Hey listeners, it's read on Masters of scale. We spend a lot of time talking autran Earth, but how they got the start and caught me thinking about another group of people getting their start right now, the graduating class of 2020. They're entering a radically different world than they imagined. I want to share some thoughts from my commencement speech about how they can stay optimistic and realistic in terrible times.
Obviously, this is not the best time to be making a major life transition. It's a terrible time, but it is your time to do this to have to try to make the best of it.
Must be optimistic bold passionate idealistic. There are hard times ahead and you will need those emotions to power you through them. Listen to your ally at least as much as you listen to your inner voice.
That episode will be coming to you on June 2nd. We hope you listen and share with anyone who should be walking across the stage this year. Now on to the show. This virus has done a superb job of exposing a lot of the pre-existing conditions that are industry had.
We're down to 75 people right now, which by the way has fewer people than I employed when I was 27 when I first got into this business America is learning restaurants play a massively important role in the whole economy of our country.
We're throwing a lot of pasta up against the wall and we're going to see what sticks.
Being the first to close is one thing, but I don't want to be the last to open.
everyday, we lose money could lead to even more layoffs, which is exactly the opposite of what we want to do more allies emotionally or economically
That's Danny Meyer, New York City's preeminent restaurant tour and the founder of Shake Shack.
Forced by the pandemic to close iconic restaurants like Gramercy Tavern and Union Square Cafe. Danny is now radically rethinking his business model trying to reimagine the future of restaurants without killing off the warm Hospitality that made his establishments so endearing
I'm Bob sathian former editor of Fast Company founder of the flux group and host of Masters of scale rapid response.
Danny was a guest on the show at the very beginning when the Great lockdown first began after laying off 2000 of his employees.
I wanted to talk with him again to hear his plans for reopening because no one's been more creative and scaling restaurants then Danny.
It's no wonder that both New York Governor Andrew Cuomo and the City of New York turn to Danny to participate on special counsel's gear to aiding economic recovery.
Danny doesn't have a Magic Bullet. What he does have is Hope and a passion for new ideas his candidates essman of what's required and how difficult it will be to achieve is both refreshing and bracing. Let's listen in
In 2018 All State Insurance company had a 3% change in price in one day that no one could really understand a global data company offer human insights that enable financial markets has a mystery for us a change in a stock price that no human could explain it wasn't you be looking across the industry and you be like, I don't really get where this came from. Where did it come from an algorithm trying to read the news Amazon made a statement that was pretty off the car that they found home insurance quite interesting.
The minute that statement was made it actually affected the major insurance companies prices along with the numbers. There's no room for human judgement. Can AI checking up on a I be part of the solution will find out later in the show to learn more about how refinitiv solves real-world problems like this visit refinitiv. Comm lab.
I'm Bob Staffing and I'm here with Danny Meyer CEO of Union Square Hospitality Group and founder of Shake Shack Danny appeared on this podcast in late March after shuttering Union Square Hospitality is New York restaurants and laying off 2000 employees since then the needs of his business have continued to evolve and twists with no easy choices and no easy days. Danny is coming to us today from Connecticut where he's Sheltering with his family as I ask my questions for my home in New York, Denny. Thanks for joining us for all it's good to be back here and boy life just keeps changing in unexpected ways. Yeah the last time we spoke you were lamenting that you had to lay off so many people and you liking it at that point to chemotherapy during cancer that you're trying to maximize the odds of surviving so you could rehire those team members in the long run A lot's happened since then. I'm curious how you feel about the likelihood.
A tree hiring now how things are going and feeling two months later. We are absolutely in a completely different phase. I only vaguely remember making that an LG 2 months ago. It seems like 20 years ago in a certain sense coronavirus time is unlike any kind of time I've ever lived that's for sure those early days. We were in complete response mode and reaction mode. We have never been dealt this blow before where we were in a complete no Revenue world and no sense whatsoever how long it was going to last what I meant when I talked about chemotherapy was this notion that in order to stay alive. We had to do that thing which would almost kill us and that was really dismantling.
