WEBVTT - Bloomberg Businessweek Weekend-September 19, 2020 0:00:01.000 --> 0:00:04.480 This is Bloomberg Business Week with Carol Masser and Jason 0:00:04.559 --> 0:00:08.800 Kelly from Bloomberg Radio. Him Jason Kelly, and I'm Carol Masser. 0:00:08.920 --> 0:00:11.480 Welcome to the weekend edition of Bloomberg Business Week. Jason, 0:00:11.480 --> 0:00:14.560 it's week twenty seven, still working mostly from home. Our 0:00:14.560 --> 0:00:16.520 show is perfect for a fall weekend. We've got a 0:00:16.560 --> 0:00:19.239 little football, a little beer, a little humor, a little 0:00:19.239 --> 0:00:24.239 political satire, and I gotta say we got a great lineup. Well, 0:00:24.280 --> 0:00:26.319 and it was a great week here at Bloomberg, a 0:00:26.360 --> 0:00:29.040 big week the Bloomberg Green Festival. We're going to hear 0:00:29.120 --> 0:00:32.080 part of your interview with inga Group president and CEO, 0:00:32.240 --> 0:00:36.279 Yesper Brodon, the business case for climate action. Yeah, we've 0:00:36.280 --> 0:00:38.800 got a trifectave mega ceo as you mentioned, I Kea. 0:00:38.880 --> 0:00:40.959 We've also got the CEO of Chipotle, and then we've 0:00:41.000 --> 0:00:43.159 got the co founder and owner of the Atlanta Falcons. 0:00:43.400 --> 0:00:46.080 All talked with us on our daily radio show about 0:00:46.240 --> 0:00:49.040 core values. Plus the results of our Business Week Best 0:00:49.120 --> 0:00:52.440 B School survey, not a ranking this year. But first 0:00:52.640 --> 0:00:55.280 the cover story all about Facebook. Yeah, and we gotta 0:00:55.280 --> 0:00:57.440 tell you there were some news this week on Facebook. 0:00:57.760 --> 0:01:01.240 The FTC said to be preparing a possible antitrust lawsuit 0:01:01.400 --> 0:01:04.600 against Facebook. They've been investigating the company for more than 0:01:04.640 --> 0:01:06.880 a year. It's really whether the social media giant has 0:01:06.880 --> 0:01:09.640 harmed competition. They could file a case by the end 0:01:09.680 --> 0:01:11.880 of the year. But as you said, the cover story, 0:01:12.319 --> 0:01:15.040 it's got a political take when it comes to Facebook. 0:01:15.160 --> 0:01:18.360 Bloomberg News technology reporters Sarah Fryer joined us along with 0:01:18.400 --> 0:01:21.000 the editor of the magazine, Jill Weber. I think it's 0:01:21.040 --> 0:01:25.120 just a compilation of all the things that my colleague 0:01:25.160 --> 0:01:27.720 Kurt Wagner and I have been hearing over the past 0:01:27.760 --> 0:01:32.560 few months and years about how Facebook has increasingly been 0:01:32.600 --> 0:01:38.920 willing to look the other way when members of Trump's 0:01:38.920 --> 0:01:42.479 world break the rules on Facebook. And that's not any 0:01:42.560 --> 0:01:46.320 mistakes the company has. Um you know, the Trump administration 0:01:46.319 --> 0:01:51.680 has leverage over Facebook. They're facing a potential regulation and 0:01:51.840 --> 0:01:55.360 even worse, potential for Trumps to blow up and create 0:01:55.400 --> 0:01:58.640 another bad news cycle. But they are catering to that power, 0:01:58.720 --> 0:02:03.560 and employees are quite concerned about what that means, as 0:02:03.560 --> 0:02:10.920 we had into the November election. So, you know, I think, um, 0:02:11.120 --> 0:02:15.840 Sarah um, the there's a lot of stuff in here, 0:02:16.400 --> 0:02:19.360 and it makes me just think about everything that we've 0:02:19.760 --> 0:02:25.160 kind of observed um about politics and Facebook going back 0:02:25.200 --> 0:02:30.560 to basically ten, where obviously all the concerns were ended 0:02:30.639 --> 0:02:34.400 up being about sort of Russian interference and it's uh 0:02:34.440 --> 0:02:39.519 and its role on on on on manipulating the platform effectively. Um, 0:02:39.720 --> 0:02:44.120 and that is a concern um again, but it's actually 0:02:44.200 --> 0:02:46.800 it seems like the thrust of this might be in 0:02:46.880 --> 0:02:51.320 sort of the Facebook's response to that wasn't necessarily uh 0:02:51.360 --> 0:02:54.400 to to take on that stuff. Um, And they've done it, 0:02:54.639 --> 0:02:57.680 