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Potential buyers in California have seen the daunting challenge of owning a home become even more difficult. Due to higher mortgage rates and increased home values, a recent report from the California Association of Realtors found that buyers needed an income of $218,000 to afford a median home, a figure thats jumped 82% since 2019. A Canadian startup seeks to make those figures a little more favorable, especially for working class and first-time buyers. Zown, which opened for operations in California in the fall, offers buyers what it calls down payment assistance. The model works like this: By using automation and salaried showing agents to help facilitate deals, it can reduce commissions that usually account for 2.5% or more of a homes purchase price to about 1%, offering the difference as a rebate to buyers to use toward a down payment or to cover closing costs. Zown was launched by Canadian entrepreneur Rishard Rameez, who documented his own struggles with housing affordability on a viral Reddit thread. He found the process laborious and expensive and, in 2021, started working on a way to simplify the transaction. He developed a model that uses automation and a team of salaried brokers to cut commission fees and pass those savings along to buyers. He said Zown is able to give back roughly $10,000 to $15,000 per buyer for down payment assistance, an amount that equaled what an average person could save in a year or two. Since launching the product in Toronto in 2024, Zown has helped more than 250 buyers purchase homes, and offered more than $3 million toward down payments. That assistance can often mean the difference between potential buyers who can comfortably make a purchase or ones who are stretching substantially to buy their home. Michelle Boyd is chief strategy officer for the Terner Center at the University of California, Berkeley, and studies housing startups and fintech innovations. She says the Zown model makes sense for first-time buyers and those doing more straightforward deals. (But those buying older homes or fixer-uppers would perhaps benefit from an experienced agents help.) I think there is a real opportunity to take some of that value that real estate agent is providing and give that back to the home, or that person who’s trying to purchase it, she said. Its maybe not going to totally change someone’s ability to buy a home, but its not nothing. Downpayment assistance programs, many run by cities and localities to help buyers in their area achieve homeownership, have been rising sharply in recent years due to the nations worsening housing crisis. Down Payment Resources, a group tracking this trend, found that more than 2,500 such programs exist across the country, providing an average of $18,000 in benefits to buyers. The number of programs has increased 55% year over year. Zowns salary model can also offer more stability in a profession that depends on irregular sales and commissions. The national average take-home pay for a realtor is just under $59,000, according to the Bureau of Labor Statistics. The buyer-first model Lisa Touney has been running the California expansion of Zown in 2024, and has closed three deals in Corona and Newport Beach; one deal saved a buyer $30,000. A broker-owner with three decades of experience, Touney worked with one of the Zown co-owners and decided to help them launch in California. Touney has a license to work in multiple states, and the Golden State offers a great proving ground, due to its significant affordability crisis. Touney likes the salary-based model of Zown, which takes away the pressure of making sales, and offers an attractive, innovative way to help lower the cost of housing. Currently, Touney is working with two other agents, and says they can expect to make over a six-figure income with the Zown model. (The firm said a full-time Zown agent in California can expect to earn solid mid-to-high five figures annually under Zowns productivity-based pay model.”) Rameez hopes Zown can facilitate 1,000 sales in its first full year in California. Diana Zaya, an expert on real estate brokerage models, says she doesn’t find the Zown model as innovative as is being touted: realtors have long sacrificed some of their commission to make a deal pencil out. In this case, its more systematized. She believes the push to lower costs is good and can really make a difference for buyers, but also worries, long-term, that taking away commissions could lead to a devaluing of realtor pay and a reduction in quality, since she believes the model relies on low margins. Rameez added that, This isn’t a race to the bottom; it’s a modern, trustfirst model where real value is measured by service and lasting relationships, not by a flat percentage. Zown is the latest in a number of startups seeking to make homebuying more accessible. Boyd said a number of such startups have gone under in recent years, as the combination of lower price appreciation and a higher interest rate spike hurt their plan to profit off of rising values.