35 years of team building today rather than the 2200 people we began with we are down to 75 of our core team right now. We're I would say we'll be on the reaction mode and were very very much beginning the recovery mode. I don't know how long that's going to go. But if we get this part right then we'll hopefully get to the Thrive mode. How does this recovery phase look for Union Square Hospitality Group. It's interesting because we were really really quick to close. Our restaurants may be quicker than almost any other restaurant in New York City. A lot of that had to do with some early scares we had when we just didn't know what was going on. But here's what happened. We'd like many other restaurants in New York City were really eager to try to flex some entrepreneurial muscles because when you lay off all those people if you want to do everything you possibly can to read
Fire them and then in I guess it was early April one of our beloved colleagues former colleagues died of the virus. He was still in his fifties and no underlying issues that we knew of as matter fact. We had been together probably 5 weeks before that. That's Floyd cardoz, who was the chef of table and he had been the chef of North End Grill that reality of losing someone that close to us as well. As a number of other really really close colleagues were actually hospitalized for it happily recovered, but we stopped in our tracks and we just stopped everything nothing nothing nothing and really here. We are more than two months later. Finally getting started by putting our toe in the water with one of our places daily Provisions, which lends itself to this take out and curbside pickup world in the coming weeks will start to do that.
Each one of our business has one by one by one. So it's really stimulated a lot of entrepreneurial thinking and our recovery mode is it's going to be interested or throwing a lot of pasta up against the wall and we're going to see what sticks and so each of the restaurants has their own entrepreneurial strategy. It's not necessarily that there's a global strategy but each team is tasked with coming up with what fits for them each. One of our businesses is different in terms of what it serves. If you think about it, the obvious ones to begin with our place is like daily Provisions, which does everything from breakfast sandwiches and crawlers to a night-time rotisserie chicken and vegetables that works out really really well for the way people want to eat today, but it also works well because that place does not depend upon reservations and it doesn't depend upon a full dining room and then you start to get into other places.
And you say all right, if I cannot welcome guests into our restaurant yet? Cuz we're just not feeling safe to do that at this point. What kind of foods naturally should go next and we think about barbecue from Blue Smoke. We think about pizza from Marta, but then you start to say, all right. Well, we also have to take our cues from where these restaurants are. We have restaurants and museums like the Whitney in like Museum of Modern Art. If the museum can open who needs our food at that point, we obviously got lots of other places we have places in hotel. We actually serve food in airplanes like Delta we serve food at the ballparks. They're all closed. So a lot of what we would like to do we have to wait to see now one other interesting thing. We got a restaurant called manhatta, which is on the 60th floor of a building in the financial district.
You have to take an elevator to get to the top floor that is very very obvious to us as a place that's going to naturally be slower in terms of consumers wanting to go there. So in that case the team is thinking about how they can turn the kitchen into a place that feeds Frontline workers and other hungry New Yorkers where we can cook the food there and then have the food go down the elevator safely and have it be delivered to the people who need it. So every single one of these places is going to be different.
As you're describing this it sounds like there's two transitions that are part of this recovery part of it is safety. And part of it is emotional and wonder how you think about the interplay of those two things of the Practical and the emotional overhangs that persist as you try to look at the next phase. I think that's a great observation. I would just had a third one, which is economic. It's really the three of us sing safety economic and where am I on the fear confidence morale Spectrum, I think from the standpoint of morale what we really really tried to do since the very beginning has been to focus on three things stay-at-home stay safe and stay connected and so every single Thursday since the beginning of this we had a zoom call which is open to anybody in the u.s. HB family, especially we want to see those who were laid off because we want
Stay in touch because look there's going to be a point. It may be gradual is not going to be like a light switch, but there's going to be a point when we start to hire people back. And so we want to stay in touch with people. We want to have provided exceptional Outreach Services, whether it's emotional whether it is helping people with jobs where they're telling people with learning opportunities, whether it's helping people to stay connected with each other that's been a really important point, but we'll just get to the emotional part. Once we have the protocol in place, which I believe we do right now to make it feel safe to come to work then we start to say, okay, how can we safely cook the kind of food people want to eat in their current? Lifestyle many of them are still at home. How can we do that in a Safeway? That is also going to not make us lose more money because every day we lose money.
