In short
Podcast Notes: Espresso - Rory Sutherland - The Behavioural Economics of Bubble Tea
Podcast Overview Title: HUNGRY Description: A podcast targeted at Challenger Food and Drink brands that want to accelerate their growth. The host encourages listeners to subscribe for insightful content.
Episode Highlights Episode Title: Espresso: Rory Sutherland - The Behavioural Economics of Bubble Tea Episode Description: Discusses the unique appeal of bubble tea through the lens of behavioral economics.
Key Concepts Discussed
- Variable Reinforcement Theory
- Definition: A behavioral principle where rewards are given at random intervals, leading to addictive behaviors.
- Example with Pigeons:
- Pigeons initially received a predictable amount of food upon pecking a switch.
- When the reward became unpredictable, their pecking behavior intensified, akin to gambling behavior.
- Appeal of Bubble Tea
- Inconsistency in Experience:
- Each sip offers a different experience (e.g., unexpected tapioca lumps).
- The changes in texture and taste contribute to a heightened sense of enjoyment.
- Drinking Experiences
- Negroni Analogy:
- The initial strong flavors of a Negroni contrast with the diluted taste as ice melts, creating a dynamic drinking experience.
- Fluidity of Drink Strength:
- Preference for varying drink strength, as seen with gin and tonic, reflects a desire for an evolving sensory experience.
- Predictability vs. Surprise in Food
- Food Experience Dichotomy:
- McDonald's represents predictability with no surprises, contrasting with artisanal foods that offer unique experiences.
- Expectations and Reality:
- The brain often predicts outcomes; surprises can enhance or alter taste experiences.
- Innovative Food Presentation
- Charles Spence's Research:
- Creating unexpected food experiences (e.g., strawberry-flavored sorbet in a lemon) challenges taste perceptions.
- Illustration in Food Packaging:
- Hand-drawn illustrations evoke feelings of authenticity and artisanal quality, influencing consumer preferences.
- Perceptions of Quality
- Consumer Assumptions:
- Packaging design impacts assumptions about the quality and nature of food products.
- Consumers often prefer artisan-styled products over mass-produced options for special occasions.
Closing Thoughts
- The episode concludes with a reminder for listeners to subscribe and share the podcast.
- The importance of the Unleashed inventory management system is reiterated, emphasizing its role in enhancing operational efficiency for food and drink brands.
Additional Resources
- Unleashed Inventory Management: Offers two months free for listeners.
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Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
Automatic transcript. May contain errors.0:04I think one of the reasons why bubble tea, the behavioural economics of bubble tea is its variable reinforcement theory in a cup. which is it's a bit like the chocolate at the bottom of the cornetto which actually i think is there to prevent leakage but it's like the final little unexpected treat at the it's the easter egg at the end and we seem to like certain foods that are kind of slightly uneven okay so i'll go back to the uneven texture so there was an experiment with pigeons where they basically trained pigeons so if they pecked a switch they got a a couple of pellets of food yeah and the pigeons would basically peck the switch have a couple of pellets of food peck it again have another couple of pellets of food and after about three pecks they get a bit sated and a bit bored and they wander off to do some other pigeon stuff whatever they do other pigeon stuff shitting on people or whatever it is okay and then there was a weird glitch in the experiment where they kind of ran out of food pellets and so they made the thing a bit random where when the pigeons pecked the thing they couldn't afford to give them two pellets every time sometimes the pellet the pigeons will get no pellets, sometimes they get one, sometimes they get two.
1:13And at that point, the pellets was like a bloody pigeon fruit machine. They became completely addicted to this because the return was no longer constant and predictable. It was uncertain. The pigeons got addicted to it? The pigeons basically were just pecked and pecked and pecked and pecked. And you basically created pigeon Vegas for these bloody things. And they were just going and pecking and pecking away. And there seems to be some component in variable reinforcement theory, which may explain the appeal of bubble tea, which is that it's different. It keeps changing all the way down. Sometimes you get one of these big lumps of tapioca shooting up.
1:48The texture of it. Well, it's just that no two sips are completely alike. I interviewed Margot Henderson, who's Fergus Henderson's wife, who obviously did St. John. And we were talking about... That, would you believe, it was my local. We were actually in St. John Street as an agency. Oh, really? Back in the mid-90s. And my God, I was grateful to that place. So a couple of things. So she talks about the art of drinking a Negroni and why a Negroni is so good. So it's like you're quite stressed. The first sip of a Negroni is actually super strong and punches you, and you get the thing of the lemon, or sorry, the orange or the lemon.