I think a pretty amazing job of at least recognizing 0:02:58.240 --> 0:03:00.359 the ability to spot some of that stuff. But there 0:03:00.360 --> 0:03:02.440 seems to have been sort of a right word drift 0:03:02.520 --> 0:03:05.360 at Facebook, and and that has been um, you know, 0:03:05.560 --> 0:03:07.679 that's obviously the center of the story. Can you talk 0:03:07.840 --> 0:03:13.040 more about where those concerns are rooted in? Right? So, 0:03:13.120 --> 0:03:19.040 after the Russian election, interference fromber Russia was was inserting 0:03:19.080 --> 0:03:24.800 itself into us of polarizing topics like immigration, like race, 0:03:25.000 --> 0:03:30.200 like like feminism. They were building groups on on Facebook 0:03:30.240 --> 0:03:34.520 using people pretending to be Americans who weren't. And what 0:03:34.760 --> 0:03:37.920 Facebook concluded from that is that it wasn't the things 0:03:38.080 --> 0:03:41.720 that the fake people were saying. The problem was just 0:03:41.840 --> 0:03:44.880 that they were fake people. So Facebook really does not 0:03:45.120 --> 0:03:49.800 care if people are trying to manipulate others on Facebook 0:03:49.840 --> 0:03:54.839 and spreading, um sometimes at Variancendiary fake news. They don't 0:03:54.880 --> 0:03:57.400 want to take it down. They only want to get 0:03:58.400 --> 0:04:02.080 get their enforcement into year if there are people behind it, 0:04:02.120 --> 0:04:06.080 if they're breaking other rules. And what that's done is 0:04:06.120 --> 0:04:09.600 it's created this environment where Trump can really test the 0:04:09.720 --> 0:04:12.760 limits of these policies. He's been spreading a lot of 0:04:12.800 --> 0:04:18.279 misinformation about how to vote, telling people things um about 0:04:18.600 --> 0:04:20.800 mail in voting, saying that that would lead to fraud. 0:04:20.880 --> 0:04:24.520 Of course it's not true. Um. He has been using 0:04:24.600 --> 0:04:29.880 Facebook essentially to uh so doubt in the potential results 0:04:29.960 --> 0:04:33.440 of the election. And Facebook has said, well, I know 0:04:33.520 --> 0:04:36.919 we said that we cared about voting misinformation, but we 0:04:36.960 --> 0:04:39.839 don't think that Trump is breaking our rules, and we 0:04:39.839 --> 0:04:43.040 don't want to take down anything from a politician. So simply, 0:04:43.400 --> 0:04:46.000 you know, I want to ask Sarah, is Mark Zuckerberg 0:04:46.160 --> 0:04:50.080 courting the president and and what's great about your stories? 0:04:50.120 --> 0:04:52.880 You did some really inside reporting talking to employees who 0:04:52.880 --> 0:04:55.280 have worked at the company and seen, you know, some 0:04:55.320 --> 0:04:57.960 of the policies that they have done, and and kind 0:04:57.960 --> 0:05:01.800 of what they've been focusing on, but is Zuckerberg courting 0:05:01.800 --> 0:05:06.719 the president? Well, he's not a Trump Republican. What he 0:05:06.960 --> 0:05:10.840 is is interested in power and dominance for Facebook, and 0:05:10.920 --> 0:05:14.000 that requires the support of people in power. And that's 0:05:14.040 --> 0:05:16.599 not just in the US. We've seen this in many 0:05:16.600 --> 0:05:20.919 countries throughout the world. Facebook always helped out the government 0:05:20.920 --> 0:05:25.120 in charge, caters to their concerns and in some cases, 0:05:25.400 --> 0:05:28.520 you know, give them face time with Zuckerberg, lets them 0:05:28.560 --> 0:05:32.240 break rules that they wouldn't let them break if they 0:05:32.279 --> 0:05:36.200 weren't powerful. And what employees are concerned about is that 0:05:36.240 --> 0:05:40.880 this is actually having this unbalanced effect on what face 0:05:40.960 --> 0:05:44.000 with users see and how they are informed about the election. 