ep you transfixed for the whole time. i think a lot of people will put their soul into what this is about. captioning sponsored by usa captioned by media access group at wgbh access.wgbh.org hi, everyone, welcome to "on the money." the woman who went from hooters get to president of cinnabon, her unusual journey. a company that helped revolut n revolutionize the way we shop wants to do the same thing with its workers. new rules and how to ask the right questions. aej sneaker maker to the stars, a 73-year-old man makes custom footwear for names you'll know. >> you get both shoes. >> "on the money" starts right now.

now, becky quick. >> here's a look at what's making news. america's economy grew at a slightly slower space last quarter than first thought. the second reading of the gross domestic product that is the broadest measure of the nation's economy showed an increase of 2.2% on an annual basis, down from 2.6% but still slightly above what economists expected. consumer spending was strong but business investment slowed down. dow closed slightly lower on thursday after hitting an all-time high on wednesday. the nasdaq broke a ten-day winning streak on wednesday. stocks fell on friday. it's a waiting game when it comes to interest rates. federal reserve chair janet yellen said the chair was pleasedwide economic growth and in no hurry to raise rates. your rates could go up if you have an american express card, what it says is a small

percentage of card holders after a year long review process. the average increase would be 2.5 points. it was a fine year for california wines, exports were the second most valuable on record last year hitting almost $1.5 billion in revenue. almost all of it was in california and eu was the biggest buyer of those wines. kat cole had a unique and stellar rise in the industry, she led the chain to $1 billion in annual sales. kat, thanks for joining us. >> thanks for having me. >> you have a brand-new job and i know everything you've done with cinnabon? >> it does have some parallels, focusing on multichannel growth and all forms of retail and

launching e commerce. s solely focused for all six brands on targeting those channels and in grocery and retail and food service, in some cases the person we're marketing to is not the consumer. so unlike the direct consumption business where if you're at one of our restaurants or bakeries, whoever you are, you are both the shopper and the consumer but if you're a mom shopping in a grocery store, you might be buying that for someone at home. the marketing challenge is to communicate to both parties in an effective way. >> you have a lot of success in a lot of different roles, i wonder if you can talk about the personal lessons you learned along the way. >> i learned many lessons starting from my single mom who raised me and my sisters to working at hooters restaurants and from running cinnabon, a few are what i think are the characteristics that seem to transcend industries and job titles and that is the delicate

balance of courage and confidence with humility and curiosity. and any time i've overindexed too much on one or the other, been too confident and courageous without that humility grounding me or too humble and curious and step back too much in any case, i have paid the price for it as a leader. >> what's an overshoot in one direction or another? >> when i first came on board with cinnabon, i overshot on both. i came on board and there was an existing project with the brand. because i was a new president, i had only been there a few months, i didn't ask the right questions. i didn't poke my nose in things that are going on. part of the reason i didn't do that because i really had a great deal of humility, i thought who am i to question these people who have been there before me and been in the industry much longer. i need to trust them and what i failed to do was to remember that if you're the president of a company, there's no one else that when you look over your

shoulder to answer questions or make the decision and i didn't ask the right questions and things have evolved in a way that were not productive for the business. >> i read an interview where you talk about you go away on your own and think every quarter or something. >> yeah. >> you think about what you would do if you were the new hot shot on the job. >> if a hot shot took over your job today, they would not be burdened by the complacency that comes from progress. if i've been in a role for three years, certainly i improve things and i may sit in my chair and think, it's so much better than it was three years ago. whereas if someone took over night job today, they would have the fire in the belly to look at the things that i felt were progress and call it unacceptable. so the trick is thinking about why can't i be my own hot shot and step into my own shoes and look at the situation if it's my

first day and have the courage to step up and say, you know what, i've gotten kplasant because we've had progress, does not mean this is okay. >> no resting on laurels and encourages me to be vulnerable with my team, to share with them things even not doing as well as i could and should and puts a fire under my butt to get on a plane and go do things that maybe i wouldn't have done if i hadn't completed that exercise. >> you have consumers in the united states but consumers all around the globe. what is the state of the consumer right now. >> the state of the consumer is what i would ka influx and exciting every day. we do business in markets like russia, it's very interesting time in that country. we are highly saturated in the middle east with the cinnabon and auntie anne's and mcallister are just starting to expand internationally. the consumer is still loving