Category:
E-Commerce
CosMcs, the glimmering, retro, space-agey concept restaurant from McDonalds, is no more. In 2023, McDonalds announced the spin-offbilled as the next frontier for the fast-food chain to test its most otherworldly specialty beverage ideasto a deluge of marketing fanfare. CosMcs was a drive-through-only concept with a pared-down menu of neon-colored drinks and a few snack items. The first CosMcs restaurants opened with lines around the block before the sun was even up. Now, less than two years later, McDonalds is jettisoning the stores back into the ether. According to a press release published late last week, McDonalds plans to shut down all five of its CosMcs locations (one in Illinois and four in Texas) in late June, as well as delete the restaurants associated app. In the coming months, CosMcs-inspired flavors will be landing in hundreds of U.S. McDonalds locations as part of a wider beverage test. The announcement comes in the wake of McDonalds first-quarter 2025 financial report on May 1, which revealed that the chains sales dropped at the beginning of the year, marking its second consecutive quarter of declines. Experts say there are a few main reasons why CosMcs didnt work out as a stand-alone conceptbut that doesnt necessarily mean the spin-off was a failure for McDonalds. [Photo: Stacey Wescott/Chicago Tribune/Tribune News Service/Getty Images] Bubble tea, energy drinks, functional soda, oh my! From the beginning, it was fairly clear what McDonalds hoped to gain from CosMcs: an entry point into the speciality beverage category (dominated by players like Starbucks, Dutch Bros., and Dunkin) thats been on the rise in recent years. As Gen Z has become increasingly interested in beverages like bubble tea, functional soda, and colorful energy drinks, other quick-service restaurants (QSRs) have moved to catch up. In 2024, Starbucks experimented with adding bubble tea to its menu; Dunkin introduced an energy drink lineup; and even Taco Bell opened its own beverage-only spin-off called Live Más Café. Meanwhile, McDonalds beverage offerings have remained largely limited to its soda machines and McCafé coffee menu (which, interestingly, also originated as an Australian spin-off concept). CosMcs was McDonalds answer to this gap in its offeringsa space to, as the restaurant put it at the time, perform a limited test of otherworldly beverage creations at a safe distance from its main restaurants. Within CosMcs blue-and-yellow beverage test kitchen, the chain was free to trial-run concepts like Tropical Spiceade and Island Pick-Me-Up Punch to a smaller audience of consumers. On the companys first-quarter 2025 earnings report, CEO Chris Kempczinski called this strategy quarantining the complexity in a stand-alone concept. [Photo: Matt Schwerin for The Washington Post/Getty Images] According to Matt Michaluk, executive creative director at the branding agency JKR, CosMcs made sense as a viable innovation for McDonalds. With an increasing share of occasions within QSR now solely drinks-only missions, and the diversification of menus by the big coffee chains, this should be a competitive yet fertile ground for growth, Michaluk says. In spite of that promise, he says, there are three reasons CosMcs fizzled out as a stand-alone: brand contradiction, absence of experience, and decline of hype. To start, Michaluk notes, CosMcs was shaped around a pseudo-nostalgic play on historic McDonalds brand characters, like the oft-forgotten 80s alien CosMc. But the spin-offs menu failed to align with that conceit. Further, the pilot format’s focus on drive-through architecture takes away from the overall brand experience, leaving consumers overwhelmingly underwhelmed. And, to cap it off, he says, Innovations and pilots work best when theyre new, exciting, and highly salient. McDonalds seemingly didnt invest in sufficient marketing efforts to support CosMcs. Hence, the hype died far too quickly. Within weeks of launch, there was nothing more to talk aboutnothing new, nothing to get people to come back. [Photo: Matt Schwerin for The Washington Post/Getty Images] Why CosMcs hasn’t failed yet Michaluks assessment might seem like a fairly bleak one, but Danny Klein, editorial director of the trade publication QSR, says the failure of CosMcs as a stand-alone doesnt necessarily equate to a failure for McDonalds business. From its inception, Klein says, McDonalds likely viewed CosMcs as more of a test run for a potential beverage expansion on its main store menus than a restaurant in its own right. Now that CosMcs recipes are rolling out across stores in the U.S., it appears that the initial experiment was a success. Hundreds of locations are going to start testing [CosMcs beverages], and I think from the general McDonald’s system standpoint, a beverage extension is what they all wanted, Klein says. I don’t think its a failure. People are going to say that because it was such a big deal, and then it just flamed out into the universe. But in my opinion, it was always a marketing test with the potential to be something else, and that just didn’t materialize. In addition to broadening the availability of CosMcs beverages, McDonalds also announced last week that it would create a new beverage category team dedicated to gaining share in the space. As Kempczinski told investors in early May, There’s a lot of growth that we see in beverages, and the profitability of beverages is very attractive, adding, frankly, we think there’s more that we can be doing to capture our fair share of that. Ultimately, Klein says, the true test of CosMcs will be whether the average McDonalds customer is interested in supplementing their Big Mac and fries with a Sour Cherry Energy Burstor if they choose to stick with a plain old Coke.
