➡ Dan from I Allegedly discusses the financial struggles of Carl’s Jr. and Frito-Lay due to rising costs and changing consumer habits. Carl’s Jr., a large hamburger chain, filed for bankruptcy due to high operational costs and low sales. Frito-Lay, the largest potato chip company, is also facing backlash from customers due to high prices and smaller product sizes. Both companies are examples of how inflation and changing consumer preferences are impacting the food industry.
➡ Consumers are spending less, affecting businesses like PepsiCo and Walmart. To combat this, companies are trying strategies like price drops. The video also discusses the importance of supporting local businesses, the challenges of the job market for college graduates, and personal finance tips. Lastly, it promotes a product called Dark Bags, which protects personal information from being stolen.

Hey it’s Dan, welcome back to I Allegedly. I’ve got a good one for you today because the warnings just keep coming fast and furious and they’re right in front of our faces and we’re seeing this in every aspect of our lives. We just can’t afford to go out to eat, can’t afford to buy a bag of chips, can’t afford normal things that we should just not think about. Hit the like button, subscribe to the channel. We have a sponsor today, darkbags.com, and I will get into it. First things first, guys, you’ve got one of the largest franchisees of the Carl’s Jr.

Corporation, the hamburger chain. That has filed for bankruptcy and they own 53 Carl’s Jr.s here in California. They have rented spaces, they have real estate that they own, but they are having a huge problem and had to file bankruptcy late last week. Dun dun dun. The problem with this is that it’s the $18 combo meal. It’s the fact that Carl’s Jr. has got coupons that make it so you can save a dollar, you know, instead of, you know, an $18 coupon you can save a couple bucks. It’s Now, here’s the thing that blew me away.

I love going through different industries, newspapers, and newsletters, and everything that you can get your hands on because it really gives you an insight about what’s happening and affecting that industry and why the consumers having a problem. Well, Restaurant Dive is a great magazine and Restaurant Dive is talking about how upside down this entire industry is, but Carl’s Jr. Carl’s Jr. has got major problems right now. Here’s the thing. You’ve driven by these places, they’re huge. You’ve seen all this, all these different locations, and you see the lights on all the time, you see the numbers.

They do 1.4 million dollars in annual sales. That’s it. That’s it. 1.4 million dollars in annual sales per location. I was shocked when I saw that. If you ever drive by a fast food place, think of everything that goes into that. The maintenance, the cleanup, the lights, the electricity, all the employees, all the food, all the expenses, everything that goes into running a restaurant, and that place only generates 1.4 million dollars a year. What’s at 113 thousand dollars a month, or 3,845 dollars a day? That’s nothing, guys. That is nothing. That is a headache.

That is something, you know, having to go out and have people work for you, show up on time, do everything, and you’re only going to sell, you know, 1.4 million dollars a year for that headache. Now, multiply it out with the real estate cost, with the maintenance cost, with insurance going up, with having to pay people 20 dollars an hour. This destroyed hamburgers, guys. It absolutely killed it once they did this. So, that’s just the beginning of this, because this is not going to get fixed anytime soon. Now, the company that had this problem, you know, they also invested in multi-family real estate, and they’re trying to sit there and say, well, the problem with multi-family real estate is it’s starting to take a hit.

So, was that it? Was the fact that this franchisee owned apartment buildings, too? Was that the thing that brought them down? Who knows? The problem is, is that they’re owned under the same company as Carl’s Jr., the franchisee. Terrible, terrible, terrible decision. Now, the next thing, you cannot make this stuff up, is the Frito-Lay company. Frito-Lay is the largest potato chip company. Once I saw an interview with the man that was the CEO of Philip Morris, they were the cigarette company. And this guy said at one point, wow, this is the easiest business in the world to run.

Anybody could run this business, because every year, sales just keep going in one direction, up, up, up, up, up. And then, one day, people had an ounce of sense and said, you know, maybe smoking is kind of bad for us. You know, my mom got cancer, Uncle Jim. Uncle Jim died, you know, of lung cancer, and people stopped smoking. Now, you get everybody and their brother who doesn’t want to exercise. They want to take the GLPs, and they want to have the quick fix. And what are they doing not buying the chips? Just not spending the money on a bag of chips.

Now, the big problem with the Frito-Lay company is that Doritos at Walmart went to $7 a bag, $7. So, with that, you have all these people that are furious about this. And Walmart had a big meeting with Frito-Lay and said, you got to bring the price down. Come hell or high water, fix it. So, what did they do? They did shrink inflation. We’ll have bigger bags with less items in it. And what did it do? Infuriate the customer. People were angry about this. And once again, it goes hand-in-hand. This is not a different story than the hamburger story.

