Raphael Stevens

Comcast’s NBCUniversal put all of its resources across the company into the Summer Olympics.
It appears to have paid off as more than 30 million viewers tuned in across NBC’s TV and streaming platforms.
Executives say a lot of the same strategies will be used for future live sports, including subsequent Olympics and a new agreement with the NBA.

Mike Tirico is seen on the set of NBCUniversal Paris 2024 Olympics coverage on August 04, 2024 in Paris, France. 
Kristy Sparow | Getty Images

Comcast’s NBCUniversal has a longstanding bet on the Olympics, but this summer the company threw all of its resources at the Games in a bid to grab more viewership — especially for its growing streaming platform, Peacock.
It appears to have paid off so far — more than 30 million people tuned in to NBC’s TV and streaming platforms to watch the games, and a record $1.2 billion in advertising revenue was generated.

NBC executives, having touted the Olympics as a growth driver and differentiator in the increasingly crowded landscape of streaming and live sports, are now looking to extend the benefit beyond the Games and into future live sports.
“We completely changed the game plan internally. We ripped up the playbook two years ago,” said Jenny Storms, chief marketing officer of entertainment and sports at NBCUniversal. “It was very scary at the time to take the institutional knowledge that we had for so long and rip it up and start over. We really started new and fresh in totality, from production to company wide counterparts.”
The Olympics have long been key to NBCUniversal. Paris marked the 18th Olympic Games broadcast by NBC in the U.S. The company renewed the rights in 2014, agreeing to pay $7.65 billion for the Games between 2022 and 2032, amounting to more than $1.2 billion for each.
Just before Paris, efforts had fallen flat. The 2021 Tokyo Olympics and 2022 Beijing Olympics drew the lowest-ever audiences for Summer and Winter Games, respectively.
Storms noted there were factors at play in those last two Olympic Games that were largely out of NBCUniversal’s control.

Both of the Games were shrouded by the early stage of the pandemic. Tokyo was postponed by a year, and fans and families weren’t present at either games. The time zone difference from Asia worked against the U.S. broadcast, too.
But notably the strategy for Peacock during those Games appeared to be the biggest misstep. In Tokyo, very few events were available to stream live on Peacock. In Beijing, the live content was there, but fans had trouble finding what they wanted to watch.
“We made a claim that Peacock would be the home of the Olympics, and we didn’t exactly deliver,” said Mark Lazarus, chairman of NBCUniversal Media Group. “We were nervous about how much content to put on there, how to program it and how to cross-deliver it [with traditional TV]. And we were rightly told by the fanbase that we didn’t deliver what we said we would.”

NBC family plan

Snoop Dogg is interviewed at the beach volleyball event on day five of the 2024 Paris Olympic Games at Eiffel Tower Stadium in Paris on July 31, 2024.
Carl Recine | Getty Images Sport | Getty Images

Executives across the company have credited Paris as a part of the success of this year’s Olympics, between the eye-catching scenery — with the Opening Ceremony on the Seine River and beach volleyball played in front of the Eiffel Tower, to name a couple — and favorable time zone working in NBC’s favor.
The company also began marketing the Olympics much earlier this time around, employing various parts of NBCUniversal to get the word out, from news programs and talk shows, to various forms of advertising, Storms said.
Both Storms and Lazarus also noted the success of airing the Olympic trials in the weeks before the games.
“We never really pushed hard with the trials before,” Storms said. “But it was the most streamed trials ever, and it was important to warm America up.”
And then there was the star factor of NBCUniversal’s internal roster.

(L-R) Comedian and host Jimmy Fallon and Sha’Carri Richardson, American track and field athlete attend the Men’s Gold Medal game between Team France and Team United States on day fifteen of the Olympic Games Paris 2024 at Bercy Arena on August 10, 2024 in Paris, France. 
Pascal Le Segretain | Getty Images Sport | Getty Images

The company used its own talent more strategically in 2024, executives said. Besides airing promos for content, NBC A-listers were integrated into the events themselves, co-hosting and reporting from the sidelines. Fan favorite Snoop Dogg, a special correspondent for NBC Olympics, generated social media buzz and drew more eyes to the live events. And, his stand-out presence in Paris helped promote his upcoming role with NBC’s “The Voice” this fall.
“We had a great experience with Snoop, we are definitely in the Snoop business with ‘The Voice,’ and hope to be in the Snoop business in the future,” said Lazarus, adding NBCUniversal doesn’t have a commitment yet with Snoop Dogg for future Olympics.
Other NBC talent attended the Games to promote their projects, too. Mariska Hargitay, who’s played the character Olivia Benson on “Law & Order: SVU” since 1999, was in Paris promoting the show’s 26th season. A variety of “Saturday Night Live” cast members were present, including Colin Jost, who covered surfing in Tahiti and had to make an early exit due to health issues.
Shows from both NBC and Peacock were also promoted at the Games, and Universal’s upcoming film, “Wicked,” was highlighted often, with stars Ariana Grande and Cynthia Erivo appearing on the Opening Ceremony red carpet.
The “Wicked” actors also voiced a promotional piece for U.S. gymnastics powerhouse Simone Biles, and an exclusive clip of the film was aired during the “Today” show from Paris. NBC said among moviegoers, “‘Wicked’ gained ground across measures during the Olympics, doubling our level of top of mind awareness, and increasing total awareness,” according to polling.