Could lead to even more layoffs, which is exactly the opposite of what we want to do more allies emotionally or economically. So this is a really really fine balance to get this thing. Right? As I said, we're down to 75 people right now everyone on our team are remaining team which by the way is fewer people than I employed when I was 27 when I first got into this business at least then we had 90 employees when there is just Union Square Cafe, but at this point everyone of the 75 people knows that their full-time job is revenue recovery because with that we will feel better.
And gradually I think our guests will start to gain confidence and our other colleagues will start to gain confidence. That's when it's going to hopefully start to build on itself. If I understand this economic side of it if say the team at Marta wants to be delivering pizzas if that additional activity can't be cash flow positive on its own. It's not worth it cuz it's going to undercut the sort of run rate of the rest of the operation each piece another word test. It show economic benefit for it to be worth restarting. I think that's true. The only thing I would say to balance that is that there's this other thing which is called your brand and I think that being the first to close is one thing but I don't want to be the last to open and I do believe that it's important for our restaurants in
Brand to be out showing that you can do this if you use the right methods to do it. And so we're looking at a lot of different things right now. We're looking at can we learn more about testing our staff which would then give you more confidence to do business with us? Can we look at some type of Health passport? So that one day in the same way that a metal detector made you feel more comfortable getting on airplanes after 9/11 that there's something in our restaurants something that connects to thermometer is something that connects to a health survey something that connects to knowing that the rest of the people dining in that within the four walls of the restaurant.
Have themselves said we are healthy. We feel safe. It's going to be a Cascade of a lot of different things. But I do believe it's starting off small and starting with little measures. And yes, I really do want them to be profitable. We're starting with a very very lean team. We have team members from different businesses helping team members from other businesses. So for example, when we depart on the water last weekend and got daily Provisions open, we had the Union Square Cafe chef and GM and director coming in to help them with that and with that comes more confidence for the Union Square Cafe team to do their thing and they're going to start off having a quote on quote bottle shop where because right now the state legislature has made it legal for restaurants to sell alcoholic beverages off-premise Union Square Cafe, even before they activate their kitchen is going to turn into a wine store.
And hopefully sell some really good wines at some great prices for people. So everybody's trying something so your tap to be part of Governor Como's reopening Council for New York State as well as co-chair of the Coalition for New York. City's hospitality and tourism recovery. How did you get involved with them? And what is the goal for those organizations? Well in each case, I was asked to try to share some leadership. I do think that a big part of what this has really provoked in our entire industry has been a lot of collaboration and so I'm on the phone at least two or three times a day with industry colleagues not just from New York City, but from all over the country and in fact all over the world because we're all trying to learn from each other and yet
This balanced about doing the right thing for your staff doing the right thing for your business and doing the right thing for society. Is this really hard thing to juggle? Is it a bad thing for society to welcome people back into the restaurants. What does it feel like when all of our staff members are wearing masks, but obviously our guests can either pasta through a mask or drink a glass of wine through mask. I haven't seen that invention yet. We're all trying to balance these things. And so when I'm asked by Governor Cuomo's office to join a committee about reopening New York course, I'm going to answer that call and when I'm asked by NYC & Company to join a committee, which is much more about aligning the various cultural institutions in travel businesses of New York City course, I'm going to answer that call and what it's truly meant at this point. It's much more about
Becoming sort of a railroad station for all these trains coming in. It's almost been an invitation for people to call me with their ideas or to write me with their ideas. I mean, it's so hard to find solutions to things. You know, if New York City mandates that because of social distancing restaurants have to stay and only fifty or sixty percent of capacity is that financially sustainable in the business model of restaurants like yours. I've never been able to figure out how to make money at anything less than 80% of capacity. And so one of the things we're all hoping for is that these
Preliminary steps to revenue recovery.