0:05:44.400 --> 0:05:48.479 One example that m that we learned for the story 0:05:48.520 --> 0:05:51.279 is that there were a lot of changes to the 0:05:51.320 --> 0:05:54.839 new speed after seen presidential elections to try to reduce 0:05:54.880 --> 0:05:59.480 the amount of incendiary and untrustworthy knews because that was 0:05:59.520 --> 0:06:04.240 one of the big problem. Well, Facebook tested the potential 0:06:04.279 --> 0:06:08.600 outcome of an algorithm change, and the policy team reviewed 0:06:08.680 --> 0:06:12.840 that and thought, well, this is this is hurting the 0:06:12.839 --> 0:06:17.080 traffic for conservative outlets too much, And that was Bloomberg 0:06:17.080 --> 0:06:20.680 News technology reporter Sarah Friar All Things Facebook is her 0:06:20.760 --> 0:06:24.599 beat and editor Joel Weber. You're listening to Bloomberg Business Week. 0:06:24.640 --> 0:06:26.760 Coming up, we had to the Bloomberg Green Festival. We 0:06:26.800 --> 0:06:29.719 go from social media to social consciousness. We get the 0:06:29.720 --> 0:06:31.960 business case for climate change from the head of Akia. 0:06:33.000 --> 0:06:37.480 This is Bloomberg. This is Bloomberg Business Week with Carol 0:06:37.520 --> 0:06:41.200 Masser and Jason Kelly from Bloomberg Radio. Welcome back to 0:06:41.200 --> 0:06:44.160 Bloomberg Business Week. Well, a big week here at Bloomberg, 0:06:44.200 --> 0:06:48.720 the Bloomberg Green Festival, across the entire week, some amazing conversations, 0:06:48.960 --> 0:06:53.160 including yours with the Swedish company we all know, yeah, 0:06:53.279 --> 0:06:55.200 we certainly do. We're talking about yes Burgh Browed and 0:06:55.240 --> 0:06:57.760 he's the presidency of the inca group home to some 0:06:57.880 --> 0:07:02.279 three seventy four Akiat wars in thirty countries. I talked 0:07:02.279 --> 0:07:04.680 with him about the business case for climate change, which 0:07:04.720 --> 0:07:07.320 he definitely made. But we began with what life has 0:07:07.320 --> 0:07:10.200 been like amid COVID nineteen this year for us, like 0:07:10.320 --> 0:07:14.400 for everybody on this planet, we have been through a 0:07:14.480 --> 0:07:17.160 very special journey this year, and I must admit us 0:07:17.200 --> 0:07:19.840 I share with you too, to be traveling again. I 0:07:19.840 --> 0:07:22.560 felt a bit like the old movie Castaway when coming 0:07:22.600 --> 0:07:27.160 back to the office seeing people, um and enjoying that also, 0:07:27.200 --> 0:07:31.520 I must say at the same time, obviously, UM, we 0:07:31.640 --> 0:07:34.400 just like everybody else, have figured out new ways of leading. 0:07:35.480 --> 0:07:38.760 We have figured out that we we didn't have a 0:07:38.800 --> 0:07:40.880 map for this situation, but we had a very strong 0:07:41.360 --> 0:07:43.680 compass I think with the way we like to lead 0:07:43.720 --> 0:07:47.880 and our values that helped us. Actually I think take 0:07:47.960 --> 0:07:51.400 many good decisions. But it's been a ride. It's been 0:07:51.440 --> 0:07:53.400 a ride, no doubt about it. It's interesting that you 0:07:53.440 --> 0:07:54.880 say that, and we're going to get into kind of 0:07:54.880 --> 0:07:58.840 your sustainability strategy that is so much the IKEA and 0:07:58.880 --> 0:08:02.240 corporate culture here. But I do wonder having so many 0:08:02.240 --> 0:08:05.480 of those measures in place, are there any specific anecdotes 0:08:05.520 --> 0:08:07.800 that you can tell us that help you guys get 0:08:07.800 --> 0:08:15.080 through this crisis because of those green initiatives or sustainable initiatives. Well, 0:08:15.240 --> 0:08:18.680 you can say, I think the it's all enter tangled, right, people, 0:08:18.840 --> 0:08:21.600 plan at and business and you can't take out any 0:08:21.640 --> 0:08:25.480 of these from the equation. So what happened obviously to 0:08:25.600 --> 0:08:30.280 us was that we had periods of dramatic closures in 0:08:30.320 --> 0:08:33.800 our stores and we had to find ways to to 0:08:33.960 --> 0:08:38.760 both protect ourselves, are people, our customers, uh, and then 0:08:38.800 --> 0:08:40.280 on the other hand, we had to make sure that 0:08:40.320 --> 0:08:42.680 we could save the jobs for the future. And the 0:08:42.720 --> 0:08:44.680 way what actually happened in the end of the day 0:08:44.720 --> 0:08:47.920 was that we were speeding up everything around multi channel 0:08:47.960 --> 0:08:51.680 and online