lasts about 10 seconds. this one lasts all day? >> they're getting better with efficiencies. liz: all about the battery. all about gerri willis with a big tax show to help you coming up. david: this is exciting stuff. don't want to miss it. stay right there. we'll see you tomorrow. gerri: hello, everybody i'm gerri willis and this is "the willis report," the show where consumers are our business. miserable, crummy and delayed. it is the worst tax season in years. >> the word delay is across the board. possible delays in refunds. gerri: rush users guide to taxes with our special guest the ceo of h&r block. also starbucks expands free college plan to cover the full cost of a bachelor's degree. >> free on-line college for their employees. gerri: we'll break down the plan. why starbucks is doing it now. rand paul makes it official. >> that i am putting myself forward as a candidate for president of the united states. [cheers and applause] gerri: we'll examine the centerpiece of his campaign,

slashing the size of government. also, can you protect yourself from a spike in gas prices? we'll investigate the latest big thing, gas insurance. the real secret to chipolte's success. >> very very good. gerri: ceo of chipolte, monthty moran will be here. that is coming up on "the willis report" where consumers are our business. we are deep into tax season right now and our user's guide to taxes to make sure you get your maximum refund and safely. as we all saw with the turbotax refunds refund fraud and other tax related identity theft are running rampant. how do you make sure you don't fall victim? >> joining me the ceo of h&r block, bill cobb. thanks for coming on the show tonight. i'm so pleased to have you here this week. i think a lot of people's attention is focused on scams, largely because of you. you really drawn the media spotlight to it. what do consumers need to know

right now? how can they keep themselves safe, make sure their refund doesn't get stolen? >> gerri, it has become a very big problem here. this has been a year where there has been a number of reports, et cetera. we're working closely as an industry with the irs to get greater protections for consumers. right now it is too easy, especially with do it yourself returns, for people to, for fraudsters to steal a name, date of birth and social security number and file a return. gerri: it is ridiculous. >> we've taken steps -- gerri: go ahead. >> it is ridiculous. we take steps, never allow a state return to be filed until accepted by irs. say what you want about the irs, but they do have the best fraud filters. what happened this year where some companies -- gerri: let me stop you right there. because i think that is debatable. i think it is debatable whether the irs is doing everything they can to stop this fraud. frankly i've been disappointed at their track record on this.

where are they? >> let me clarify. their fraud filters catch more criminals than the state does because they have more resources. so i agree. they have not done enough and we are working with them now. in if you file stocks. right now you don't recognize the computer you come to. online banking, home computer wherever usual computer is. we should have stronger user names and passwords, stronger security questions. what we call multifactor authentication. there should be a driver's license or something. only identification is social security number for sale on the internet. gerri: all right. >> you need ip pins. you got me? that's what we need. gerri: i couldn't agree with you more. we need a ton of protections. let me tell you why. the irs paid scam artists

crooks, $5.2 billion. this was money supposed to be paid out in refunds to american taxpayers. you're out there. you're trying to do the right thing. you want to pay your taxes. meanwhile the irs is giving your money away to a bunch of crooks! >> gerri, here is one of the big fallacies. we released a study couple years ago. consumers want to help. this wasn't a study 52%, 92% of people are willing to do more to protect their identity. this is big issue and join industry and irs to protect consumers more. gerri: all right. just to go full circle on this issue, the danger of having your i.d. stolen in 2013 1.million americans had it stolen via tax scams. this is up six times from three years ago. think about that. those are super big numbers out there. so we've got everybody worried now, bill. i think everybody is concerned. if they weren't, they are now. is there anything i can do this year? i understand you're sitting down with the irs commissioner.

i understand that privately you sit down with the folks at intuit trying to come up with something. we don't have a window. you guys haven't made it public which is a little concerning. what's going to happen? >> well, we are working on so we get industry safeguards that are standard. we can't just have one company doing it and not others. so we are working on that so some of the things i identified earlier we put in place for next tax season. gerri: all right. >> even bigger improper payment is earned income credits. that was 16 to $19 billion of improper payments on top of five million from stolen identity refund fraud. that is four times the problem. gerri: they get refund. they claim they have, you have all these kids, that you don't have. they get earned income. it is ridiculous. >> right. >> so just to go full circle here, tax scams to look at for it is not just refund fraud. also phone scams. >> right. gerri: also phishing. inflated refund claims, fake

