Dealership Count Increases, Subway Knows What It Takes, Olive Oil In Your Coffee

February 23, 2023
It’s Thursday and we’re talking about a new report that shows overall Dealership growth in the U.S. We also talk about Subway’s charging oasis as well as Starbucks CEO Howard Schultz getting creative.
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  • According to Urban Science’s annual automotive franchise report, the number of Franchised Auto Dealers in the US increased in 2022 following two years of consecutive declines.
  • There were 18,257 new-vehicle dealerships as of Jan. 1, 2023, a 27 store increase
  • California + 25 dealerships, Texas +9,  and Virginia +5
  • Michigan -9, Indiana -7 and Minnesota -5
  • Avg new vehicles sold by U.S. dealerships declined by 67 units to 759
  • Forecast of 15 million new vehicles this year, and projected per Dealership new car sales of 818 units in 2023 "barring any unforeseen circumstances." 8% increase
  • In a move greatly lauded by team ASOTU, Subway is announcing a partnership with GenZ EV Solutions to build a charging oasis so you can recharge while you refuel.
  • Subway currently has over 37k franchises and have been consistently committed to reducing environmental impact, as seen by their opening of ‘eco-restaurants.’
  • “Starting in 2023, “Subway EV charging oasis” parks with multiple spots, picnic tables, Wi-Fi, restrooms, green space, and playgrounds will be installed at select locations.”
  • As a part of the effort, new or fresh remodels will also get a small format charging bank.
  • Starbucks is rolling out a new line of beverages made with extra virgin olive oil. This is not a joke.
  • Last year Starbucks CEO Howard Schultz began consuming a tablespoon of olive oil every day after meeting olive oil producer Tommaso Asaro.
  • “When we got together and started doing this ritual I said to [Asaro], I know you think I’m going to be crazy, but have you ever thought of infusing a tablespoon of olive oil with Starbucks coffee?” said Schultz. “He thought it was a little strange.”
  • The new drinks are branded as Oleato and will be a latte with oat milk and olive oil, an ice shaken espresso with oat milk, hazelnut flavor and olive oil, and the Oleato golden foam cold brew with 2 olive oil servings.
  • Each tablespoon of olive oil adds 120 calories per serving.
  • When asked about those extra calories, Randy Brewer, Chief Marketing Officer said “We haven’t seen that as a barrier, we’re not too concerned about that.”

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Kyle Mountsier, Paul Daly

Paul Daly  00:36

Yo, it's Thursday, folks. We got to get the soccer scars on today. We'll tell you why. But we're talking about dealership growth in the US some ways charging Oasis and Howard Schultz his creative idea. Very creative. Creative.

Kyle Mountsier  00:53

We'll give it to him. actually saw him creative.

Paul Daly  00:58

I saw it yesterday in the morning. And I was like, Can we play a show? And I was like, we don't have time for it. But I just wanted to get your real time reactions. We'll talk about that in the show. But hey, man, it is Thursday. And you know, Kyle, and I get to travel a lot. You're already in Nashville. I'm in upstate New York. And in upstate New York, it is like sheets of snow and ice. And just for the day, I get to be in Orlando, and it's 90 degrees.

Kyle Mountsier  01:22

And for all intensive purposes, it's really just 100. Like, for me,

Paul Daly  01:28

it feels like one four.


Here's the thing when you go from like, one day, it's 43 The next day, it's 85. It's literally it's just 100 you're like, give me get rid of these clothes. I'm already 343

Paul Daly  01:39

You're lucky. Yeah, I'm gonna 20s 43 t shirt weather in upstate New York in the winter. Don't get me started. Don't get me started. Well, yesterday, we were starting to do some initial planning and design for a soda con 2023. And it got us all excited. And I was like, reminded like, hey, here are the stickers that got my I was at the first episode. We're like, we were in the scarves today, because we're having it just so you know, it's in Baltimore, September 26 27th, right 25 through 20. So just circle 2526 27. Circle that on your calendar, put a hold circle to the

Kyle Mountsier  02:18

28th to because you got to stay the night of the 27th. Day, you can't leave half day be like the second day conference type person, you're leaving on the 20/28. Just get over it right now.

