Transcripts For CNBC The Profit 20240713

Lemonis and i thought every five years, i got to come beat you up a little bit. Tonnie okay, im ready for it, i think. Lemonis tonight, were going to give you an inside look at an episode from season 3, tonnies minis, one of the most challenging episodes that ive ever been a part of, but i learned a lot from it. And tonight the three of us are going to share the things that worked for us, the things that didnt work for us, and were going to provide you some tips on how you can get through these new times. Lemonis in the last seven years of doing the profit, ive visited nearly 100 businesses. Lets go make some money [ horn honking ] and ive traveled the country trying to fix the people. And you do 1 million a year . You should be proud of that. Man but we dont know how to keep any of it. Lemonis . Fix the process. You see . It flimsy. Dont ever make these again. You dont sell them. And create a few products. Juli it reduces anxiety and depression. Lemonis i kind of like it. I spent countless days working on these companies. How much money did you burn through . Parker 650,000. Lemonis but we cant always fit everything im thinking into the show. Tonight, were going to give you an inside look at an episode from season 3, tonnies minis. Its kind of a tight space. Lemonis oh. Oh, thanks for clearing that one up. [ both laugh ] over the next hour, im gonna take you behind the scenes to show you what i was actually thinking during filming. Tonnie it doesnt really work that way. Lemonis no, no, no. Let me give you a little news flash. Does work that way. I sensed the talent, and i sensed the dedication, and if i didnt sense that, i wouldnt have stayed. Share some secrets. Right now, were losing money every day. Were closing the store. I want to apologize to you for how hard i was on you, to a degree. Tamika [ gasps ] lemonis . And give you an honest assessment of my decisions. Do you think im taking advantage of you . Tonnie yes. Lemonis i dont want to be in a relationship where somebody feels like theyre getting taken advantage of. Tonnie i questioned if i wanted to do this again out of embarrassment for the way i behaved oncamera. Lemonis my name is marcus lemonis, and this is an inside look at the profit. Part of the reason why i wanted to do this episode is back then, the cupcake craze was on fire. And i wanted to find somebody in new york city, the biggest market in america, where there would be an opportunity for me to at least learn the process, understand why people were so crazy, understand the margins, understand where the moneymaking opportunity was. And anytime i think about investing in a business, its always good to start small, like minis. Lemonis inwood is at the northern tip of manhattan. Its an upandcoming neighborhood with a lot of renovation, and theres a lot of new restaurants and new retail, and its you feel like its really growing. But tonnies minis has the worst retail entrance ive ever seen. This buildyourown cupcake better be great. I remember when i was walking up broadway, and i couldnt find the store, and all i saw was all this scaffolding. Couldnt see the sign. Couldnt see anything. And i thought to myself, well, heres problem number one. Tonnie i agree, 100 . Lemonis how you doing . Tonnie how are you . Lemonis are you tonnie . Tonnie i am. Lemonis im marcus. Tonnie pleasure to meet you, sir. Pleasure to meet you. Lemonis nice to meet you. This is a small space. Tonnie its yes. Its been challenging. Lemonis im expecting to find a bright, fun retail environment and what i end up seeing is no display and a bunch of packaged cupcakes that are made in the back. I mean, who would want to come here . What was your expectation when i walked in the door . Tonnie we were thinking, okay, heres a shot to kind of gather the team and kind of, for the first time, step out and get it right. Lemonis and, you know, when you used to say things to me like, i want to get my team together, you know that that was an eyerolling moment for me, right . Tonnie i didnt know that. No, i didnt know that. What do you mean . Lemonis we had one little shop here, and it almost made me feel like you had a little bit of a delusion of grandeur. Tonnie what the world didnt know, that was one of four stores at the time. We were doing 20,000 day in cupcakes. I was supplying one of the largest restaurants in new york city. I had a deal with macys on the table. So im thinking ive made all these steps that were leading up to this point right here in preparation for your coming. Tonnie how are you . Woman good. Tonnie welcome to tonnies. What can i do for you today . Woman let me get the cream cheese. Tonnie can i offer you a cupcake, marcus, at the same time . Lemonis you surprise me. So, thats the base . Tonnie so, the beauty of tonnies minis is you walk in, you pick your cupcake out, you pick your topping. Woman i like it. It means make your own cupcake, essentially. Lemonis you a cupcake eater . Woman yes, actually. Thank you so much. Have a wonderful day. Tonnie take care. Lemonis cupcakes good. Tonnie always happy to hear that. Lemonis the frostings good. The process seemed a little. Nonexistent. I would have thought there would have been a bit of an assembly line, like base, frosting, topping. I dont necessarily see that. Tonnies idea of a buildyourown cupcake, quite frankly, is phenomenal. But the idea i thought