September 28, 2015
Such “foo-foo coffee,” as he calls espresso and its variants, is partly why he bailed: He loves the taste, but the complexities of making it came to epitomize his disillusionment with McD’s. “The service times went up because of the expansion of the menu,” he says. “I think they went a little overboard. It was difficult in the kitchen. When I would come down Apple Street behind the restaurant and see cars backed up at the drive-thru, my stomach would just knot up. The people were different, the company was different. It became very frustrating.” ... There are 5,000 McDonald’s franchisees around the world. They run 82 percent of the chain’s 36,000-plus restaurants and generate a third of its $27.4 billion in annual revenue. ... it’s not like people are tired of burgers. Smashburger, In-N-Out Burger, BurgerFi, and Five Guys Burgers & Fries are all expanding. ... McDonald’s is also trying to compete with Starbucks, Chick-fil-A, and Jamba Juice. Rare is the food trend that the company won’t try to prefix with Mc.
While the rest of the country has spent the past year debating gay marriage, policing tactics, Obamacare, and Deflate-gate, the inescapable topic of discussion in Silicon Valley is whether we are in a technology bubble. Marc Andreessen, the co-founder of his eponymous venture firm, is perhaps the leading advocate against the bubble chatter. On his Twitter feed, he has referenced the word “bubble” more than 300 times, repeatedly mocking or refuting anyone on his radar who even hints at such a possibility. One of his arguments, as the slides in the Rosewood ballroom suggested, is the exponential growth of mobile phones, which have fundamentally changed the way we buy and sell virtually everything, from groceries to taxi-like services, and created unprecedented disruption. Also, in contrast to the days of the dot-com boom, many tech companies are creating revenue—in some instances, lots of it. ... there may be no greater monument to what’s going on in the Valley than the 1,070-foot edifice under construction at 415 Mission Street. The new, glassy Salesforce Tower is slated to soon become the tallest building in San Francisco, rising more than 200 feet above the Transamerica Pyramid. ... Snapchat has offered Stanford undergrads as much as $500,000 a year to work for the company. Jana Rich, founder of Rich Talent Group, a well-regarded tech recruiting firm, told me that she hasn’t seen such bidding wars since the late 90s. “I’ve seen two of these life cycles, where things are going fabulously well,” she said. “Then we have the bust. We are now, in my opinion, at the height of the demand curve.” ... “You know there’s a bubble,” the saying goes, “when the pretty people show up.” ... All across the Valley, the majority of big start-ups are actually glorified distribution companies that are trying, in some sense, to copy what Domino’s Pizza mastered in the 1980s when it delivered a hot pie to your door in 30 minutes or less. ... Or maybe it’s simpler than that. As one technologist overheard and posted on Twitter, “SF tech culture is focused on solving one problem: What is my mother no longer doing for me?” ... Either you can go public, which is inadvisable without a lot of revenue, or you can sell, which is difficult given the paucity of companies that can afford to make such an offer. So, for many, the choice becomes fairly simple. You continue to raise more and more money, or you die. ... countless people from all over want this to be a bubble and they want it to burst.
The attack raises two important questions for society. One is: Is he right about Herbalife being a pyramid scheme? That’s important because if he is, all but a handful of companies in the now $34.5 billion MLM industry, affecting 18 million distributors, are almost certainly pyramid schemes as well. ... The second and perhaps bigger question is: What if Ackman is wrong? One man’s dragon slayer is another man’s vigilante. Herbalife has had to spend almost $90 million defending against Ackman’s attack so far, according to its SEC filings, while its executives, employees, and distributors have all been villainized, if not defamed. While activist investing was already controversial, Ackman has taken it into new terrain. Is it sound public policy to have freelance, for-profit billionaire regulators roaming the landscape, no matter how well-intentioned? ... There is no federal statute defining “pyramid scheme.” For years MLM critics have begged the FTC to draw some bright-line rules—but in vain. Such schemes are usually prosecuted by the FTC as an “unfair or deceptive act or practice.” If an MLM or its distributors have merely made some misleading claims, the FTC may fine the company and let it live to see another day. But if the commission finds that an MLM is a pyramid scheme—which is considered inherently deceptive—it must shut it down. ... The best definition of pyramid scheme emerged from a 1975 case in which the FTC shuttered a cosmetics marketer called Koscot Interplanetary. The key feature is that a pyramid scheme pays its distributors rewards “for recruiting other participants into the program … which are unrelated to sale of the product to ultimate users.” ... Few MLMs are so foolish as to do that. Instead, they typically pay a distributor—as Herbalife does—based on the products he orders, and on the products ordered by his first three levels of recruits, i.e., his direct recruits, his recruits’ recruits, and his recruits’ recruits’ recruits. ... While judges and economists have proposed other definitions, most boil down to this: The more genuine a company’s product, and the more genuine the consumer demand for it, the less likely it is that the company is a pyramid scheme.
Everyone on SeekingArrangement knows what they're there for, Thurston says. What is so bad about formalizing the arrangement so that we can all just go home happy? And aside from that unpleasantness with that woman who scammed him, all Thurston had to wrestle with, really, was the nagging guilt that maybe this whole sugar-dating thing isn't so okay, particularly since he began before his divorce was even finalized. “I went to church every Sunday. This felt like an ethical dilemma.” But he reminded himself that he was actually helping someone, a poor student, or someone who badly needed the money for, I don't know, medical bills or back taxes or vaping supplies. And that's what it came down to: “The whole concept of a sugar daddy intrigued me, because even if I were dating someone traditionally, I'd give them money anyway.”
I made a commitment to take ownership of my life. I started to get more connected, and then I just kept going with tangible daily goals. It wasn’t about a destination. Getting back to number one was something I was pretty convinced I’d never achieve. But that journey from rock bottom to the summit a second time was a great accomplishment for me. Without it I don’t know if I would believe in myself as much as I do when I face other challenges now. ... regardless of what the score is, the most important point is that next point. ... A great rival is like a mirror. You have to look at yourself, acknowledge where you fall short, make adjustments, and nurture the areas where you overachieve. There were times my rivals brought out the best in me; there were times they brought out the worst. They probably helped me win things I never would have otherwise; they also cost me titles. I don’t know how you quantify what it would have been like without a rival like Pete Sampras. I would have won more. But I think I would have been worse without him.