Plumping up Peacock

A view of bread with NBC logos and the Olympic Rings at The TODAY Show at Rockefeller Plaza on April 17, 2024 in New York City. 
Dustin Satloff | Getty Images Sport | Getty Images

Arguably no NBC property shined brighter during the Olympics than streaming platform, Peacock.
Due in large part to Peacock, 23.5 billion minutes of the Olympics were streamed, up 40% from all prior Summer and Winter Olympics combined, according to a release.
“Peacock delivered in every way that we hadn’t before,” said Lazarus.
Besides having all live coverage, exclusive shows like “Gold Zone,” hosted by Scott Hanson of “NFL Red Zone,” gave fans more options for all-day viewing. There were also features built solely for the Olympics, such as an artificial intelligence function featuring daily recaps in the voice of Al Michaels, a longtime voice of marquee NFL games.
An estimated 2.8 million consumers signed up for Peacock during the first week of the Summer Games, averaging nearly 400,000 additions daily, according to data provider Antenna. This nearly matched the sign ups driven by Peacock’s exclusive NFL Wild Card game in January, according to Antenna. The game is considered the most streamed live event in history with 27.6 million viewers, according to Nielsen.
While Comcast recently reported Peacock had 33 million paid customers as of June 30 — 500,000 less than the prior period, and widely attributed to the loss of customers exiting after the Wild Card game —analyst Craig Moffett of MoffettNathanson said it’s worth noting the customers that remained since the Wild Card game.
“I suspect they’ll have the same experience with the Olympics,” Moffett said. “Sure, some of those customers will leave but they will probably end up keeping a lot more than not.”
Still, traditional TV made up the bulk of viewership during the Paris Games — nearly 90% of viewers watched on broadcast and cable channels, Lazarus said. Aided by the more favorable time zone, NBC aired live events on TV and Peacock during the day and rebranded the evening broadcast as “Primetime in Paris,” replaying big events with sidecar programming and interviews.
The strategy used in Paris will serve as the roadmap for future Olympics — the Milan Winter Olympics in 2026 and Los Angeles Summer Games in 2028 — as well as other live sports aired on NBC’s TV networks and Peacock, executives said.
Shortly after the 2024 Olympics comes the new seasons of English Premier League soccer, American college football and National Football League. NBC will also be the rights holder of National Basketball Association games beginning in the 2025-2026 season.
“I think Peacock is getting much more sophisticated, as we’ve seen with the Olympics, in how they can do sports coverage,” said Shirin Malkani, co-chair of the sports industry group at Perkins Coie.
Disclosure: CNBC parent NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics is the U.S. broadcast rights holder to all Summer and Winter Games through 2032. More

Chapter 11 bankruptcy filings have soared this year, and the restaurant industry is not immune to the trend.
Excluding franchisees, at least 10 restaurant chains have filed for bankruptcy protection this year.
Red Lobster, Buca di Beppo and Roti are among the notable names that filed for Chapter 11  bankruptcy protection.

The Red Lobster logo is displayed outside of a closed restaurant in Torrance, California, on May 14, 2024.
Patrick T. Fallon | Afp | Getty Images

Restaurant bankruptcy filings have surged so far this year, echoing a broader rise in corporate bankruptcies across sectors.
At least 10 restaurant chains, not including multi-unit franchisees, have filed for bankruptcy in 2024. August alone brought three Chapter 11 filings from notable eateries. The increase in bankruptcies comes as diners pull back their spending, labor costs keep rising and Covid-era government help disappears.

Several more restaurant chains could file for bankruptcy before the end of the year. BurgerFi, which also owns Anthony’s Coal Fired Pizza & Wings, said in a regulatory filing in mid-August that there is “substantial doubt” about the company’s ability to operate. Others, such as Mod Pizza, have narrowly avoided bankruptcy through a last-minute sale.
Restaurants are not the only companies seeking bankruptcy protection as high interest rates weigh on businesses. Chapter 11 filings have climbed 49% this year as of Aug. 20, according to BankruptcyWatch. Mall retailer Express, nursing home chain LaVie Care Centers and Joann Fabrics and Crafts are among the companies that have filed for bankruptcy protection this year.
Here are the 10 notable restaurant chains that filed for bankruptcy protection in 2024:

Roti

Mediterranean fast-casual chain Roti filed for Chapter 11 bankruptcy protection on Aug. 23. The company said it is working with its landlords and suppliers to keep its 22 locations open while it searches for a new buyer or investors.
The company began struggling during the Covid-19 pandemic because roughly half its locations were in downtown business districts, CEO Justin Seamonds said in a statement at the time of the bankruptcy filing. New investors helped it hold on, but the recent downturn in consumer spending led to insolvency.

Roti had raised $58 million as of June, according to Pitchbook.

Buca di Beppo

People dine outside a Buca di Beppo restaurant in San Diego on Aug. 11, 2020.
Bing Guan | Bloomberg | Getty Images

Buca di Beppo declared bankruptcy on Aug. 5. The Italian American chain is keeping 44 of its locations open while it restructures, and plans to open another restaurant, too.
The company blamed its financial difficulties on rising costs and labor challenges, according to court filings.
Buca di Beppo was founded in 1993 and sold to Planet Hollywood in 2008, following an accounting scandal involving some of its top executives.

World of Beer

The exterior of World of Beer at Crossgates Mall in Guilderland, New York.
Lori Van Buren/ | Albany Times Union | Hearst Newspapers | Getty Images

Tavern chain World of Beer filed for bankruptcy protection on Aug. 2. The company blamed high interest rates, inflation and a slow return to pre-pandemic dining habits.
World of Beer plans to restructure and end leases at underperforming locations through bankruptcy.
The company was founded in 2007, when craft beer popularity was soaring. These days, craft beer sales have fallen as consumers broadly drink less.

Rubio’s

Rubio’s Restaurants filed for Chapter 11 bankruptcy protection in June. The fast-casual chain, known for its fish tacos, had 86 locations at the time across California, Nevada and Arizona.
The company said rising food and utility costs, the shift to hybrid work cutting lunchtime traffic and minimum wage hikes in California put too much pressure on some of its restaurants.
In April, California raised its minimum wage for fast-food workers at chains with more than 60 locations to $20 an hour. Several days before it filed for bankruptcy, Rubio’s closed 48 underperforming restaurants in California.
In August, Rubio’s agreed to a sale to an affiliate of TREW Capital, one of its lenders.
The restaurant company previously filed for Chapter 11 bankruptcy in 2020.

Melt Bar & Grilled

In June, the Cleveland-based chain said it was struggling to pay its vendors and landlords. It turned to Chapter 11 to save the business.
The company, known for its grilled cheese sandwiches and craft beer offerings, was founded in 2006. It had 14 locations at its peak, but its footprint had dwindled to four restaurants by the time of its bankruptcy filing.

Kuma’s Corner

Kuma Holdings, the parent company of Kuma’s Corner, filed for bankruptcy protection in June.
The midwestern burger chain opened its first location in 2005, setting itself apart from the competition with its metal- and punk-themed menu items.