and we went from a good year to 0:08:51.800 --> 0:08:55.240 a record loss forecast to actually coming back on half 0:08:55.280 --> 0:08:58.560 of our estimate the profit in the end of the day, 0:08:58.640 --> 0:09:01.320 and that was thanks to I think entrepreneurship of getting 0:09:01.360 --> 0:09:05.560 things right quickly. Do you think we're through it? Do 0:09:05.600 --> 0:09:09.400 you are you guys getting ready for another wave? Well, 0:09:09.480 --> 0:09:12.040 you know, I think at a certain moment we were. 0:09:12.200 --> 0:09:17.000 We worked quite early on forecasting different scenarios and the 0:09:17.080 --> 0:09:20.040 period that we have just entered we called the new normal. 0:09:20.559 --> 0:09:23.160 And I think it's a bit of a deceptive term 0:09:23.200 --> 0:09:25.080 in a way, because the way we see it is 0:09:25.520 --> 0:09:27.520 that for at least a year to come, we need 0:09:27.559 --> 0:09:32.080 to be very agile, very prepared for outbreaks. I think 0:09:32.080 --> 0:09:35.360 the term second wave could be misunderstood. So we like 0:09:35.480 --> 0:09:39.760 to plan for outbreaks and how to deal with that 0:09:39.840 --> 0:09:42.680 in the best possible way, both for jobs, for business, 0:09:42.840 --> 0:09:45.520 uh and for everything we do in society and contribute to. 0:09:46.120 --> 0:09:50.560 And obviously it's clear for all of us that you 0:09:50.600 --> 0:09:53.480 know one year later again it's still going to be learning. 0:09:54.000 --> 0:09:57.360 There will be things that we will be um you know, 0:09:57.520 --> 0:09:59.720 doing differently, and that will be a lot of I 0:09:59.760 --> 0:10:02.000 think amazing things that we can carry with us from 0:10:02.000 --> 0:10:05.560 this period as well, hopefully including the way we realize 0:10:05.600 --> 0:10:08.920 the importance of investment in sustainability and the opportunity of 0:10:09.040 --> 0:10:12.520 doing that right. Well, let's get to that, because despite 0:10:12.559 --> 0:10:16.240 this being a crazy year, a tumultuous year, you guys 0:10:16.240 --> 0:10:18.560 are on track to achieve and exceed a goal to 0:10:18.600 --> 0:10:21.520 produce as much energy from renewable sources as you consume. 0:10:21.559 --> 0:10:24.839 By you have made massive investments about two and a 0:10:24.880 --> 0:10:28.280 half billion euro in wind and solar power. You've set 0:10:28.280 --> 0:10:30.719 a goal to be climate positive, meaning you're going to 0:10:30.800 --> 0:10:34.840 reduce more gas emissions than you admit you are in 0:10:35.400 --> 0:10:37.240 you know, when it comes to electric a hundred percent 0:10:37.240 --> 0:10:39.640 electric a hundred percent at the time, ahead of targets, 0:10:40.000 --> 0:10:42.760 when it comes to deliveries and Shanghai by e vs 0:10:43.360 --> 0:10:47.000 um you're doing that in Amsterdam, l A, New York, Paris. 0:10:47.080 --> 0:10:50.760 And here's something a goal for everyone who's listening. By 0:10:50.800 --> 0:10:52.880 you guys have set your ambition is to inspire and 0:10:52.960 --> 0:10:56.120 enable one billion people to live a better everyday life 0:10:56.120 --> 0:10:59.400 within the limits of the planet. It's really heavy stuff 0:10:59.600 --> 0:11:04.000 and it's impactful stuff. How tough has this been to do? 0:11:04.520 --> 0:11:07.360 And what has been the business case for climate change 0:11:07.400 --> 0:11:09.920 where you are? If you look at the i q 0:11:10.160 --> 0:11:12.040 S history, you can say we started out with the 0:11:12.160 --> 0:11:17.000 founder that was a very thrifty person, very smart around resources, 0:11:17.000 --> 0:11:19.560 and I think that's part of our stories. So part 0:11:19.600 --> 0:11:23.559 of this you know that sustainability and being being smart 0:11:23.640 --> 0:11:27.440 about people and planet is part of our legacy. My 0:11:27.440 --> 0:11:31.160 own story started back in nine the company when I 0:11:31.240 --> 0:11:34.160 joined in Asia Pacific. At the time when we invested 0:11:34.240 --> 0:11:37.360 in I think what is still today an amazing code 0:11:37.360 --> 0:11:39.959 of conduct when it comes to production. Those days we 0:11:40.040 --> 0:11:43.000 had some discussions about can we afford it will drive 0:11:43.080 --> 0:11:46.679 costs to do the right thing with working hours, salaries, etcetera. 