If we can do them with a lien enough team and learn how to do them. Then we can actually add those to the Arsenal of actually operating a restaurant there after but it's not going to be possible absent these additional means a revenue to operate a restaurant with 50% capacity. Think about it. It's a well-known fact that restaurants absolutely rely upon beverage sales, especially alcoholic beverage sales for their profitability. A lot of restaurants also rely upon private parties and big gatherings exactly the kind of thing that you're not supposed to do right now, so
We need these additional means of Revenue. One of the things that we're doing at. Each of our restaurants is shipping food by a wonderful company. We actually invested in about 2 years ago called goldbely. This is very different from the last mile delivery companies where Five Short months ago. If I didn't feel like leaving the house. I might have one of these delivery companies send me a pizza from someplace half a mile away. This is a business goldbely where you can actually take one of your signature dishes from your restaurant and ship it to somebody anywhere else in the country 24 hours later. And when you turn on that faucet, you can actually create a lot of sales in a very very Safeway without inviting anyone India Restaurant. So we may need that for survival today, but that may also be
A really important adjunct part of our business even after we get back into business.
So that the limitations that the model had before if you're going to get through to the other side, you have to resolve those at the same time as you're trying to get the old model to sort of get back up to whatever speed it can actually operate it. No question about it. And this virus has done a superb job of exposing a lot of the pre-existing conditions that are industry had one of my colleagues last week said the restaurant industry is kind of like a covid-19 in their 90's with pre-existing conditions, and it didn't actually take covid-19.
Has to do with the inability for a business. That's great at being your first ever job and maybe promoting you once we are awful at creating the type of living for a massive number of people that you should be able to be afforded and while we've done a miserable job of providing an amazing career path for the vast majority of people in this industry. We've also had an industry where it's been tougher and tougher to be an employer and so there are structural reasons for that in a lot of the time that I'm spending talking to Industry colleagues is truly asking what is the opportunity that this crisis is providing to deal with things that none of us as individuals.
Have succeeded at dealing with in the past and a lot of the conversations were having have to do with the way people are paid the Tipping system some of the taxation system IE payroll taxes, which do exactly the opposite of what it disincentivizes YouTube rehire people. I think some of the liquor laws are completely wrongheaded in terms of the restaurants opportunity to operate and I would also say that this if I've seen nothing else, this is exposing.
How unworkable the current relationship is between restaurants and landlords. If one thing could undo this business at lower levels of Revenue. It's going to be the rent and I think it's not the landlords fault landlord was showed up with an opportunity restauranteurs took it and it no longer works economically based on the kind of Revenue build up we're going to have so there are things that state governments can do to help with providing tax relief for landlords who are willing to provide rent breaks for the restaurant. So there's a whole host of policy things that this is bringing up. And as I said earlier a lot of people are coming to me with their ideas and thoughts hoping that I'll share them either with Governor Cuomo's commission or more properly on a national basis.
I was a traitor in the 90s. So the technology was very different than when you saw a big price movement that you couldn't understand. You just got on the phone with all the other traitors within 10 minutes. What was causing it? We're back with nausea oversensitive. She was telling us about an incident 2 years ago when Allstate stock price made an inexplicable move, but I'm like in the nineties. No human could explain it.
Back in the day. If you didn't have to worry about machines Trey against us now. There is a real sense of urgency when these things happen. The Mortal could be triggering movement in multiple portfolios. That actually could be quite dangerous for the market. These algorithms are programmed to make decisions that were previously made by humans and they act so quickly that can cause havoc and seconds. You don't really have the Ledger time to be sitting there going. Let me try and call my friend than an hour later. I'll find out what happened when a i max faster than humans. How do we keep up one solution can be found in refinitiv Labs a prototype using AI to check up on the way. I can actually go back and see for a price movement. What was the rate of news that came out of the time and not just the obvious news? What was the linked data set that drove that price change?
