Transcripts For CNBC The Profit 20240713 : vimarsana.com

CNBC The Profit July 13, 2024

Christina i dont want to be that person that cries on tape. Lemonis . Fix the process. I dont think you guys have any idea whats in your inventory. Holy [bleep]. And create a few products. Welcome to your new store. Man oh, my god. Channa i owe my life to this company. Lemonis that is the reason that im here. I spend hundreds of days a year working on these companies. Why didnt you do it . Man 2 i thought that we did. Lemonis holy [bleep] but we cant always fit everything im thinking into the show. Tonight were gonna do an inside look at one of my classics from season three standard burger. Joseph hey, thats enough. Dont let this happen on tv. Stop yourself. Lemonis dont let this happen on tv. Which means that when we werent there, it was exponentially worse. Amber right. Lemonis over the next hour, im gonna take you behind the scenes to share with you what i was actually thinking during filming. If each of you are willing to kick in 15,000 apiece, ill kick in 130,000. Amber youve never done that before. Lemonis it was gutcheck time. You want me to write a check, you guys write a check, too, because i didnt come here to carry your bag. Share some secrets. Joseph im not arguing with my friends no more for tv. Its not gonna happen, so dont do it again. Lemonis first of all, dont talk to me that way. The camera doesnt lie. Amber no. Lemonis there was real tension, real discomfort. And give you an honest assessment of my decisions. Todd like were opening our doors again as a brandnew restaurant. Sammy a brandnew us. Fuji a brandnew us. True. Lemonis to the burger boys. Fuji to the burger boys. Lemonis the mistake that i made is the concept was right, the location for the concept was not. I really fudged it up. My name is marcus lemonis, and this is inside look. Man is the feeding roller on . Man 2 audio speed. Lemonis who am i with . Amber oh, please we dont have to introduce me every time. Lemonis im tired of introducing you. Amber im tired of being introduced. Lemonis why dont you introduce me for a change. Amber so. [ laughs ] im here with the profit, marcus lemonis. Lemonis thank you. And tonight, were gonna take an inside look from our favorite highfive our favorite episode from season three. Amber standard burger. Lemonis standard burger. Buckle up okay, lets just play. New york city has a ton of energy, and its always been a place for dreamers. But when you get on the ferry and you land on Staten Island, it may be less hectic, but theres still a real sense of possibility. Its one reason that im excited about today. For two years, sammy lazoja has been bombarding me with emails asking for my help. Hes been hyping this restaurant and how unique it is. And how it sets the standard. But to be honest with you, its kind of ordinary. Sammy marcus. Its a pleasure to meet you. Lemonis are you sammy . How you doing . Nice to meet you. Sammy its a pleasure. Lemonis weve been emailing for what is it, two years now. Sammy two years. Lemonis . Youve been harassing me . Sammy marcus, this is my dream. This is this is it. Amber stop. We made it sound like he hit you up for two years. Lemonis he did. Amber he hit us up for two years. Lemonis apparently, he was hitting everybody up. Amber he wanted your help. Or he wanted to be on tv. [ chuckles ] lemonis id say a little bit of both. Come around front. Sammy i originally did the buildout. I put a lot of my funds in here. I put my life savings in here. Lemonis how much have you put in . Sammy around 250,000. Joe sammy sammy this is my partner joe covello. Lemonis joe c. Joe joe c. , yes. Nice to meet you, marcus. Joseph joseph tranchina. Lemonis joe c. , joe t. Joseph thats right. Todd todd baslin. Lemonis and youre just todd. So, is it youre 25 and theyre each sammy no. So, i own a 45 share. Joseph 22. 5 . Joe 10 . Todd 22. 5 . Lemonis is the restaurant making money . All no. Lemonis how much are you losing a month . Joe currently, 5,000, 6,000 a month. Lemonis pause. 5,000 to 6,000 a month isnt terrible. When you go into business, you have to anticipate that theres gonna be some amount of losses. And the one thing that i think Business Owners make a mistake of is when they build out their original projection and they build out their cash flow model, you have to have money to do a buildout or make the acquisition, you have to have money for working capital, and you have to also account for a rainy day. You dont open the doors, and all of a sudden, everybody just comes running in to buy a burger. Amber right. Lemonis who acts as the owner operator, the person that unlocks the door and locks the door . Joe nobody. Lemonis do you have weekly meetings, where youre sitting here going over what we sold for the week . Todd no. Lemonis how [ chuckles ] joseph keep in mind, none of us have had any restaurant ownership