Shake Shack CEO says 'productivity' helps mitigate inflated beef costs
"We've built so much productivity over the last year, our operating margins have gone from right around 20 up to 24%, almost 24% last quarter," he said. "We're right now working within our supply chain to find a lot more productivity, so we're able to mitigate that inflation with all the productivity."
Even as Shake Shack beat revenue and earnings estimates when it reported last week, shares declined as investors worried about a lower-than-expected same-store sales figure. The stock is currently down a little over 11% year-to-date.
According to Lynch, Shake Shack no longer depends on pricing to drive growth and now sees traffic as a significant driver of "healthy, sustainable growth."
He said Shake Shack is "never going to be the lowest price point product out there," as its products cost more to make. Lynch said the company is looking at other ways to provide customers with value, such as a $1 drink promotion on its app. He also mentioned newer offerings, like alcoholic beverages — "boozy shakes, classic cocktails, full bar" — at certain locations.
Lynch maintained that Shake Shack has pricing power if inflation skyrockets.
"I mean, we still have pricing power, if we choose, if we need to, if there's enough inflation," he said. "So pricing will always be a part of the model, but it's, we're not dependent upon it like we used to be."
Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest smarter.Disclaimer
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
6 minutes ago
- Yahoo
Trump tariffs live updates: India hit with 50% tariffs as Trump's sweeping trade measures roll out
President Trump on Wednesday signed an executive order imposing an additional 25% tariff on India over its purchases of Russian oil. The new tariff, which will come into effect in 21 days, is set to "stack" on top of an existing country-specific tariff of 25%. In doing so, Trump is set to make good on a threat for higher tariffs on India, as he has accused the country of effectively financing the Russian war in Ukraine. "They're fueling the war machine," he charged in a CNBC interview. India's first 25% levy takes effect Thursday, part of scores of new duties that will see importers paying between 10% to 50% as they bring in goods from nearly 200 countries around the globe. Outside of India, Switzerland is the developed nation whose goods face a whopping increase: up to 39%. You can see the new rates Trump is set to levy in the graphic below: Trump also said this week that he would soon announce tariffs on semiconductor and pharmaceutical imports, as he prepares to add more sectoral duties to his mix of tariffs. He said duties on pharma could eventually balloon as high as 250%. In the past several days, Trump has unleashed a flurry of deals and trade moves leading up to his self-imposed deadline: Trump granted Mexico, the US's largest trading partner, a 90-day reprieve on higher tariffs. Trump hiked tariffs on Canadian imports to 35%, though goods contained in the US-Mexico-Canada agreement are exempt, keeping this hike's impact limited so far. The US agreed to a trade deal with South Korea. The agreement includes a 15% tariff rate on imports from the country, while the US will not be charged a tariff on its exports. Trump imposed 50% tariffs on semi-finished copper products starting Aug. 1. The president signed an order to end the de minimis exemption on low-value imports under $800, thereby applying tariffs from Aug. 29. Trump signed another order to impose a total of 50% tariffs on many goods from Brazil. However, it exempts key US imports like orange juice and aircraft parts that benefit Embraer (ERJ). The US and EU agreed to a trade deal that imposes 15% tariffs on EU goods. The nations are still working on finalizing many terms of the deal. Read more: What Trump's tariffs mean for the economy and your wallet Here are the latest updates as the policy reverberates around the world. Trump hits India with additional 25% tariff over Russia oil buys President Trump has hit India with an additional 25% tariff due to India's purchase of Russian oil. The US president threatened India with higher tariffs earlier this week, which India's Prime Minister Narendra Modi called "unjustified," also calling out the US for its double standard over Russia. In an interview with CNBC on Tuesday, Trump said that India was helping to fuel the war machine. 