Paul Daly  02:30

And you'll be happy about it, though. And the coolest part is every time we've even mentioned a soda con. Like we noticed a bunch of people check out the site to see if there are any updates and not not really any of the champion has to go to a soda and just get used to go in there. So we just got excited. So we go in the scars on because it is like we did the last one with 120 days notice that didn't even exist. So that was what it took to do four months this year. We've already been planning this sucker. So just stay tuned. We just wanted to talk about it. But let's talk about some news. Because that's why you're really here. So well. I'm not going to not going to I'll just give you a stop to start the news. Okay, check this out. This one actually got me. My mouse stopped working. Why Why should it work? You don't get any work to do to help me suppose how you track patent How am I supposed to get the story on the screen? All right. So check this out. This one made me do a double take according to urban science annual automotive franchise report, the number of franchised auto dealers in the US they went down? No, they didn't go down. They actually went up in 2022. Following two years of consecutive declines. There's actually a 27 store increase in 2022. So it went from 18,000 to 57. Was actually where we landed so up from I guess 18,230 Like that fast math in my head.

Kyle Mountsier  03:44

Man on a Thursday getting rolling. Let's go.

Paul Daly  03:48

California. So some states went up sub states went down over on that increase California added 25 I never would have bet the California would be the state that added the most dealerships last year Texas has plus now right because I

Kyle Mountsier  04:00

think that I think that literally everyone from California is moving to Nashville. So I don't know why they need a mortgage.

Paul Daly  04:06

Well, what they did was they were dealers that just left the keys in the front door the client at 21 now that people are like hey this is dealership let's open it back up. That's not true. Virginia is also plus five. Leading or losing the most Michigan last night Indiana lost seven and Minnesota last five. The report went on to talk about some other facts and figures average new vehicle sold per dealership in the US declined by 67 units so fewer new cars even down over 21 not a huge surprise there. They did go on and forecast 15 million new vehicles sold this year and projected the per dealership new car sales to go up to 818 units. This is best language in here barring any unforeseen circumstances

Kyle Mountsier  04:57

percent increase out but yeah Bari I Yeah, goodness, can we like, you know, it was, at one point it was like, can we go a day without talking COVID It's like, can we go a day without talking talking supply chain issues. I really see you know, this new car opening up and and the demand hitting pricing coming to a balance. Hopefully, you know, the Fed gets it right, we land on land light, the interest rates kind of come back into a balance place and new car purchasing is is driven up. The 15 million SAR is definitely something that a lot of people have poked around that. So I think that with all the economists kind of knowing where we're headed, again, barring any unforeseen circumstances, we should be headed that way. Still kind of wild just to think like, as an average dealership, my my new car output last year went down 67. That's about 10 unit. What is that? Five? What? Five units a month, right? For some dealers, that's a big deal. So, but hey, I'm excited to see more new friends and more new dealerships open up that means no more new opportunities for a lot of people to be served. I mean, that's

Paul Daly  06:04

right. That's right. You got it. Well, speaking of opening up new opportunities, segue zoom in zoom.

Kyle Mountsier  06:14

Yeah, and a great move just greatly allotted by Team asoto. Subway is announcing a partnership with Gen Z Evie solutions to build a charging station Oasis, so you can recharge while you refuel with food. You can get the electricity in your old vehicle. Right now they have over 37,000 franchises over the past probably 1012 years, they've really been pressing into making better decisions for reducing environmental impact of their stores, including creating eco restaurants back in 2011. So starting in 2023, these Oasis's will have multiple spots, picnic tables, Wi Fi, restrooms, greenspace playgrounds, all just the things that you need to make it nice half an hour break. seem right on point.

Paul Daly  07:00

So no. I love that. First of all, we applaud it for a number of reasons. Number one, we'd love subs. Great. But then another reason that I the name Gen Z Evie Solutions is a pretty specific. I mean, like the company Gen Z. I wonder if that's because I don't I wonder why they would do that like Gen Z Evie solutions. Hey, tomorrow,

Kyle Mountsier  07:24

maybe we'll talk about that.

