filling out a short survey at wondery.com slash survey. We want to get to know you.

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