hi everyone. welcome to "on the money." i'm becky quick. the woman who went from hooters girl to president of cinn now has an even bigger job. and a company who helped revolutionize the way we shop wants to the same with its workers. and also the sneaker maker to the stars. how a 73-year-old transformed his small shoe business and now makes custom footwear for names you will know. >> about 4500. but you get both shoes. >> "on the money"starts rights now. >> this is on the money.

your money, your life your future. now becky quick. >> a look at what's making news. america's economy grew at a slightly slower pacest last quarter than first thought. the second reading of the gross domestic product, that is the broadest measure of size and scope of the nation's economy showed an increase of 2.2% annually down from the original read of 2.6% but still slightly above what expected. and spending was strong but investments slowed down. the nasdaq inched closer to the 5,000 mark as breaking a ten day winning streak on wednesday. stocks fell on friday. it's still a waiting game when it comes to interest rates. in her annual testimony before congress federal reserve chair janet yellen said the fed was pleased with economic growth and was in no hurry to raise rates but your rates could go up if you are american express card. it could increase rate for what

it says is a small percentage of card holders after a yearlong review process. the average increase for those hit the would be about 2 and a half points. it was a fine year for california wines. exports were second most valuable on record last year, hitting almost $1.5 billion in revenue. almost all was from california and the eu was the biggest buyer of those wines. from her start as the hooters waitress to vice president of the company. kat cole has had a unique and stellar rise in the industry. she led the bakery chain cinnabon to 1 billion dollars annual sales. her new job at focus brands. thanks for being here today. >> my pleasure. >> you have a brand new job and i know everything you have done with cinnabon. how is your new job going to be different from the old job that you had. >> luckily the new job does have some parallels to what the team and i did at cinnabon, really focusing on the multichannel growth, consumer package goods

and all forms of retail and launching e-commerce. and it's difference sit's solely focused on all six brands in targeting those channels. in some cases the person we're marketing to, the shopper, is actually not the consumer. so unlike the direct consumption op in a grocery store you might be buying it for someone at home. so the marketing challenge is to communicate to both parties in an effective way. and that is a different muscle. >> you have had a meteoric rise. a lot of success in a loftd roles. i wonder if you can talk about the personal lessons you have learned along the way. >> i've learned many lessons. certaiy starting from my single pom who raised me and my sisters to working at hooters restaurants and from running cinnabon. and a few are about what i think are the characteristics that i think 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 over indexed 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 as an overshoot one direction or another. what is some things? >> you know, when i first came on board with cinnabon the -- actually i over shot with both. i came on board and there was an exis project with the brand. because i was new president and only been there a few months i didn't ask the right questions. i didn't poke any nose in some things going on and part of the reason because i really had a great deal of humility. i thought who am i to question these people who have been here before me, been in the industry much longer. i need to trust them. and what i failed to do was to remember that if you are the president of a company, there is

no one else when you look over your shoulder to answer the questions or to make the decision. and i didn't ask that question if not me who? if not now when? and because i didn't ask the right questions things evolved in a way that were not producti for the business. >> i read an interview you talked about something you do yosmt gou away just on your own and think just about every r or something. >> yeah. on the job. ink about what >> the concept of believing that a that if a hot shot took over your job today they would not be burdened by the complacency that comes from progress. i've been in the chair three years. and i've improved them and i might sit there and think, you know, what it's so much better than three years. whereas if someone took over the job today they would have the fire in the belly to look at the things i call progress and call it unacceptable. and 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 as if it's my first day and have the courage to say, you know, what i've got an little complacent. because we've had progress does not mean it's okay. >> no resting on the laurels. >> right. and it encouraging me to be vulnerable with my team. even i am not doing as wells as i could and should and puts a fire under my butt to pick up the phone and 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 and all around the globe. what is the state of the consumer t right now? >> influx and exciting every day. we do business in market likes russia. so of course it is very interesting time in that country. we are highly saturated in the middle east with the cinnabon and carvel brands. an antianne's plays in a big way in asia. and the others 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 replay in with fluctuating economic condition, fluctuating consumer confidence. >> and a strong dollar too. >> and a strong dollar. and so it is more of a marketic exercise and market entry exercise than it has been before. >> the --. the main character is seen as working at the cinnabon in omaha. >> absolutely. did that happen and what does it mean for your brand. >> breaking bad actually kicked it off. and the key character, bob, ended up saying in one of the scenes, if i'm lucky i'll end up as a manager of a cinnabon in oma omaha.