'They're fueling the war machine. And if they're going to do that, then I'm not going to be happy,' Trump said. In the early days of trade negotiations, relations between the US and India appeared more friendly, with both sides saying they would reach a deal within days. However, over recent months ,things seem to have turned sour as neither side can agree on some of the finer details within the deal, which concern dairy and agricultural products. As a result, a trade war seems to have developed between the two sides, and now with this additional 25% tariff gift from Trump to Modi, the two seem further away from reaching an agreement than ever before. Modi's rival blasts 'bully' Trump as public opinion hardens Rahul Gandhi, Narendra Modi's most recognizable political rival, has come out to call President Trump a "bully" for his negotiation tactics. Bloomberg reports: Read more here. Trump order lowering tariffs on EU autos still days away: source European automakers will have to hold on a little while longer before President Trump lowers auto tariffs as EU-US negotiations continue. Reuters reports: Read more here. Alcohol groups say tariffs put $2B in sales and 25,000 jobs at risk In a letter to President Trump, a group comprising of 57 alcohol industry firms have said that Trump's tariffs of 15% on EU goods could reduce the value of alcohol sales by almost $2B and put 25,000 jobs at risk. Reuters reports: Read more here. Carney says he'll look at opportunities to remove tariffs on US Canadian Prime Minister Mark Carney said that he will look to assess ways in which he can remove some counter-tariffs against the US. Carney's statement seems at odds with his earlier commitments to fight back against President Trump's trade war. Bloomberg News reports: Read more here. Trump says Japan to import Ford's huge F-150 pickup trucks President Trump said that Japan has agreed to accept imports of Ford's F-150 pick up trucks. This latest news is seen as a sign that the two sides may not be on the same page when it comes to their understanding of the trade agreement reached last month. Bloomberg News reports: Read more here. US investments under trade deal will be determined by benefits for Tokyo: Japan Reuters reports: Read more here. Honda Q1 operating profit halves on tariffs Shares in Honda Motor (HMC) rose 2% premarket on Wednesday after the automaker reported a 50% drop in first-quarter operating profit. A stronger yen and the impact of President Trump's tariffs took their toll, but the company raised its full-year forecast. Reuters reports: Read more here. China draws red lines on US chip tracking with Nvidia meeting China is pushing back against the US over chips despite their overall trade truce. Last week, Beijing summoned Nvidia (NVDA) staff over security concerns with H20 chips, signaling opposition to the US plans to track advanced semiconductors. Analysts view China's latest move as a warning that it will not allow the US to dominate the chip sector. Bloomberg News reports: Read more here. Trump says he's readying more tariffs on Russian energy buyers Bloomberg News reports: Read more here. Canada to help lumber industry cope with US tariffs: Carney Prime Minister Mark Carney has announced that Canada will provide funds to help the lumber industry prepare for tariffs. Reuters reports: Read more here. Starbucks under pressure again as Brazilian tariffs hike coffee costs Starbucks (SBUX) may soon hike prices on its pumpkin spice lattes and bottled Frappuccinos as it faces cost pressure from the 50% tariff on Brazilian coffee imports, which takes effect on Aug. 6. Yahoo Finance's Francisco Velasquez reports: Read more here. EU continues to press for tariff exemption on wine, spirits as part of US deal The EU is pushing for its wine and spirit exports to be exempt from US tariffs, while both sides work towards refining the deal they agreed last month. The WSJ reports: Read more here. Countries push for last-minute deals as Thursday tariff deadline looms Global importers are bracing for President Trump's next tariff deadline on Thursday morning, when the president's tiered approach to tariffs is expected to take effect. Yet some of the details around trade agreements remain fuzzy. Yahoo Finance's Ben Werschkul reports: Read more here. Trump's copper tariffs apply to $15B of products so far President Trump's copper (HG=F) tariffs are due to hit imports valued at more than $15B in 2024, highlighting the potential inflationary impact on American manufacturers. Trump's unveiling of 50% import duties rattled the global copper market last week, because the US president provided a surprise exemption to key forms of wiring metal. But it still leaves significant trade volumes subject to tariffs. Bloomberg News reports: Read more here. Trump threatens EU with increased tariffs if it doesn't meet investment pledge President Trump threatened to hike tariffs on the European Union back to 