american brands. the challenge that we have as we enter markets with premium pastries and premium baked goods is price value positioning and how do we play in command a premium price with fluctuating consumer confidence -- >> strong dollar. >> and a strong dollar. and it is more of a marketing exercise and market entry exercise than it ever has been before to make sure we get that right. >> we know that cinnabon was just featured in "better call saul", the main character works at a cinnabon in omaha. what does it mean for your brand? >> breaking bad actually kicked it off. the key character, bob odenkirk ended up saying if i'm lucky i'll end up as a manager at cinnabon in omaha. our social media team jumped on

it and got a call several months later with the production team and directives team who said we want to do something with this. we're going to build a back story with saul good man and we would love to film in one of your bakeries. hey, that sounds fun and shut down and worked with them and trained him. that is him making those cinnabon cinnamon rolls, we never could have imagined it turned into the first few minutes of the premiere of this successful television show. >> the brands pop up all over the place. thank you for coming in. >> thank you so much. >> kat, thank you. we're "on the money." does one size fit all? the online retailer is changing the way it wants to pay employees to come to work. making sure your financial adviser isn't the shy and retiring type. take a look at how the stock market ended the week.

online retailer zappos shook up the way we buy stuff, shoes especial especially. now shaking up the way their employees get paid using surge pay. they earn paychecks based on how much and how little customers need them and how busy the company is. the men who helped build this model adam goldsteen joins us right now. thanks so much for being here today. >> absolutely, thanks for having me on the show, becky. >> i like this surge pay idea, i think. how did you come up with it? >> a little history, we have an experiment that we've been running called open market where we're trying to give our call center employees more flexibility. so as you can imagine, call

center, there's rigid shifts because we have a forecast of how many calls we expect to get from our customers and need to make sure we have people there to answer those phones. and since our customer loyalty team is is the heart and souls zappos, we want to make sure they are there to wow our customers all the time but give them the flexibility so that they can go to a kids soccer game or do things that kind of come up last minute. >> how -- when are the busiest times for you, is it on the weekends? >> some of the busiest times are because of the time difference between the east coast and where our call center is in las vegas, nevada, where the zappos headquarters is. >> you're asking people to work crazier hours and they can choose to do that if they want to make more money or work banker's hours and make less money as a result. >> right now we're not doing

anything with employee's base wages, anything we tested so far has been a bonus on top of their existing wage structure. >> how have employees responded to this point? >> employees love it. we've seen happiness go up 20% during the time we've been testing this. >> that's kind of amazing. how much additional money do you get for working on the harder to fill hours? >> right now we're not paying any extra for the harder to fill hours. we've been focusing on flexibility as the reward and also giving employees the opportunity to use some of their time every week to work on any project that they want. so not just answering phones if that's their primary responsibility on the customer loyalty team. they could choose to maybe create a new product if one doesn't exist that they think would help our customers and maybe they can even choose to spends their time to read a book if it will make them happier.

>> i know you work in the research and development lab of zappos and coming up with new and interesting ideas. what other ideas have you been testing out recently? >> the most recent thing we've released to the public is ask zappos, it's a product i started right after i was hired a little over a year ago. it allows customers to text us photos of products that they are having trouble finding on our site in and in stores and maybe an outfit they see someone wearing on the street. they will track down these products, even if it's something we don't sell on zappos and let customer know where to buy it. >> thank you for joining us today. we really appreciate your time. >> yeah, no problem. >> we're "on the money", making sure your retirement adviser has your best interest at heart, not his. the 73-year-old man who

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>> >> there are a lot of fine financial advisers out there and there are also financial advisers who receive backdoor payments or hidden fees for steering people into bad retirement investments that have high fees and low returns. >> that was president obama this

be week calling for new regulations, to make sure brokers have investor's interests in mind first. what does that mean for your money and future? joining us is personal finance correspondent sharon epperson. what does this mean and what isfy fiduciary standard? >> think about how you go to a doctor and you go to a doctor who doesn't take insurance and she decides you pay her. she's going to write you a prescription for the best drug for you. she's not getting any type of compensation. then there's another doctor you go to who works for a parm suit cal company. that doctor prescribes a certain drug that that pharmaceutical company makes. it's fine but there may be another drug that's cheaper but they still give this drug from a pharmaceutical company that they

are employed by. that is the suitability rule. >> just knowing that, i think, making sure you're told or you're aware of where these conflicts might potentially lie, big part of it too. >> there are really three questions you need to ask. if you get beyond the fiduciary rule. it will help you figure out, number one, ask your adviser, are you a broker, registered investment adviser, are you a certified financial planner? there are differences. a broker is going to be regulated by finrom and have to uphold of the suitability rule. a adviser is regulated by the executive exchange commission and must uphold the standard and certified financial planner, cfp, then the board also will hold them to a fiduciary

