Transcripts For CNBC The Profit 20180221

Boards for sekac now sekac will leave it for kundratek. Bouncing puck. Radil couldnt get to it spinning with it for the United States is troy terry four minutes gone in overtime. Tied at 2. The u. S. And the Czech Republic, the winner will advance to the medal round semifinal game on friday sanguinetti off the stick of gion gionta mozik tips it up the boards. Repik. Now mozik once again for kolar four on four hockey in overtime. Repik, puck knocked away good defensive play by gunderson. Gunderson up the middle for sanguinetti with gionta. Giontas shot is blocked here come the czechs birner with the puck, number 16. Pass blocked by roe, delayed offside. Gunderson has it for the United States garrett roe through the neutral zone leaving it for chris bourque. Across the line. Bourque carries it to the corner, defended by polasek. Roe to bourque and its kubalik back the other way for the Czech Republic pass for nakladal. Now bourque on the puck once again for the United States. Under five minutes remaining in overtime if we remain tied after the full ten minutes, we will then go to a shootout. Here comes oneill with speed. Oneill looks to cut wide on kundratek. Kundratek lost his stick the defenseman kundratek without a stick. Broc little over to play the puck little out in front and a save by francouz, kept alive by welch. His shot is blocked. Kundratek still without a stick. Moves the puck with his glove, upended by oneill and the czechs come away with the puck little came over great back check by little. Gutsy effort he kept nemec from shooting arcobello spinning back with under four to play in overtime tied at 2. Both teams make changes. Here comes ryan donato up the left side for Mark Arcobello arcobello slides it across and that shot misses the net, off the stick of sanguinetti faceoff will come back out into the neutral zone with 3 45 remaining in overtime. Thats an awfully good chance donato gets spilled going to the net. Could have been interference you see him head up there, passes the puck wide arcobello, everybody backs off he elects to go to sanguinetti who cant finish the job the United States with gionta, terry, gunderson and sanguinetti on the ice four skaters aside kolar ejected from the circle. Radil steps in and wins the draw nakladal with the puck for the Czech Republic the United States with two shots in overtime. The Czech Republic with one. Here comes radil for polasek polasek across nakladal with a shot saved by zapolski. This is goaltending thats so hard to track on big ice. Youre the last line of defense, you got to diagnosis everything so quickly you see how hes square, hes big, comes out and knows the lower part of the net is taken away by the shot blocker great job by ryan zapolski. Nakladal can bring it too he wasnt able to get a full head of steam on it but hes dropped some bombs on zapolski today. 3 26 in overtime. Theyve made an adjustment to bring somebody up to the hash mark, having learned their lesson. Roe and cervenka. Roe will be replaced by oneill. Oneill wins the faceoff. Back to blum and to billins. Big faceoff win by the United States here comes chad billins. Pass up the left side. Garrett roe followed up by birn birner back the other way pass off the stick of cervenka chipped out by blum. Polasek slides it across to nakladal three minutes remaining in overtime kenny albert, mike milbury, Pierre Mcguire inside the glass. Tied at 2. Roe controls he heads off to the bench after setting it back to blum. Now it is Troy Terry Terry and butler, the u. S. Forwards here comes terry moving to his right. Kolar behind the net to mozik. 2 30 to play here in pyeongchang in overtime. Kolar comes out of his own zone. Both czech goals scored by defensemen in this game. Brian gionta comes back out for the United States with ryan donato repik down the right side, great defensive play by donato tries to get it through to gionta nemec back on it for the Czech Republic gunderson has it now for the u. S. Good play composure play by ryan gunderson. A little shimmy shake down there in the corner gives himself a little room. Here comes ryan donato. Donato has his shot blocked. He has five goals in the tournament which leads all players, including the first u. S. Goal today. 1 25 remaining in this tenminute sudden death overtime blum across. Arcobello with oneill arcobello into the corner for oneill. Oneill defended by polasek. Dropping it off for arcobello. In front, could not connect with oneill. Now blum drops it off. Kept in the zone by oneill, forced out by ruzicka. They battle along the boards and it is cervenka final minute of overtime good job by blum on cervenka. Here comes arcobello with billins. Arcobello with a shot. That was blocked by mozik. Garrett roe in to play the puck for the United States. Sanguinetti with a pass. Behind the goaltender and francouz covers. If hes overactive in that goal, hes going to put that in on his own great play by garrett roe here pulls up short, spots sanguinetti coming in from the point, drills it francouz gets a big piece of it and it just drops behind him. Imagine if he starts shaking his legs there, see how composed his legs are if he doesnt know where the puck is, he could put it in himself. Now roe with terry, gunderson and sanguinetti. 