charities. i hear what you're saying about online protection, particularly if you're filing with software, using tax software like turbotax which is really been indicated in a lot of these cases. is there anything else you can do? if you're pigging up phone, somebody calling in to claim to be the irs your response should be what? >> yeah the irs will only send things through the mail. so that is completely a scam. these fake charities and the rest. do not, do not fall prey to those. those are not real. and obviously be very careful in opening email. gerri: of course somebody asks for your credit card number over the phone, no. >> do not give it. gerri: got to tell you, this is getting scary though. i think that -- >> i know it is. >> it is difficult to protect your sell. here you are trying to do the right thing. you're 98% of americans who want to pay your taxes instead you're having your identity stolen and refund filtered, stolen. last word here, bill.

i know you've got big plans for next year. but last word to consumers to? >> yeah. we have a product called tax identity shield. i recommend people look into that. that affords protections against tax identity theft which is exactly what we're talking about right now. gerri: what does it cost? >> it costs $30. gerri: okay. there is one answer right there. bill, thanks for coming on the show. appreciate it. >> thanks, gerri. good to talk to you. gerri: good to talk to you. we want to know what you think. here is our question. is the irs doing enough to protect your identity log on to gerriwillis.com to vote. i will share the results at the end of tonight's show. tomorrow, our use ear es guide for tax advice for the deductions. we'll tell you all the deductions you into he had to know. other strategies to help you avoid taxes legally. on to our next story from barista to college grad, starbucks is expanding the college reimbursement plan. the coffee giant offering

eligible workers full tuition reimbursement for an online degree, free, from arizona state university, instead of just two years it first offered. we have marketing professor and branding expert. and i hope i pronounced this right. i apologize if i did not. i want to know your reaction to this? this company has been in the media spotlight a lot lately. they had this policy where they wanted people to have a conversation about race in their stores. they didn't get a lost kudos for that. now they're giving away a free education. your reaction as branding expert? >> you absolutely hit this on the head, from a branding standpoint this program is especially problematic. it was only couple weeks ago starbucks were trying to claim they were the voice of america when it came to race relations issues. now they're trying to champion educational cause. naturally audiences will be left to confuse what the brand really

stands for besides being desperate enough to jump on any politically-charged issue in an attempt to win in the coffee wars. gerri: and just to give some facts here starbucks will spend $250 million to help 25,000 employees of the you know look are this is nice thing maybe but starbucks sales are 16.5 billion. compare that to the 250 million. it's is something but it is not huge, right? >> absolutely. also initially they were going misleading in terms they would pay for the entire college education but arizona state university is offering a significant discount over 40%. then when you add on federal grants as well, starbucks is covering rest of that. that is really how the numbers are breaking down. gerri: that is interesting. okay we just had somebody in the last hour on our network say that starbucks sees education as a 21st century benefit.

they like to talk about how they treat their employees. is that just pr spin? >> you know i think that audiences today are incredibly savvy. we have high authenticity detectors. millenials have been raised in an environment where they have been marketed to. when howard schultz says this is the representative of conscience of the organization and we're doing this because we want to education the nation audiences will natural have their red flags go up. this is very much a mutually beneficial relationship and it should be stated as such. yes, there is opportunity to educate employees. that is very important but at the same time, starbucks is also benefiting significantly. they're trying to reduce churn. they're trying to keep baristas as long as they can within the organization to prevent operational costs hiring, training and so forth. gerri: thanks for coming on the show tonight. interesting conversation. >> pleasure. gerri: still a lot more to come

this hour, including a warning about your investments. a second republican to throw his hat in the ring. did you see this? how will rand paul's candidacy shake up the field? our panel talks about that next. send me an mail and go to our website, it is gerriwillis.com. we'll be right back.