i was coming for i just dont see. Somebody takes a cake off a rack and then the toppings are, like, hidden under the counter. I mean, its terrible. How much business are you doing in this location . Tonnie average is 500 a day. Lemonis and what are your margins on that 500 . Tonnie um. Cupcake costs me a quarter to make. Lemonis wrapper, frosting, labor, everything . Tonnie so it, uh. Lemonis one cupcake what does that cost to make . Tonnie so, the cost of the cupcake would be closer to. 33 cents. Lemonis are you winging it . Tonnie im estimating. Lemonis i wouldnt call it estimating. Im gonna call it guesstimating. Tonnie touche. Lemonis my biggest mistake in the entire episode, and im being very serious right now, was showing up in a bow tie. Tamika mm, maybe. Lemonis the worst wardrobe choice of all time. Lemonis what are you selling them for . Tonnie starting at 2. 25. If it costs tonnie 33 cents to make a cupcake and he sells it for 2. 25, hes got great margin. The worry here is that hes shaky on his numbers, and at 500 a day in sales, there is no room for error. Kind of a tight space. Tonnie this is the oven. Lemonis this is the only oven you have . Tonnie this is the only oven i have, yeah. Lemonis there is no workflow in this place, and its cramped and its hard to maneuver. Tonnie yeah. Lemonis yeah, what . Tonnie [ laughs ] so, that space was cramped. Lemonis oh. Oh, thanks for clearing that one up. [ both laugh ] tamika hi, marcus. Tamika. Lemonis tamika, nice to meet you. Tamika you, too. Lemonis how are you . Are you the sister . Tamika yes. Lemonis id love to kind of spend a few minutes with you if you dont mind. Tamika okay. Lemonis whos the manager here . Tamika im onagain, offagain. Lemonis walk me through that. Tamika i worked for, like, really, really low pay, which was okay with me. Lemonis for how long . Tamika like a year. Lemonis wow. Does he listen to you . Tamika no. Lemonis no . Tamika no. Lemonis tonnie, why werent you listening . Tonnie its not that i dont listen. Its more of, its never as simple as someone saying, lets do theres always more to it than that. So, theres a lot going on with tonnies minis right now as we speak. Im doing a project in newark thats close to being finalized. The people who are giving me the space, theyre building out the store. Lemonis at their expense . Tonnie at their expense. So what i have to supply is equipment, the first months deposit, working capital. Lemonis and theyre giving you the money to do that . Tonnie theyre loaning me the money to do that. Lemonis do you feel like youre ready for more expansion . Tonnie i am now. Lemonis the only time a business should be expanding is when its totally proven out its model. You have the product right, you have the right people, you have the right process, and it makes money. Hi. Erenisse hi. How are you . Lemonis how are you . Erenisse im erenisse. Lemonis are you tonnies wife . Erenisse yes, i am. Lemonis hi. Nice to meet you. Erenisse nice to meet you. Lemonis what do you think of the store . Erenisse i think it needs an upgrade. Thats why i wrote you. Lemonis oh, okay. Tonnie, i thought it was you. Tonnie no, it was it was it was her. Erenisse the Business Aspect of it has placed a lot of stress on our marriage. Its to the point that im not giving any more money. Lemonis how much money do you have invested in this business . Erenisse like 250,000. Tamika ooh tonnie yeah. Tamika thats a serious number. That was where i was thoroughly convinced that she loved my brother. No, i knew that before. Erenisse i think he needs you. I think he needs your expertise. If he hears it from you, maybe hell take it. Lemonis he doesnt listen to you . Erenisse not all the time. Not quite. Lemonis tonnie doesnt listen to his wife, whos invested a ton of money. He doesnt listen to his sister, who works there virtually for free. How do i know hes gonna listen to me . What does it cost you to open up the place every day . Tonnie the rent would be 100 a day. Lemonis all the employees how much do they cost a day . Tonnie average day is 180. Lemonis how about electricity . Tonnie 75 a day. Lemonis how about insurance . How about maintenance . How about Office Supplies . How about the phone . Youre already well over 350. With 500 a day in revenue, if you factor in all of the operating costs plus baked goods, paper supplies, et cetera, hes already operating at a loss. Were gonna do a little math. The total revenue that it shows on this p l is 250,000 for the year, and you lost 76,000. Theres the 250,000 that you put in. For this discussion, i consider that equity. Because you guys are married. Thats your business. Its the fact that you own, today, 100 of the business. Erenisse i agree. Lemonis theres 134,000 that is owed to other people. So what do we owe other people . Tonnie the payroll tax is 11,000. Federal state tax, 35,000. Theres 15,000 in arrears, of which is february rent and water escrow. And then late fees. Erenisse 15,000 . Tonnie then theres denise, 12,000. Robert is 25,000. My mom for 13,000. Michelle for 7,000. Erenisse wait a minute. Is this for her services, or she lent you money . Tonnie no, this is this is her. Lemonis this was tough. Tonnie . Loaning me the money. Lemonis this was tense. Tonnie then theres [bleep] 10,000. Lemonis whos [bleep] . Tonnie so [bleep] is the person who i borrowed money from and he picks up a weekly payment from