What's the next day to set a eyes diving into will find out later in the show to learn more about refinitiv Labs visit refinitiv. Comm lab that's refinitiv without an e r e f i n i t i v.com lab.
Was talking to someone else in the retail business who said that they were having a lot of interesting discussions with their current landlord. Have you been having those discussions will landlords are people too. I think it's a mistake to treat the landlord as if they did something wrong anymore than the guy selling us our cheese or are fava beans or the striped bass did something wrong if we all money we owe money. That's said,
Deepcurrent rent structure, especially in a big city has always been based on the expectation of very very high volumes of people because of the density of the city and if you take a look at a place like New York, which who knows when people are going to come back to New York, who knows when the density is going to return who knows when they amount of people who want to gather together is going to return three deep at the bar at those days. It'll happen again, but it's not going to happen for a while there for if you're a restaurant and you have a very very high rent based on a high expectation of Revenue and you know that that's not going to happen for at least two years. You have to have a dialogue with your landlord because the landlord doesn't win if you go out of business and I can't rent a space to someone else and you can't get back into business with that current amount of rent. It really comes down to one word and that's dialog it's sitting down and saying what you didn't do any
Wrong and we didn't do anything wrong. But here we are. What are we going to do about it? And one of the solutions that I know a number of people are working towards is Shifting your pics rent to a percentage rent. That is workable that allows the landlord to benefit. When The Tide Rises but doesn't put you out of business when the tide is very very low.
That is a very different model to be partners essentially as opposed to just peace workers in the larger retail area at you kind of see bigger change the Walmarts and targets doing pretty well while Mom and Pop groceries in neighborhood stores kind of suffer. And I imagine it restaurants could be facing a similar kind of split. You said there was 660,000 restaurant across America independent ones even successful ones like yours maybe in a different position than bigger chains like Shake Shack. What do you think the implication of that's going to be in the long run? Does that frustrate you with all of that differentiation know it's just a fact. I mean, I think part of the thing that America is learning is that restaurants play a massively important role in the whole economy of our country and the low margins that restaurants make as businesses of all Stripes, by the way.
Would say that Quick Serve makes a much higher margin than full service. I don't think it has to do with independent vs. Public. I just think that the business model of a fast-casual or Quick Serve restaurant where they don't have waiters and waitresses and they don't have linen and they don't have flowers and then I'm a chef and a pastry chef and sous chef in a Somali a and a maitre d that adds up to a lot of cost. And so I do think that that's segment is better poised more quickly to reopen and they also tend to serve a kind of food believe it or not, but works incredibly well with pickup and delivery. They also tend to serve comfort food all the things that people really really want in terms of how they do business at cetera. I don't really think that has to do with size as much as it has to do with service style. For example, if there is a one-of-a-kind BBQ place in your community. It's probably going to do
He will cuz they're not relying on full-service sit-down dining in the food travels really really well. So I do think that we should be looking at the segment and then you ask yourself. All right. Well what role do full service restaurants play and who cares and I would just say that you should care because of the impact on the economy the fact that the margins the full service restaurants to make are probably in the neighborhood these days of five to 10% which is pretty low means that ninety cents of every dollar you put into them is going right back into the economy in a variety of ways. So when you take that out of the economy and you think about the social fabric, so you just think about how did it feel this past spring not to get to go to graduation lunches and Mother's Day brunch and bridal showers in all the kinds of things that were used to doing that just make us feel good. That's why we need to have full service rest.
And they will come back but I just think it's going to be a lot more slowly Than People hoped.
So much of the pressure is on the kind of hospitality experience that you have built your career on. I mean that part you're still confident that we'll come back. It's just going to take that's at the farthest end of this recovery.
