In this special episode of The Riff, Byrne Hobart is joined by Patrick McKenzie, host of the podcast Complex Systems to discuss a range of topics including app business models, restaurant industry economics, AI's impact on productivity, the evolution of search technologies and more. 🔥 Apply to join over 400 Founders and execs in the Turpentine Network: https://www.turpentinenetwork.co/ --- RECOMMENDED PODCASTS: 🎙️ Complex Systems Patrick McKenzie (@patio11) talks to experts who understand the complicated but not unknowable systems we rely on. You might be surprised at how quickly Patrick and his guests can put you in the top 1% of understanding for stock trading, tech hiring, and more. Spotify: https://open.spotify.com/show/3Mos4VE3figVXleHDqfXOH Apple: https://podcasts.apple.com/us/podcast/complex-systems-with-patrick-mckenzie-patio11/id1753399812 🎙️ This Won't Last - Eavesdrop on Keith Rabois, Kevin Ryan, Logan Bartlett, and Zach Weinberg's monthly backchannel. They unpack their hottest takes on the future of tech, business, venture, investing, and politics. Apple Podcasts: https://podcasts.apple.com/us/podcast/id1765665937 Spotify: https://open.spotify.com/show/2HwSNeVLL1MXy0RjFPyOSz YouTube: https://www.youtube.com/@ThisWontLastpodcast --- SPONSORS: 📑 Discover Carta, the innovative end-to-end accounting platform revolutionizing private fund management with streamlined operations and on-demand insights. Experience the new standard at https://carta.com/investors/ --- LINKS: Byrne’s writing: https://thediff.co --- X / TWITTER: https://twitter.com/ByrneHobart (Byrne) https://twitter.com/TurpentineMedia (Turpentine) https://x.com/patio11 (Patrick) --- TIMESTAMPS: (00:00) Intro (01:08) Economics of free-to-play games (09:45) High spenders and VIP systems (12:13) Misconceptions about industry economics (13:22) Spending patterns (15:46) Airline industry (20:51) Custom software and high-end services (24:17) Sponsor: Carta (25:06) Evolution of restaurant websites (33:57) Role of platforms in restaurant business (41:33) Strategic moves in food distribution (43:53) Restaurant groups and concepts (47:39) Economics of business meals (53:33) Value of free company food (01:03:37) Role of LLMs in research and writing (01:12:04) Future of LLMs and human interaction (01:23:44) Wrap