Category:
E-Commerce
People like to say that change happens gradually, then all at once. That pattern seems to be holding with respect to AI in search, and we may be at the beginning of the “all at once” part now that Google has officially launched AI Mode, which turns internet searches into conversations where you get answers instead of links. The point of AI Mode is for Google to act as an assistant to help you accomplish what you were trying to do with the search in the first place. Need to book a flight, find a sushi restaurant nearby, or grab a statistic that supports the email pitch you’re authoring? AI Mode will simply find what you need and even complete the action for you in many cases. And those cases will continue to expand: The company showed a future shopping capability where Google completes checkout for you without ever needing to leave the search page. Potential for Disruption The potential disruption to industries is staggering, not just for the media but also for marketing, e-commercethe whole web, really. For now, however, it remains mostly potential. AI Mode primarily lives as a button on the Google homepage and one of the tabs on results pages (alongside tabs for News, Photos, Videos, etc.). Users need to deliberately engage with it. And the omnibox in Chrome, where most Google searches occur, still defaults to regular search. {"blockType":"creator-network-promo","data":{"mediaUrl":"https:\/\/images.fastcompany.com\/image\/upload\/f_webp,q_auto,c_fit\/wp-cms-2\/2025\/03\/mediacopilot-logo-ss.png","headline":"Media CoPilot","description":"Want more about how AI is changing media? Never miss an update from Pete Pachal by signing up for Media CoPilot. To learn more visit mediacopilot.substack.com","substackDomain":"https:\/\/mediacopilot.substack.com\/","colorTheme":"blue","redirectUrl":""}} So despite the hype and panic emanating from Google’s I/O conference over AI Mode, Google isn’t going all-in just yet, and with good reason: Its existing business model depends greatly on the search results page. AI Mode can display ads, too, but it’s going to take time for the product to mature as a business. There’s also the simple fact that it costs Google more to serve up an AI answer versus a search pageit needs to move slowly in order to keep from tanking its own profits. The undeniable rise of AI search Make no mistake, though: The AI Mode summary will be the new battleground for attention. It’s fundamentally more engaging than even Google’s AI Overviews that appear at the top of search results pages. Whereas Overviews are a kind of “extra” to the list of links, AI Mode effectively creates a bubble around your Google experience, one that you deliberately enter and stay within. It’s designed to “fan out” from your initial query, turning search into something that’s more like a collaboration with Google on a task that search is just one part of. While that may sound like work compared to just getting served a search query, you have to remember: Once you had those results, you had to do the workthe navigating to sites, judging which were credible, and then manually absorbing information, filtering the irrelevant stuff. Now AI Mode does most of that work for you, greatly reducing the friction or “cognitive load” involved in getting information. I see this all the time in my own experience: Over the Memorial Day weekend, I ended up looping in AI assistants for several different projectshanging outdoor lights, what those metal ring-thingies are called, and how to optimize my cooking methods for pork ribs versus beef ribs. In all those interactions, no list of links was required, and in many cases, I got the information verbally, reducing friction even more. I’m a sample size of one, but studies suggest I’m far from alone. A recent study revealed 17%, or one in five consumers, now rely on AI answers more than traditional search. Referrals from generative AI to websites surged over 1,200% between July 2024 and February of this year, according to Adobe research. The AI search wave is real. When knowledge goes flat AI search experiences are more convenient, but it comes at a cost. If the AI summary is the new place for information brokers to conquer, there’s less land to fight over. Summaries simply can’t meaningfully cite dozens of sources in a curt answer. Moreover, if one or two sources change, the effect on the summary will be minimal. If an AI answer gets a new site fueling it, it’s still an averaged, homogenized consensus built from several sources. You don’t have the unusual link suddenly gaining prominence on a results page, inviting users to go down a rabbit hole. An AI summary is made to pave over those holes. This tendency toward singular, concise answers may have the inadvertent effect of flattening knowledge diversity. Mainstream perspectives will get prioritized, and niche or contrarian voices will have a tougher time standing out. Signal generators This shift puts a burden on journalists and media organizations to act not just as content creators but also as distinctive signal generators in a noisy, compressed ecosystem. In a world where AI systems synthesize information from thousands of sources, what gets retained are the most statistically common patternsnot necessarily the most insightful or original voices. That’s why it’s going to be essential for media sites to be able to do both: structure content to acknowledge and align with the mainstream view, but also provide original and unique perspectives that will offer real value for those who go deeper. It’s an updated version of a diverse content strategy, only in the AI world it can mean serving those ingredients in new ways: possibly by remixing content into formats recognizable by a multimodal AI that cares just as much about sound and video as it does about text. One thing’s for sure: AI answers are here to stay, and “winning” them is going to be the game to master. What’s unclear is what will be harder: influencing readers through what the summary says, or getting them to click through the AI ode bubble so you can influence them yourself. Let the games begin. {"blockType":"creator-network-promo","data":{"mediaUrl":"https:\/\/images.fastcompany.com\/image\/upload\/f_webp,q_auto,c_fit\/wp-cms-2\/2025\/03\/mediacopilot-logo-ss.png","headline":"Media CoPilot","description":"Want more about how AI is changing media? Never miss an update from Pete Pachal by signing up for Media CoPilot. To learn more visit mediacopilot.substack.com","substackDomain":"https:\/\/mediacopilot.substack.com\/","colorTheme":"blue","redirectUrl":""}}
Category:
E-Commerce
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