Good morning readers. If you’ve seen the movie ‘Her’ starring Joaquin Phoenix, then you’d know the AI his character falls in love with is the voice of none other than Scarlett Johansson. Well, it looks like the the team over at OpenAI fell in love with her voice as well. The actress is raising her voice against the company, claiming they replicated her distinct tone for their ChatGPT AI software, despite her refusal to do so. The controversy unfolded after OpenAI unveiled "Sky," its latest AI voice, drawing stark comparisons to Johansson's portrayal in the movie. According to Johannson, CEO Sam Altman made multiple requests, she declined, but the company went ahead and used her voice anyways.

How does that saying go…ignorance is bliss? Maybe not so much this time.

Let’s jump into today’s storylines.

In today’s digest:

• The rise and fall of Red Lobster

• Headline Hustle: Iran’s president dies in helicopter crash due to apparent “technical” issue, the International Criminal Court seeks arrests of Israel’s PM and Hamas leader, FDIC chair to resign due to damning workplace harassment probe

• Are department stores going extinct?

• Pulse Points: What’s Trending

FOOD

From seafood giant to financial flop: The tale of Red Lobster's downfall

In the world of seafood dining, Red Lobster once cast a wide net as the go-to destination. Yet, recent times have seen this iconic chain flounder, leading to a bankruptcy filing that has left the industry reeling and nostalgia enthusiasts mourning over their cheddar bay biscuits.

A dive into the deep end

It all started innocently enough with a promotion that seemed too good to be true: $20 for endless shrimp. This deal, once a limited-time offer that drew crowds, became a permanent fixture under the new ownership of Thai Union, the Bangkok-based seafood titan. The intention was clear—offload a surplus of shrimp—but the execution turned out to be costly, draining $11 million from Red Lobster's coffers.

Beyond the endless shrimp debacle, the bankruptcy filing revealed deeper issues.

• Key decisions, like cutting off established shrimp suppliers for an exclusive deal with Thai Union, not only spiked costs but also bypassed the company's standard decision-making processes.

• This strategic misstep was part of a broader trend of mismanagement under Thai Union's watch, which included pressuring staff and a revolving door of C-suite executives, all contributing to the restaurant's financial distress.

The chain's decline is a stark shift from its heyday. Founded in 1968, Red Lobster revolutionized seafood for Americans, growing rapidly under General Mills and later Darden Restaurants. But as the fast-casual sector like Chipotle and quick-service giants like Chick-fil-A expanded, Red Lobster's allure began to wane, with insufficient investment in marketing, food quality, and restaurant ambiance failing to attract younger diners.

Lessons from the deep: The seafood giant's fall from grace reflects broader shifts in the dining industry, emphasizing the need for innovation and sensitivity to market trends and consumer preferences. Now, industry watchers and diners alike wait to see if Red Lobster can find a way back to calmer waters or if it will remain adrift in the harsh seas of the restaurant industry.

IN THE KNOW

Headline Hustle

🇮🇷 Iran’s president, Ebrahim Raisi, killed in helicopter crash. Iranian President Ebrahim Raisi was killed in a helicopter crash, an event that deeply impacts the political landscape in Iran and its regional strategies. The crash, which also claimed the life of the Foreign Minister, occurred amid significant regional tensions and internal pressures in Iran. Despite the sudden change, analysts anticipate that Iran's key policies, including its nuclear ambitions and regional military activities, will likely continue unchanged due to the centralized control of the Supreme Leader. Raisi's death is also notable for the reactions it provoked among Iranians and the diaspora, reflecting his controversial legacy and Iran's polarized political environment.

🌎️ The International Criminal Court seeks the arrests for Israel’s PM and Hamas leader. The International Criminal Court (ICC) is seeking arrest warrants for Israeli Prime Minister Benjamin Netanyahu and Defense Minister Yoav Gallant, along with leaders of Hamas, alleging their involvement in war crimes and crimes against humanity. This unprecedented move by the ICC, if approved, could significantly impact Israel's international relations and complicate its ongoing military operations. Netanyahu has vehemently rejected the accusations, equating the ICC's actions with anti-Semitism, and has vowed to continue Israel's military efforts in Gaza. The U.S. has expressed strong opposition to the ICC's actions, emphasizing unwavering support for Israel.

🔎 FDIC Chair Martin Gruenberg to resign after workplace harassment probe. Martin Gruenberg, Chair of the Federal Deposit Insurance Corp. (FDIC), announced his resignation following a report detailing a pervasive culture of sexual harassment and discrimination within the agency. Gruenberg stated he would remain until a successor is confirmed, acknowledging the need for a transformation in workplace culture. The report by Cleary Gottlieb, based on over 500 accounts, also criticized Gruenberg’s behavior, describing it as aggressive and occasionally abusive. This announcement aligns with calls from Senate Banking Committee Chair Sherrod Brown for immediate leadership changes at the FDIC to address these deep-seated issues.

RETAIL

Department stores: Old brands, new tricks?

If department stores were a TV show, they might be "The Golden Girls"—beloved, certainly, but with a fan base that’s, well, aging gracefully.

With icons like Macy’s, Kohl’s, and Nordstrom wrestling to stay relevant in a world dominated by quick clicks and social media shopping sprees, it's clear that a generational shift is needed to save these retail giants from becoming relics. As millennials and Gen Z consumers turn their backs on the traditional everything-under-one-roof shopping model, these stores are facing what could be their final clearance sale unless they reinvent their approach.

The crisis at hand

The aging customer base isn't just a quirky statistic; it's a dire warning. At Kohl’s, 40% of shoppers are baby boomers, and at Macy’s, boomers make up over a third of their clientele. These stores are struggling to attract younger shoppers who crave novelty, simplicity, and, most importantly, experiences that resonate with their digital-first lifestyle.

In response, these storied brands are taking bold steps to revamp their image and offerings.

• Kohl’s is weaving trendier threads into its aisles, betting big on beauty by expanding Sephora shops, and even partnering with Babies R Us to attract young parents.

• Meanwhile, Macy’s is shrinking its footprint, opting for smaller locations in busier suburban strip malls rather than sprawling spaces in waning malls.

• Nordstrom seems to have a head start, with a knack for snagging partnerships with buzzworthy brands and its off-price Nordstrom Rack stores that appeal to budget-conscious but style-savvy younger shoppers.

Redefining an icon: Despite these efforts, the forecast remains dim with predictions of stagnant or minimal growth. The challenge isn't just about staying trendy; it's about overhauling a business model that has relied heavily on promotions and discounts—a formula that doesn't click with the clear pricing and innovative products sought by younger consumers.

SNIPPETS

Pulse Points

• Microsoft unveiled a new line of PCs that are designed to run artificial intelligence features of software for Windows. The company also made a bold statement that these new computers can outdo even the best, and that includes Apple’s MacBook Pro.

• Jamie Dimon, CEO of JPMorgan Chase, is letting everyone know his retirement might be coming sooner then expected.

• Target has immediately reduced prices on over 1,500 items, including butter and laundry detergent, in an effort to attract shoppers cautious of inflation and high prices.

• Elon Musk and Indonesian Health Minister Budi Gunadi Sadikin launched SpaceX's satellite internet service for Indonesia's health sector on Sunday to enhance access in remote areas of the archipelago.

• The U.S. Food and Drug Administration approved Elon Musk’s Neuralink to implant its brain chip in a second person, following the company's proposed solutions to an issue encountered with the first test participant.

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