This guy made millions by inventing the McFlurry & the $1 Menu
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
This episode dives deep into the fascinating world of food innovation through the lens of Tom Ryan, dubbed "the Leonardo da Vinci of calories." Sam shares the incredible story of the inventor behind some of the most iconic fast food items in history, including the McGriddle, stuffed crust pizza, and Smashburger. (03:00) The conversation then shifts to modern business strategy as they explore David Protein Bars' brilliant marketing approach of embracing criticism about being ultra-processed food. The episode concludes with investment insights, focusing on companies positioned for long-term success including Robinhood, Coinbase, Tesla, and others that combine strong tailwinds with defensible market positions.
- Main themes: Food innovation as a business model, contrarian marketing strategies, and identifying companies with long-term competitive moats in emerging technology sectors.
Speakers
Sam Parr
Co-host of My First Million and serial entrepreneur who founded The Hustle, which he grew to $17-18 million in revenue before selling. He currently runs Hampton, a company generating over $10 million in revenue, demonstrating his expertise in building scalable businesses from minimal initial investment.
Shaan Puri
Co-host of My First Million and former executive who has experience in the tech industry including time at companies that were acquired by Amazon. He brings investment insights and strategic thinking to business analysis, with a track record of identifying emerging trends and market opportunities.
Key Takeaways
Master the Science of Constraints
Tom Ryan's breakthrough with the McGriddle came from his mastery of constraints-based thinking. When McDonald's needed a breakfast innovation, he didn't settle for obvious solutions like French toast or pancakes. (09:00) Instead, he asked: "How do we take the Denny's grand slam breakfast and put it in your hand?" This constraint forced creative solutions that led to billions in market cap. The key insight is that constraints don't limit creativity—they channel it toward breakthrough innovations that serve real customer needs while being practically deliverable.
Embrace the Law of Opposites in Marketing
David Protein Bars demonstrates the power of positioning yourself as the opposite rather than trying to be better than the leader. (23:00) When criticized for being ultra-processed, they leaned into it with billboards comparing their bars to "boiled cod" - positioning natural food as technically superior but practically unpalatable. This strategy works because marketing is a battle of perceptions, not products. Rather than fighting the leader's strengths, successful challengers define themselves as the antidote to what the leader represents.
Study the Ambitious 32-Year-Old Mindset
Tom Ryan's framework for innovation centers on understanding the mindset of an ambitious 32-year-old. (08:00) At this age, people have developed taste and purchasing power, but remain open-minded to new experiences. They're not easily swayed by every trend, yet they're still culturally relevant and willing to try innovations with staying power. This demographic represents the sweet spot for product development because they bridge proven preferences with openness to meaningful innovation.
Look for Defensible Moats in Emerging Technologies
When evaluating investment opportunities, focus on companies that combine technological tailwinds with defensible competitive positions. (36:00) The most successful long-term investments aren't just in growing markets, but in companies that will be extremely difficult to compete with over a 20-year timeframe. SpaceX exemplifies this - the barriers to entry in reusable rockets are so monumentally high that even well-funded competitors struggle to catch up, creating what may be "the most defensible company in the history of humanity."
Recognize Power Law Investment Themes Early
Every year has one dominant investment theme that drives outsized returns - the key is recognizing it and taking action. (48:00) Whether it's Ozempic companies, Bitcoin adoption, or AI infrastructure, successful investors identify the major technological or social shift happening and bet accordingly. You don't need to predict these themes years in advance; you just need to understand what's actually happening when it becomes clear and have the conviction to act decisively rather than overthinking the fundamentals.
Statistics & Facts
- David Protein Bars is projected to do close to $200 million in sales in roughly their second year of business, demonstrating the power of product-market fit in the protein bar category. (21:00)
- Coinbase has nine different product lines that each generate over $100 million in revenue, showing the diversification potential in the cryptocurrency ecosystem beyond just trading fees. (41:00)
- TKO (UFC and WWE parent company) stock increased from $85 to $185 over approximately 10 months, representing a 117% gain since the previous stock recommendation episode. (27:18)
