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Some Thoughts On Espresso, Guy Fieri, And Food Network

|Includes: DISCA, Scripps Networks Interactive, Inc. (SNI)

For lunch today I ate at this really cool place in Manhattan Beach called North End Cafe. The place is really small but I think it adds to the whole experience. I just got a cappuccino but my friend got a Capri espresso. Super good! Highly recommend. I think the phrase of the day was: "I can smell how delicious that tastes!"

Anyway I heard about North End Cafe on Food Network on Guy Fieri's show. I talked to the owner for a bit and asked about what was popular on the menu, but I also asked how was business before and after Guy Fieri reviewed the place. He said business jumped ten fold. It just got me thinking about how powerful reviews, free advertisements, and having high profile celebrities basically approve of your business, really is. I mean it makes sense with so many viewers that watch that show. This guy basically has the "midas touch" any place he reviews turns to gold.

By the way, I like Scripps Networks Interactive (NYSE:SNI) the owner of Food Network, Cooking Channel, Travel Channel etc. Although they didn't beat earnings the other day, from a ratio, competitor and cashflow perspective they are very undervalued! Maybe I'll do a full analysis of the company on seeking alpha. If you want further info about the company here is a great article that analyzes SNI vs. Discovery Communications Inc. (NASDAQ:DISCA) to start with:

If I owned a restaurant or cafe I would be emailing food network celebrities all day for their reviews. Who wouldn't want free food!?

I am long DISCA.

Disclosure: I am long DISCA.