35 seconds remaining in overtime terry with the puck tries to drag it out in front garrett roe for the United States puck comes out of the zone with 25 seconds remaining roe circles it back. Down to 15 seconds here gunderson back to roe. Ten seconds remaining. Roe drops it off for gunderson his shot misses the net high puck comes to gilroy back around behind the net and we are headed for a shootout in pyeongchang. The United States had a power play early in overtime, could not connect. Then Bobby Sanguinetti came close just a moment ago. The shots through 70 minutes, 28 for the Czech Republic, 20 for the United States. Last time the u. S. Mens team took part in a shootout, sochi, kob kobulchuk two for four what a memorable night that was. Memorable, only one problem hes not here this afternoon it will be interesting to see who tony gran atato goes to. You know hes going to go to donato pierre, you know well see troy terry. For sure. What he did was magical at the world junior two years ago with the United States winning gold in montreal. This is the semifinal against the russians he does his best imitation of t. J. Oshie here he is for a third time at the back of the net, slick as you can be terry, three shootout goals against russia at the 2017 world juniors. Also won a National Title at the university of denver the u. S. Won the toss so it is their choice as to whether or not they will shoot first. Its a time for speed, a time for patience you cant waste the opportunity. Martin erat will be amongst the shooters here. Jordan greenway doesnt seem to be too fazed by it. I think cervenka will be one of the shooters for the Czech Republic. Each team will shoot five times. If were still tied after five, it goes round by round after that fifth shot, then you can start using the same player, a la t. J. Oshie. The winner moves on to the medal round. 22 through regulation and a tenminute overtime. Five shots apiece with different shooters if were still tied, we will then go round by round and the same player can continue to shoot after the first five shots by his team. Whats going on at the benches, pierre quiet beyond belief on both benches. Theres more conversation coach to coach its really quiet down here. The two loneliest guys on the ice right now are the goaltenders. They dont get any break five shots, just themselves between victory and defeat zapolski has had a good afternoon. We are told t. J. Oshie has just tweeted, terry, terry, terry with three exclamation points what t. J. Oshie did, it was magical that night in sochi. Ruzicka a late addition to the squad. Hes shown great talent although he hasnt been very productive. Here comes ruzicka moving in on zapolski. He makes the save. He made that look easy, mike, talking about zapolski you saw him late in the game being square and composed. Hes square and composed, doesnt drop quickly. Trying to pick a spot, ruzicka. There was no faking, no deception at all. Chris bourque, first United States shooter francouz comes way out hes stopped a lot of diving there bourque deliberate on entry, goes to the backhand, cant quite get it over the pad of francouz makes a huge stop. Koukal, second shooter for the Czech Republic moving in, he scores got him to go down, separate the pads and slipped it underneath right there great job by koukal. Ryan donato, second United States shooter francouz comes way out its off the side of the cage. Comes in with a little bit of speed and gets more deliberate with the puck, tries to get francouz to bite but cant put it past the outstretched leg. Both skaters for the u. S. Deliberate with their approach this is kovar, he is stopped by zapolski. The five hole was there he gave it to him and then took it away. Repik Mark Arcobello. Arcobello is stopped stick save by francouz well, a little bit of a dip by arcobello but nothing major not a great shot selection everybody has been trying to go down low this is kubalik for the Czech Republic he is stopped by zapolski. Zapolski is giving his team a chance to hang in there. Just a quick release, trying to pick a spot zapolski is there to make it. Here comes troy terry u. S. 0 for 3 terry cannot score tries to go to the backhand one deak, two deaks, got to get it up if youre going that way terry cant do it. This is for the win. Kundratek who had a goal in the game stopped by zapolski. Now