experience at all. Lemonis oh, i dont have to keep it in mind. I picked up on it pretty quick. Look, these guys all have fulltime jobs, but in a business like this, you want to have at least one guy thats responsible for the business, one who opens it and closes it and manages it on a daily basis. Whats going on with my tie there . It looks like it must have been like one of those latenight interviews. Its like the ties not right, theres a gap up top. Thats why i stopped wearing ties. What is this back here . Sammy so, this is where we prep our patties. Lemonis you guys have frozen burgers . Sammy yeah. We reform them so it looks more handmade. Lemonis so, theyre not really handmade . Sammy no. Lemonis huh. Is everything frozen . Sammy yeah. Lemonis if youre telling me that your burger sets the standard, you kind of lost me at frozen. Well, what do you normally like here . Sometimes i get a shake, which is really good. And i like the fries. Lemonis as i walked around and i talked to some of the customers, youd think that people would go there for the burger and talk about it, how amazing it was. How was it . And they were telling me about a milkshake and fries. What do you recommend . Woman well, a lot of people get the texan. Thats like the most numberone burger. The double standard. Omg. Lemonis ill take one of each. So, who here comes up with all the burgers . Joseph i did the initial menu. Lemonis you see, you go from 3. 99 to 8. 99. Thats a big jump. So, why is an omg 7. 15, and a standards 7. 25 . Todd theres no logic on it. Lemonis theres no logic. Thank you. Joseph why are you serving that from right there when you can cook right there and give him a good one . Todd no, no, no. No, no, no. Clean that grill so i dont get any of the burnt stuff on there. Lemonis ive been in businesses where controlled chaos exists. This place is chaos without the control. Joseph recook this thing. I dont want answers. I want results. Dont be shy with the sauce. Sammy its my burger. Its my burger. Lemonis everybodys kind of yelling and complaining and arguing. Joseph dont tell me why it came this way. Just fix it. This is embarrassing. The whole restaurants embarrassing. Lemonis [ laughs ] out of all the shows weve ever shot, i was always most entertained by these guys. Amber yeah. Lemonis because they had one level of behavior when i was standing there, and then when i wasnt standing there, their behavior was totally different. Amber yeah. Lemonis i mean, these are like the real househusbands of Staten Island. Amber [ laughs ] sammy so, thats the texan. You have bacon. You have fried onion ring, lettuce, barbecue sauce, american cheese, and cheddar. Lemonis which is which is this one . Joseph thats the double standard. Its basically a double cheeseburger. Lemonis whats in here . Sammy that is the omg burger. Jalapenos, american cheese, crunchy onions, and you have plantains. Lemonis honestly, i would say the burgers are average. [ chuckling ] i mean, i have to be honest with you. These burgers and the menu concoctions they sound like collegecampus drunkburger concoctions. Sammy wed be painting a wall and talking about, hey, lets do a brunch burger. Lets do a burger with a fried egg on it. Lemonis all right, great idea. Sounds awesome. Throw me another beer. Joseph kind of, sort of, you know. Lemonis so, most chefs, if theyre creating a multitude of burgers, theyre understanding how the flavors interact with each other. Theres no sort of science. Red velvet shake. You guys make those . Todd yes. A lot of people love our shakes. Lemonis for every burger that you sell, how many shakes are you attaching . Todd probably out of every three or four orders, theres a shake in there. Lemonis so a 25 attachment . Todd probably. Lemonis and what is the percentage of attachment for fries to an order . Sammy almost 80 . Lemonis its really no different than how fast food works, like mcdonalds or burger king. The anchor product is the burger, the sandwich well call it the sandwich, and the reason they create things like value meals and happy meals is because they can get the incremental price for a very low cost. Amber right. Lemonis so a drink huge margin. Fries, same kind of concept. Amber to your point, youre not making the money on the burger, youre making money on all the things that come with the burger. Lemonis well, youll make money on the burger, right, but the way that you should think about this type of business is the burger has a food cost, the fries have a food cost, the drinks have a food cost, and when you look at the overall margin of those products, you need the Perfect Blend of the meal to actually give you the desired result. If people came in and just bought burgers and never bought fries or drinks, i dont know how youd survive. Amber right. Lemonis who came up with the red velvet idea . Sammy so, my brother, fuji, helped me design the