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healthier is here. >> today i announce with god's help, with the help of liberty lovers everywhere that i am putting myself forward as a candidate for president of the united states of america. [cheers and applause] gerri: that was senator rand paul of kentucky announcing his run for the white house to a rockin' crowd today. can paul stand out in what is expected to be a crowded gop field? here to weigh in brad black blakeman, former advisor to president george w. bush and chris stirewalt.

fox news digital editor. i listened to this thing. the crowd was crazy. will he get similar reception from republicans broadly? >> goal for him now the next five days is do shock and awe rollout to demonstrate his cardinal advantage in all of this is, he has the organization and core support that gives him a seat at the grown ups table. unlike other candidates who are similarly low level in the polls right now, and for paul that is in the high single digits but what differentiates him from other candidates he has an army of supporters ready to march. he will go across the country. will finish out in south carolina and say he can do it. gerri: i hear you saying fringe candidate. brad, do you agree? >> no. >> i think we have two candidates announced represent the most conservative part of the republican party. gerri: right. >> as a matter of fact some of them, like ted cruz thinks he is aligned with the tea party. ted cruz calls himself a libertarian. they use other slogans other

than party identification. chris is absolutely right. his immediate job is to get a seat at the table. the table will be filling up rather quickly. gerri: all right. chris, go ahead. finish what you're going to say. you're saying i'm not saying fringe. what are you saying? >> look his dad was a fringe candidate. his dad couldn't broaden out his appeal. i think rand paul will do better than his dad. the question for him if we think about the just finished ncaa bracket there is going to be two final candidates in this race. at some point it will be two final. jeb bush and somebody else. and the deal for rand paul, he has to confront ted cruz and take out scott walker. he has a lot of things to do to solidify the right of the party to put himself there. that will be a tough task. i promise you this. by the time they get to the debate stage in august rand paul will be still very much part of the discussion. gerri: i have to say this. this is a point of contrast right? we had rand paul in front of this rabid crowd.

we had video, brad of jeb bush in front of a winnebago out in the countryside somewhere. it looked like 1986. so, will jeb bush really play with republicans this time around? >> remains to be seen. we're going to have the most crowded field we've had in anybody's memory. as many as 14, 15 republican candidates are running. it is certainly not a lock, i believe for any one republican. i'm not sure it's a long on hillary clinton on other side. >> oh. gerri: the choices -- >> i really believe that. i think she is weaker today than she was in 2007 and eight. having said that i think the republicans -- gerri: he says, no, she is lock. >> i respect professor blakeman's experience and judgment. he has experienced a lot more than me. i will say this hillary clinton is so hyper dominant in the democratic field. it is because in part because of

what brad says. the more frightened democrats become about the potential of actual implosion of hillary clinton the more protective of her they become. it was in fact her undoing in 2008 that democrats were willing to entertain the idea, what about this guy? let's talk about something else. now they're just to keep the football from getting stripped away and move it down the field because they are afraid she won't be able to pull this off. gerri: i don't know who else is waiting in the wings. i don't see a lot of people. >> bernie sanders will not get this done. >> but you can't sit on the ball and score to win. >> that's true. that's true. gerri: that is good analogy. can we please talk about money? i think money is very important here. rand paul had something to say about the irs just the weeks before taxes are due. listen to this. >> i see an america with restrained irs that can not target can not harass american citizens for their political or religious beliefs. [cheers and applause] gerri: so, brad, to you, this is

red meat, right? this is red meat for republicans come on? >> look we love that who besides republicans who likes the irs? come on. this is great tactic for him to use. the problem they have been talking about this for decades getting rid of the irs, scrap the tax code. but it has never come to fruition. by the way he hasn't explained how he is going to do it. gerri: he does say he wants to make it smaller. i don't think he is saying get rid of it entirely. grover norquist is saying that. is only guy i see talking about that can we talk about the five words in the speech i absolutely loved. we'll only spend what comes in. think about that. the federal government only spending what comes in. not overspending. not having 17 doll trillion in debt. chris stirewalt, what do you say? >> rand paul the irs, going against the irs, going against deficits calling for balanced budget amendment and going for term limits he hit three sweet spots.

yes, red meat for the republican base. those things poll 75%, 80% of the electorate supports those positions. republicans too often deny themselves the opportunity in general elections to reach out to other voters because they don't talk, especially balanced budget amendment and especially term limits. those things are lightning in a bottle for republicans. rand paul is smart to bring it up. gerri: quick last word. >> populist themes. obviously american people are skeptical even though they like it because they have never seen a politician accomplish it. gerri: really good point. when you talk flat tax, any of this stuff, you have to think, can it get done. brad, chris, thanks for coming on the show tonight. great job. >> you bet. gerri: we'll look at the role washington should play or pay in the housing recovery. the warning about the world's biggest mutual fund company. the so-called dark side of van guard next. ♪