the United States must score to keep this game alive. Kundratek comes in with a head shake, zapolski is right on it this is it. Bobby butler must score to keep this game alive for the u. S. And he does not. The Czech Republic wins. They will advance to the medal round. Ryan zapolski allowed only one in the shootout but the United States unable to beat Pavel Francouz the Czech Republic moves on. Butler with the approach, tries to go to the stick side and francouz whos been good throughout this tournament, denies him gives his team a step forward to the semifinal game the u. S. Played okay they just didnt seem to have the jump theyve had in previous games. They did have that great chance by oneill in overtime sanguinetti also had a chance. Its the czechs that go home happy. Francouz goes five for five in the shootout the czechs have now won all four of their games here in pyeongchang. The United States won two, both over slovakia. But they will not move on to the medal round. The czechs salute the crowd. The u. S. Does the same czechs finished sixth in sochi, the last gold medal in 98 in no nogano theres the star of the u. S. Team how many terrific moments did ryan donato provide over the last 8 days. Sure did. Terrific to watch. Troy terry also. Moments from jordan greenway just not enough to get the job done today heres that final attempt by butler Czech Republic wins it in a shootout. For mike milbury and Pierre Mcguire, this is kenny albert. Coming up, kathryn, j. R. And jonesie. A premium juice company. A Coconut Water company. Weve got drinks for long days. For birthdays. For turning over new leaves. And we make them for every moment in every corner of the country. We are the cocacola company, and were proud to offer so much more. [deep breath in] [deep breath out] [deep breath in] [deep breath out] [short, quick breaths] [harder breathing] [gasping breath] [harder, faster breathing] [grunt] [faster and faster breathing] uh [silence] [gasping for breath] [deep breathing] [exhaling] [fast breathing] [crowd cheering] [weight dropping] [exhaling] [slow, deep breathing] [deep breath out] [deep breath in] [deep breath out] [deep breathing] [deep breath out] bursting with more flavor which is much better than a previous idea that we had gum thats just bursting. Ahhhhhhhhhhhhh complete chaos screaming for help trident bursting with more flavor. Much better idea hello. Hi. Hows it going . Alright, how ya doing . Welcome so, this is the allnew chevy traverse. What do ya think . This looks better than 99 of the suvs out there. Its very modern. Sleek. Maybe the most impressive part of the allnew traverse. Is whats on the inside. Surprise what are you doing here . Ive missed you guys. I havent seen you guys in so long whats happening . We flew her out. Its a family car, we had to put your family in it yeah, it gets 7 thumbs up the Czech Republic celebrating on a hardfought game with the United States in a shootout. Pavel francouz, the hero in this one for the Czech Republic as they will move on to the medal round. They are the first team to advance to semifinals and await the winner of norway and the olympic athletes from russia later today. Lets send you back downstairs Pierre Mcguire with brian gionta. I know youre disappointed. Can you take us through what transpired at the tail end of that game. I thought for the better part of the second period, 12 minutes or so, they had us back on our heels. I thought we did a good job the last 8 minutes of getting pressure obviously that shorthanded goal helped obviously we had some chances but for the most part it was a back and forth game. When you had the power play opportunities and clearly the game was on the line, it seemed as if the team was lacking confidence is that fair to say . Yeah. We cooperauldnt put it together we couldnt settle it down in that key moment. You have a power play late in the game a minute and a half left in the game and carries over in overtime even in the four on three we didnt get the looks we wanted we bobbled it and for sure thats a missed opportunity. I know its probably easier said than done but theres probably so many positive things that you can take as a captain off of this team what are some of them . We had a good group of guys we worked hard we gave everything we had. Unfortunately came up short. Thanks for your time. Thank you welcome in. The usa had that power play in the overtime and we heard brian talk about no shots on the man advantage. Lets show you what happened from start to finish in this game what a game it was started in the first period with the usa getting on the board first. Ryan donato whos been outstanding for this tournament gets his fifth goal of the olympics on a beautiful pass from troy terry. No surprise those guys involved early its been the story of the tournament