2:20So that really hits you. And then you have two of those. And actually, as you get slightly more drunk from the big hits, by the time you get the end of the Negroni, the ice cubes will begin to melt. So it's actually a much softer drink. So what we were saying is it sort of dances with your mood. Well, I mean, when I drink a gin and tonic, I like to have the tonic bottle so I can vary the strength as I go through. I like to start with something. Basically, you start with something which is, you know, a bit of a depth charge, and then you end up with something that's a soft drink. Yeah. And interestingly, that may explain why, actually, if you make a really good Bloody Mary, you shouldn't mix it perfectly, conceivably.
2:56In other words, the Tabasco should be slightly unevenly distributed. I don't know. What do you think? Okay. Now, this is a bit weird, because you know one of the things I say, which is that the opposite of a good idea can be another good idea yeah right um the interesting thing with food is there's mcdonald's food where the success is that it's completely predictable there are no surprises in other words there's nothing there to make you uneasy okay and then there's another kind of food which is you know it's never the same twice and weirdly depending on whatever mental frame of perception it may be sometimes we seem to want one and sometimes we seem to want the other and you might argue there's a theory about the brain that most of what we perceive is actually a prediction and we only really turn our senses up in into gear when something surprises us so then this is a really interesting philosophical question don't ask me ask a guy called say charles spence at oxford who does a huge amount of research into this So he will do wonderful, wonderful experiments.
4:02Anybody in the food industry, get this guy in and pay him a lot of money because he's fantastic. What does he do? He will make a strawberry flavoured sorbet, make it yellow and put it inside a frozen lemon. So your brain is entirely expecting the thing to be citric and bitter and instead it's sweet. and the interplay between expectation and delivery basically creates a new taste that that doesn't really exist in the natural world it creates essentially a brain a brain stimulus around taste the contrast between what you're expecting and what you get generates something on what you might call a third dimension of taste have you heard about stephen pinker's strawberry cheesecake principle hit me i know so one of my when i got fucking obsessed with why illustration works so well with food not sometimes well obviously all these products around us as illustration and uh in in lots of lots of these sort of hips to pizza restaurants now they on their box they'll use illustration and i was everywhere i looked you know noble rot the wine by uses illustration a bit of that may simply be uh it's that you're effectively tapping into heuristic assumptions that have been established by other artisan brands which use illustration so illustration and hand drawing kind of says handmade a little bit i mean charlie biggum's genius i think uh was putting the thing in a bamboo thing rather than a plastic pot okay fundamentally that completely changed our perception of what that food might be and what it might deliver okay and it made us feel that it was kind of handmade because the container didn't say factory yeah and indeed the packaging didn't say it's designed an apple mac it suggests it was designed by hand but what often happens then is that this then creates a consumer assumption that food that's packaged like that is that kind of food and people who therefore an example would be you're having guests around okay you'd probably rather serve them hand illustrated crisps okay or crisps that have a kind of artisanal quality rather than crisps that look like they're produced by a multinational thank you so much for listening to that espresso I hope you enjoyed your morning coffee and are ready for the day.
6:36Let's be having you, boy. And please do subscribe, follow the podcast, share this espresso on WhatsApp if you liked it. And also there's a link to our newsletter in the show description. I spend 15 hours toiling and writing this bad boy. It's full of wonderful wisdom from the biggest names in food and drink. You're not going to get these in a business book. So please subscribe and thank me later. Two months free. Yeah, that's what Espresso sponsors Unleashed are offering. They are supply chain gurus and offer inventory management that talks to your e-com and accounting software. It's helped islands cut admin time in half, get granular clarity on your margins, know where your stock is, don't miss availability.
7:23brands like candy kittens tarquins gin minor figures and trip all use unleashed and i reckon you should too as i said two months free in the show notes click there and you're gonna get two months for free
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Espresso's are powered by our brand new sponsor, Unleashed!
1. What on earth is Unleashed, I hear you asking?
Unleashed is Inventory management software that talks to your financial and eComm software. We use it daily at Islands. It's BANGING!!
2. Why Unleashed will change your life as a foodie founder?
Cut admin time in half. Save money. Lots of money. Get lucid clarity on margins. Be all over cash flow, after all cash is king. Manage stock and cash flow.
3. The biggest brands in FMCG love love Unleashed
Your fave brands like Candy Kittens, Tiny Rebel, TRIP use religiously. Tarquins Gin, Three Spirit, Minor Figures, The Turmeric Co., Volcano Coffee
4. Do yourself a favour
GET YOURSELF 2 MONTHS FREE USING THIS magical link
♨️Still bloody HUNGRY? Course ya are. Each week I spend 15 hours writing my newsletter. It’ll take you 5 mins to read. Full of wisdom from the biggest names in food and drink. Subscribe here 🍲
🤝 Let's Connect!
►Let’s link-up here (https://www.linkedin.com/in/daniel-pope/)
►Stalk me here (https://www.instagram.com/_hungry.pod/)