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gerri: tonight being called the darker side of vanguard's success. the fund giant exploded in popularity thanks to its use of low-cost index tracking funds which they pioneered. we touted benefits of these invests over and over again but our next guest says there could be downsize. "morningstar"'s vice president of research joins me now. john, welcome back to the show. great to have you here. i want to start by defining vanguard's success. you wrote it is the most dominant fund company in history. how dominant are they? >> well, vanguard is at 19% now of total industry assets.

this is mutual funds and exchange traded funds. and previous industry leaders there were several companies before van guard took over last few years, were in the 12 to 15% range. so it is an unprecedented success. they will cross 20% quite soon because they're easily the leading company in sales now. gerri: to be frank here, there is a reason people are flocking to them. they have lost confidence in active managers. they're happy to invest passively and take the returns the market gives them. i want to share with you an interview with mr. bogle that we had recently, which he warned us there might be trouble ahead in the markets in 2015. he turned out to be prescient. listen to this. >> worries me a little bit, to be honest. we're seeing such a great year for the s&p 500. index s&p 500 will look better than it will look over the long term in the future. this is a great year but don't take it for granted what i would

say to the index shareholders. gerri: so he said don't take it for granted. we have seen something of a selloff this year but talk to me because you know when something succeeds really big in the investing world there is always a downside there is always a dark side. something else always happens in reaction to that. what is going on behind the scenes because of vanguard's incredible success? >> well, there are two sides to look at this. the one is, will the inflows damage vanguard's ability to execute what it does? and i argue that no, it will not which is in contrast to previous industry leaders because they have been active managers. they get overwhelmed by putting new money to work and it becomes self-defeating. vanguard, largely a passive manager although it runs active funds and a low turnover manager is in much better position to handle volume. the other issue --

gerri: just to interrupt you they're getting showered with money. >> they are getting showered to money. gerri: you have to put it to work. it's a lot of pressure. >> i don't see them under that much pressure. this isn't vanguard only they're not only one running index fund and receiving money, what happens to the markets overall as more and more money becomes indexed? that and's an open question. there are people who study this closely. i'm not the one who did that. and there was a paper written a couple of years back in the financial analysts journal. gerri: to cut to the chase here what they're saying is that you could have increased volatility and market fragility. why? >> that's right. basically the because the stocks are moving together. the correlation between the securities has increased because indexes are more and more the buyers and sellers in the market. they're moving together.

buying and selling stocks at the same time. gerri: you're not an indexer. say you're somebody trying to trade opportunistically, in some way the market is more predictable than it used to be because everybody is in a darned index fund. is that a way to describe it? >> in some ways. unfortunately cuts both ways. with stocks more highly correlated with each other there is less opportunity to differentiate yourself. if stocks are moving together how do you escape aside from being in cash at the right time. not clear to me there are more opportunities for active managers. potentially more volatility. gerri: could it hurt the overall market? why would it make the overall market more volatile? because we all own index funds, and we get disappointed at the same time we yank our money out at the same time? >> that is part of it. there are unintended consequences when you have different trading behavior and you do with the market being constructed, built and traded

differently than it was several years ago. often these things, you learn after the fact, as with for example, the "flash crashes" in etfs which people didn't see coming. >> that is what i'm worried about. some unintended consequence of this love for index funds that everybody has. i guess, i am not the kind of person who believes we can all do the same thing and have it work out. john, thanks for coming on. it is a tough issue to talk about but you did a great job, thank you. >> thank you. gerri: we're also looking out for your money with advice on what to look out for regarding your financial advisor. according to "the wall street journal," you may want to talk to them about their love life. a study at university of florida and singapore university shows that while hedge fund managers get divorced and married their returns while they do that, sufficient because of distraction and worse the hits stick around for a long time. it could be worth that awkward

conversation. coming up, can you protect your sell from a spike in gas prices? one company says yes, you can with gas insurance. next the master's tournament starts in two days, yea. but it's a female positively hears everybody -- golfer has everybody talking about. find out why after the break. if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom. do you want to know how hard it can be to breathe with copd? it can feel like this. copd includes chronic bronchitis and emphysema. spiriva is a once-daily inhaled copd maintenance treatment that helps open my airways for a full 24 hours. spiriva helps me breathe easier. spiriva respimat does not replace rescue inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate.