me. Lemonis like a like a like a loan shark . Tonnie yes. Tamika i was surprised by some of the stuff that came out at that table. Lemonis do you mean like the loan shark . Tamika maybe that one. [ laughter ] lemonis youre the only person in profit history that ever had a deal with a loan shark. We beeped it cause i didnt want somebody to come beat your ass. [ both laugh ] tonnie and i appreciate that, sincerely. Tamika crazy lemonis whats wrong . Erenisse im just upset, cause i didnt know about all those people that we owe money to. You know how i feel about that. Sorry. Tonnie i mean, mama, you know i would never do anything to have you sitting here crying, but i did whatever i could to keep a door open, to keep from closing, to pay staff, whatever it took. So me hiding these numbers was not intentional. It was a mistake. It was foolish. Would it happen again . Never again. Lemonis tonnie, hows your wife . Tonnie she is wonderful. Lemonis she kept you around, huh . Tonnie yeah, she did. Very blessed, very fortunate. Lemonis im sorry she couldnt be here tonight. Well, i remember the fear that you had about disclosing certain information from your wife. I dont think you ever hid anything from her. I think you tried to insulate her. Tonnie right, that is that is probably the best way to place it. Thank you. Lemonis but it did come off a little shady. Tonnie after watching it, it did, yeah. Lemonis the reason that i came to this business was because i liked your idea. So my offer is 100,000 for 20 of the business. Tonnie im having a really hard time with that. The number i had in my mind was 600,000. Lemonis 600,000 for how much . Tonnie id say 33 . Lemonis you thought i was gonna write you a check for 600,000, everybody was gonna get paid, and i was gonna have a third of the business, and i wasnt gonna tell you what you could or couldnt do . Tonnie no, no. And, again lemonis wrong show. Do you think im taking advantage of you . Tonnie yes. Its been awesome knowing you, nice meeting you. But i dont want to be in a relationship where somebody feels like theyre getting taken advantage of. Tonnie watching the video, i questioned if i wanted to do this again out of embarrassment for the way i behaved oncamera. That Liberty Mutual customizes your insurance, i just love hitting the open road and telling people so you only pay for what you need [squawks] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Its the simple joy of washing your hands,. Without ever touching a faucet. Its the Little Things that matter. Thats why we create moments to feel kohler clean, every day. 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Lemonis you thought i was gonna write you a check for 600,000, everybody was gonna get paid, and i was gonna have a third of the business, and i wasnt gonna tell you what you could or couldnt do . Tonnie no, no. And, again lemonis wrong show. So, what are you thinking right now . Erenisse im uncomfortable with [bleep] lemonis you mean the loan shark . Erenisse yeah. I dont know what these people are about. Im uncomfortable with that scenario altogether. Lemonis so it would make you happy if that got paid. Erenisse yes. Tonnie i love my wife to the moon and back and then back again. Weve always had a very open and honest relationship. Never had an argument. Weve never yelled and screamed after being together i think 11 or 12 years i was kind of at a loss because i couldnt take back what was said. I couldnt take back what was done. I didnt think she was going to leave me, but my concern was, how do i fix this . And i couldnt. Lemonis so, then ill up my offer to 125,000, and instead of 20 , well go to 25 . And im giving you about, like, maybe 10 seconds. Tamika you know what you having full control ends up being. So now see what sharing control ends up being. Lemonis we got a deal . Tonnie we got a deal, marcus. Lemonis you know that when you take my check, i am 100 in charge . Tonnie 100 in charge you said . Lemonis she knows that. Thats why she called me. She wants me to be 100 in charge. Is that right . Erenisse yes, absolutely. Lemonis when i got in the van that night after spending time with your wife, i told the crew that i was scared of her because she was very serious, and i thought, okay, this is this is gonna get bad for a minute. Tamika mmmm. Lemonis heres the scene from the morning after. How was it at home last night . Tonnie no conversation. She hasnt spoken to me. Just no words. Lemonis thats understandable. I get it. cause she feels stung. You kind of you kind of [bleep] up. Tonnie so this is a show, but when the show is over and the cameras are off, i have to deal with this. Lemonis yeah, thats right. And when the shows over and the cameras are off, i still have to deal with it too. She didnt know certain things that its not that unreasonable for her to know. You shouldve shared it with her like months ago when you started getting the money. Lets just call it like it is. Just own it. [ laughter ] tonnie so, i obviously she came around at some point but there was definitely a concern of the fact that i had reached out to so many different people. Lemonis lets get everybody together. So, what i want to do is i want to understand the cost of one cupcake. I want the raw ingredients, i want the package, and i want the frosting and the sprinkles. I want it all. Youre telling me that one batch makes 24, so when we add up all these costs, were gonna divide it by 24. You ready to go . Tonnie eggs are 15 dozen. I pay 24. Lemonis 180 eggs, about 14 cents an egg. Tonnie this needs three eggs. Lemonis so thats 42 cents. Tonnie the buttermilk is 1. 