Red Lobster

A menu is displayed on a plate at a Red Lobster restaurant in Austin, Texas, on May 20, 2024.
Brandon Bell | Getty Images

Seafood giant Red Lobster filed for bankruptcy protection in May, citing a “difficult macroeconomic environment, a bloated and underperforming restaurant footprint, failed or ill-advised strategic initiatives, and increased competition.”
One scapegoat for its insolvency was its disastrous “endless shrimp” promotion in 2023. But a less-obvious culprit was a lease-back agreement made under a prior owner that made Red Lobster’s leases too expensive, especially as sales fell.
On Tuesday, the investment group buying Red Lobster tapped former P.F. Chang’s CEO Damola Adamolekun as the company’s next leader if it exits Chapter 11 successfully.

Tijuana Flats

A Mexican-style pizza from at Tijuana Flats.
Jeff Greenberg | Universal Images Group | Getty Images

In April, Tijuana Flats announced new ownership, a Chapter 11 bankruptcy filing and the closure of 11 restaurants in a single press release.
AUA Private Equity Partners sold the fast-casual Tex-Mex chain to Flatheads LLC as part of the restaurant company’s restructuring.
The chain was founded in 1995.

Sticky’s Finger Joint

Chicken-tender chain Sticky’s Finger Joint also declared bankruptcy in April. Rising commodity costs, the hangover from the pandemic and legal expenses from a trademark case brought by rival Sticky Fingers led the company to restructure.
Sticky’s was founded in 2012. By 2023, it had annual sales of $22 million, according to a court filing.

Boxer Ramen

The Portland, Oregon ramen chain filed for Chapter 11 bankruptcy protection in February. In late April, it abruptly closed all four of its locations, more than a decade after the chain’s founding.

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Major movie studios are offering more ways than ever for film buffs to get a behind-the-scenes peek at how — and where — the magic is made.
Universal, Warner Bros., Sony and Paramount use such tours to show off the movie-making process from set design and sound recording to costumes and props.
They also bring in revenue for the studios, offer a training program for lower-level employees and can serve as supplemental marketing for upcoming projects.

The Hollywood sign is viewed during a clearing storm.
Mario Tama | Getty Images News | Getty Images

For over 100 years, Hollywood has transported audiences to worlds outside their own, from the slick streets of New York City to the yellow bricks of Oz. 
Hundreds of acres of land in Los Angeles are dedicated to crafting stories for the biggest and smallest screens, and movie studios are offering more ways than ever for cinema lovers to get a behind-the-scenes peek at how — and where — the magic is made.

“Touring the studios, being able to go where this stuff happened, to be in the physical space of all these things that for over 100 years now people have been watching, seems the most natural kind of tourist destination in the world,” said Robert Thompson, a professor at Syracuse University.
Hosted by Universal, Warner Bros., Sony and Paramount, studio lot tours showcase the movie-making process from set design and sound recording to costumes and props. These paid experiences not only drive revenue to the studios, but can also act as a training program for lower-level employees who are just getting started at the companies and as supplemental marketing for upcoming projects.
“Los Angeles is the only destination in the world where guests can visit multiple working studio lots, located in distinct neighborhoods in our city,” said Adam Burke, president and CEO of the Los Angeles Tourism Board and Convention Board.
The film industry brings in more than $100 billion in tourism, according to the Los Angeles Department of Public Works. Attractions like studio tours, the Hollywood sign, the Grauman’s Chinese Theatre and the Hollywood Walk of Fame entice tourists from near and far.
“While visitors are often drawn to studio tours by their favorite TV shows or movies … we hope they leave with a deeper understanding of the entertainment industry, LA’s unique culture and the city’s vibrant creative legacy,” Burke said.

Universal, Warner Bros., Sony and Paramount declined to specify how much their studio tours generate each year or how many people pass through their gates, but each noted that foot traffic and demand remain strong for their offerings.
“[Studio lot tours] can appeal to all different levels of people, the people who really are fascinated with the behind the scenes and how it works and how it gets made, and even for regular people that don’t have that level of curiosity, just the thrill of being present in the place where all of this stuff actually gets done,” Thompson said.

Sony

Situated in Culver City, Sony Pictures Studio is the newest tenant of its 45-acre lot. The complex was the original studios of Metro-Goldwyn-Mayer and is now home to popular TV staples “Jeopardy” and “Wheel of Fortune.” 

The “Seinfeld” set at Sony Pictures Studio.
Sarah Whitten | CNBC

Sony’s two-hour walking tour, which costs $55 per person, starts by taking guests through a recreation of the “Seinfeld” set and through a prop display with items from famed films and TV shows like “Spider-Man,” “Justified,” “Jumanji: Welcome to the Jungle,” “Groundhog Day,” “A League of Their Own” and “The Social Network.”
Guests will quickly see the massive 94-foot rainbow, constructed in 2012 by artist Tony Tasset, that looms over the studio. It is an homage to “The Wizard of Oz,” which was filmed on the lot more than 85 years ago. Tour guides eagerly point out which sound stages were the site of different moments from the film, including the infamous Wicked Witch melting sequence.

The Sony Pictures Entertainment movie studio lot.
Aaronp/bauer-griffin | Gc Images | Getty Images

The lot’s modern tenants, “Jeopardy” and “Wheel of Fortune,” are among the most-watched programs on television outside of live sports. When the shows are not filming, guests can step onto the sets; otherwise, the tour guide will showcase different locations. Tours change daily based on which areas of the studio are open to the public and which are closed for production use.
Additionally, Sony allows guests to step into its Foley studio to see how sound is created for movies and television.

A cluttered collection of kitchen items used in the Foley stage at Sony Pictures Studio.
Sarah Whitten | CNBC

The cluttered space has a hodgepodge of flooring — wood, concrete, stone, gravel — multiple handles on doors with different kinds of locks, a shelf of various shoes, a kitchen set up with an assortment of plastic and metal bottles, cups, cutlery and, yes, some coconut shells, as well as a closet filled with jackets which can be used to make different zipper sounds.
Vehicles from “Breaking Bad” and “Ghostbusters” are also on display.

A “Ghostbusters” vehicle spotted during the Sony Pictures Studio tour.
Sarah Whitten | CNBC

Warner Bros.