donato taking a hit to make a play, scoring the opening goal donatos father and family cheering him on. The Czech Republic would respond before the period ended on kolars first of the tournament. Miscommunication on the faceoff mccarthy gets knocked out. It goes in the back of the net for a 11 tie. Second period, the czechs pressuring kundratek gets the goal. Both of their goals come off the sticks of defensemen. Penalty for the usa on arcobello for tripping jim slater evens up the score. Perfect shot, nice save watch this pass by oneill perfect. Under the stick. Mark arcobello is happy in the box celebrating. Oneill had a heck of a game. He wrings it off the crossbar. Great shot. Noticeable throughout the tournament just missed there. Under a minute in overtime. Bobby sanguinetti with a scoring chance. Puck landing behind francouz. We go into a shootout. In the shootout, the only player for the Czech Republic to beat koukal. The Czech Republic advances to the medal round of the 32 final in the shootout koukal with the gamewinning goal their goaltender, peter francouz, how are teams going to get to him hes been unflappable, calm, come up with huge saves in key situations including shootouts this one no more pressure than an elimination game. He did his job his rebound control was outstanding. I didnt think the usa team tested him enough until the third period he put on a clinic. This is where hes really good these penalty shots right here, francouz had the net covered not much to look at. Very intimidating. He was fantastic this team has not lost and a lot of it is because of their goaltender. Disappointment for team usa lets go back to Pierre Mcguire with ryan donato. A spectacular tournament for you personally you got to be feeling the pain right now. Why did it go so wrong on the power play late in the game . Its tough. We got to perform when we get our chances. Its not easy in high tension situations and i think theres plenty of times where theres differences in the game where you got to capitalize and we did for some of them to win the tournament you got to capitalize on most of them. How did you get back on the rails . The veteran presence said hey, you got to pick it up the p. K. Goal was huge i think we were down and quiet on the bench and that woke us up what does this mean to your career Going Forward its an unbelievable experience im truly blessed to have this opportunity and be here and play with such great guys and veterans ill look back at it as a positive experience and hopefully it benefits my game in the future. Thanks. Hell look back at it as a great experience and look forward to what could be the National Hockey league hes a Boston Bruins draft pick. A lot of questions surrounding donato and where hes going to go talk about his play in this tournament. He stood out more than any other player troy terry right there with him. The two of them, especially donato, brought on a lot of attention before this tournament was said and done. The czechs came out trying to knock him off his game even in this afternoons game he came up with key plays, putting troy terry in position to make plays. When he didnt have the puck on his stick, donato did a great job of making sure he was a shot first player. Incredibly high iq and what a great shot he has. You can do everything on the ice. Theyre lucky to have him. Between him and troy terry, by far the two best players for team usa they did exactly what they needed to do just wasnt enough at the end. Both these guys, troy terry going to anaheim at some point hes going to have a great career. Lets go downstairs Pierre Mcguire with troy terry. Lets talk about the shootout. You guys went 0 for 5. What was francouz doing that made it so difficult for you guys he came out far and challenged and was quick for me he was it creates a different challenge when hes opposite handed. He catches with his other hand it messes us up a little bit i thought i made a good move but he made a great save. I asked ryan donato you had a spectacular tournament what does this do Going Forward . Gave me a lot of confidence knowing that i can play at this level. Im going to keep that going going back to my denver season, just keep that going it definitely helped me a lot in the future knowing that ive got some work physically to get bigger but i can play at this level. It was a blast watching you keep up the good work. Thanks. I thought that was a great point what troy said its so hard for a goal scorer when youre used to a goaltender catching with one side to have to go against a goaltender who catches with his right usually he goes five hole but thats taken away because of the way that he uses his glove and his stick. Troy wasnt able to get it to the top. Went to the backhand and thats a perfect move but he wanted to go five hole. He had the