Sadly it is. I don't know how excited the vast majority of consumers are going to be to go to a restaurant and have their temperature taken at the front door by someone wearing a mask. I mean, I've actually tried to smile while wearing a mask and you can't tell if I'm smiling or cursing you. My eyes are trying as hard as they can to smile and now you go to the table and everyone's wearing a mask, but they can't really poor your wine because you're not wearing a mask. And so they put the bottle on the table wearing gloves so you don't have to touch anything else and then by the time you go to the restroom, which is also fraught with the opportunity for transmission. There's so many things that we've got to figure out how to do the right way before the vast majority of restaurant-goers are going to say
Against the alternative of curbside pickup and my sense that the food that was delivered is safe. Do I really want to have that experience one of the things I think we're all looking for is data because everything adds up to either this feeling of confidence or not. And if I knew if I had real data that would actually fuel some of my confidence to try some more things, but it's going to be awhile before we get that dated.
It's hard to maintain your patience and maybe your optimism with all of the lack of data and the uncertainty do struggle with that course, I struggle with that because I feel a massive responsibility to our team to our community to my business. You want to do the right thing for everybody. I want to do the right thing for New York City and the sooner that New York City reopens the better it is for a lot of businesses. If you just think about it everyone or the past handful of months has learned that you can actually live your life Vine by not going into work.
Well, that's not going to be great for the economy. That's not going to be great for New York City. It's not going to be great for New York City. If we can't see Sports in theater in a people can't get on an airplane and people can't go to restaurants. Why have a city if you take away the things culturally that make a city. So wonderful to live in New York is a city of audiences and players and we need each other every single thing you do in New York. It's this dialogue between people in very very close proximity to one another we're going to all have to take baby steps to get back there. I care deeply about playing the right role in that but I care just as deeply about not playing the wrong role because our industry cannot afford a start-and-stop. We just can't do that. So I'd rather go a little bit more slowly if it helps me get there more quickly take baseball is an example and I've been keeping my eye on baseball and basketball and hockey axle.
Since the shutdown in early March because those are big businesses that rely upon safely bringing people together. They are mostly talking about having a bridge Seasons with no one understands. I see the Belmont Stakes is going to go off on June 20th as the first leg of the Triple Crown which is never happened with no fans in the stands. I don't know how to do that in the restaurant business. But I do know that each time one of those things happen each time. I can actually see a baseball game even if there's no one in the crowd it's going to be one more step towards normalcy and each one of those emotionally is going to help to bring us back. I just want to go back in history a little bit and ask you you made the decision for Shake Shack to give back some money to the government that they could have kept at that time. I think the lawmakers rushed and I'm glad they rushed to create the cares act and part of the cares Act was this PPP.
Program payroll protection plan in the rush to do it. However, I think there were some pretty serious mistakes one was that they invited businesses to apply for the loans who in retrospect didn't need the loans the same way as others may have given another mistake which was they didn't adequately funded and then another big mistake they made was to treat all businesses exactly the same. So for example, the loan was not forgivable unless you hired back 3/4 of your staff by June which in the restaurant business, especially in a place like New York City is not possible. It just wasn't practical it won't happen. It just won't happen. And so now you take a business that's got a big question mark over its head as to whether it will survive or not and you tack on another non forgivable debt obligation and that could be the death knell for that business. So
My hope my serious hope is that the PPP program for those businesses that got the Lawns will actually be improved even more from this moment forward and that's going to involve a substantial increase in the forgivable time. From the eight weeks. It was completely non-workable getting back to Shake Shack Shake Shack appropriately applied for the loan. It obviously was eligible or never would have received alone and as luck would have it the very day that the government announced it had run out of money was the day of the Shake Shack put out a press release as a public company stating that it got the loan and there was a pretty understandable public outcry lasting Shake Shack ever expected was to be the poster child for what was wrong with the PPP program. But there it was and therefore Shake Shack had a choice and made the right choice very very quickly. It was the first
Public company to return as loan and that's it off. If I'm not mistaken somewhere over 2 billion dollars or return loans not just from public restaurant companies, but all public companies a handful of Institutions educational institutions even got caught up into it and it expose what was wrong with the program in the first place, but that's not a reason to not do the right thing when you got that choice.