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so in a variety of markets we can help you feel confident. request a prospectus or summary prospectus with investment information risks, fees and expenses to read and consider carefully before investing. call us or your advisor. t. rowe price. invest with confidence. ♪ gerri: welcome back to the willis report. in a moment, another controversial digest cover has a lot of people talking. time now to look at other stories in the news. jurors in boston are deliberating on the 30 charges against dzhokhar tsarnaev. he helped plant the bombs nearly two years ago, but his brother was the mastermind behind the attack. if convicted he faces life in prison or the death penalty. the white house was affected by a widespread power outage. the power loss was

blamed on an explosion at a maryland power plant. the feds say there is no indication of terrorism. and stocks fell in the final minutes of trading. price of oil reversing course today ending up 2% to top 53 bucks a barrel. welcome relief for drought stricken california 2 feet of snow fell in the sierra nevada region. hail fell in san francisco. those are some of the other stories in the news tonight. the masters may tee off in augusta. the latest golf digest cover. lexi thompson appearing topless on the may cover drawing as much support as outrage. julie, host of bueller's day off. bueller's day off. julie, welcome back to the show. great to have you here what was your reaction to this cover? >> i'd love to get to a point where women can be

great in their field and be recognized for their superior prowess intelligence business acumen and not have to take their clothes off. i understand it's a fitness episode and she's very fit. she's obviously gornls. gorgeous. if you tried to convince me that she's sporting fitness and wearing nothing, but the towel, don't try to sell fitness. she can't run a mile with that. women feeling like they have to compensate. >> let's here from lexi herself. >> i have more clothes in that picture than a lot of girls at the beach. i have shoes on, shorts on, and i have a jacket covering me. it's pretty funny to hear those comments. fitness is a huge part of my life and a huge part of the lpga tour. a lot of fit athletes out there. fitness is a huge part of athletes life in general. >> julie here is my

reaction. at least she's a golfer. i mean you saw the polina graduatesy cover. she does not play golf. she's want a pro golfer. she has nothing to do with the game. (?) that to me was an insult. >> last may's cover was polina. they said, we're sorry. we'll take the last major winner, lexi thompson, give her side boob, say we've made amends. >> i'm glad you said side boob. i didn't want to say that. wait a minute. before you finish here i have to say showing your torso is a big thing with golfers. take a look at golf digest from march. look at rory. that's studly. >> studly. and tiger woods taking his shirt off too. and the reality is, look i appreciate fitness and if she was

wearing a sports bra gerri, i think we would be having a different conversation. she's not. she's wearing nothing and covering the necessities. at the end of the day we're talking about a generational influence here. lexi thompson was the youngest to qualify for the u.s. open at the age of 12. she's always been in the public's eye. always known about marketability, exploiting. that has a lot to do with it. she doesn't think it's a big deal. i'm not blaming her. we as a culture need to come to a point where women don't have to do that to get attention. gerri: i don't know. i was more bothered by the polina photo. >> that was ridiculous. we need attention. >> masters your expectation. >> tiger is playing. and it's the largest field in more than 50 years. gerri, i'm happy to say i think it will be very exciting. i'd love to see a nobody win it at all.

bubba came to the national forefront by winning the nationals. i want to see another dark horse. >> i'm all rory all the time. >> great to see you too. >> when we come back, when will gas prices spike again? is there something you can do to protect your money? we'll look at the idea of gas insurance. next, homes are easier to afford. so why aren't sales keeping up with prices? what role should the administration have in things? peter barnes with a live report from d.c. is next. here's your consumer gauge with the numbers that mean the most to you. ♪