People can’t afford a $15, $18, $20 combo meal. They just can’t. They just can’t. People are eating at home more often. They’re eating better. You know, people are carrying all this debt right now, and that’s a huge problem for them. It’s funny. I’m at a place called Lake Park. I had a guy write me twice. Give me the full reprimand. I want to know the city. I want to know the area. So, I’ll give you my coordinates to where I’m at. But this is something that I always got a kick off called Lake Park, and there’s no lake here.

And then somebody told me, well, you know the back street. It’s called Lake Street. Oh, okay. That’s why they call it Lake Park. Anyways. So, you know, bag of chips at $7. Consumer finally said they’re not doing it. Think about this for Frito-Lay. Pepsi has always been the little bitch to Coca-Cola. Okay. Hasn’t caught up to them since the Pepsi challenge. Yeah, I just said that. Okay. So, Coke is the dominant force when it comes to soft drinks. Frito-Lay has always been the granddaddy of chips. Think about this from a business standpoint.

It’s 53 quarters of up sales. Every quarter it went up. And all I could think about was the CEO of Philip Morrison. Any idiot could run this company. Everybody’s going to buy cigarettes. They’re just going to keep going up and up and up. Well, everybody’s going to buy chips. It’s just going to keep going up and up and up. Clearly, it’s not. Clearly, it’s not. Do you understand 53 quarters is over 13 years of every quarter our sales are up. He’s right. A monkey could run that company at that point. Everybody’s going to buy chips.

No, they’re not. They’re not. And this is what’s being proven right before our flipping eyes. So, with that, you’re starting to see all these problems. And people stopped buying, you know, Fritos. Great articles below. Fritos did things like sitting down with Walmart and saying, you know what the problem is? The problem is you guys. You guys, we don’t have good placement anymore. You’re putting your in-store brand as the prominent placement. Well, they own the store. Yeah, they should. So, that’s what they did. So, with that, they’re going out and they’re shrinking bag sizes, offering temporary discounts, rolling back cheaper snacks, testing prices through 2026.

Now, the Pepsi problem is only getting worse because soft drink sales are going down too. Why? Because none of us have any extra money. Now, as I’ve tried to get myself healthier and eat better, I can’t remember the last time I went out and bought Diet Coke or anything like that. If I do, it’s for guests in my house. It’s that simple. I try not to drink that stuff. And I sure don’t drink, you know, drink chips. Go to a baseball game to start the season off. You have to have a hot dog to start the season off.

You got to get a Coke. You got to get the Mike Trout, you know, cup and all that stuff. I love that part of it. And that’s that. But I’m not going to sit there and go spend $10 on a Coke every time I go to the game. And yeah, they are $10 now. Hot dogs are 11. Okay. Enjoy. Enjoy, enjoy, enjoy. Declining snack demand tied to inflation. Now, here’s the thing. Frito-Lay stepped forward and they said, you know, we’re gonna blame the Iran war on this. And I’m like, blame the Iran war.

Well, you know, oil prices have gone up, so oil for the chips have gone up. Now, okay, okay. See, here’s the thing. That doesn’t make any sense. The chips that are already in the bag from a month ago. Okay, that’s nothing to do with what’s happening today. Well, Dan, it’s just I’m thinking about this. So I’m thinking about the Iran war and everything’s more expensive right now. Okay. Okay. Now, what you’re seeing is you’re seeing warehouses close right now. You’re seeing workers lose their jobs. We just had a General Mills plant cereal where just over 150 people lost their jobs.

153 people. I’m walking because they got some wild animal they’re trying to catch up here and they don’t want to bump into it. But again, connecting the dots, it goes back to one thing, guys, and that is the consumer is broke. Just that simple. They don’t have the money. They’re not buying things like they used to. They don’t buy crap like they used to and junk food and things like that. And think about this. When you have a company like the Pepsi company that owns Frito-Lay and all the other snack brands and things like that and the protein bars and, you know, the waters and everything like that, you have one area of the company that’s just killing it.

It’s doing well month after month after month. So with that, you know, we got nothing to worry about. Well, you do now, you know, you do. And Walmart has a meeting with these people and sits them down and they’re like, hey, what are we, what are we going to do about this problem with you guys? We need that. We don’t want to send inventory back month after month. Think about it. Chips that used to sell out are now being sent back to Fritos. It’s not wild. It is. Now, the new CEO of the company, she steps up and she says, we’re going to give.

She just took over in December. We’re going to sit down and we’re going to go out and give it the first quarter of the year. First quarter is done. So they did five percent price drops. They did things like that that are going to motivate people to buy more chips. You think that’s going to work? Because I don’t think it’s working right now. So there’s more to cover in this video. But let me know what you think about this. Carl’s Jr. going down for the count. And the fact that when I drive by these places, I sure thought they did more than thirty eight hundred dollars a day in sales.