40 per quart, and we use 1 1 4 cups. Lemonis okay. 44 cents. Something you didnt like about that math . Tonnie no, it just seems higher than i thought. Lemonis Pay Attention to everybody. This is one of my favorite things to do, right here. We have paper and packaging at 5 cents. We have toppings at 5 cents. 8. 33 for materials only. Well divide that by 24. 35 cents apiece. By the way, you havent factored in waste the mistakes that you make, the stuff that drips. So its actually costs you 38 cents a cupcake. Now we have 15 cents a cupcake in labor. Thats 53 cents. So 53 cents is the minimum that it costs to make this before factoring in the lights, the electricity, the workers comp, the telephone bill, and all the other things. Tonnie right. Lemonis okay . Tonnie so i didnt know the importance of identifying those small details. Lemonis so the tip for you and for everybody else is that money is made or lost in the details. And what happens is is that when you have inefficiencies in your process theres just a little here and a little there and theres a small mistake there, but its not that big those Little Things start to add up and thats the difference between in business and out of business. Tonnie correct. Lemonis free cupcakes. Free cupcakes for everybody. Tonights the last night were open. Were closing the store. Woman aww. Tonnie [ sighs ] lemonis tonnie, were not closing forever. You looked angry and you looked guarded. You felt that way to me. Tonnie yeah, youre right. In hindsight there was some moments where i felt like whatevers being touched upon was being pointed, like, this is incorrect. This is wrong. And it was all true, but nonetheless i probably took offense, which is why my response and my facial expression was what it was. Lemonis whats going through your head right now . Tonnie uh [chuckles] you know, its just kind of sudden. I would have preferred to have some notice of some sort. Lemonis well, right now, were losing money every day, and so im trying to stop the bleeding. Tonnie you dont say, tonnie, guess what. We got 10 minutes to clear the house. Were gonna close the store. I questioned if i wanted to do this again out of embarrassment for the way i behaved oncamera. Like, i never understood the emails i got about, you know, you should be ashamed of yourself, i didnt get it. And then i watched it in solitude for the first time, and i got it. People tend to take advantage of my niceness. Lemonis do you think im taking advantage of you . Tonnie its not as simple as a yes or no answer. Lemonis tamika, do you think im taking advantage of you . Tamika no. Lemonis okay. That was the yes or a no. Do you think im taking advantage of you . Tonnie yes. Lemonis if you think im taking advantage of you, its been awesome knowing you, nice meeting you. But i dont want to be in a relationship where somebody feels like theyre getting taken advantage of. Tamika, does tonnie have a hard time trusting people . Tamika yes. Lemonis tonnie, why dont you trust people . Tonnie its not that i dont trust. Its more of. Opinions are in abundance. So a lot of times, that opinion, ill take what makes sense and ill apply it, but i may not like im not gonna say, great idea. Even with you, i would have said, great idea. Lets do it. Lemonis tonnie. Tonnie but not your way. Lemonis tonnie, you never said great idea one time. [ laughter ] tamika he says it to me sometimes. Tonnie thank you. Thank you. Lemonis people sign up for locations because they think more is better and they forget about all the hidden costs. Im not in favor of this idea. Tonnie i can only accept and take but so much abuse. Lemonis if youre accusing me of abuse. Tonnie no, no, no, no. Lemonis . I dont appreciate it. If youre looking to take your business to the next level, log onto. 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You can count on us. Lemonis if you think im taking advantage of you, its been awesome knowing you, nice meeting you. But i dont want to be in a relationship where somebody feels like theyre getting taken advantage of. Tonnie ive been accustomed for the past 20 years at running my business. Lemonis which is why i came here. Tonnie no, see, but if thats the case, then you have to understand how i feel at some point. I have no idea whats happening with the store and i have no timeline. I dont know. Im gonna struggle with this scenario. Its not one its not as easy as this may be for you. You know what . This is great. Im gonna just kind of step back here and watch this cause i know at the end, its gonna be amazing. That i know. It doesnt take away the struggle with it. Lemonis right. Tonnie i apologize if lemonis tonnie, no. Honestly, that was the most honest and open youve been with me since i got here. And im learning to trust you more as you share more with me. Its about trusting each other. Tonnie i agree. Lemonis tonnie, i have to be honest with you, and ive seen this over and over again. One of the things that always hurts Business Owners is that pride gets in the way of progress. Tonnie pride has always been a gift and a curse, brought to every stance in my life, yes, that was pride behind you know you pointing out all my