35% if the bloc fails to live up to a pledge to invest some $600 billion in the US. "A couple of countries came [and said], 'How come the EU is paying less than us?' And I said well, because they gave me $600 billion," Trump said during a CNBC interview. "And that's a gift, that's not like, you know, a loan," he said, claiming that the terms allow the US to direct where the EU invests. Trump says pharma duties could go to 250% President Trump said he would announce tariffs on semiconductor and pharmaceutical imports "within the next week or so." "We'll be putting a initially small tariff on pharmaceuticals, but in one year — one and a half years, maximum — it's going to go to 150%. And then it's going to go to 250%, because we want pharmaceuticals made in our country," Trump said during a CNBC interview. He said semiconductor and chip tariffs would be in a "different category." US tariff on EU goods set at flat 15% The EU said on Tuesday that European Union goods entering the US face a flat 15% tariff, including cars and car parts. The rate includes the Most Favoured Nation (MFN) tariff and won't exceed 15% even if the US raises tariffs on items like semiconductors and medicines. The EU said it still expects turbulence in its trade dealings with the US. Reuters reports: Read more here. India hits back at Trump's tariff threat India has called out President Trump after he threatened to "substantially raise" tariffs on Indian exports over its Russian oil purchases, slamming the move as unjustified. New Delhi said it would take all necessary steps to protect its economic interests. Bloomberg News reports: Read more here. Nvidia partner Hon Hai's July sales growth weakened by tariffs Nvidia's (NVDA) main server assembly partner Hon Hai Precision ( reported a sales slowdown for July due to US tariffs. Bloomberg News reports: Read more here. President Trump has hit India with an additional 25% tariff due to India's purchase of Russian oil. The US president threatened India with higher tariffs earlier this week, which India's Prime Minister Narendra Modi called "unjustified," also calling out the US for its double standard over Russia. In an interview with CNBC on Tuesday, Trump said that India was helping to fuel the war machine. 'They're fueling the war machine. And if they're going to do that, then I'm not going to be happy,' Trump said. In the early days of trade negotiations, relations between the US and India appeared more friendly, with both sides saying they would reach a deal within days. However, over recent months ,things seem to have turned sour as neither side can agree on some of the finer details within the deal, which concern dairy and agricultural products. As a result, a trade war seems to have developed between the two sides, and now with this additional 25% tariff gift from Trump to Modi, the two seem further away from reaching an agreement than ever before. Modi's rival blasts 'bully' Trump as public opinion hardens Rahul Gandhi, Narendra Modi's most recognizable political rival, has come out to call President Trump a "bully" for his negotiation tactics. Bloomberg reports: Read more here. Rahul Gandhi, Narendra Modi's most recognizable political rival, has come out to call President Trump a "bully" for his negotiation tactics. Bloomberg reports: Read more here. Trump order lowering tariffs on EU autos still days away: source European automakers will have to hold on a little while longer before President Trump lowers auto tariffs as EU-US negotiations continue. Reuters reports: Read more here. European automakers will have to hold on a little while longer before President Trump lowers auto tariffs as EU-US negotiations continue. Reuters reports: Read more here. Alcohol groups say tariffs put $2B in sales and 25,000 jobs at risk In a letter to President Trump, a group comprising of 57 alcohol industry firms have said that Trump's tariffs of 15% on EU goods could reduce the value of alcohol sales by almost $2B and put 25,000 jobs at risk. Reuters reports: Read more here. In a letter to President Trump, a group comprising of 57 alcohol industry firms have said that Trump's tariffs of 15% on EU goods could reduce the value of alcohol sales by almost $2B and put 25,000 jobs at risk. Reuters reports: Read more here. Carney says he'll look at opportunities to remove tariffs on US Canadian Prime Minister Mark Carney said that he will look to assess ways in which he can remove some counter-tariffs against the US. Carney's statement seems at odds with his earlier commitments to fight back against President Trump's trade war. Bloomberg News reports: Read more here. Canadian Prime Minister Mark Carney said that he will look to assess