This is a rush transcript from "Your World With Neil Cavuto," October 12, 2009. This copy may not be in its final form and may be updated.

NEIL CAVUTO, HOST: Yum-o. It`s fancy out and frugal in.

Well, foodies still fretting after hearing "Gourmet" magazine is closing after 70 years.

My next guest is still cooking up big business, despite a slowing economy, though. In fact, she could be the reason why "Gourmet" is going.


CAVUTO: Rachael Ray`s shows, books, and magazines focus on making affordable meals. Her latest is called "Rachael Ray`s Book of 10."

She joins me right now.

Good to have you.


I hope we had nothing to do with "Gourmet" closing. I was a huge fan of "Gourmet."

CAVUTO: I think it was all your fault... RAY: Yes.

CAVUTO: ... because they`re elitists, and they put, you know, fois gras...


RAY: That`s actually not true. I think that "Gourmet" did a really good job in the last few years, really. They had terrific, fast and affordable.

I think they really tried...

CAVUTO: What was fast in "Gourmet"?


CAVUTO: I always...


CAVUTO: ... eight hours...


RAY: No. For a long time, they have had a eat it fast and fresh type column in there.

I think they were trying really hard to adapt to what people could afford to cook...

CAVUTO: Right.

RAY: ... and time-wise and pocketbook-wise.

I am very sad, for one, to see them go. I was a fan.

CAVUTO: All right.


CAVUTO: But you — I was strategy I was in a bookstore recently, and I was not kidding. I think you were the whole table and section, that all your books or there. Well over 14, it seemed like.

RAY: You know, we have — we have had a concept that I have stuck to since day one with the books. I will not price a cookbook for more than a DVD or a C.D.

You know, I think that what I write is pop food. And it`s sort of like pop — other items of pop culture. So, we have always tried to keep the books very affordable. And I think that`s why people can afford to pick them up maybe for themselves. But they also pick them up as a teacher gift or a neighbor gift.

And I think it keeps the books moving, and allow — and certainly allows me to keep up, keep current. The books are really like scrapbooks of everything we have been doing on the show and in the magazine. And it`s a collection of that content. And then I add on to that.

And the viewers really decide our content.


RAY: ... always changing.

CAVUTO: My crackpot theory on you is — I`m not really into shows like this. I barely can boil water.


CAVUTO: But you`re very — you seem very real. And you seem very energetic.

RAY: Thank you.

CAVUTO: And you don`t — there is nothing elitist about you. And a lot of these shows, they seem to have their nose particularly stuck, you know? I don`t see that with you.

RAY: Well, I think the one common thread between the daytime show and the programming that we do on Food Network with "30 Minute Meals" and certainly our magazine...

CAVUTO: I don`t buy that 30-minute thing, by the way.

RAY: It is. It really is.

CAVUTO: You know, I don`t buy it. I don`t buy it.

RAY: In fact, in the cookbook that I`m working on now — it will come out next year — we are going to do a section where you can go online and watch, no commercial breaks, with a clock running, the meal being prepared start to finish, and prove it.

CAVUTO: Rachael, I`m not buying it. I think that`s your scandal. That`s your Watergate or cooking-gate.


RAY: That`s why we`re going to do it. We`re going to — interactive.


CAVUTO: Are you including in that 30 minutes all the pre-pro work, the chopped onions, the chopped...


RAY: Watch our show.


RAY: There`s no pre-chopped onions. They`re mine. They`re a mess. They`re not beautiful to look at. But they`re mine.


CAVUTO: So as soon as that clock goes, you are starting right from the get-go?


RAY: Those are 30-minute meals. They really are.


RAY: They`re 30 minutes. That — see, this is why — but I am glad you brought it up, because the next book I`m working on, it`s kind of a multimedia thing. That`s what we`re going to do.

CAVUTO: All right. We will see. We will see, Ms. Smarty-Pants.



CAVUTO: Here is how I think you are cutting time, too.

You abbreviate a lot. And one of them is E-V-O-O. Now, it took me a long time to understand you were talking about extra virgin olive oil.

RAY: Yes. Well, if you keep saying it over and over again...

CAVUTO: Then say extra virgin olive oil or olive oil.

RAY: It takes too long. And for years...

CAVUTO: Well, E-V-O-O? That would be like me saying all ibid or P/E multiples.



RAY: I don`t know. It started years and years ago. I was cooking on Food Network. And you stand there long enough and you do four shows a day, and I just — it just came out of my mouth.

CAVUTO: I kid, but it hasn`t hurt your popularity.


CAVUTO: Your people know right away. Oh, she`s — extra virgin olive oil.

Is there a difference between extra virgin olive oil and run-of-the- mill...