flaws. Tamika i think thats really the only challenge that ive had working with my brother is just to get him to kind of see things a different way. Lemonis thats right. Thats exactly right. Youve got to let your guard down and let people help you. Hello. Tamika erenisse. Erenisse how are you . Lemonis good. So, were gonna be closing the store tonight for the construction. Erenisse im so excited. Im very happy. Thank you. Lemonis its early. Were gonna have fun. Out with the old, in with the new. All this is getting [ glass shatters ] i want to create a layout thats good for people who work here. Lauren excuse me. Coming through. Lemonis . And shop here. Careful, guys. Dont worry about the floor. Tonnie i know you got some reservations about newark, but i truly believe that if we can figure out a way to have two different locations with the same type of setup lemonis but dont you think you should get one right first . Tonnie one right is easy. Im gonna get it done. I have your support. Ive got the team around me. Lemonis its not unusual that people want to expand quickly, but if you do it too soon, it could destroy a promising business. You feel like youve done your research and youre ready to go . Tonnie my answers yes. Lemonis okay. So, what is this building . Tonnie this actually is 60,000 square feet of retail space coming in. Lemonis how far along are you in discussions here . Tonnie the lease was signed at this point. Lemonis a lease was signed . Tonnie its been signed. Lemonis you see, some people think that leaving out information is going to get them further ahead. But what it does is it forces somebody like me, or any other investor, to lose faith or trust in you. The best way to do business is lay all your cards on the table. At least we can work on fixing it together. But when i walk into a situation and i learn about a lease being already signed for the first time, what do you think it does . It makes me lose confidence in what youre telling me. Lemonis you have one location thats in total disrepair and youre several hundred thousand dollars in debt and youre still feeling like this is a good idea . Tonnie i know its a good idea. Lemonis one of the tips that we want to give tonight is that you cant sign up for things until you have your house in order. And youre creating these, what i call, unseen liabilities. So you have a store thats not doing well, you owe a bunch of people money and youre signing up for what i call an unknown liability. And the reason i call it an unknown liability is, signing a lease isnt just the obligation of the rent payment its the buildout, its the staffing, its the inventory, its the utilities, its the tax. And usually people go into things, and they sign up for locations because they think more is better. Tonnie better. Lemonis and they forget about all the hidden costs. Tonnie youre right. I mean, lesson learned. Tonnie this was gonna be, beginning here, give or take doors here. Retail space. And the remaining part, the commissary. So, that was the initial plan. Lemonis what are your projected sales for this location . Tonnie 590 per day. Lemonis oh, so 590 of cash is gonna go through your register. How much is gonna go towards paying the employees . Tonnie we scheduled two employees for the front and in the wholesale department, theres four. Lemonis youll have six people that work here at an average of 10 an hour, so thats 60 an hour. And 60 an hour times 8 hours is 480 a day in labor. Tonnie okay. Lemonis how much is your rent here a month . Tonnie 2,600. Lemonis so about 100 a day on average, right . So now were at 580. You just lost money. Tonnie its not as simple as just saying your six staff times whatever the number youre giving me. It doesnt it doesnt really work that way. It may it may work lemonis no, no, no, no. Let me give you a little news flash. Does work that way. Tamika that way. I have to be honest with you. In this moment, im not in favor of this idea. Because the numbers arent well thought out. Tonnie i can only accept and take but much abuse. Lemonis if youre accusing me of abuse, i dont appreciate it. Tonnie no, but listen to what im saying for a second. Ive always been able to figure out how to land on the highest ground. Lemonis were just gonna be honest. From a business standpoint, you havent always just figured it out. Tonnie really . Lemonis yeah, really. Expansion is a great idea if you have your home base in order. I dont think you have your home base in order. Tamika okay. Tonnie where do we begin with that . Tamika [ laughs ] dun dun dun dun lemonis just out of curiosity, lets tell america where youre sitting right now. Is that a new spot youre in . Tonnie this, marcus, is where we stood that day, and i thought i would never see you again, in newark. Lemonis wait a second. Thats the newark spot . Tonnie this is the newark spot. [ laughter ] its what i thought it would be. Lemonis yeah. Tonnie and what you werent sure of. Im sitting exactly where you had that conversation. Tonnie all those things i did, in hindsight, were selfish. Im not used to being spoken to any kind of way. I get you dont see what im trying to do. Lemonis actually i do get what youre trying to do. Hold on one second. Sure. Okay. Okay safe drivers save 40 guys guys check it out. Safe drivers save 40 safe drivers save 40 safe drivers save 40 thats safe drivers save 40 . It is, thats safe drivers save 40 . Hes right there. 