ways in which he can remove some counter-tariffs against the US. Carney's statement seems at odds with his earlier commitments to fight back against President Trump's trade war. Bloomberg News reports: Read more here. Trump says Japan to import Ford's huge F-150 pickup trucks President Trump said that Japan has agreed to accept imports of Ford's F-150 pick up trucks. This latest news is seen as a sign that the two sides may not be on the same page when it comes to their understanding of the trade agreement reached last month. Bloomberg News reports: Read more here. President Trump said that Japan has agreed to accept imports of Ford's F-150 pick up trucks. This latest news is seen as a sign that the two sides may not be on the same page when it comes to their understanding of the trade agreement reached last month. Bloomberg News reports: Read more here. US investments under trade deal will be determined by benefits for Tokyo: Japan Reuters reports: Read more here. Reuters reports: Read more here. Honda Q1 operating profit halves on tariffs Shares in Honda Motor (HMC) rose 2% premarket on Wednesday after the automaker reported a 50% drop in first-quarter operating profit. A stronger yen and the impact of President Trump's tariffs took their toll, but the company raised its full-year forecast. Reuters reports: Read more here. Shares in Honda Motor (HMC) rose 2% premarket on Wednesday after the automaker reported a 50% drop in first-quarter operating profit. A stronger yen and the impact of President Trump's tariffs took their toll, but the company raised its full-year forecast. Reuters reports: Read more here. China draws red lines on US chip tracking with Nvidia meeting China is pushing back against the US over chips despite their overall trade truce. Last week, Beijing summoned Nvidia (NVDA) staff over security concerns with H20 chips, signaling opposition to the US plans to track advanced semiconductors. Analysts view China's latest move as a warning that it will not allow the US to dominate the chip sector. Bloomberg News reports: Read more here. China is pushing back against the US over chips despite their overall trade truce. Last week, Beijing summoned Nvidia (NVDA) staff over security concerns with H20 chips, signaling opposition to the US plans to track advanced semiconductors. Analysts view China's latest move as a warning that it will not allow the US to dominate the chip sector. Bloomberg News reports: Read more here. Trump says he's readying more tariffs on Russian energy buyers Bloomberg News reports: Read more here. Bloomberg News reports: Read more here. Canada to help lumber industry cope with US tariffs: Carney Prime Minister Mark Carney has announced that Canada will provide funds to help the lumber industry prepare for tariffs. Reuters reports: Read more here. Prime Minister Mark Carney has announced that Canada will provide funds to help the lumber industry prepare for tariffs. Reuters reports: Read more here. Starbucks under pressure again as Brazilian tariffs hike coffee costs Starbucks (SBUX) may soon hike prices on its pumpkin spice lattes and bottled Frappuccinos as it faces cost pressure from the 50% tariff on Brazilian coffee imports, which takes effect on Aug. 6. Yahoo Finance's Francisco Velasquez reports: Read more here. Starbucks (SBUX) may soon hike prices on its pumpkin spice lattes and bottled Frappuccinos as it faces cost pressure from the 50% tariff on Brazilian coffee imports, which takes effect on Aug. 6. Yahoo Finance's Francisco Velasquez reports: Read more here. EU continues to press for tariff exemption on wine, spirits as part of US deal The EU is pushing for its wine and spirit exports to be exempt from US tariffs, while both sides work towards refining the deal they agreed last month. The WSJ reports: Read more here. The EU is pushing for its wine and spirit exports to be exempt from US tariffs, while both sides work towards refining the deal they agreed last month. The WSJ reports: Read more here. Countries push for last-minute deals as Thursday tariff deadline looms Global importers are bracing for President Trump's next tariff deadline on Thursday morning, when the president's tiered approach to tariffs is expected to take effect. Yet some of the details around trade agreements remain fuzzy. Yahoo Finance's Ben Werschkul reports: Read more here. Global importers are bracing for President Trump's next tariff deadline on Thursday morning, when the president's tiered approach to tariffs is expected to take effect. Yet some of the details around trade agreements remain fuzzy. Yahoo Finance's Ben Werschkul reports: Read more here. Trump's copper tariffs apply to $15B of products so far