0:11:47.080 --> 0:11:48.760 And in the end of the day it turned out 0:11:48.760 --> 0:11:53.160 to be brilliant for business. We have the most efficient partners, 0:11:53.600 --> 0:11:58.000 happy coworkers along etcetera. So I think we already then 0:11:58.160 --> 0:12:02.360 we we saw some myths that were we needed to bust. 0:12:02.920 --> 0:12:06.200 And the same goes for for the climate. The ghost 0:12:06.280 --> 0:12:09.280 that we have committed to where we we do not 0:12:09.440 --> 0:12:11.360 have all the answers yet, so we still have some 0:12:11.400 --> 0:12:14.280 gaps to be filled to coming years. But we are 0:12:14.320 --> 0:12:18.920 convinced that this is good business for three reasons, or 0:12:18.960 --> 0:12:20.520 you can say for two reasons. One is that I 0:12:21.400 --> 0:12:23.800 coworkers and our customers expect us to take the lead, 0:12:23.840 --> 0:12:26.120 so it would be I would say dangerous to not 0:12:26.200 --> 0:12:30.760 take that lead from from your revenue side. But secularly, 0:12:31.040 --> 0:12:32.960 the business model we are building is the new low 0:12:33.000 --> 0:12:36.640 cost so sustainability shows in case by case to be 0:12:36.840 --> 0:12:40.439 there the way we will provide low price furniture in 0:12:40.480 --> 0:12:43.680 the future. You say, you know a couple of things. 0:12:43.679 --> 0:12:45.640 You said it was brilliant for the company, So I'm 0:12:45.640 --> 0:12:47.480 wondering if you can put some numbers on that in 0:12:47.559 --> 0:12:49.600 terms of the business case for doing all of this. 0:12:49.880 --> 0:12:52.520 But I also wonder you said myths to bust because 0:12:52.520 --> 0:12:56.240 I can only imagine some of the internal you know discussions. Yes, 0:12:56.320 --> 0:12:58.079 for that, you folks had it said no, we can't 0:12:58.080 --> 0:12:59.880 do that. I know it's good for the environment, but 0:13:00.040 --> 0:13:01.960 you know it's gonna cost too much or we can't 0:13:02.200 --> 0:13:04.680 recreate our supply Chaine. So give me a little bit 0:13:04.720 --> 0:13:08.080 of that that feel. But absolutely I think the best 0:13:08.160 --> 0:13:09.880 number I can give you is that last year, we're 0:13:09.960 --> 0:13:12.560 very happy and proud that we were able to grow 0:13:12.640 --> 0:13:16.160 with some six percent plus, which is a good at 0:13:16.200 --> 0:13:18.199 decent packing a year, and at the same time we 0:13:18.320 --> 0:13:22.520 reduced our absolute corbon footprint across the whole scope one, 0:13:22.559 --> 0:13:25.720 two and three with more than four percent, so it 0:13:25.800 --> 0:13:28.440 was possible to show healthy growth and at the same 0:13:28.480 --> 0:13:32.360 time decarbonize if you like. Obviously, we are very humble 0:13:32.400 --> 0:13:34.880 and respectful to the future to continue that journey with 0:13:35.120 --> 0:13:37.720 the plan. But that was the I think, the first 0:13:37.840 --> 0:13:41.240 year of proof for us. But then you can say 0:13:41.280 --> 0:13:44.080 to the myths. I think there are three myths that 0:13:44.160 --> 0:13:46.480 I see over and over again. One is that purpose 0:13:46.480 --> 0:13:49.680 and profit don't go hand in hand, which I think 0:13:49.840 --> 0:13:53.040 and we think is the opposite. And there is a 0:13:53.120 --> 0:13:55.960 very strong if that sustainability should come at the premium, 0:13:56.360 --> 0:13:59.600 which I think is very dangerous because then this is 0:13:59.679 --> 0:14:02.400 a US movement that needs to involve everybody on this planet, 0:14:02.440 --> 0:14:04.920 so therefore it should be rather seeen as the new 0:14:04.960 --> 0:14:08.440 low cost. And finally, there are a lot of myths 0:14:08.480 --> 0:14:12.400 around that consumption is all bad, and there is bad consumption, 0:14:12.520 --> 0:14:16.240 but there is also sustainable consumption, and that's president and 0:14:16.320 --> 0:14:19.320 CEO of the Inky Group. Yes, b broad and great conversation, Carl, 0:14:19.520 --> 0:14:22.040 thank you well, you're listening to Bloomberg Business Week. Still 0:14:22.040 --> 0:14:24.680 to come, another company were sustainabilities at the core of 0:14:24.720 --> 0:14:27.640 its business. We check in with the CEO of Chippotle. 