🤳 “The FOMO Lawsuit” — Meta sued by 41-states. Texas Roadhouse’ resurgence. Kristen Bell’s diaper dilemma.
Oct 25, 2023
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Kristen Bell, actor and co-founder of Hello Bello, discusses the bankruptcy of their diaper startup. Meta is sued by 41 states for being addictive and harmful to kids. Texas Roadhouse experiences rapid growth as chain restaurants make a comeback. The podcast also covers selling wine at Olive Garden and the challenges faced by direct-to-consumer brands.
Meta, the parent company of Facebook and Instagram, is being sued by 41 states for addicting children to social media with FOMO tactics and exploiting their psychological vulnerabilities.
Casual restaurant chains like Texas Roadhouse are defying decline and experiencing a comeback due to nostalgia, craving for comfort, the return of office workers, and better price control compared to independent establishments.
Deep dives
Meta Sued for Addicting Children to Social Media
Meta, the parent company of Facebook and Instagram, is being sued by 41 states in federal court for allegedly addicting children to social media with FOMO (fear of missing out) tactics. The lawsuit claims that Meta exploited the psychological vulnerabilities of young users through false promises and intentionally used FOMO to keep users scrolling on their platforms. The lawsuit highlights specific tactics such as populating feeds by popularity instead of chronologically and implementing infinite scroll features. This lawsuit has been compared to the big tobacco moment, as it accuses Meta of deliberately deceiving young users about the impact of social media on their mental health.
Casual Restaurant Chains Experiencing a Comeback
Casual restaurant chains, such as Texas Roadhouse, Applebee's, and Olive Garden, are experiencing a surprising comeback, defying the decline they faced in previous years. Nostalgia, with a craving for comfort, is one of the factors driving this revival. The return of office workers to in-person work and inflation anxiety also play a role. These chains are better positioned to control prices compared to smaller, independent establishments. Texas Roadhouse, in particular, has seen significant growth, becoming the fastest-growing restaurant brand in the world. It is worth $7 billion on the stock market and has become a prime example of the resurgence of casual restaurant chains.
Hello Bello Diaper Company Declares Bankruptcy
Hello Bello, a diaper company founded by Kristen Bell and Dax Shepard, has recently declared bankruptcy. The company launched in 2019 with the mission to offer premium diapers at affordable prices through the direct-to-consumer (D2C) model. However, the company's reliance on Facebook ads for marketing became its downfall, as changes in privacy settings on iPhones impacted the effectiveness of these ads. This highlights the dirty secret of the D2C business model, where dependence on social media advertising can be a risky strategy. While some celebrity-founded D2C brands like Kim Kardashian's Skims have succeeded, others, like Hello Bello, have struggled to maintain sustainable growth.
41 states just filed a blockbuster lawsuit against Meta, claiming it is harmful and addictive to kids — This could be Zuck’s “Big Tobacco” moment, and it’s because of FOMO.
The fastest-growing restaurant in America is Texas Roadhouse — From Applebee’s to The Olive Garden, chain restaurants are enjoying a resurgence.
And Kristen Bell & Dax Shephard’s diaper startup, Hello Bello, has filed for bankruptcy — Because there’s a dirty secret about the Direct-To–Consumer business model.