President Trump's copper (HG=F) tariffs are due to hit imports valued at more than $15B in 2024, highlighting the potential inflationary impact on American manufacturers. Trump's unveiling of 50% import duties rattled the global copper market last week, because the US president provided a surprise exemption to key forms of wiring metal. But it still leaves significant trade volumes subject to tariffs. Bloomberg News reports: Read more here. President Trump's copper (HG=F) tariffs are due to hit imports valued at more than $15B in 2024, highlighting the potential inflationary impact on American manufacturers. Trump's unveiling of 50% import duties rattled the global copper market last week, because the US president provided a surprise exemption to key forms of wiring metal. But it still leaves significant trade volumes subject to tariffs. Bloomberg News reports: Read more here. Trump threatens EU with increased tariffs if it doesn't meet investment pledge President Trump threatened to hike tariffs on the European Union back to 35% if the bloc fails to live up to a pledge to invest some $600 billion in the US. "A couple of countries came [and said], 'How come the EU is paying less than us?' And I said well, because they gave me $600 billion," Trump said during a CNBC interview. "And that's a gift, that's not like, you know, a loan," he said, claiming that the terms allow the US to direct where the EU invests. President Trump threatened to hike tariffs on the European Union back to 35% if the bloc fails to live up to a pledge to invest some $600 billion in the US. "A couple of countries came [and said], 'How come the EU is paying less than us?' And I said well, because they gave me $600 billion," Trump said during a CNBC interview. "And that's a gift, that's not like, you know, a loan," he said, claiming that the terms allow the US to direct where the EU invests. Trump says pharma duties could go to 250% President Trump said he would announce tariffs on semiconductor and pharmaceutical imports "within the next week or so." "We'll be putting a initially small tariff on pharmaceuticals, but in one year — one and a half years, maximum — it's going to go to 150%. And then it's going to go to 250%, because we want pharmaceuticals made in our country," Trump said during a CNBC interview. He said semiconductor and chip tariffs would be in a "different category." President Trump said he would announce tariffs on semiconductor and pharmaceutical imports "within the next week or so." "We'll be putting a initially small tariff on pharmaceuticals, but in one year — one and a half years, maximum — it's going to go to 150%. And then it's going to go to 250%, because we want pharmaceuticals made in our country," Trump said during a CNBC interview. He said semiconductor and chip tariffs would be in a "different category." US tariff on EU goods set at flat 15% The EU said on Tuesday that European Union goods entering the US face a flat 15% tariff, including cars and car parts. The rate includes the Most Favoured Nation (MFN) tariff and won't exceed 15% even if the US raises tariffs on items like semiconductors and medicines. The EU said it still expects turbulence in its trade dealings with the US. Reuters reports: Read more here. The EU said on Tuesday that European Union goods entering the US face a flat 15% tariff, including cars and car parts. The rate includes the Most Favoured Nation (MFN) tariff and won't exceed 15% even if the US raises tariffs on items like semiconductors and medicines. The EU said it still expects turbulence in its trade dealings with the US. Reuters reports: Read more here. India hits back at Trump's tariff threat India has called out President Trump after he threatened to "substantially raise" tariffs on Indian exports over its Russian oil purchases, slamming the move as unjustified. New Delhi said it would take all necessary steps to protect its economic interests. Bloomberg News reports: Read more here. India has called out President Trump after he threatened to "substantially raise" tariffs on Indian exports over its Russian oil purchases, slamming the move as unjustified. New Delhi said it would take all necessary steps to protect its economic interests. Bloomberg News reports: Read more here. Nvidia partner Hon Hai's July sales growth weakened by tariffs Nvidia's (NVDA) main server assembly partner Hon Hai Precision ( reported a sales slowdown for July due to US tariffs. Bloomberg News reports: Read more here. Nvidia's (NVDA) main server assembly partner Hon Hai Precision ( reported a sales slowdown for July due to US tariffs. Bloomberg News reports: Read more here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29 minutes ago