0:14:27.960 --> 0:14:37.480 This is Bloomberg. This is Bloomberg Business Week with Carol 0:14:37.520 --> 0:14:41.880 Masser and Jason Kelly from Bloomberg Radio. In this week's magazine, 0:14:41.920 --> 0:14:44.080 another edition of Business Week Talks, we caught up with 0:14:44.120 --> 0:14:47.560 the CEO of Chipotle Mexican Grill. We're talking about Brian Nicol, 0:14:48.120 --> 0:14:50.520 and we talked with him about the tightness in the 0:14:50.600 --> 0:14:53.400 labor market that he's seeing and how restaurants are faring 0:14:53.440 --> 0:14:57.400 during the pandemic. We're not seeing um an issue with 0:14:57.680 --> 0:15:01.480 applicant flow, you know, We're continue to see great access 0:15:01.520 --> 0:15:04.400 to great talent um And you know, I think one 0:15:04.400 --> 0:15:06.120 of the things why people are really drawn to Full 0:15:06.320 --> 0:15:09.960 is we have a tremendous growth story. So it's always 0:15:09.960 --> 0:15:12.120 fun to be a part of a company that when 0:15:12.160 --> 0:15:15.200 you think about I'm joining today and this company, could 0:15:15.320 --> 0:15:19.160 you know, triple in revenue over the next decade, you know, 0:15:19.760 --> 0:15:23.040 double store a count, you know, go from twenty seven 0:15:23.080 --> 0:15:27.280 hundred restaurants to five six thousand restaurants. Um, you know, 0:15:27.560 --> 0:15:29.680 they're really excited about all the growth right our our 0:15:29.720 --> 0:15:32.080 thing about our digital business. We we went from you know, 0:15:32.080 --> 0:15:33.960 a couple hundred million dollars to this year will be 0:15:33.960 --> 0:15:37.520 about like two point four billion dollars worth of digital business. 0:15:37.640 --> 0:15:40.800 And people love to be a part of companies that 0:15:40.840 --> 0:15:44.720 have growth. And then what really attracts them here is 0:15:44.800 --> 0:15:47.440 they feel like it's very much aligned with their personal values. 0:15:47.920 --> 0:15:51.080 So they love the growth, they love the values, and 0:15:51.400 --> 0:15:53.600 they're excited to be a part of what our future is. 0:15:53.720 --> 0:15:56.200 And uh, you know, I keep telling our team, let's 0:15:56.240 --> 0:15:59.040 just make sure we're hiring the best possible people, but 0:15:59.120 --> 0:16:01.360 let's also make sure we're hiring the best possible people 0:16:01.360 --> 0:16:03.480 that really believe in our purpose and our values. And 0:16:03.960 --> 0:16:06.320 that's where I think we really strike gold. Why do 0:16:06.360 --> 0:16:09.480 you think Chipotle has been so successful boosting sales in 0:16:09.560 --> 0:16:13.720 its digital delivery and delivery business. You guys have just 0:16:14.120 --> 0:16:16.160 done really well. As you talked about some of the 0:16:16.240 --> 0:16:18.680 numbers and some of the growth, it's pretty impressive. Why 0:16:18.720 --> 0:16:22.160 do you think it's worked so well? You know, I 0:16:22.200 --> 0:16:25.880 think we have been very focused on keeping the digital 0:16:25.920 --> 0:16:31.120 execution really simple and mirroring the same experience you get 0:16:31.120 --> 0:16:34.000 when you come into our restaurants. So you know, we've 0:16:34.040 --> 0:16:37.200 tried very hard to give you a digital experience that 0:16:37.400 --> 0:16:40.680 frankly is almost identical too as if you were in 0:16:40.680 --> 0:16:43.160 our restaurant moving down the line picking out, you know, 0:16:43.200 --> 0:16:45.400 how you want to make your bowl or burrito. And 0:16:45.880 --> 0:16:48.040 you know, we've stayed very committed to keeping it simple. 