whole burger place when we were first lemonis then why isnt he here . Sammy the arguments, marcus. Lemonis between you and him or. . Sammy no, between todd and him. So it came to a point where they were watching the cameras 24 7. Lemonis what cameras . Sammy the cameras in the restaurant. They were watching them from home, and he would get a phone call why is the refrigerator door open . You know . And he couldnt take the pressure anymore. He couldnt. And he walked away. When we lost my brother, marcus, we really lost the sense of a chef here. Todd his brother doesnt work here anymore because weve all had issues with him. Lemonis did he work . Did he come in early and stay late . Joseph he lived here. He was like having you here when youre not here. Todd fuji can get the job done. The problem is, you need to give him that direction. Sammy micromanaging. They will micromanage you till they snap your neck, literally. Lemonis who will . Sammy todd in general. Todd todd does this. Todd does that. Todd takes the shirts. Todd does anything. Sammy no, no, no, no, no, no. Joe there was times where the store wasnt open until 1 00 in the afternoon cause he didnt open it. Joseph fuji was here developing sauces, coming up with ideas, staying till 1 00 in the morning, scrubbing the floor with toothbrushes. Lemonis look, depending on who you listen to, sammys brother, fuji, is either the guy who ran this business into the ground or the one who made it run. Sammy he helped me develop most of this restaurant on paper before we even came here. [ voice breaking ] and thats the [bleep] truth, marcus. Thats the truth. And hes not here anymore cause of that reason. And its and its [bleep] ridiculous. [ sniffles ] lemonis coming up. Fuji i was not one day late. I live three blocks away. Sammy what about all the times, hey, nobodys at the burger place to open up. Call fuji. So, what the [bleep] are you talking about . Amber every time we walked into this place, there was another drama. Lemonis there was drama. Fthe prilosec otc twoweekymore. Mchallenge is helping people love what they love again. Just one pill a day. 24 hours. Zero heartburn. Because life starts when heartburn stops. Take the challenge at prilosecotc dot com. Just between us, you know whats better than mopping . Anything at the end of a long day, its the last thing i want to do. Well i switched to swiffer wet jet and its awesome. Its an allinone so its ready to go when i am. The cleaning solution actually breaks down dirt and grime. And the pad absorbs it deep inside. So, it prevents streaks and haze better than my old mop. Plus, its safe to use on all my floors, even wood. Glad i got that off my chest and the day off my floor. Try wet jet with a moneyback guarantee before we even came here. [ voice breaking ] and thats the [bleep] truth, marcus. Thats the truth. And hes not here anymore cause of that reason. And its and its [bleep] ridiculous. Lemonis pause. The difficulty in a scenario like this is theres four guys, they all have different amounts of equity in the business. And the guy that has the most equity, that put in the most money at the time wants his brother there. And hes emotional about it. And, you know what, i gained a lot of respect for him in this moment for trying to fight for that. It sounds like youre more hurt that your brother was kicked out. Sammy yeah, he he raised me. My parents are hardworking people, you know, firstgeneration, worked two jobs, sometimes even three. Lemonis firstgeneration what . Sammy from montenegro. He didnt have the opportunities i had in life, cause when he was 18, he was watching me. And this was my opportunity to set him up. Lemonis you really built this for him, didnt you . Sammy i built it for for my brother and for my family. [ voice breaking ] i feel i failed them. I really do. Lemonis why do you feel that way . Its open. Sammy hes not here. Hes not here. The restaurant is falling apart. Hes home for the last seven months. Its tough. Its really tough, marcus. Lemonis so, he doesnt have a job . Sammy he doesnt have a job, no. Lemonis does he live far from here . Sammy he lives in the same house i live in. Lemonis how far is that from here . Sammy right down the block. Lemonis lets call your brother just to sammy yeah. Lemonis id love to meet him. The fact that sammy is willing to be vulnerable and be honest about why he started the business and how much he loves his brother gives me reason to want to dig in more. Sammy fujis pulling in right now. Lemonis okay. [ indistinct conversations ] sammy marcus, this is my older brother, fuji. Lemonis how you doing, my man . Nice to meet you. You got a good little brother here. Fuji yeah. Lemonis hes got a big heart. Fuji definitely. Lemonis how long have you been in the Restaurant Business . Fuji since 14. Im 41 now. Lemonis since you were 14 . Fuji yeah. My father was a chef. Lemonis did you