Warner Bros. goes big for patrons of its studio lot tours.
In addition to a guided tour of the grounds, which can range from one to three hours, depending on the package, the company has created a full interactive sound stage, known as Stage 48, to show off how movies and television shows get made and provide guests with plenty of free and paid photo opportunities. 
The tour is a mix of walking and being carted around backlot neighborhoods. Guests are allowed to walk around the suburban filming locations for “Friends,” “The Big Bang Theory” and “Gilmore Girls” as well as the jungle area that “Jurassic Park,” “True Blood” and “Aquaman” have all used.

Building facades at the Warner Bros. studio lot. 
Sarah Whitten | CNBC

Tourists will notice that a number of non-Warner Bros. productions take place on the lot, which is common across all of Los Angeles’ studios. Productions will rent studio space at other studios based on need. For example, the famous upside-down kiss on the fire escape from 2002’s “Spider-Man” was produced by Sony but filmed on the Warner Bros.’ lot.
The guided tour also includes a brief walk through Warner Bros.’ expansive prop house. This area has replicas of the falcon statues from “The Maltese Falcon,” an entire section of marble and faux marble busts, and a room filled floor to ceiling with lamps, candelabras and chandeliers.

Floor to ceiling shelves filled with marble and faux marble busts at Warner Bros.’ studio tour prop house.
Sarah Whitten | CNBC

After the guided portion of the tour, guests arrive at Stage 48. This area features a recreation of Central Perk from “Friends,” including purchasable food and drinks.
Here fans of “Friends,” “The Big Bang Theory,” “Lord of the Rings,” the Batman films and “Harry Potter” can take photos on recreated sets and on green-screen sets. Some of these photo ops cost extra.

A view of Central Perk at Stage 48 during the Warner Bros. Studio Tour Hollywood Grand Re-Opening at Warner Bros. Studios.
Matt Winkelmeyer | Getty Images Entertainment | Getty Images

This area also has a number of costumes from famous classic films and interactive stations showcasing various elements of the post-production process.
Guests are then carted back to the welcome center to walk through an area where Warner Bros. showcases costumes and props from films in the DC cinematic universe like “Wonder Woman,” “Aquaman” and “The Flash,” costumes from “Game of Thrones,” and props and costumes from Harry Potter and the Fantastic Beasts franchises.

A view of costumes on display in Action Made Here: DC Universe during the Warner Bros. Studio Tour Hollywood Grand Re-Opening at Warner Bros. Studios on June 24, 2021 in Burbank, California.
Matt Winkelmeyer | Getty Images Entertainment | Getty Images

The one-hour guided tour, plus two hours unguided at Stage 48 costs $73 per ticket. Meanwhile, a two-hour guided tour, which comes with the Stage 48 access and lunch, costs $160, and the deluxe three-hour guided tour, which comes with a fine-dining lunch and access to Stage 48, is $330 per ticket.
Warner Bros. also recently launched its Turner Classic Movies tour, which takes guests through areas of the lot that were used for films like “Casablanca,” “My Fair Lady” and “The Music Man.”

Paramount

While the Warner Bros. tour focuses much of its attention on completed works of film and television, Paramount’s studio lot tour delves deep into how these movies and shows are made.
This tour features a combination of walking and being carting around the lot, as a guide — who is part of Paramount’s page program — brings guests to meet with the people who keep production running.
For the first six months of their employment with the studio, these pages serve as studio tour guides. After that, they become eligible to work utility positions around the lot, assist with audience management for TV shows and even be hired to do VIP tours.

The Paramount Studios in Los Angeles, California.
Bloomberg | Getty Images

The Paramount tour has three tiers: the regular studio tour, which lasts two hours and costs $65 per person; the premier tour, which lasts three hours and gives guests access to the archives and more of the backlot and costs $150 per person; and the VIP tour, which takes four hours and costs $215 per person.
That most in-depth option introduces guests to a number of tradesmen on the lot, including lighting crew members and signmakers, as well as an on-staff archivist who will walk them through a collection archival costumes and props, including jewelry. The VIP option also comes with a private lunch or breakfast.

Signs created in Paramount Studios sign studio.
Paul Dergarabedian

Guests will get to see where director Alfred Hitchcock’s office was, walk around “New York” and peek into the “blue sky tank,” which has been used in “Star Trek IV: The Voyage Home,” “The Truman Show” and “The Curious Case of Benjamin Button.”
The prop warehouse features a number of vehicles, including the “egg mobile” from “Sonic the Hedgehog” and a pod from “Star Trek: Beyond,” as well as a life-size Bumblebee from the Transformer franchise.

Universal Studios 

The Universal Studios Hollywood theme park actually began as a studio tour. Starting 60 years ago, guests were given exclusive access to the production lot and, over time, Universal began to introduce special effects attractions. 
These have developed to include a staged flash flood, where 10,000 gallons of water rush downhill toward the guests, an earthquake simulation and, of course, the terrifying Jaws erupting from a small lake.

The set of the Steven Spielberg film “Jaws” is pictured at Universal Studios in Hollywood.
Gabriel Bouys | Afp | Getty Images

The one-hour studio lot tour attraction, which is included in the theme park’s admission, also features two immersive rides: One shows King Kong fighting off dinosaurs, and the other sees the cast of the Fast and Furious films entering into a high-speed street chase. Guests remain on their trams while experiencing these rides.
The standard tour also takes parkgoers through several classic sets including the Bates Motel from “Psycho,” the plane crash from “War of the Worlds” and the courthouse from “Back to the Future.”

The press take the Universal Studios tram tour of the newly rebuilt New York Street, which was gutted by a fire two years ago. Universal Studios Hollywood will open the New York backlot tram tours on Friday, which was rebuilt after a 2008 fire destroyed the New York Street area.
Allen J. Schaben | Los Angeles Times | Getty Images

General admission to the theme park ranges starts at $109 per person but can vary depending on the time of year — the holiday seasons are often more expensive.
Those who want a more in-depth look at the studio lot can purchase VIP tour packages, which include extended backstage access, a private trolley, a buffet lunch and front-of-the-line access for all rides and attractions at the park. The VIP experience can cost between $379 and $499 a person.
“The concept of Hollywood is so elusive and when guests visit Los Angeles there’s always a part that wonders ‘Will I see a movie star?,'” said Dennis Satterfield, director of studio tour operations at Universal Studios Hollywood. “The Studio Tour helps take some of that wonder away. Guests have access to a real movie studio, have a chance to see production, movie sets and maybe sometimes movie stars in their environment.”
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. More

Cannabis consumption is gaining traction in the luxury market — as are retailers targeting high-end clients.
There’s now a high-end marijuana dispensary on New York’s iconic Fifth Avenue.
The upscale marijuana experience isn’t limited to dispensaries, as companies start selling luxury accessories and THC-infused drinks.