Paul Daly  07:25

Now. I'm curious. Now I'm curious. But you know, we were having a conversation about this. And sounds very familiar to some of the stuff that we talked about, like what are the dealership opportunities? You know, and how do you actually contribute to the community and pivot and use the fact that you have big space and you have infrastructure? And Kyle? You said you were like, You know what I would do if I was going to be a dealer would you say it's

Kyle Mountsier  07:48

Yeah, well I mean, this is kind of the this is the model I mean, if I was going to do it, I would I would put my dealership right in like a shopping strip mall. Right and just have all of these these little retail experiences you know, the Verizon store and the restaurant and the coffee shop and the nail salon and all that type of stuff like right there in like with the dealership as the anchor instead of the you know, the the maybe the grocery store is an anchor make the dealership the anchor, and this is kind of saying this is subway saying we're going to be the anchor for all these other things that you could potentially do. And Evie charging is just the center of why you would want to do that. So great. A little taken a little map out of out of the old car playbook. And

Paul Daly  08:32

that's exactly right. It sounds like a really great place to put a used car lot. Or Brian Kramer is gonna be sneaking up. He's gonna come out deliver me. appraising again real quick. That's crazy. All right. Speaking of creative solutions for food service. Segue very creative. Segue.

Kyle Mountsier  08:56

It's my tummy turning.

Paul Daly  08:58

All right. i This is what the moment you've all been waiting for. Starbucks is rolling out a new line of beverages made with extra virgin olive oil. This is not a joke. Last year, Starbucks CEO Howard Schultz began consuming a tablespoon of olive oil every day after meeting an olive oil producer, Tommaso Asaro Yeah, I don't know if that was that. Dion is that? Yeah, don't buy salsa. Oh, that's how you say that. And he said this when we got together and started doing this ritual I said to a sorrow. I know you think I'm going to be crazy, but have you ever thought of infusing a tablespoon of olive oil with Starbucks coffee? And he thought it was a little strange. So they go I don't know how what's your first reaction putting olive oil in your coffee because you don't put anything in your coffee. You drink black?

Kyle Mountsier  09:44

I don't I drink it black every once in a while. I'll I'll move through. But like yeah, that's it's very rare for me to put. So just personally, I'm out on the whole situation.


You know, this is it's actually a lot more similar to something where a lot of people do like butter in in their, like bulletproof coffee, like coffee.

Paul Daly  10:08

I mean butter and coconut oil.

Kyle Mountsier  10:11

Coconut oil. There's very similar, you know, like the, the ingredient like the stuff that it gives you good stuff in Yeah, it's just, it's healthy. There are a lot of people that do the tablespoon of olive oil and especially in Italy, it's kind of a thing they actually like, they'll drink it. It's It's pretty wild. They're olive oils, typically a little bit better than a little bit

Paul Daly  10:33

different. Yeah.

Kyle Mountsier  10:35

So I mean, you know, it's additive. I'm sure there's gonna people people that eat it up. I'm thinking that especially in Starbucks, it's gonna cut a little bit of that like, super.

Paul Daly  10:47

Like, terrible coffee. I don't know maybe it was not a Starbucks fan. If you were ever wondering if you're if Tyler has ever around you, and he's like, Hey, is there anywhere around here? We can get good coffee. Do yourself a favor, and please don't tell him there's a Starbucks done this yet. Because you just lied to me. He's so bougie I thought was coffee. Fancy till I met Kyle. You know, Howard Schultz is the one but here's the deal. Howard Schultz is the one that actually brought lattes to the United States. Look, if you drink lattes everywhere it's because Howard Schultz was like you know what, this works in Italy. I think Starbucks has


revolutionized coffee in the US the way that we consume it industry, the culture industry, it really the industry, the way we consume it the way that we consume it with others, all of that type of stuff. So

Kyle Mountsier  11:30

it's you know, he it's not like he's, you know, got a track on a whim. He's got a good track record. You know, but, but the drink comes from the CEO you kind of just wonder so we'll see how that goes. But it's got

Paul Daly  11:44

to be launched basically right after he steps down as his role right now as interim CEO because he came back do the thing and like, you know what I mean, y'all know what it's like he's, he's like, I think I got one great idea left of me and like, we're gonna let American decide. I love a tablespoon of olive oil, as long as it's poured on top of a piece of Italian bread, and sprinkle with Parmesan cheese and salt and pepper. So you will be decided, let us know in the comments or let us know like what you think about olive oil in your coffee, but aside from that, man, it's a good day to be in the car business. It's a good day for us to be in some weather that is not 40 degrees or 20 degrees, but whatever temperature it is outside for you today, you have the opportunity to just do it.

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