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Lemonis tonnie, be honest, is that hard for you to watch . Tonnie it was. Because i know the love my sister has for me is genuine. So to see her tear up that way, thats probably like kryptonite to me. My kids, my sister, my wife. When i see tears and i cant go and embrace or apologize all those things i did, in hindsight, were selfish. Lemonis tamika, do you know how much your brother loves you . Tamika yes. Tonnie she has no idea. Tamika my brother, hes been there for me, like, im not gonna even go into that because i will cry then. So with that being said, i know that my brother got me. Lemonis i am going to be like a dog on a bone and im not gonna let go. Tonnie and i think i need that. Youre right. Lemonis tonnies a frustrating guy to do business with, and i often have to remind myself that i made a commitment to come here and help not only him but his family and the people that work here. We have to prove that we can make money without adding locations, and we have to find ways to actually put cash in the bank. And until that happens, we shouldnt be doing anything else. Tamika okay. Tonnie okay. All right. Lemonis tonnie, whats your average revenue per month . Tonnie 21,000. Lemonis what are your Gross Profit Margins . Tonnie around 70 . 70. Lemonis okay, so you know all your numbers and youre making money. You dont owe any friends, family, or loan sharks money. Tonnie im very fortunate. Lemonis so you see the difference five years will make. And im not trying to be funny, im being serious. When i first met you, you didnt know any of those things. I am super, super proud of you. I decided to swing by tonnies minis and check on the construction. What happened to, like, a little bit of work . Man a little bit of work turned into the ceiling falling down. Lemonis holy [bleep] literally fell down . Man i mean literally fell down. Tonnie hello . Lemonis tonnie . Tonnie speaking. Lemonis hey. Its marcus. Tonnie marcus, how are you . Lemonis im at the store, and the ceiling caved in. I felt like i needed to hold the ceiling up. Every time i turned around it was like the ceiling was falling down. The entire ceiling. Tonnie okay. Im on my way. Lemonis okay. We play trivia all the time with our crew, and i always ask them, what show had the smallest space we ever had to work in . Tonnies. Tonnie tonnies minis. Lemonis what was the coldest episode we ever shot at . Tonnies. What was the craziest renovation we ever did . Tonnies. Erenisse have you done anything to bring in customers, some money . Lemonis at that point my credibility with her was on the line. She was firing stuff at us, like. Tonnie that was director versus wife. We ateams has given us the9 techpossibilityonse on teams. To continue to innovate. I can bring them in, i can actually share my screen and show the xrays. We can do that in a visit like this. Were living on teams. Its as simple as that. It means being there for each other. Thats why state farm is announcing the Good Neighbor Relief Program we know our customers are driving less, which means fewer accidents. So state farm is returning 2 billion dollars to auto policyholders for the period ending may 31st. And well continue making real time decisions to best serve you our customers. Because now, more than ever, being a Good Neighbor means everything. Like a Good Neighbor, state farm is there. Right now, there are over a million Walmart Associates doing their best to keep our nation going. Because despite everything thats changed, one thing hasnt and thats our devotion to you and our communities. Our priority will always be to keep you and our associates safe, while making sure you can still get the essentials you need. Thats why working together ist more important than ever. At t is committed to keeping you connected. So you can keep your patients cared for. Your customers served. Your students inspired. And your employees closer than ever. Our network is resilient. Our people are strong. Our job is to keep your business connected. Its what weve always done. Its what well always do. Another work from home day in the books. Time for a [whistle] charlie, cocktail . Bobby . Mimi . Rodrigo, marchello . Professor smith, would you care to join me for a cocktail in the lounge . Uncle cliff, look at you. Maurice have you met kendall . Kendall have you met maurice . Elanor, back from paris i see. Miss livingston, care to set the mood . Well, i believe were in good company. Lets drink to that. Lets drink to that. Tamika you want to invest in my business next, marcus . Lemonis what is your business . Tamika real estate. I qualified to become a broker. All i need to do is take my classes, and i can have my own company. Lemonis have you always wanted to get your brokers license . Tamika yes. Lemonis and what does it cost . Tamika 1,200. I think 1,200 is the most that ive seen it offered at. Lemonis so heres what im going to do. And im being serious here. Tonnie, im going to buy 3,000 worth of cupcakes for you to deliver to the First Responders throughout new york city right now, and hes going to take 1,200 of the 3,000, cause i know what his margins are. Tamika [ laughs ] tonnie true. Lemonis . And were going to take 1,200 of the 3,000 and youre going to get your darn license. And if you dont get it in the next couple of months, im going to make a show about you not