The Travel Agency on Fifth Avenue in New York Cityis an adult-use recreational marijuana dispensary.
Courtesy: The Travel Agency

Cannabis consumption has turned a corner — and now it’s on Fifth Avenue.
Shoppers walking along the iconic New York stretch of retailers can pick up jewels from Cartier and new threads from Saks, as well as pre-rolled, New York state-grown marijuana joints from a new dispensary. 

In the 3½ years since New York state legalized adult-use marijuana, licensed cannabis sales have taken off, topping $100 million last year. And now, legal avenues for cannabis consumption are gaining traction in the luxury market. 
As New York officials crack down on the hundreds of illicit shops throughout the city, 166 licensed dispensaries are open to shoppers across the state, including over 50 in New York City — and one just across the street from Lululemon and Ted Baker. 
The Travel Agency on Fifth Avenue is an adult-use recreational marijuana dispensary outfitted with white interiors, glass cabinetry, a host of “budtenders” and a lot of marijuana.
The retailer’s exterior fits in with the chic storefronts of its neighbors, and with its sister locations in Union Square and Downtown Brooklyn. All three stores opened in the past year and a half, and founder Paul Yau said a fourth is coming soon to one of the city’s other high-end shopping districts, SoHo.

The Travel Agency on Fifth Avenue in New York Cityis an adult-use recreational marijuana dispensary.
Courtesy: The Travel Agency

At The Travel Agency, Yau said the average purchase includes two products, largely gummies, marijuana flower or pre-rolls, at the average price of $80 to $90 a ticket. Products range from $3.50 THC seltzers to flower selling at $150 per ounce, and accessories go for even higher price points.

New York City’s first licensed dispensary, Housing Works Cannabis Co., sells products at rates that are similar, but a shopper can spend even more there, paying up to $240 on one ounce of marijuana. All of Housing Works Cannabis Co.’s proceeds support the Housing Works nonprofit in NYC. 
The Travel Agency’s Union Square location donates 51% of its proceeds to the Doe Fund, which supports formerly incarcerated people transitioning to life outside of prison. The Fifth Avenue and Brooklyn stores are run by owners with a past in the justice system related to cannabis.
While the elevated interiors get legacy and new shoppers through the door, Yau said the ethical mission keeps customers coming back. “It’s huge, it just provides such a halo,” he added.

Reaching the ‘canna-curious’

New York has always had what the industry calls the “legacy” customer base, or those who used marijuana before it was legalized.
Now, with The Travel Agency locations in high-traffic, high-spending areas, Yau said he’s reaching the “canna-curious” with curated product offerings and an architecturally inspired space to ease onboarding into the legal market.

The Travel Agency on Fifth Avenue in New York Cityis an adult-use recreational marijuana dispensary.
Courtesy: The Travel Agency

“The 40-year-old female shopper is a really strong demographic, and that demographic is just emerging in New York,” Yau said, adding that the stores were designed with that kind of new shopper in mind. “When people came into our store, they knew immediately it wasn’t an illicit store.”
One such female patron, Katie, a 37-year-old advertising executive working in New York who declined to give her last name, said the atmosphere and the employee expertise keep her coming back. “You feel like you’re in a boutique,” she said.
THC seltzer company Cann is also hoping to appeal to curious consumers, particularly those who have had a negative experience in the past with marijuana. Both Yau and Cann founder Jake Bullock told CNBC that marketing is key to navigating that headwind in onboarding the canna-curious.

THC seltzer company Cann sells a 12-pack of 8 ounce seltzers with 2 milligrams of THC for $49.95.
Courtesy: Cann

“Part of the reason we made these cans, little and small and pink and pastel, is because we’re trying to communicate approachability to the consumer, like you can drink the whole thing. Don’t worry, it’s just 2 milligrams,” Bullock said.
A 12-pack of 8 ounce Cann seltzers with 2 milligrams of THC costs $49.95. By comparison, shoppers can find a 12-pack of White Claw alcoholic seltzers for well under $20.
The upscale marijuana experience isn’t limited to THC products.
Luxury home designer Jonathan Adler sells marijuana home decor items like marijuana storage canisters and bowls for nearly $300 a piece. Lifestyle brand Edie Parker sells everything from smoker-friendly handbags to rolling papers, giant colorful glass pipes and $450 table lighters, many of which can be found at boutiques and legal dispensaries like The Travel Agency and Housing Works Cannabis Co. 
Actor Seth Rogen’s lifestyle and decor brand Houseplant also caters to the luxury cannabis user. Marble rolling trays and ash trays go for well over $200, and the company recently collaborated with high-end apparel retailer Kith.

The Travel Agency on Fifth Avenue in New York Cityis an adult-use recreational marijuana dispensary.
Courtesy: The Travel Agency

The collaborations will likely keep coming. Yau said he thinks dispensaries like The Travel Agency offer promising partnerships for fashion brands hoping to tap into the “coolness” of the burgeoning cannabis industry. 

Finding luxury consumers where they are

THC seltzer company Cann has backers that are high-end themselves, including actress and lifestyle entrepreneur Gwyneth Paltrow and two-time NBA All-Star Baron Davis. The beverage company is trying to catch consumers where they’re willing to spend. 
At the Montauk Surf Lodge in New York, where guests pay a minimum of $3,000 for a one-night table, they can now purchase a hemp-derived version of Cann’s seltzers alongside local rosé and high-end liquor.
Cann co-founder Jake Bullock said his brand’s target audience is a premium, largely millennial consumer, and its competition is alcohol. Bullock and his co-founder Luke Anderson view the Surf Lodge partnership as an ideal introduction to that audience — via the wealthy Hamptons crowd that’s already indulging and spending big.

