🌭 Sun’s out, buns out

I had a surly manager at a diner who used to love to say, “If there’s time to lean, there’s time to clean.”

Yeah, no one liked him.

But the tech industry may be suffering from the opposite problem. Is the real story behind “fake work” — i.e., the output of well-paid tech workers who do nothing all day — actually “lazy management”?

Working hard, or hardly working?

Insider spoke to a former Amazon research scientist who earned $300k+/year doing squat. Vox reported on a man in fintech who spends most of his day on naps, housework, and TV.

Both were down to work, but no one gave them anything to do.

Why not ask for more? In 2023 alone, 216k+ tech workers have been laid off as the pandemic’s everything-online era has cooled. People aren’t exactly keen to announce there’s not enough work for their position.

Why does this happen?

Sometimes, it’s the ebb and flow of projects and seasons. But often, it’s not workers slacking but managers not managing efficiently — and there are a lot of reasons for that.

If they’re overworked, maybe they don’t notice. Maybe they dislike confrontation. Maybe they’re promotion-driven, boosting head counts without offering guidance or producing results.

In some cases, there may be too few managers; in others, too many, gumming up progress.

Why is this a problem?

Getting paid to do nothing sounds great, but it can be harmful:

• Sidelined employees struggle to develop their careers, missing promotions, awards, and other milestones. They also face layoffs.
• Meanwhile, resentment can build among overworked employees.

What can be done?

Experts say restructuring can help, but it’s also about shifting a company’s culture — e.g., aligning incentives with goals, increasing transparency and communication, and properly defining roles.

And, ahem, maybe not always blaming workers.

Fun fact: The Trainee is a documentary in which performance artist Pilvi Takala does nothing in Deloitte’s marketing department for a month.

In one sense, the Nike brand feels strong as ever. We’re watching movies about Air Jordan’s origin story; revenue in fiscal 2023, up 10% to $51.2B, passed the $50B mark for the first time.

But dig deeper and you’ll see a sneaker behemoth trying to find its footing.

Nike’s new balance sheet

In 2020, Air Jordan 1 Highs were reselling for a 61% premium and Nike’s stock was standing tall. Today, those Jordans are being discounted and the stock is down ~40% from its peak.

Net income fell 16% in fiscal 2023, and margins fell slightly as input costs rose. The company’s 2024 outlook came in lower than hoped. Fewer Wall Street analysts are recommending the stock, per Bloomberg.

One challenge: managing and maximizing Nike’s $8.5B worth of inventory, up 23% from 2021.

Sole mates

Another challenge is the continued onslaught of ugly European sneakers.

• Hoka — acquired by Deckers Brands, owner of Ugg and Teva, in 2012 for a reported $1.1m — now generates $1.4B annually.
• Ski boot maker-turned-trendy footwear brand Salomon led the 2022 list of fastest-growing brands on StockX, up ~2.3k%. Hoka came in second, up 713%.
• Swiss brand On grew revenue 69% last year to $1.3B and expects to hit $1.8B+ this year.

Changes afoot: Nike restructured its executive suite in May to “deliver breakthrough innovation,” so a new era of ambitious Nike products may soon be upon us.

Hot dogs are having a moment. So much so that The Wall Street Journal declared franks “the ‘it’ restaurant order” of the summer.

America’s favorite meat tubes require no introduction — US consumers already buy 900m+ pounds of them annually, per the National Hot Dog and Sausage Council.

• Perhaps an etiquette brush-up is required? The NHDSC has a guide for that. (Apparently standard hot dogs should need no more than five bites?)

July is the wieniest month

No month rivals this one — National Hot Dog Month, naturally — in hot dog sales, thanks to the July Fourth holiday.

• NHDSC estimates 150m hot dogs — supposedly enough to stretch from DC to LA 5x — are consumed on average each Independence Day.

But could hot dogs become a year-round phenomenon? Maybe.

Hot dogs are taking off in restaurants nationwide

Why? They’re a great vessel for nostalgia and novelty — and both are good for business.

• Regional chains that position hot dogs as a comfort food — namely, Wienerschnitzel and Portillo’s — are expanding nationally, per The Takeout.
• Growing franchises like Five Guys and Shake Shack — devoted to hot dog’s frenemy, the hamburger — are gaining attention for slinging dogs as well.
• Costco’s $1.50 hot dog combo, a popular draw, isn’t going anywhere — at least not if its employees want to remain among the living.
• Also a draw: exotic hot dog varieties, with MLB ballparks engaged in a gross, endless arms race. (The weirdest belongs to the Cleveland Guardians, who sell a dog topped with Froot Loops and pimento mac and cheese.)
• There’s also that viral NYC hot dog that costs $29.

One note on hot dog innovation: Keep it coming, please. Seeking inspiration? Look to Phoenix’s Short Leash, which serves its hot dogs on naan rather than typical buns.