following through. Tonnie thats the last thing we want. Lemonis tonnie. Tonnie hey, guys. Lemonis after the ceiling collapsed, i had to bring in extra workers and materials, and its gonna cost me an extra 30,000. In order for this business to work, the space has to be functional. Erenisse oh, hi. Lemonis im really glad that erenisse is here, because i want her to see what kind of progress were making, especially since shes tonnies largest investor. Erenisse let me ask you a question. So, all of this is being done. All this work is being done. Have you done anything to bring in customers, some money . Tamika my sister, she fits up here with, like, superwife. Erenisse well have this beautiful store, and what are we gonna bring . Tonnie great product. Erenisse but if people dont know were out there, hows that gonna happen . Tonnie so, the Marketing Teams gonna be pulled together. Erenisse i want to know when the moneys coming in. Thats what i want to know. Lemonis so, ill give you the plan. Lemonis so, i decided that i didnt want you to get your ass whupped anymore by your wife. So i thought, let me just step in the middle of this bullet thats about to get shot. Tonnie you did that. Erenisse maybe its my way of thinking. Lemonis no, no. Erenisse he always tells me, you dont understand. Im a businessperson. Lemonis no, no, no. You understand. Were just not as ready as we want to be. At that point, my credibility with her was on the line. I needed her to understand how hard you worked and that you were doing everything that i was asking you to do. I really felt like you had really made progress through the journey with me. She was firing stuff at us like tonnie that was the director versus wife. Lemonis no, that was the investor. Look at all these people. Its busy. Now that tonnie is devoting 100 of his time to sales, ive set up a meeting at sylvias to see what kind of salesman he really is. Trenness, nice to meet you. Trenness welcome to sylvias. Lemonis thank you. Sylvias is one of the most popular soul food restaurants in all of america, and having an opportunity to sell to them would be big margin. Tonnie this is actually a sweet potato cupcake, which i believe you dont have. Bedelia thats right. We dont have. Lemonis but i think theres a good deal here for all of us, because your margins on Something Like this will be really, really good. I dont know what you sell a slice of cake for. Bedelia 5. 50. Trenness 5. 50, 6. Lemonis and so this may allow for a little lower price point but the same kind of margins. Trenness heres the thing im a little nervous about bringing them inhouse. Were working on quite a few different businessdevelopment items, and were already struggling trying to house the items that we have. Im not certain that we would have space for these. But just from our customer standpoint, they dictate, so. Lemonis how about you and i take them around . Can we do that . Can we give a few away . Trenness of course. Of course. Tonnie so the funny thing is that was my first actual pitch to an actual owner. Lemonis tonnie, i thought you were doing great but we didnt need to talk about it, we needed them to hear and see other people loving it. Thats the best closing tool ever. The proof is in the pudding. Trenness howd yall like it . Woman its great. Trenness oh, good, good. Tonnie its never been about money for me. Its always been about me loving the fact people want our product. One of the things, of course, is to figure out a way to produce an item thats gonna be exclusive to sylvias. Trenness hmm. Well, we like exclusive. Tonnie this would be just here for you guys. Bedelia im sold. Trenness [ laughs ] i see this absolutely working. Lemonis now, the wholesale account you have today, do you make money with them . Tonnie i do. Ive set it so that my numbers actually are triple whatever it is its going to cost me. Lemonis because of the labor and overhead that you need to factor in . Tonnie correct. And just in loss. Like, theres always loss, theres returns, theres credits. Lemonis what tonnies describing is that when you are producing a product like cakes, its not only the cost of the product itself and the labor that it costs to make it, theres whats called waste that you have to factor in. Well . Tonnie that was great. Lemonis you did great. When you start to follow the process, thats what happens. Tonnie okay. Lemonis okay . Ill see you back at the store. Im proud of you. Tonnie all right. Thank you, marcus. Bye. Tamika that day everything just felt right. Lemonis the store looks great. Tonnie it looks good. Tamika all those other crazy moments in between where you two were at it. Lemonis excuse me, when were tonnie and i going at it . Tamika oh [ laughs ] let me see if i can remember. [ laughs ] tmobile and sprint to power your business. Were building a 5g network that will deliver unprecedented reach and reliability, and the highest capacity in history. With more coverage and more bandwidth to keep your employees connected, you will get the largest and most Reliable Network at an unbeatable price. Tmobile for business. It started with a few fifty dollars here. Eighty dollars. A hundred dollars. I had good health insurance. Why isnt this covered . Well, then they started getting bigger. Eighthundred dollars. Eighteen hundred dollars. I saved for this. But not that much. Im glad i had aflac. They gave me money when i needed it most. Thats