THC seltzer company Cann sells a 12-pack of 8 ounce seltzers with 2 milligrams of THC for $49.95.
Courtesy: Cann

“It kind of has that very classic customer that Luke and I thought about the brand as fitting into their lives,” he said.
Yau, who spoke to CNBC while working remotely near the Hamptons, is also aware of that target audience. “We think we’re still in the first inning of New York’s legal cannabis,” he said. More

The Food and Drug Administration authorized Novavax’s new protein-based Covid vaccine for emergency use in people ages 12 and up.
Novavax’s vaccine targets the highly contagious omicron subvariant JN.1, which began circulating widely in the U.S. earlier this year.
The FDA’s decision comes only a week after it approved a new round of messenger RNA shots from Pfizer and Moderna, which both target an offshoot of JN.1 called KP.2.

A vial labelled “Novavax V COVID-19 Vaccine” is seen in this illustration taken January 16, 2022. 
Dado Ruvic | Reuters

The Food and Drug Administration authorized Novavax’s updated protein-based Covid vaccine for emergency use in people ages 12 and up on Friday, paving the way for the shot to compete with Pfizer and Moderna’s jabs this fall and winter. 
Novavax’s vaccine targets the highly contagious omicron subvariant JN.1, which began circulating widely in the U.S. earlier this year. JN.1 only accounted for 0.2% of cases circulating nationwide as of this week, according to the latest Centers for Disease Control and Prevention data. 

Novavax manufactures protein-based vaccines, which cannot be quickly updated to target another strain of the virus.
Despite that, the biotech company has noted that its shot provides protection against descendants of JN.1 that are currently dominant in the U.S., including KP.2.3, KP.3, KP.3.1.1 and LB.1.
“Our updated vaccine targets JN.1, the ‘parent strain’ of currently circulating variants, and has shown robust cross-reactivity against JN.1 lineage viruses,” Novavax CEO John Jacobs said in a statement.
Novavax said it expects its shot to be “broadly available” in thousands of locations across the U.S., including retail and independent pharmacies and regional grocers.
Shares of Novavax rose more than 8% on Friday following the announcement. 

The FDA’s decision comes only a week after it approved a new round of messenger RNA shots from Pfizer and Moderna, which both target another offshoot of JN.1 called KP.2. Last year, the agency authorized Novavax’s shot nearly a month after clearing vaccines from its rivals, putting the company at a disadvantage. 
Public health officials see Novavax’s vaccine as a valuable alternative for people who don’t want to take mRNA shots from Pfizer and Moderna, which use a newer vaccine method to teach cells how to make proteins that trigger an immune response against Covid. Novavax’s shot, meanwhile, fends off the virus with protein-based technology, a decades-old method used in routine vaccinations against hepatitis B and shingles.
It’s unclear how many people will get a new Covid shot this fall and winter. 
Only around 22.5% of U.S. adults received the latest round of shots that came out last fall, according to CDC data through early May.  More

JetBlue, Spirit and Frontier have said they will defer deliveries of dozens of new Airbus planes.  
Those deferrals come as many airlines are still short on deliveries of fuel-efficient jets and demand for new planes is strong.
But low-cost airlines are trying to return to steady profitability and preserve cash.

JetBlue Airways, Spirit Airlines and United Airlines airplanes proceed to gates after landing at Newark Liberty International Airport in Newark, New Jersey on May 30, 2024.
Gary Hershorn | Corbis News | Getty Images

Airlines that spent years clamoring for new jets are changing their tune.
Cash-strapped, low-cost and deep discounter airlines are putting off spending billions of dollars on new aircraft to save money as they try to return to steady profitability and face the impact of engine repairs.

Airlines flooded the U.S. with flights this year, driving down fares particularly in the domestic market, where low-cost carriers concentrate, and weighing on carriers’ revenue while costs have gone up. Spirit Airlines, JetBlue Airways and Frontier Airlines last posted annual profits in 2019, while larger carriers have returned to profitability.
Lower prices on plane tickets are noticeable: Fare-tracker Hopper estimates “good deal” airfare in September is going for $240 for roundtrip U.S. domestic flights, down 8% from last year.
Now, some of those same airlines are dialing back their growth plans and deferring deliveries of new aircraft. The bulk of the price of an airplane is paid upon delivery.
“You have too much supply, so it’s natural for us as an industry to reduce the supply,” Frontier CEO Barry Biffle said. Frontier earlier this month said it is is deferring 54 Airbus aircraft to at least 2029.
Part of the problem is that years of aircraft delivery delays mean carriers don’t want to add too many planes too quickly, Biffle said.

“Because they delayed a bunch, [the order] got piled up,” he said. “So we had to smooth that out”

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Frontier’s revenue rose 1% from last year in the second quarter despite carrying 17% more passengers, with average fare revenue falling 16% to just shy of $40.
JetBlue Airways is estimating it will save about $3 billion by deferring 44 Airbus A321 airplanes through 2029, opting to extend some aircraft leases. The New York carrier posted a surprise profit in the second quarter but is scrambling to reduce its costs through the deferrals and steps like exiting unprofitable routes — and it wants to do that quickly.
The airline and others are also grappling with grounded jets from a Pratt & Whitney engine recall.
Deferring so many aircraft even while the carrier is short on planes because of the engine recall is a “double-edged sword,” JetBlue CEO Joanna Geraghty said in a note to employees on Aug. 19.
“We need planes to grow, but taking delivery of aircraft that end up sitting on the ground after we’ve paid for them significantly worsens the problem,” she said. “In addition, given our growing debt, we just can’t afford to buy so many planes.”
Spirit Airlines — which had planned to get acquired by JetBlue until a judge blocked the deal in January — has also deferred aircraft as it fights to turn the company’s deep losses around.
Spirit earlier this month reported an 11% drop in revenue and a $192 million loss, compared with a roughly $2 million loss a year earlier, and said it would furlough some 240 pilots in the coming weeks. The airline has been especially hard hit by the Pratt & Whitney engine recall.
The airline said it was deferring all the Airbus planes it has on order from the second quarter of next year through the end of 2026 until at least 2030.
Aircraft leasing firm AerCap said earlier this month that it will assume 36 of Spirit’s Airbus A320neo family aircraft from the carrier’s order book. CEO Gus Kelly called it a “win-win” transaction for the airline and AerCap.