>> the administration wants to make it as easy as possible to buy a home. and that was discussed today. the housing afford

ability conference where the vice president repeated once again the administration's commitment to access to affordable homes. can they do much to help given the tight credit standards and leery banks? >> administration officials did not announce any specific new initiatives at that conference today. vice president biden said the administration (?) wants to do more to help people buy homes. >> even though housing is back, we continue to have to fight for homeowners because a lot are left behind. you know, a lot of people move -- got kicked out of the housing market. they lost everything. so when housing went back up, they weren't part of this. >> just last week housing secretary castro suggested that the administration is seriously considering supporting new types of credit scores to help more people to get loans to purchase homes. gerri you've been covering this issue. since the financial crisis lenders favor

applicants with high fico scores from fair isaac. it uses debt repayment records to calculate them. at the same time, banks generally have been underwriting loans since the crisis, only with government backstop loans that get insured by fannie mae, freddie mac. they may be able to push new lending standards with new types of scores. fair isaac announced a pilot program for fico scores that use alternative data to help set them. such as property and utility records. anyone who supports this kind of shifts says recon figured scores will only be used to help responsible borrowers. that may be the case. (?) but one critic, anthony, told me today, quote with weak wage growth changing credit scores would result in more households being put into homes that they

can't really afford. that would create another bubble, particularly if the fed keeps juicing the market unless wage growth increases dramatically, we could see another big crash. >> peter, i have to tell you. i see this as seeing the same movie again and it doesn't have a happy ending. these credit scores could put millions of people in homes who otherwise -- >> yep. gerri: -- would be deemed not capable of affording one. it sounds crazy. >> and there's a reason why someone gets a low credit score typically. they don't have a good track record in paying debt. fair isaac said they could help 15 million consumers who do not have enough credit data to generate a fico score for now to get credit cards, gerri. gerri: that is just crazy as a loon as far as i'm concerned. thank you for coming on the show. >> okay. gerri. gerri: appreciate your reporting. >> thank you. gerri: drivers worried about a

spike in gas prices have an option to purchase insurance. a new (?) company will shield drivers from gas prices. four bucks a month. will gas prices spike this summer? we're talking to patrick. senior petroleum gas analyst for gasbuddy.com. so talk about how this works as a practical matter. i think this is a really interesting service. of course, i'm not worried about gas prices right now. but some day eventually, they'll go higher. right? >> sure. yeah, gerri we've seen programs like this in the past. some of them are different in nature. this one seems to be more insurance-based. i believe there was a program, my gallons, actually prepaid. you had to go to certain gas stations. it was a mess. didn't get a lot of attention that is. and this program -- now i did take a look at it. and, of course it's good and it's bad. and i think the bad issues are pretty glaring. that it only covers you

up to 20 gallons a month. for americans out there, 20-mile a gallon car only 500 miles a month. and, you know looking at what it costs, 3.99 a month. there's smarter ways to save. >> 2.75 a year. as you said it only applies to 20 gallons a month. you get 240 cashback averages 375 a year. it costs 50 bucks a year to have this service. >> right. gerri: would this make sense for everybody? who would it make sense for? >> well you know, i really don't know a whole lot of folks it would make sense for. california would be capped at 3.75. not 2.75. it would be interesting if they capped alaska and hawaii. if they don't, i would buy into it. obviously hawaii, four bucks a gallon. here's the problem, is that not only does it cost $4 a month and not only are you capped -- and you said $50 a year to do it --

gerri: it's a per month cost. that's right. >> right. right. and what we're looking at here is, on the same day ironically that the ea lowered its gas price to 2.40 a gallon. is this money down the drain? we're a bit more optimistic. we had to backtrack. i don't foresee a lot of states breaching an average of 2.70 a gallon. of course, california. but in california, the insurance covers 3.75. i'd rather save my money and here's a self-plug. i'd rather use gas buddy. >> that's a self-plug. i know you don't want to give advice. but would you buy this product? >> i wouldn't. perhaps if there was a situation where they would be willing to cover more gallons per mile. i do a lot more driving than 500 miles a month. 20 gallons a month. that's a tank. that's not a lot that's covered. perhaps if there can be

you know, some shifts. by the way, this is a safe bet for the company putting it on because almost no forecast, like i said, foresee it at 2.75. i want to see options and various prices that i can ensure if it goes over two bucks, more options is better. gerri: if someone is willing to take the other side of that bet maybe it means they are very confident that prices won't go to this level. >> exactly. exactly. gerri: patrick, thanks for coming on the show. good to see you. >> thanks, gerri. gerri: the coceo of one of the hottest fastest growing fast food chains in the country. find the secret of chipotle's success. and it's not all about the food. stay with us.