why aflac is here, to help with the Expenses Health insurance doesnt cover. I love that aflac duck. Aflac get to know us at aflac. Com its the simple joy of washing your hands,. Without ever touching a faucet. Its the Little Things that matter. Thats why we create moments to feel kohler clean, every day. Tamika would you like a sample . Tonnie would you like a sample from tonnies minis . Grand opening. Grand opening one block down. Tamika awesome. Man thank you very much. Tamika youre welcome. Enjoy. Tamika would you like a sample . Lemonis id like a sample. Tamika oh hi lemonis the scaffolding outside is now gone, so you can actually see the store. Tonnie good to see you, marcus. Lemonis how are you . The space has been completely renovated, so its bright and open. Before, it was dark and cramped. Now it has an efficient flow for the employees to make the cupcakes. The store looks great. Tonnie it looks good. Tamika it felt like a new beginning. I feel like that day everything just felt right. All those other crazy moments in between where you two were at it. [ laughs ] it was just a very rewarding moment. Lemonis excuse me, when were tonnie and i going at it . Tamika oh [ laughs ] let me see if i can remember. [ laughs ] lemonis we finally launched the doityourself. The signage is now clear and understandable. The toppings bar is easy for kids and adults to see and pick from. Thank you. Tonnie this day has been an amazing day. I actually have to thank marcus and thank all of you for attending. A big part of tonnies minis has been kind of pushed in a different direction because of the support of my wife. Im a very blessed man to have a wife like erenisse, and i thank you a thousand times. Lemonis how has he grown as a person . Tamika like i said, being open. And a lot of that is not him being, uh, stu not stubborn. Whats the word im looking for . Lemonis hardheaded hardheaded tamika no. Arrogant its not him being look at his face [ laughs ] marcus, stop lemonis how many locations exist today . Tonnie one. Lemonis one. Tonnie the other ones closed. Im happy i made that decision. Newark i love. Its my home. Ive been here since 2007. Youd be proud because five years ago for me it was more about, how do i open up another store . Right now im a different person. Im probably moving as slow as a turtle with growth in general just because id much rather not expand too quickly and not be able to control it the way i can right now. Lemonis thats right. Thats exactly right. Its more important to be there for the long haul than it is to show up and disappear. Tonnie im not gonna do it. I want the world. That hasnt ended. But im gonna get there on a different pace. Lemonis id rather have the long haul than a flash in the pan any day. And that is the tip that i want you to never forget. Erenisse this is really an amazing opportunity that i really never thought was gonna happen for my husband that i love dearly. Ive been blessed to have him and the family in my life. And, you know, im just, like, grateful. Thank you, marcus. Lemonis i want to tell you tonight the reason i was as hard on you as i was is that i sensed the talent and i sensed the commitment and i sensed the dedication. And if i didnt sense that, i wouldnt have stayed. And so i want to apologize to you for how hard i was on you, to a degree. Tamika oh lemonis you are one of the reasons that this show exists. Because you prove to people that they can accomplish anything. Tonnie marcus, thank you. Im not gonna tear up, but coming from you, it means a lot. Lemonis well, we used to do 500 a day in business. Were now doing a minimum of 1,500 a day, and our operating costs on a daily basis are averaging around 1,100, leaving us with gross profit of 400. On an annual basis, its about 140,000 of profit per year. Woman cheers to legacy building. Tonnie continued success. Lemonis tada [ laughter ] lemonis its really important in todays day were all going through a lot of crazy times right now, right . Tamika because of the covid19, youre saying . Lemonis yeah. Whats one piece of advice you would give a Business Owner whos watching this tonight thats struggling . Tonnie make sure you love what youre doing, and that passion, during the worst days and everything thats going on in the world, we can survive. Hands down. Lemonis tonnie, i want you to get moving on making those cupcakes for all these First Responders throughout new york city and across the country today. And hey you tamika yes . Lemonis youd better get into class or im gonna i cant say it on Live Television but tamika im going to beat your ass [ laughing ] oh, excuse me lemonis bye, guys. Love you. Tonight on the profit. Marcus, nice to meet you. I go inside jacob maarse, a highend florist and gift shop in pasadena, california that hasnt earned a profit since its founder died in 2010. How much money will this business lose this year . Close to 200,000. Sloppy business practices. Do you have an Inventory System . No. Together with lax management has driven down sales and piled up debt. So are we going the right way . I believe so. We need to know where were going. If they dont make changes, this 47yearold Family Business will be forced to close its doors. This business is a total mess. Im fighting against time to light a fire under these people. This is the thing that will help us go from the red to the black in one month. Before this bu