and th one of the last episodes of the breaking bad and our team jumped on it. and we got a call and they said we want to do something with. this we're going to bailed back story of sal goodman. and we'd love to film in one of your bakeries. and that sounds fun. and we actually trained him. that is him making the cinnabons in the scene. and we would never have known it could turn into the first few minutes of the premier of this successful television show. >> thrilled to see you again. and thank you for coming in. >> thank you so much. kat. thank you. >> up next "on the money." changing the way we buy shoes. now the online retailer is changing the way it wants to pay d making sure your financial adviser isn't the shy and retiring time when it comes to closiing his interest and yours.

right now as we go to break look at how the sen.

online retailers zappos shook up the way many of us buy stuff, shoes especially. now they are shaking up the way employees get paid using the concept of surgery ppay. employers earn paycheck base on how much or how little the customers need them. and the man who bill this model is adam goldstein. adam thank you for being here. >> thank you for having me. >> i like this idea, this whole surge pay i think. how did you come up with it? >> a little history. we have ab experiment we've been running called open market, e tryin give our call center employees more flexibility. so as you can imagine, call center there is very rigid shifts. because we have a forecast of

how many calls we expect to get from our customers. and we need to make sure that we have people there to answer the phones. and so since our customer loyalty team is the heart and soul of zappos we want to make sure they are there to wow our customers all the time. but we alt also want to give them the flexibility so they can get to a kids soccer game or do things that come up last minute. >> how -- when are the busiest times for you? is it at night? when people are at work? on the weekends? >> so some of the busiest times are actually because of the time difference between the east coast and where our call center is in las vegas, nevada why where the zappos headquarters is. >> so that is a big reason behind the implementation. you are asking people to work crazier hours. they can choose that if they want to make a little more money or they could choose bankers hours and make less money as the result result. >> we're not doing anything with employees based wages. anything we've tested so far has

been a bonus on top of their existing wage structure. >> and how have employees responded to this point? >> employees love it. we've seen self-reported 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 some of the harder to fill hours? >> right now we're not paying any extra for the harder to fill hours. we've actually 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 they want. so not just the answering phones if that is 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. or maybe they can even choose to spend some of their time to read a book if it will make them happier. >> adam, i know you work in the research and development lab.

of zappos. and you are coming up with all kinds of new and interesting ideas what other ideas have you been testing out recently. >> the most recent thing that we've released to the public is "ask zappos" which is a product i started right after i was hired a little over a year ago. and it allows customers to text us photos of a product they are either having trouble finding on our site or in stores or maybe just an outfit they see someone wearing on the street. and people in our customer loyalty team will spend time tracking down these products, even if it is something we don't sell on zappos and we'll let the customer know where they can buy it. >> thank you for joining us today. >> no problem. >> up next "on the money," making sure your retirement adviser has your best interest at heart, not his. and it's never too late. the 73-year-old man who reinvicinitied his business. now he is a sneaker maker to the stars.

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all. the 2015 c-class. see your authorized merds benz dealer for special offers. there are a lot of very fine financial advisors out there. but there are also financial advisors who receive back door payments or hidden fees for steering people into bad retirement investments that have high fees and low returns. >> that was president obama this week calling for new regulations

to ensure brokers who work with retirement accounts are held to a higher standard. joining me to explain it all is personal finance correspondent sharon epperson. what does this mean and what is fiduciary responsibility? >> that is the number one question your advisor probably does not want you to ask them. because they are helping you don't understand it. here is what you need to know. when you think about the fiduciary standard. say you go to a doctor who doesn't take insurance and she decides you just pay her. she writes you the precipitation for the best drug for you. looking out for your best interest. then there is a -- who wor who s for a pharmaceutical company. and he prescribes the drug that that pharmaceutical company makes. so it may be something suitable but not necessarily in your best interest.