standard. you need to ask to have a better idea. >> which has the highest standard. >> the highest standard are the fiduciary? they are supposed to put you in investments that really reflect what is best for your financial needs and goals. >> how can you tell if somebody has your best interest at heart? if not, how do you find somebody else? >> you need to find out about the conflict of interest. ask them how they are competence sated. that's something you'll want to know. also, are they commission based or fee based or combination. that can help you. when you go to this security and exchange commission website there's an investment adviser check. you can find out what some of the complaints or disclosures are about them if there are any. the same with the broker check, go to that website and check them out as well. all things you want to do to make sure the adviser is right for you. >> who is against the president's proposal it sounds like it's straightforward? >> a lot of folks in the financial services industry say, brokers are doing a good job

already and service s small investors at a price point that may be more affordable to them than paying a flat fee to a financial adviser. don't take brokers out of the game because they are still doing a service and just let them keep doing what they are doing. that's what many are saying but they are also waiting to see exactly what the new rule that the president wants to happen is going to say. is it going to be as tough as the fiduciary standard. >> good advice to ask the questions. >> ask the questions and how they respond and whether they waffle can tell you a lot. >> the sneaker maker to the stars, the 73-year-old man who makes shoes for diabetics and amputees and now counts beyonce and justin timberlake as clients. it's happening. today, more and more people with type 2 diabetes are learning about long-acting levemir®

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for more on our show and guests, go to our website, otm.cnbc.com and follow us on twitter. here are stories coming up that may impact your money. on monday we'll get personal income and spending for january. an important manufacturing index for february of the on tuesday we'll get february auto sales. oh, say did you know? that tuesday marks 84 years since the star spangled banner became the anthem in 1931.

the federal reserve releases its beige book, and on friday, the labor department releases the big number of the week, that's the closely watched unemployment report for january. it is never too late and you are never too old. one sneaker maker in new york is living proof of that. he has transformed his business and maybe his life by switching gears and styles. kate rogers joins us with more on a 73-year-old sneaker maker to the stars. >> his products are actually all assembled in america. ken silverman is using his original brand, american orthopedic to create a new company called relevant custom. take a look. >> we thought to make the shoe from the inside-out. >> if you've got problem feet, ken silverman is your guy. he has been catering to amputees and diabetics and people who need orthopedic shoes for his entire career at his business american orthopedics. >> my dad started this company

after the second world war and i've been working with him since i'm a young teenager and i'm still here. >> silverman at 73 years old reinvented himself and the business in the past two years. he's also your guy if you want shoes made of exotic leathers in loud designs. the kind sneaker enthusiasts will buy for thousands of dollars. >> this is going to be around 2,000. this show sold for about 4500. you get both shoes, left and right. >> you're probably wondering how a schumaker went from selling custom shoers to selling shoes that look like this, custom made for hip hop royalty alike. >> silverman says his son john worked on custom made shoes in new york city in addition to his work at the family business and encouraged his dad to look at creating sneakers. the technology they needed to make the switch was already in

place. >> the stitching with the machines and operators we have here allow us to do this kind of intri cat stitching and it's this and ability to perform and make stuff of this kind of quality that allowed us to make the segue into the sneakers we're doilg. >> two years ago they got one of their first pairs of sneakers on jay-z, he was seen wearing relevant custom shoes and more orders trickled. in the transformation has been slow with gaining clients mainly through word of mouth. the a-list clients, beyonce and justin timberlake and p. diddy get him excited. >> i race to work every day. >> relevant customs embarks on its next original shoe line. >> do the star clients know about the other business, the diabetic shoes. >> it's his dirty little secret, right? he said 50% came into the

manufacturing facility and saw what he was doing and got a kick out it. it shows you celebrities don't care as long as they look cool. >> very good. love the story, he looks like a lot of fun. >> he was wearing marshall's new balance sneakers so he's not drinking the kool-aid which i love. >> i love that too. >> that's the show for today. i'm becky quick. next week warren buffett, with his views on the economy and where he's investing and unusual diet. each week keep it here, we're "on the money." have a great one and i'll see you next weekend.

>> narrator: in this episode of "american greed"... everything about miami businessman claudio osorio says "trust me." with jeb bush on his board of directors, hillary clinton at his home, and nba basketball players at his side, osorio hustles his way to the top. >> here i am with the president-to-be. what other seal of approval do you need to show the world "i'm legitimate"? >> narrator: cleverly playing to charitable instincts in people, he sets up his victims to unwittingly sell his lies. claudio osorio pretends to be a humanitarian entrepreneur. but he is not nearly as good as the company he keeps.