Airbus, Boeing jets still hot items

Even with the moves from low-cost carriers, most of the global airline industry is still in a scarcity mindset, with new fuel-efficient planes in short supply.
Lease rates for new Airbus A320s and the larger A321s hit fresh average records in July of $385,000 a month, and $430,000 a month, respectively, according to Eddy Pieniazek, head of advisory at aviation consulting firm Ishka. Meanwhile, leases for new Boeing 737 Max 8 aircraft, the most common model, are near a record at $375,000 a month, Pieniazek said.
Airlines can buy aircraft directly from suppliers or lease them from companies like Air Lease or AerCap, paying monthly rent. Some airlines, like Frontier, have been active in sale-leasebacks, in which they sell planes to generate cash and lease them back.

The first U.S.-made Airbus jetliner moves down the assembly line at the company’s factory in Mobile, Alabama, U.S. on September 13, 2015. Picture taken on September 13, 2015.
Alwyn Scott | Reuters

Boeing and Airbus, the world’s two main suppliers of commercial aircraft, are struggling to increase output as a post-Covid hangover lingers in the form of skilled worker shortages and supply shortfalls. Airbus recently cut its delivery target for the year, while Boeing is limited from ramping up output as it tries to work through a safety crisis.
Despite the deferrals from budget airlines, an Airbus spokeswoman said the company isn’t seeing any slowdown in demand for airplanes in the A320 family, for which it has more than 7,000 unfilled orders. Boeing has nearly 4,200 orders for its competing 737 Max planes.
“We offer a full range of aircraft to meet our customers’ needs and maximize their flexibility with fleet decisions,” the Airbus spokeswoman said in a statement.
But airlines are feeling the strain. Executives have said delayed deliveries of new planes have forced them to slow, if not halt, hiring and other growth plans.
“We are urgently and deliberately pursuing opportunities to mitigate cost pressures, including the drag from overstaffing related to previously reported Boeing delivery delays,” Southwest Airlines CFO Tammy Romo said on an earnings call last month. The all-Boeing 737 airline has offered some staff voluntary leave programs.
When asked about Southwest’s fleet plans, Romo said the airline has “a lot of flexibility with our order book from Boeing. Boeing didn’t comment for this article.
“We’re not ready yet to lay out all of our plans,” Romo said, adding that the company would provide more details at a Sept. 26 investor day. “But we have ample flexibility to reflow the order book to ultimately meet our needs.”

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Gap beat fiscal second-quarter earnings and revenue estimates and hiked its profit margin outlook.
The apparel retailer released its results earlier than expected after a presentation was inadvertently posted on its website Thursday morning.
Gap CEO Richard Dickson told CNBC the company still has more work to do but is making progress in its turnaround.

A Gap store in New York, US, on Monday, May 27, 2024. 
Stephanie Keith | Bloomberg | Getty Images

Gap raised its full-year profit outlook on Thursday after seeing better-than-expected results at its largest brand, Old Navy.
The apparel company’s fiscal second quarter results were released earlier than planned after the company “inadvertently” posted them to its website and then removed them, a Gap spokesperson told CNBC.

“As soon as the error was caught, we notified the NYSE and trading of our stock was halted temporarily,” the spokesperson said, adding the results were posted “as a result of administrative error.”
Gap’s stock was halted just before 10 a.m. ET. The company then released its quarterly results at 11:12 a.m. ET. Following the release, shares rose more than 2% after being halted for much of the morning.
Here’s what the company reported, compared with what Wall Street expected, according to analysts surveyed by LSEG:

Earnings per share: 54 cents vs. 40 cents expected
Revenue: $3.72 billion vs. $3.63 billion expected

The company’s reported net income for the three-month period that ended Aug. 3 nearly doubled from the year-ago period. Gap posted earnings of $206 million, or 54 cents per share, compared with $117 million, or 32 cents per share, a year earlier.
Sales rose to $3.72 billion, up about 5% from $3.55 billion in the prior-year period.

For the full year, Gap now expects its gross margin to be 2 percentage points higher than the uptick of at least 1.5 percentage points it had previously forecast. It also expects its operating income to grow by about 50%. It previously anticipated it would increase by slightly more than 40%.
Over the last year, Gap has been working to turn around its business, reverse a sales slump and reclaim cultural relevance under the direction of CEO Richard Dickson — the former Mattel executive credited with reviving the Barbie empire.
Since Dickson took over, sales have started to turn around at the company’s four brands — Banana Republic, Old Navy, Athleta and its namesake banner — and the company is finding its voice again among its peers. Beyond sales and relevance, Gap’s profits and balance sheet have also improved significantly under Dickson. The company ended the quarter with $2.1 billion in cash, cash equivalents and short-term investments, an increase of 59% compared to last year.
The company’s second-quarter results didn’t blow away expectations, but are solid improvements from where the company was a year ago.
“We really concentrated on our strategic priorities, and the first priority has been about maintaining financial and operational rigor that is becoming, to the extent that we can define it, the fabric of how we work, and it’s reinforcing better processes and cultural accountability,” Dickson told CNBC in an interview.
“Reinvigorating our brands is enabled by financial and operational rigor, and you see it. You see it in the results, you see it in our stores. You see it on our sites,” he added.
“We’re building stronger brand identities. They’re supported by trend right products,” Dickson said. “We’re amplifying those through better storytelling. Our media mix has gotten much more innovative, and generally speaking, I’m proud of the brand’s portfolio work in the context of cultural relevance.”
During the quarter, comparable sales were up 3%, in line with the 3.1% growth that analysts had expected, according to StreetAccount. Its gross margin came in better than forecast at 42.6%, ahead of the 40.8% that analysts had expected, according to StreetAccount.
Here’s a closer look at how each brand performed:

Old Navy

Sales rose 8% to $2.1 billion, with comparable sales up 5%, better than the 4.3% growth analysts had expected, according to StreetAccount. The company has been working to improve its assortment and ensure that its value offering isn’t just low cost but also fashionable.
“We’ve been dialing up, if you will, our fashion quotient,” said Dickson. “Besides really driving a much more disciplined approach with financial and operational rigor, we’re now dialing up and seeing the results of our reinvigoration strategy.”
As consumers feel the brunt of inflation and high interest rates, many have traded down to cheaper options, and Dickson said Old Navy is seeing “growth across all income cohorts.”
“With a presumed flight to value, Old Navy is there with a welcome mat,” said Dickson. “We become the style authority and the brand in the value space, and so again, we’re concentrating on our strategic approach, our strategic priorities. I think we’re seeing the success of that.”