right idea, no question about that. Theres only two righthanded catching goaltenders in the National Hockey league theres a lot in this tournament its a look that a lot of players arent used to terry is not looking at those National Hockey league guys but at least he has the creativity to try to come up with something. A couple of the shooters made it easy on francouz. Lets look again where things stand in the quarterfinals the Czech Republic has moved on while the other three matchups will be decided later today. Theyll await the winner of the athletes from russia and norway. Lots to look forward to still in this tournament but team usa is eliminated we are out of time our coverage from Gangneung Hockey Center resumes at 2 30 a. M. Eastern, 11 30 pacific with norway taking on russia. For everyone working hard behind the scenes and our entire crew, im Kathryn Tappen the prophet is next on cnbc. Lemonis tonight on the profit. This place is awesome. Two Business Partners revive a beloved Family Restaurant chain. Woman i was so excited to see that it was back. Lemonis . Only to run it right back into the ground. Mike weve gone through hell together. Lemonis the c. E. O. Is incapable of doing his job. Why are you blaming everybody else . Mike im not blaming everybody. Lemonis what about you . The head of marketing isnt allowed to do hers. Shauna i feel like i try to take on things, and you try to take them back. Sandy its not that simple. Shauna well, it is. Lemonis as the dysfunction gets worse and worse. Mike paul was handling the numbers. I trusted, but i didnt verify. Lemonis . The day of reckoning gets closer and closer. 1,900,000 is the total debt, and you have no cash. Its like a train wreck. If i cant restore some leadership in this legendary brand. Mike youve really got the wrong picture of this whole thing. Lemonis no, no, no. I got the very clear picture. Its going to melt down this time for good. Get this right, or its gonna die. My name is marcus lemonis, and i risk my own money to save struggling businesses. Were not gonna wake up every morning wondering if we have a job. Were gonna wake up every morning wondering how many jobs we have to do. Its not always pretty. Everythings gonna change. Everything. But i do it to save jobs, and i do it to make money. This. Lets go to work. Is the profit. Together we, for farrells, give you a cheer wed like to wish you a happy birthday lemonis in 2009, mike fleming and paul kramer brought back farrells ice cream parlour. Shauna hi welcome to farrells. How are you doing today . Lemonis . An iconic familyrestaurant brand known for its americana theme, its mini candy stores, and, of course, its oversized sundaes. Man huge. Man 2 hoo lemonis founded by bob farrell in 1963, the company, at one point, had as many as 130 locations. In the 80s, bob retired, and the chain was sold to a group of investors. But they mismanaged the stores, lost the magic, and soon after, every last one of them was gone. Eager to open up a familyoriented business, mike enlisted paul to help him restore farrells to its glory days. They even put a new spin on the restaurants famous birthday song. Together clap your hands clap, clap your hands clap lemonis but they moved way too fast, opening up seven restaurants in just a few short years, some of them never generating a profit. And thanks to high rent, more than a Million Dollars of debt, and a slew of operational blunders, one location is already gone, with the rest in deep trouble. Mike where are we gonna get that extra money . Theres no money in here. Lemonis if i cant help them stabilize their stores, this great comeback story will come to an end any day now. Shauna i mean, we need help. Theres no doubt. Lemonis im meeting the owners at the buena park restaurant, which apparently is one of their better locations. Ive got to say im excited to get started. Any time you can bring people together, families together, and have fun, thats a business worth investing in. Woman good morning. Lemonis hi. This place is awesome. This is really cool. Mike marcus. Mike fleming. Lemonis nice to meet you. Mike oh, my gosh. And welcome to farrells ice cream parlour. Are you celebrating anything today . Lemonis im celebrating life. [ siren wails, bell dings ] [ horns honking ] woman whoo together it goes 1, 2, a 1, 2, 3. Happy birthday woman happy birthday. Lemonis wow. Out of nowhere, this big drum comes, and people are screaming, happy birthday i mean, it was crazy. Woman happy birthday lemonis how does everybody feel about the awesome birthday songs . Woman it was just too loud. We couldnt have a conversation. Lemonis too much . Woman yeah. Lemonis im all for having fun and singing happy birthday and celebrating things, but theres a point where its not an enjoyable Dining Experience anymore. Man well, this would be