That is crazy. Think of think of the expense of running one of those restaurants and you’re only selling three thousand eight hundred and forty five dollars a day. It’s crazy. Let’s talk about our sponsor, Dark Bags. You know, your cell phone can be tracked. One thing that’s interesting is when your cell phone gets shut off, people think that, oh, it’s untrackable at that point. No. With the way the batteries are and the newer models on, especially this phone right here, it’s got 72 hours of tracking. So I have Faraday bags and I got them from dark bags dot com.

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A few things to finish this video. Don’t forget that we just had an email go out with the cool book feature where you can write a book for free. So check your spam filter and make sure you’re getting our emails, guys, because we had something amazing go out and people have already taken advantage of it because it’s free, free, free. Don’t forget the private channel. I allegedly live it’s all the uncensored stuff where I can speak freely. I got an email from Sarah from Rapid City, South Dakota. She runs bargain barn tires and she was sending me a great email which is shocking talking about price increases from her lubricant company.

And again, three dollars per delivery. The price is going to go up. Prices in the middle of month are going to go up 15 to 22 percent. Guys, support your local small business. Give them business. Don’t go to the big chains if you can avoid it. Go see Sarah. Grind in there a little bit and say I heard about you on Dan’s video channel and I’d like to get you know free balancing when you buy a set of four tires. I’m sure she’ll give you something cool. Bargain barn tires, okay, in Rapid City.

Anyways, I appreciate that. This is the worst job market for college graduates ever and the problem with it is that I really I’m gonna say this people do college wrong and what I mean by that is they go out and they get themselves in a mountain of debt and think they’re going to go out and get themselves some miraculous job that’s gonna pay them 250 grand a year. No, it’s not gonna happen, guys. It is not going to happen. Your kids, your grandkids are probably making a big mistake right now, but someone’s paying for that college education.

Now, I’ve had so many people write me and say, you know, Dan, I went to college. My kids were going to go to college, so I don’t care what they do with it. Enjoy. Okay, do what you want to do. Some people buy their kids a car. Go do that. Oh, I did that. You know what I mean? So it’s all different. It’s all relative to what your experience is. But if you think just because you have a diploma, it’s gonna make you better than everybody else right now. It’s not. It is not.

It’s not happening. A couple other things that are good. Oh, dating. I love this one. One thing that I was shocked about when my girlfriend passed away three years ago, how I met women in their 50s that were completely messed up financially. Their kids were messed up. They had issues, not all of them, some of them. And you have to weed out the chaff when you do that. And you can sit there and go, you’re some prize, Dan. Yeah, I don’t have half a million dollars in debt. You know, I don’t have student loan debt at 60.

You know what I mean? It’s crazy. Okay, so with that being said, what is the number that the average person dating says, hey, this is drawing a line. I think they are in X amount of debt. And I heard this number and I’m like, that’s not much at all. $25,000. You understand the average car is $50,000. People go out there and buy a car stupidly and finance it to the moon. And they’re in debt. Everybody’s in debt, Dan. Everybody’s in debt. No, like I said on previous videos, my brother got me out of living on credit cards and just not paying for things I can’t afford.

So it’s that simple. It’s that simple. My mother, one year, she would walk every day when she was alive. And one day that she wanted to, she wanted to pay attention on the ground as she walked to the change on the ground and picked it up over the course of a year. This is crazy. She found over $1,000. I think it was $1,017 is what it was over one calendar year. Now, she found a few bills here and there, but she would walk several miles a day and she would pick up the changes she would see in the ground.

It’s not wild to think about. Two guys in the Czech Republic were hiking and they found an aluminum can that looked odd and out of place. So they opened it and there was $330,000 worth of gold. Now I added that up and they beat my mom. So by $329,000, but wow, guys, wow. So keep an eye out when you walk. So again, this is Lake Park with no lake. Okay. I always like this. I like coming out here. It’s a very peaceful place. It’s near the ocean. This is in Huntington Beach, California, and you get the ocean breeze.

It’s just cool. And in our beautiful 80 degree weather, there’s places you need to go to take a break. So like, subscribe, email me, you know, go to Sarah’s place too. Okay. I’ll see you guys very soon. Reach out any time. Hello at iallegedly.com. Make good choices. Support your local businesses right now. Do what you can do. Ask for a deal. I live in your city. What can you do for me? If I brought my wife’s car into, I mean ask. I can’t do that. Okay. Then you got the answer.

Okay. Do what you can do. Okay. Good luck. Reach out any time. Remember, people can’t afford hamburgers or chips right now. It’s that it’s that bad. I’ll see you soon. [tr:trw].

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