Gap

Revenue at Gap’s namesake banner rose 1% to $766 million during the quarter, with comparable sales up 3%, just shy of the 3.4% uptick analysts had expected. As Dickson looks to bring cultural relevancy back to the company, it has helped the company’s namesake banner grow sales, he said.

Banana Republic

Gap’s elevated work-wear line has dragged on the company’s overall performance. Both revenue and comparable sales were flat in the second quarter compared to last year, versus StreetAccount estimates of up 0.5%. The company said it is working to “improve its pricing and assortment” to turn around the brand’s performance.
“In some cases, we got too ahead of ourselves, and in other cases, we could add more value orientation to drive more scale,” Dickson said when asked what work the company is doing to improve pricing.
“Some of our new merchandising strategies include depth of product in store, finding that right mix, if you will. And last but not least, really improving fit, which is an important part of any brand, but in particular, has been a challenge in the women’s space in Banana Republic, where we’re really concentrating,” he said.

Athleta

Sales at Gap’s athleisure brand Athleta slid 1% to $388 million, with comparable sales down 4%. The results were not comparable to analyst estimates.
One of Gap’s strongest brands during the pandemic, Athleta had been on a downward trajectory and weighed heavily on the company’s performance until it appointed former Alo Yoga president Chris Blakeslee as its CEO last summer. Since then, Blakeslee has worked to improve Athleta’s assortment and has also worked to generate more excitement at the line with product drops and collaborations with athletes.
In a press release, the company said it expects Athleta to return to positive comparable sales growth for the remainder of the year.

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Ulta Beauty fell short of second-quarter expectations and trimmed its full-year guidance.
Comparable sales for the second quarter fell 1.2%, compared to an 8% increase a year earlier.
Shares of Ulta have been suffering since CEO Dave Kimbell warned of cooling beauty demand.

An Ulta Beauty store in New York, US, on Monday, Aug. 19, 2024. 
Yuki Iwamura | Bloomberg | Getty Images

Ulta Beauty shares sank 7% in extended trading Thursday as the company fell short of second-quarter expectations and trimmed its full-year guidance after a decline in same-store sales during the most recent period.
It was the company’s first earnings per share miss since May 2020 and first revenue miss since December 2020.

Comparable sales for the second quarter fell 1.2%, compared with an 8% increase a year earlier and well below the 1.2% growth that Wall Street analysts had expected, according to StreetAccount.
“While we are encouraged by many positive indicators across our business, our second quarter performance did not meet our expectations, driven primarily by a decline in comparable store sales. We are clear about the factors that adversely impacted our store performance, and we have actions underway to address the trends,” CEO Dave Kimbell said a press release.
During the company’s earnings call, Kimbell attributed the declining sales performance to four key factors, including an “unanticipated operational disruption” due to a change in store systems as well as disappointing impact from promotions.
The company also suffered from what Kimbell described as consumers who are increasingly cautious with their spending and from heightened competition in the beauty industry. Kimbell conceded that Ulta’s market share is being challenged and said although the company maintained its share in mass beauty during the most quarter, it lost share in the prestige beauty sector driven by makeup and hair categories, according to Circana data, cited by Kimbell.
It’s not uncommon for stores to experience a short-term negative sales impact due to competitors’ openings or cannibalization by new Ulta beauty stores, but Kimbell said the scale and pace of change now has been unusual, adding that 80% of stores have been impacted.

“We know we’re still in the midst of this…these competitive pressures will likely continue into the near term, but the positive signals…in our broader business, the guest engagement, the impact of newness, the impact of our new stores, the success of our salon business, the loyalty growth, all of those factors suggest to us and give us a lot of confidence that our business continues to have underlying strength and health,” Kimbell said.
The company now forecasts full-year same-store sales in a range of flat to 2% down, compared with prior guidance of 2% to 3% growth.
“Our updated outlook for sales assumes it will take more time for our actions to change the top line trajectory and that stores impacted by multiple competitive openings will continue to be pressured,” CFO Paula Oyibo said.
Ulta also now expects full-year revenue of $11 billion to $11.2 billion, down from previous guidance of $11.5 billion to $11.6 billion, and full-year earnings per share of $22.60 to $23.50, down from a previous forecast of $25.20 to $26.
Here’s how the beauty retailer performed in the period ended August 3 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Earnings per share: $5.30 vs. $5.46 expected
Revenue: $2.55 billion vs. $2.61 billion expected

The company reported net income of $252.6 million, or $5.30 per share, compared with $300.1 million, or $6.02 per share, during the same quarter a year earlier. 
Revenue rose to $2.55 billion, up from $2.53 billion a year earlier.
Earlier this month, Warren Buffet’s Berkshire Hathaway disclosed a $266 million stake in the beauty retailer, sending Ulta shares surging. For some analysts, it was validation that the stock was oversold after falling 32% in 2024 up to that point, tumbling 26% in the second quarter alone.
Shares of Ulta have been suffering since CEO Dave Kimbell warned of cooling beauty demand at an investor conference back in April. Kimbell said although a pullback was expected, it had hit the company “a bit earlier and bit bigger” than anticipated.
During the company’s first-quarter earnings call in May, Kimbell outlined plans to boost sales that spanned five key areas: product assortment, brand social relevance, enhancing the consumer digital experience, boosting the loyalty program and evolving the company’s promotional levers.
In the same call, Kimbell also said the beauty retailer later this year would be expanding its partnership with delivery service DoorDash, would start testing new gamification platforms and would activate new marketing technology to personalize customer shopping experience.
This time around, Kimbell said that executives has identified further opportunities within the attempted turnaround plan, such as relaunching Ulta’s own beauty collection and introducing new personalized product recommendations for consumers online. The company is also focusing on increasing rewards program value through member-only events and exclusive member-tiered offers.
Clarification: This story has been updated to clarify that Ulta Beauty forecast full-year earnings per share of $22.60 to $23.50, down from a previous forecast of $25.20 to $26. More