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food industry, as they call it, fast casual is chipotle. but the success isn't all about the food. chipotle is a great example of something we don't hear enough about today. that is a solid work ethic and a willingness to start at the bottom. recipe for success. the man who carries that message to the nearly 2,000 chipotle restaurants every day. monte. thank you for coming on the show. (?) i think when we talk about the secret sauce of chipotle. we talk about the food. something they're serving. you believe it's in the employees. what are you doing with the employees to improve their work ethic, get them on the right page. >> well it's certainly both food and people. no question about that. what makes people excited, they have a real vision at chipotle. it's a vision to change food culture and change the way people think about fast food and eat fast food. we try to hire the absolute best people we can. we put them in a culture

that brings out the best in them. we empower them to be at their best. we have a work force of people pursuing that vision and having fun doing it. that's a huge secret to our success. >> everybody complains about the jobs in fast food or fast casual. low-paying. low wage. it doesn't matter. but your view is, hey, get on track. we'll reward you if you do well. tell me about your philosophy when it comes hiring and promoting. >> yeah you know, we -- like i said, we hire the best people. we don't just hire anybody. even though we hire tens of thousands of people every year, we're looking for future leaders. we're looking for people that can set us apart. can come in as crew people and very quickly work up to manager positions. we promoted 9,500 people into manager positions. likewise 90% of our managers come from crew positions in chipotle. this people culture as we call it, is one that attracts great people. because we attract

people that know, that they can with a little hard work become part of the management at chipotle and also even take on larger and larger leadership positions at the company as they continue to work. and some of our people have gone from crew positions all the way now to executive team director positions where they oversee tens of thousands of people. and they're able to have a huge impact on making a lot of people a lot better. >> we should make a point here that the stores are company-owned. not sold as franchises. you guys are in charge of everything. >> right. gerri: on employees, you have to start somewhere. my first job, i could have gotten federal dollars because i made so little money. but that's the way it works. right? >> yeah. i mean, it's important what you pay people at the beginning. but it's way more important what kind of opportunity you give them. we love to see people at the crew position who after six months or a year are already in management positions. they're not worried about what they're making. they're worried about how many other people they can impact and improve the lives of the people around them. i mean the foundational

principle at chipotle is that each of us will be rewarded based on our effectiveness in making people around us better. because of that, our best people rise very quickly into leadership positions where they can do just that. >> 53,000 employees. 1700 stores. i want to talk about your view of your own job. it's kind of odd to have a co-ceo. from what i understand, you're all about being in the stores. talking to the customers. talking to the employees. you're in the refrigerator for goodness sakes. i mean, you're everywhere. why. why do you think that's important? >> well i think it's important. to be honest with you the ceo role is not that important of a role if you can't do something to make the most important people in the company better. the most important people are general managers and our crew, the ones who make a great restaurant experience or don't. cook delicious food or don't. hire great people or don't. at chipotle, they're doing a wonderful job at all three of those things and more. so the only way that it's -- that my job makes any sense is if i

can go out and make a people culture, and a culture at chipotle that attracts the best people and exposes them to where they can be at the very very best. it's important to be with our crew, with our field leaders to understand what's happening in those restaurants. understand what people love what they don't like. what's making them excited and what's not. gerri: quick last question. and a tough one, i think. you say it's a people culture. you say it's about the people in the store. we've seen a lot of troubles and a lot of old lined fast food restaurants like mcdonald's and others many of them having trouble. people tend to say it's about the food. is it more about the culture of the companies itself that is leading to this issue of people not coming in the front door. >> i think it's both. our people wouldn't be as excited as they are if they didn't have a vision to change food culture like we have at chipotle. we seek out the best ingredients with an eye towards healthfulness

and environmental sustainability that attracts the best people. you certainly need to have both. >> i apologize. i have you up against a hard break. it's my fault. thanks for coming on. so nice to meet you. >> nice to meet you too.

♪ >> i'm charles payne you're watching "making money." it was close but no cigar. like a thoroughbred on its last leg, the market faded into the close big time. the market can rally. now the question is what will it take to sustain a rally? oddly, there hasn't been a lot of news to account for this nice rebound. a 600-point move from the dow in less than a week. pretty impressive. not sure where it's happened. we're glad it's happened. here's the thing perhaps as amazing or as mystifying, the surge in the price of crude oil. i know you guys hate when i talk about higher gas prices. but higher crude does have some positive connotations for the economy. this is pretty interesting. crude hit a bottom here. a bottom here.