>> and just knowing that, making sure you are told or you are aware of these conflicts is a big part of it. >> that is a big part of it. there are three questions to ask y get beyond the fiduciary rule and look at what the things are you need to know, it lep you figure if they are fiduciary. ask your advisor. many people call them aed a vierds. are you the broker, resident advisor or the certified financial planner. that broker is regulated and they have to uphold the suitability rule. a registered investment advisor is regulate by a state securities agency and/or the securities exchange commission and must uphold the standard. and then a certified financial planner, criter. they are offer services then the cfp board will also hold them to the is it standard. >> which has the highest starteds then? >> the highest standards are the

fiduciaries. they are the ones that put your best interests first. they are supposed to put you in investments that reflect what is best for your needs and financial goals. >> how can you tell if someone has your best interests at heart and how do you find someone else. >> definitely ask about the conflict of the interests. ask how you're compensated. are they commission based, a fee based. combination of those. that can help. and when you go to the securities exchange commission website there is an investment adviser check. you can figure exhibits or disclosures ab them if there are any. the same with the -- website. they have the broker websz. the those are always things you want to do to make sure that the advisor is right fu for you. >> so whose against the president's proposal? it sounds straightforward. >> sounds like this is something everyone would want. but a lot of folks in the financial services industry are saying brokers are doing a good job already and serving as price

point that may be more affordable than playing a the flat fee or assets under management to a financial advisor. so don't take the brokers out because they are still doing a service and just let hem keep going. but they are also just 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? >> it's very good advise to just the questions. >> just ask the questions. and you know, how they respond and whether they waffle can tell you a lot. >> sharon, thank you. >> sure. >> up next "on the money," a look at the news for the week ahead. and the sneaker maker to the stars. the 73-year-old man who makes shoes for diabetics and amputees. but now he also counts beyonce and justin timberlake as clients.

for more you can go to our website. otm.cnbc.com/"on the money." >> on monday we'll get personal income and spending for january. and manufacturing index for february. on tuesday we get february auto sales. oh say did you know, that tuesday marks 84 years since the star spangled banner became the national anthem back in 1931. the federal reserve releases its

beige book on thursday. and on friday the big number of the week for the labor department. 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. transforming his business and maybe even his life by switching gears and styles. kate rogers is here joining us with more to the 73-year-old sneaker maker of the stars. i love this story. >> me too. and ken silverman creating a new company called relevant customs. take a look. >> we thought to make the shoe from the inside out. >> if you have problem feet ken silverman is it your guy. the new york based shoe manufacturer has been catering amputees, diabetics and people who need orthopedic shoes for his entire career at his business american orthopedics.

>> my dad started the company since the second world war and i've been working here since here i was a young teenager. >> he's 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 enthusiast will buy for thousands of dollars. >> this shoe is going to be around 2,000 dollars. >> you're probably wondering how a shoemaker went from selling custom shoes that look like this for diabetics and amputees to selling shoes that look like this, custom made for sheiks and hip hop royalty alike. >> his son john worked on custom made shoes in new york city in addition to his work at the family business and encouraged dad to look at creating sneakers. the technology they needed to make the switch was already in place. >> the stitching we have here with the machines and operators

we have here allow us to do this kind of intricate stitching. and so it is this intricate stitch asking the ability to perform and make stuff of this quality that's allowed us to make the segue into the sneakers that we're doing. >> two years ago they got one of their first pairs of sneakers on jay-z, the rapper was photographed wearing relevant customs shoes and more orders trickled in. the transformation has been slow with the business gaining clients mainly through word of mouth. but the a-list clients from bejohb beyonce and timberlake to p-diddy and 50 cent make things good. >> and relevant custom ms designs embarks on its next venture, first entirely original shoe design. >> do the star clients know about the other business? >> he said actually 50 cent came into the facility and saw what they were doing.

he was really impressed and he got a kick out of it. i think it goes to show you celebrities don't care as long as they look cool. >> very good. i love the story and he looks like a lot of fun. >> he was warring marshalls new balance sneakers we went to meet him so he's definitely not drinking the cool aid. >> i love that too. >> thank you. >> i'm becky quick. than joining me. next week warren buffett, his views on the economy, where he's investing and his unusual diet. keep it here, have a great one and i'll see you next

>> i am so sip serial sorry. the on air apology. hi even. welcome to "access hollywood", hollywood", weekend edition. i'm shaun robinson. the remark on fashion police with the hair do were pretty tame. they could have been edited out but apparently nobody saw a reason to could so. the question is why? >> i want to apologize for a comment that i made on last night fashion police. with her hair as you know fast application is a show that poke if you please at celebrity in good spirits but i do understand that something i said last night did cross the line. like i feel like she