danny meyer came to us in the midst of the great depression.e says what you want to buy are not companies that are going to save you money. don't buy the family dollar or the walmart. he was saying he wants to buy hospitality companies. look at the hospitality index and how it has outperformed the s&p and look at what he was talking about. he recognized that you can go to amazon, good customer service, google, good customer service. apple, monster good quarter. goldman sachs. what he said was the way you make money in a recession is to go with the companies that have built tremendous loyalty. we questioned his judgment. i was thinking you got to go with the companies that give you the most tremendous value. he was right. danny meyer is a guy that i listen to. he's a guy you should listen to, too. "mad money" back after the break. >>> now you can stay connected to cramer wherever you go. we have full episodes on itunes. get daily text alerts sent to your phone. now with constant updates on twitter, you can get "mad money" any time, anywhere. >>>

i want to talk about danny meyer, the best book i read about business in the last few years called "settinghe table." he came to us in the midst of the "great depression," great depression 2. he said what you want to buy are not companies that will save you money, try to not get you to buy the family dollar or wal-mart. he was saying he wants to buy hospitality company. take a look at the hospitality index and how much it has outperformed the s&p and look at some of the players, what he is talking about. he recognized he could go to amazon, had good customer service and google had good customer service, apple. monster great quarter, goldman sachs. what he said was the way you make money in a recession is go with the companies that have built tremendous loyalty. we questioned his judgment. i was thinking you ought to go with the companies that give you the most tremendous value. he was right. danny myers is the guy i listened to, he's the guy you should listen to, too. "mad money," back after the break. nicolaus. >>> best july since 1939? i think that's saying something. there's always a bul

in the past, danny meyer had objected to starbucks because he was worried about overexpansion. too many stores that lacked the hospitality factor and not enough qualified workers to make it feel good. to make it happen. but now that howard schultz is back behind the wheel, that problem's being addressed. by the end of the year, starbucks will have -- i think this is good news, i know it's going to sound strange, good news -- they'll have closed 800 unprofitable stores in the u.s. they intend to close another 100 stores internationally. they still expect to grow year over year, but most of the growth will be international. starbucks still has less than 1% of the market. they have a host of new products and initiatives that i think will work. on june 30th, it rolled out the new healthy food program. let's try the smoothie. i think we've got one here. let me give it a little taste. two thumbs-up. as well as some cheaper coffee options. that's right a grande ice coffee for $2. the triple vente that was botched by the barista hack that i have. that's $4.90. that's too expensive. the

the company is a major danny meyer hospitality quotient. those of you out to citi field with the mets, you know the only thing good out there happens to be the shake shack, danny myers plays. i also blew smoke at the other danny myers place. i think it will take share in the consumer electronics market. a famous restaurant owner postulated the companies which make the customers feel comfortable and at home will outperform those that don't. this is a thesis we tested on the show. believe me, i was just as surprised as anybody else when it turned out that the stocks in danny's hospitality index outperformed the rest of the market. hhgreg is a high service model. it fits the thesis. second best consumer satisfaction rating among appliance retailers from jd power in 2008. offers same day delivery on the products. i'd killed for that. come on, you order it and it's there? like you order it and you want to watch the phillies in the world series and it's like game one. come on, you got to get it there. it's employees -- or like that golf thing. how