develop a lot of stuff here . Fuji yeah. The sauces, the burgers. Lemonis why did you decide to leave . Fuji too many differences, too many bumping heads. Like, instead of having one boss, i had like four bosses. There was too many cameras on me. Its just like, i would get a phone call. Sammy whyd you leave the fridge open . Or sometimes, with todd, ill push back against it, and then ill just say, you know what, todd, whatever. Todd marcus, it seems to be that the blame that you want to put is all on me. All i do is i try to make sure that its not costing everybody more money. Lemonis yeah, by the way, hes not wrong. Todd my partners will just spend it, it dont matter. Lemonis todds not wrong. Joseph Walking Around telling you, were not gonna let them get paid training. You have to train them all together as a group while theyre working. I dont spend 100 of my time here, but other people do. Is this place 100 successful . Lemonis but, actually, none of you are here 100 of the time. All no. Lemonis the only person that was ever here 100 of the time at some point was fuji. Fuji right. Lemonis why dont you make me a burger . Let me see how different it is. What are you making here . What do you have in there . Fuji italian burger. I was, like, trying to make the mona lisa for them, and they were painting a mustache on her. Lemonis right. Fuji definitely has a different process than what i saw earlier. Not only is he using fresh meat, but hes taking the time to use the right spices and the right blends. Joseph wow. It looks good. Sammy this things bangin. Lemonis i ate a lot that day. Amber how many burgers do you think you ate . [ laughs ] lemonis i ate a lot. Amber for somebody who doesnt like red meat, that was a lot of. Lemonis well, yeah, but you told me i had to. Amber you didnt have to finish it. You were finishing that last one. [ laughs ] fuji theyre not bad. [ chuckles ] lemonis its time for us to sit down. I want to see the financials. Joe its fairly accurate. Lemonis i hope its more than fairly. Youre doing about 600,000 a year in sales, and so you definitely have a revenue problem, because in this size of a place, you should be doing well over 630,000 a year. Todd i agree with you. Lemonis in the month of october, you did 47,000. 23,500 alone are food costs. Todd yes. Lemonis the reason that todds having to snip you here and snip you here is cause hes looking at these food costs, and theyre offensive. Todd thats exactly what the problem is. Lemonis while todd was being portrayed as the ogre of the group, he was really making good points. Amber he was the money guy. Lemonis your food costs cant be this, your expenses cant be that. And so he was taking a hardline approach to how the business should be run maybe the most unpopular approach. Amber right. Lemonis but he was just trying to say, this doesnt work. Amber they would stop losing money. Lemonis you gotta yeah, you got to or not lose money. Amber right. Lemonis you start with the revenue, and you build this flow from here. Go ahead. Youre doing 47,000 in revenue. Sammy yes. Lemonis 23,500 are food costs. Joseph foods in there, yeah. Todd your rent and your taxes come out to like 10,700. Lemonis and labors 13,000. Its right here. Theres another 5,200 between insurance, workers comp, and utilities. Theyre only like 64,800 away. So, were not that far from making money. Joseph no. Todd and thats what ive always said. Lemonis if i hadnt come today, what would happen . Joe i dont think the place would be open much longer. Lemonis why . Joe money and then the personality issues. Todd if we dont fix the problem, were gonna have to close the doors. Lemonis im gonna have to do a lot of work here. And i cant do the deal without a manager here. And so one of you has to be here all the time. Joseph all of us keeping our nose in this business, especially my brotherinlaw, suffocates the [bleep] out of people. Todd okay, but im willing to step back. So, who wants to do it . Joseph okay. Ill do it. Lemonis so, joe would be here as my manager designee, running the place on a daytoday basis. Were gonna get our food costs right. Were gonna come up with some very Creative Ideas that are gonna make us different, and were not gonna micromanage people. The Business Needs a manager, but i also think it needs somebody with restaurant experience. I dont do this deal without fuji in the deal for two reasons because its broken his heart that his brothers not here, and his brother is the only one with restaurant experience. I cant do the deal without him. If your business is in trouble and you need my help, log on to theprofitcasting. Com. I dont have to worry about that, do i . Lemonis the viewers are probably like, actually, you do. Harmful bacteria lurk just below the gum line, and if youre not taking care of your gums, youre not taking care o

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