0:16:48.160 --> 0:16:49.680 You know, over and over again what I hear people 0:16:49.680 --> 0:16:51.600 say is, wow, I love your app. It's so easy 0:16:51.640 --> 0:16:54.520 to use, and then it's so easy to actually get 0:16:54.520 --> 0:16:57.200 the food when it's time to pick it up. So um, 0:16:57.240 --> 0:17:00.400 you know, just the aspect of keeping it very simple, 0:17:00.880 --> 0:17:03.520 really convenient. And then you know, this has always been 0:17:03.520 --> 0:17:06.120 at the core ruptable. They were really fast and we're 0:17:06.160 --> 0:17:09.760 tremendous value. So we've just given people another access mode 0:17:09.760 --> 0:17:13.479 to get great culinary, great ingredients done exactly how they 0:17:13.520 --> 0:17:16.760 want it, and uh, you know, at a tremendous value. 0:17:16.800 --> 0:17:19.320 So it's it's working out really well because if you 0:17:19.320 --> 0:17:21.679 want to order ahead, grab it and go, if you 0:17:21.680 --> 0:17:24.200 need it delivered, we can deliver it. If you want 0:17:24.200 --> 0:17:26.600 to run in, move down the line and have that 0:17:26.680 --> 0:17:29.000 eye to eye, you know, contact, so you get the 0:17:29.000 --> 0:17:32.040 brito exactly the way you want it. Um, we have 0:17:32.119 --> 0:17:34.439 all these avenues available for you, and but at the 0:17:34.440 --> 0:17:38.439 core of it is great ingredients, great culinary and then 0:17:38.480 --> 0:17:41.120 you end up with just delicious burritos and bowls. So 0:17:41.440 --> 0:17:42.840 you know, at the end of the day, we are 0:17:43.080 --> 0:17:46.840 still a restaurant company that is committed to changing food culture. Hey, bron, 0:17:46.880 --> 0:17:48.280 you know back in March you did say to me 0:17:48.280 --> 0:17:51.040 that you thought digital could be about of your business 0:17:51.040 --> 0:17:53.040 and be a multibillion dollar business over the next three 0:17:53.080 --> 0:17:56.439 to five years. That still feel about real and likely 0:17:56.960 --> 0:18:00.520 or even more perhaps Well, well, yeah, you know, and 0:18:01.040 --> 0:18:04.840 you know, unfortunately Carol, that was before it became eight 0:18:05.280 --> 0:18:08.320 of our business. Um for a time there. But you 0:18:08.359 --> 0:18:10.520 know you probably saw on our most recent earnings report 0:18:10.600 --> 0:18:14.679 we're in that forty range and uh, you know, obviously 0:18:14.720 --> 0:18:17.639 that will continue to fluctuate as the dining rooms reopen. 0:18:17.760 --> 0:18:21.040 But I definitely think our digital business is going to 0:18:21.080 --> 0:18:23.280 stay around as our dining room business comes back, So 0:18:23.320 --> 0:18:27.880 it'll stay among that level you think. I think there's 0:18:27.880 --> 0:18:31.520 a real possibility that's where it could stick. Yeah, So listen, 0:18:31.560 --> 0:18:33.320 one thing I got to ask you Brian is and 0:18:33.359 --> 0:18:36.119 I know, um all the CEO as we talked to, 0:18:36.160 --> 0:18:40.080 they don't have a ton of visibility at this point. So, UM, 0:18:40.119 --> 0:18:43.040 I do wonder what metrics do you look at? Is 0:18:43.040 --> 0:18:46.480 it consumer data points? Is it you know, the app, 0:18:46.520 --> 0:18:48.399 the digital what are you looking at to get an 0:18:48.400 --> 0:18:51.879 idea of how healthy the consumer is? Um? And maybe 0:18:52.119 --> 0:18:57.440 what the rest of looks like at this point. Yeah, 0:18:57.600 --> 0:19:00.160 you're exactly right, Carol, there's a lot of uncertainty. I'm 0:19:00.160 --> 0:19:02.680 sure if you talk to a lot of my peers 0:19:02.680 --> 0:19:04.480 that we could rattle off the list of all the 0:19:04.520 --> 0:19:07.800 uncertainties in front of us. What we've decided to really 0:19:07.840 --> 0:19:10.960 stay focused on is Okay, what can what are the 0:19:10.960 --> 0:19:14.280 things we can control? And the things we can control 0:19:14.400 --> 0:19:16.880 is making sure that we have a really safe environment 0:19:16.920 --> 0:19:19.520 for employees to work in, a safe environment that our 0:19:19.520 --> 0:19:23.960 customers believe in and trust. UM. We know if we 0:19:24.080 --> 0:19:28.040 do those two things, uh, we continue to get people's 0:19:28.640 --> 0:19:32.840 trust and then ultimately their business around their meal occasions. 