RAY: ... quality olive oil. Even E-V-O-O in the grocery store. Grocery store-Quality olive oil, you really can cook in. Really good, fruity...

CAVUTO: But you wanted extra virgin?

RAY: Yes, but there`s...


CAVUTO: This is not the dirty swill that I might pick up. You want something with some...

RAY: No. In fact, the swillier the better, when it comes to extra virgin olive oil.


RAY: But you would get that at a specialty store, and it would be really fruity. And you would not be able to see through it.


RAY: But grocery store-grade, you can cook with.

But my original point about all of the products that we work on, I think that what makes them successful when it comes to our viewership and our readers is accessibility, that there is a real can-do factor. And people really can literally see themselves, envision themselves in their mind`s eye going anywhere we go, cooking anything we cook, making anything...


CAVUTO: Well, I like that you make a mess.

RAY: Yes. We show our messes and our successes.

CAVUTO: I ove that. I like — Graham Kerr, he never made a mess. Remember the Galloping Gourmet?

RAY: The Galloping Gourmet, I loved him.

CAVUTO: He always had a SWAT team of elves running around cleaning up all that...



CAVUTO: But you make a mess. I like that.

You have gotten some pretty big stars on your show. And Bill Clinton was the one that stuck out. Now, he was talking about childhood obesity.

RAY: President Clinton came on the day we launched our Yum-o initiative.

CAVUTO: How did that go? Right.

RAY: He has been on since, and we just did a panel discussion together literally this past weekend during the Food and Wine Festival..

It has been a wonderful partnership with his Alliance For a Healthier Generation. Our Yum-o Web site does an enormous amount of interactive work with his alliance.


CAVUTO: And you want us all eating healthy, right?

RAY: You know, I think there is a difference between eating healthy I — you know, and I have heard recently in the news people talking about getting rid of bake sales and stuff as a way to...

CAVUTO: What do you think of that?

RAY: I think that is silly. I really do.

I think that eating whole foods, even including some butter and a little sugar and...

CAVUTO: You think bake sales are silly? This is a Fox News Alert right now.

RAY: No, I think — oh, I think bake sales are brilliant. I don`t think we should eliminate them in connection with childhood obesity.

CAVUTO: Well, the food police are saying just throw a couple of carrots and celery stalks.

RAY: You know, I think Jessica Seinfeld and the success of her book says ixnay to that. You can have...



CAVUTO: Well, you`re right about that.


RAY: ... whole food brownies. You can put healthy ingredients into lots of baked goods. And it`s not about...

CAVUTO: But you`re extending this way beyond human. I mean, you do that Nutrish and good food for dogs, right?

RAY: Our good food for dogs goes a long way to help a lot of animals in need. By first quarter of next year, we will have raised over $1 million. One hundred percent of my proceeds go directly to animal rescue.

CAVUTO: You never confuse the two? You are never giving the dog food to the people?

RAY: No, but I will admit that I have tried the Kibble.

CAVUTO: Have you really?


CAVUTO: I got to ask you this.

When you were doing the thing you can live on $40 a day eating in any city, including New York, clearly, you are not tipping people.

RAY: We were tipping them 15 percent. And I always went behind...

CAVUTO: You were not, no.


RAY: Oh, yes, we were. Oh, yes, we were.


CAVUTO: ... again. You were?

RAY: Yes, we were. We put it right up there on the screen.

But I went behind, and we all grossly overtipped, because we would sit in someone`s station for hours to film there, you know? So, we grossly overtipped.

CAVUTO: And you still — still...


CAVUTO: ... the $40.

RAY: We made the 40 bucks. But I drank water a lot. I was eating alone. It was not a luxurious...


CAVUTO: Rachael Ray, you are really a galvanizing, energetic force.


CAVUTO: We need a more like that on TV. Best of luck with everything else — although no more books.

RAY: Thank you so much for having me.

CAVUTO: You have just crowded out the bookstore. You are like Bill O`Reilly with a spatula.


CAVUTO: Very good seeing you.

RAY: Thank you. Thank you.

Content and Programming Copyright 2009 FOX News Network, LLC. ALL RIGHTS RESERVED. Transcription Copyright 2009 CQ Transcriptions, LLC, which takes sole responsibility for the accuracy of the transcription. ALL RIGHTS RESERVED. No license is granted to the user of this material except for the user's personal or internal use and, in such case, only one copy may be printed, nor shall user use any material for commercial purposes or in any fashion that may infringe upon FOX News Network, LLC'S and CQ Transcriptions, LLC's copyrights or other proprietary rights or interests in the material. This is not a legal transcript for purposes of litigation.