- Yahoo
Trump claims Japan to import F-150s amid US tariff deal uncertainty
US President Donald Trump has reportedly said that Japan is set to begin importing Ford's F-150 pickup trucks, signalling a potential misunderstanding between the two nations regarding the specifics of a trade agreement proclaimed last month, according to Bloomberg. Tokyo's chief negotiator, Ryosei Akazawa, embarked on a trip to Washington with the intention of urging the Trump administration to honour its commitment to lower tariffs on automobiles and auto parts to 15% from the current 27.5%. Akazawa told reporters, 'It's worth noting that the US-UK agreement took 54 days to be implemented,' when discussing the anticipated reduction in auto tariffs upon his arrival in Washington. Speaking of Japan in a phone interview broadcast by CNBC, Trump stated: 'They're taking our cars. They're taking the very beautiful Ford F-150, which does very well. And I'm sure we'll do very well there and other things that do very well here, will also do well there.' The trade deal between the nations has been shrouded in uncertainty, raising concerns in Japan about its execution, especially concerning autos. The Trump administration's narrative on trade agreements has frequently been at odds with that of its trade partners, leading to questions about the agreements' effectiveness. Currently, the US imposes a 27.5% tariff on Japanese autos, a figure that combines an earlier 2.5% rate with a new 25% introduced by Trump. Although a reduction to 15% would alleviate some pressure, this rate would still affect the sector that is central to the Japanese economy. Optimism in Asian markets was evident as Akazawa made his ninth visit to the US, with Japan's Topix Index climbing 1%, buoyed by gains from automakers such as Toyota Motor. A point of contention remains whether the proposed 15% tariff will be an additional charge on top of current tariffs or if all current levies will be standardised to 15%, marking another potential area of misunderstanding between the two countries' interpretations of the trade deal. Despite Akazawa's assertion that tariffs will be capped at 15% and not added to existing rates, a recent executive order suggested that the 15% reduction would only apply to the European Union, not to Japan. Trump has often expressed frustration over the lack of popularity of US cars in Japan, but many experts believe this is due to the absence of models suited to the Japanese market, rather than trade barriers. The Ford F-150 mentioned by Trump may limit its practicality on Japan's narrower roads, where many are less than four metres wide for two lanes, as per government data from 2012. In the CNBC interview, Trump likened the $550bn investment package agreed upon with Japan in the trade deal to a "signing bonus". However, the Japanese have clarified that only a small fraction of this amount will constitute actual investment, with the remainder being loans and loan guarantees. Japan's Prime Minister Shigeru Ishiba has stated that these investments, driven by private companies, will serve the interests of both countries. "Trump claims Japan to import F-150s amid US tariff deal uncertainty – report" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
CNBC
39 minutes ago
- CNBC
Luxury brand exec left world of Hermes for life on farm. It's now a $50 million home business, and growing
Richard Christiansen traded in a life of luxury (goods) for life on the farm, though it happened in an unexpected way. A vegetable farmer he was in touch with during Covid told him they were going to "lose the farm" as all the restaurants they sold to closed. "We said bring the vegetables over and we will sell them," Christiansen recalled in an interview at CNBC's "Small Business Playbook." "I had spent my whole life in advertising and one farm became two, and then ten, and then 150 farms," he said in an interview with CNBC's Julia Boorstin at the virtual event. While he spent decades coming up with campaigns for companies like Hermes, farming was part of Christiansen's DNA, with both of his parents farmers in rural Australia, where he grew up. "It's backbreaking work and the toughest job in the world," he said. "I know the grunt and grind of farming." And after running an ad agency for two decades, he founded Flamingo Estate to take a look at farming, he said, with "a new set of eyes" that considered agriculture as a brand which could benefit from "luxury brand cues." Christiansen says it turned out that trading in the world of Hermes for the farm was a wise decision. "Mother Nature is the last great luxury house," he said. Flamingo Estate has expanded from those original vegetable