0:19:32.920 --> 0:19:35.840 And so we continue to really monitor how we as 0:19:35.880 --> 0:19:37.840 a brand are doing on the things that we can control. 0:19:37.960 --> 0:19:39.840 You know, are we doing a good job of communicating 0:19:39.840 --> 0:19:43.040 the safety or we're doing a good job of communicating 0:19:43.520 --> 0:19:46.240 why you can feel great about these ingredients, why you 0:19:46.240 --> 0:19:48.800 can feel great about getting that grido or bowl from 0:19:48.840 --> 0:19:51.760 Chipotle UM. And then obviously we're paying attention to a 0:19:51.800 --> 0:19:55.600 lot of the macros to understand the health of the 0:19:55.640 --> 0:20:00.119 consumer um And you know, obviously, depending on where you 0:20:00.119 --> 0:20:02.159 are in the country, we're seeing a lot of different things. 0:20:02.200 --> 0:20:05.840 But you know, for the most part, customers and consumers 0:20:05.840 --> 0:20:09.480 are still wanting to order food out. And that's Chipotle 0:20:09.600 --> 0:20:12.080 CEO Brian Nichol. You can hear more of that conversation 0:20:12.560 --> 0:20:15.679 on our podcast feed. It's our latest business week talks. 0:20:15.840 --> 0:20:17.960 You're listening to Bloomberg Business Week. Up next. He co 0:20:18.080 --> 0:20:20.560 created an S and P five hundred company that is 0:20:20.600 --> 0:20:23.080 a well known brand. He owns an NFL team, and 0:20:23.080 --> 0:20:25.480 he has some thoughts on running a good company. Talking 0:20:25.520 --> 0:20:35.439 about Arthur Blanks sploiler alert, This is Bloomberg. This is 0:20:35.480 --> 0:20:39.440 Bloomberg Business Week with Carol Masser and Jason Kelly from 0:20:39.520 --> 0:20:42.400 Bloomberg Radio. So one of our favorite interviews, no doubt 0:20:42.400 --> 0:20:44.919 about it, of the week was Arthur Blank Man Jason, 0:20:44.960 --> 0:20:47.600 he were so many different hats, of course, co founder 0:20:47.640 --> 0:20:51.080 of Home Depot, owner of the Atlanta Falcons of MLSS, 0:20:51.119 --> 0:20:56.080 Atlanta United, PGA, Tour Superstores, Paradise Valley Ranches. Man. This 0:20:56.160 --> 0:20:59.160 is a very very busy guy. He is, indeed, and 0:20:59.240 --> 0:21:01.800 really he has emerged and I have watched this pretty 0:21:01.880 --> 0:21:05.800 up close over the last years. Carol obviously going from 0:21:05.840 --> 0:21:08.920 being a very successful businessman, one of the best known 0:21:09.000 --> 0:21:12.160 companies in the country, one that we look at as 0:21:12.200 --> 0:21:15.000 really an economic indicator in many ways, to being a 0:21:15.040 --> 0:21:19.040 true community leader because being a sports team owner it's 0:21:19.119 --> 0:21:22.040 not a sidelight anymore. It is more than a full 0:21:22.040 --> 0:21:25.480 time job. And listen, and I'm biased here. Atlanta is 0:21:25.520 --> 0:21:30.600 an incredibly important city. So much has gone on of late. 0:21:30.720 --> 0:21:33.199 It is the cradle of the civil rights movement. He 0:21:33.240 --> 0:21:36.399 was good friends with the late John Lewis and his 0:21:36.480 --> 0:21:39.920 new book Good Company. I think it's not a coincidence 0:21:40.000 --> 0:21:43.919 that it echoes John Lewis's Good Trouble. But we of 0:21:43.960 --> 0:21:46.920 course had to start. Of course, we have to start 0:21:47.000 --> 0:21:50.280 talking about football because football is back, the NFL. It 0:21:50.480 --> 0:21:53.680 got kicked off this past weekend. We have made all 0:21:53.720 --> 0:21:57.560 of our decisions um based on what scientists of telling us, 0:21:57.600 --> 0:22:00.879 what medicals telling us, what the CDC style in US etcetera. 0:22:01.320 --> 0:22:03.840 And we've stayed out of the you know, the the 0:22:03.840 --> 0:22:07.439 the opinion business. Um. You know, there's nobody in the NFL, 0:22:07.640 --> 0:22:10.560 certainly at the league office or in any clubs that 0:22:10.640 --> 0:22:13.359 know better than you know all of these the experts 0:22:13.359 --> 0:22:17.639 that are on our staffs and consultants and advisory positions 0:22:17.680 --> 0:22:19.719 that we worked with. So they've given us great council 0:22:19.760 --> 0:22:22.359