I also want to ask you about your employee Relief Fund the Union Square Hospitality hugs, which is the five oc-3 that you set up to support those who'd been laid off. How is that working? Is that working? The way you'd hoped is it more complicated know? It's actually less complicated and working way better than I ever expected. There was one of the very first things we did after laying off 2000 people was to activate something that we have been thinking about for years anyway, and so I did the thing that was right for me right off the bat which was to give my full compensation to this one. And then we started selling gift cards for 1 week or 100% of the revenues went to the fun that's seated it then we've had three different auctions were our chefs or participated. We've gotten friends from around the country to participate in terms of giving items of real value. We've had of wine Oz
And we've now raised somewhere close to 1.4 million dollars. We've granted out about 1.2 million of those dollars already. And so it's gone really really with the application process is simple and this is done a lot with zero red tape whatsoever cover some really important needs for people for paying rent for buying groceries and other household needs which has helped a lot of people get through this you've mentioned last time that you were trying some efforts to place employees at places that were hiring and there are fewer jobs for everyone to be placed into these days. I know you'd be surprised as matter fact on our employee Resource page we have about 30 companies listed who are actually hiring right now. There are bright spots in the economy that are actually benefited during this time, and I'm proud that people who've worked at Union Square Hospitality Group seem to be the kind of people to
These companies want to hire so every now and then on one of our weekly calls with our laid off employees. We will have somebody speak up who has a new job as matter fact, somebody became a driver for doordash and started talking on the zoom call from his car and on like a sports team. We're going to have to re-recruit our team cuz people have dispersed when the Mets and Yankees are ready to get back in business. There's something called contracts and their team is going to come back, but our guys are all over the place right now. I want to be able to bring people back.
Alright, Danny. Thank you for doing this again. I appreciate it. This was a great conversation and you ask the best questions. Thank you.
For the last seven years, we've had more machines using our data than humans, which is a really interesting that we're back one more time. What's nausea of repetitive? She's been telling us what happens when a guy tries to cut humans out of the equation. So is there a way to factor them back in something else we're exploring in our Innovation lab is sentiment analysis people want to know how do people feel many algorithms gauge public sentiment by analyzing social media McKenna machine really understand how people feel only if we can find the links between how they feel and what they do in the decisions aren't just made on the back of like on my algorithms told me to do it a CEO of a company has children at home who may care about the environment, right and they're pushing that CO2 make decisions in a certain way. Co Also may live in a drought-stricken city and therefore some new very well to conscious those things are very difficult to program in right is like what is that person thinking was their environment? What are they?
Sing algorithms are only as smart as the day that they receive. So the next iteration of a I will get better at trying to predict the unpredictable when we talked about all this technology that actually that's still humans behind some of the decision-making here. How come smarter machines make us smarter humans? That's one of the challenges refinitiv labs to solving for learn more at refinitiv. Comm lab. That's preventative with no e r e f i n i t i v.com l a b
Masters of scale rapid response is a wait what original the show is recorded remotely using sanitized audio gear. It's hosted by me Bob Sapp Ian Masters of scales editor-at-large and masters of scale host Reid Hoffman are executive producers are June Cohen and Darren trip or supervising producer is Jay Punjabi. Our producer is Jordan McCloud Stripped by Christina Gonzalez original music and sound design by Ryan holiday and Daniel nissenbaum audio editing by Keith Jay Nelson and Lena philipsson mixing and mastering by Brian Pugh special. Thanks to Emily McManus Sarah Sandman Adam. Heiner Kelsey Capitano, Tim Cronin, Charlie, Manassas and Syeda, sappy ever visit masters of scale. Com rapid response to find the transcript for this episode and be sure to
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