boxes to olive oil, and olive oil as an ingredient for soap and candles. That was part of a big shift in Flamingo Estate's expansion as Christiansen realized that the company could help farmers make higher margin products by taking food grade ingredients into areas like household goods, beauty and the kitchen pantry. Many celebrities have endorsed, or directly worked with Flamingo Estate, starting with Chrissy Teigen and John Legend. Gwyneth Paltrow's Goop and Oprah have both featured its products. "Many were customers, just really happy customers and said we like what you are doing, can we get involved?" Christiansen said. That led to Flamingo Estate transporting bee hives to the homes of celebrities to harvest honey for charity, with maybe the most famous example the hives on the roof of Lebron James's house. Julianne Moore has also produced honey, while Laura Dern has made olive oil, and next up, Christiansen said, is growing pickles with Pamela Anderson. Christiansen said if we want people to think about the environment differently, we have to show it to them differently. "Taking unexpected faces and getting their hands in the soil," is one way to accomplish that, he said. One thing he did learn from work on Hermes branding was what it takes for a brand to hold "the test of time," he said, which has led Flamingo Estate to closely control its messaging, or as Christiansen said, "police the brand cues very tightly," with his partner Aaron Harvey overseeing all of the design and Christiansen all the writing. "There are so many people making things but not building brands," he said. In the way every product is made, bottled, and packaged, Christiansen says he sees "real magic" and a question that many bigger-scale product companies never even consider: "Is there a true story to tell?" Christiansen boils down his approach to building a broad consumer products company to "making things I use every day at home. One great coffee, and one great product for skin, and one great thing for being in the sun all day." "Even though it is broad, we have a really sharp focus on utility," he said. Christiansen also said he is a big fan of being "radically inconsistent," an idea which is recognizable in the wide variety of products that the company now offers. "We expect that from wine, season to season it's different and we celebrate it, but something made well like hand soap should be different season to season because botanicals will change and ingredients will change," he said. "It's a little bit of calculated madness." That approach may have reached its peak with a $75 compost bag that was produced as a Mother's Day-timed gift and got a much larger reaction than the company anticipated. There was utility in the idea, in that farm goats were producing so much manure, but Christiansen said it was also born of a belief in "the power of play and trying things." "Just to work seasonally and pivot and try and have fun. There is joy there that many brands don't have," he said. Flamingo Estate has dreams of being a billion-dollar company. It is not close to that yet, but it is growing, doubling sales this year to $30 million and forecasting $50 million in sales by early next year, according to Christiansen. The company has already expanded to Australia, is about to launch in Japan, and will enter the European market next year, he said. One of the biggest hurdles was finding investors. Christiansen says it took several years to find the right partners and get properly funded, a process that included over 60 pitch meetings. One issue, he says, was the fact that Flamingo Estate is not a "single SKU" product company. The venture capital community loves one-product companies, but Flamingo Estate is doing food, beauty, and household goods, and efficiently running the different businesses, which Christiansen said is "a riddle" for many investors. He said many of the initial investment meetings would always circle back to the "exit goal," a topic that Christiansen was not interested in. "I would say 'we started running, why are we talking exit?'" he recalled. Many investors also wanted the company to focus on beauty because it has the highest margins and "kill everything else," he recalled. "Not following other people's playbooks, I think not doing that set us up well," he now says. "There are lots of entry points into the brand," he added. That leads Christiansen to say the one piece of advice he has for all business owners is to find the right partners, and in his experience, that meant people who have already built their own businesses, "people who know what it's like to be in the thick of things," he said. "They've made the best partners," he added.