our menu. Lemonis okay. Mike the theme is a turnofthecentury theme. Lemonis how many different items are on this menu . Mike theres over 100. Lemonis theres a lot on here. So, youve had a ton of restaurant experience . Mike i had very little restaurant experience. Lemonis why did you start this business . Mike its hard to describe. Farrells is a place where lifetime memories are made. Lifetime. Its all about family. Ive got my daughter working for me. Lemonis okay. Id love to meet her. Mike let me see. Shauna. Want you to meet marcus lemonis. Lemonis hi. How are you . Im marcus. Shauna im shauna. Nice to meet you. Lemonis nice to meet you. Father daughter working together . Shauna yeah, yeah. Its fun. Lemonis and have you been in the business a while . Shauna i have. I started right out of college. So, im the director of marketing now. Lemonis youre the person that gets everybody in the front door. Shauna yes, thats my goal. Lemonis whats it like working with your dad . Shauna i love working with him. I mean, my dad has always said that he started all of his businesses because he wanted to be able to pass something down to his kids, and, of course, i want to make him proud. Mike shes a huge inspiration for me and a motivation for me. Lemonis you can feel the affection between you guys. Shauna yeah. Mike oh, yeah. Id like to have you meet my business partner, paul kramer. Lemonis okay. Mike want you to meet marcus lemonis. Lemonis how are you . Im marcus. Nice to meet you. Paul thank you for joining us here. Lemonis absolutely. How do you share roles and responsibilities . Paul operations for me. I have restaurant background. Lemonis what are the numbers here . Paul were doing 4 million. I can go back and mike no, we werent that high. Paul dont think so . Mike nope. Paul we did, yeah. Lemonis so the numbers arent Crystal Clear . Paul yes. Mike yeah. Lemonis i dont know what just happened. Paul answers my question, and then mike says hes wrong. And quite frankly, they both look totally lost. How many stores exist today . Mike theres five stores. Bob farrell started the company back in 1963. When we started the company, he came up to the opening. He goes, guys, you did it. This is farrells. Lemonis oh, thats awesome. Paul my uncle would take me to farrells growing up. And farrells is part of families. It was part of mine, and its part of millions as they grow up. Lemonis lot of childhood memories. Mike when we closed Mission Viejo earlier this year, it was one of the worst days of my life. Bob had passed away at the time. [ voice breaking ] he was. He would not have been happy. cause he never bob never had a store close. Lemonis so, what happened in Mission Viejo . Mike a bunch of things happened. First of all, our rent was high. Then there was another very popular restaurant across from us. Ultimately, we werent able to pay rent. The other problem we had, we had operational issues. We were running high in food. Lemonis whose responsibility is that . Mike paul has handled all of that. Paul [ chuckling ] yeah. Lemonis okay. Normally when you meet somebody that has Business Partners, they dont start ratting people out this quickly. I thought it was a little peculiar that, right out of the rip, he tells me, well, we had this one location, and it didnt do well. Oh, by the way, it was that guys fault. And mikes supposed to be the c. E. O. What kind of c. E. O. Does that to his people . Paul so, youve seen our fountain . Lemonis i have not. This is really what you guys are known for, right . These giant icecream sundaes . Paul it is. Lemonis so, who came up with the recipes for the ice cream . Mike well, bob farrell actually gave us recipes, but we dont make our own ice cream on premises. We have a third party. That is thrifty. Lemonis and so you give them your recipes, and they make them . Mike no. We use their particular brand. We didnt have the money to be able to do the bob farrell recipes. Lemonis you got to be kidding me. This isnt just some ordinary icecream parlor. This is an iconic brand thats been around since 1963, and theyre using an ice cream that i could buy at a local drugstore . If youre known for ice cream, you should at least have something thats special, and special to only you. So, can you give me a little tour of the candy store . Shauna sure. Sandy, this is marcus. Sandy hi. Lemonis hi, sandy. Im marcus. Sandy its a pleasure to meet you. Shauna sandys in charge of all of our candy and merchandise. Lemonis and so your fulltime job is the candy store . Sandy no. H. R. , payroll duties. This is last on my list. Lemonis yeah. Sandy yeah. Lemonis ive never seen a candy store or any Retail Business that has its h. R. Director running the merchandise. I guess i shouldnt be that surprised. If they dont see the importance of having their ice cream be special, why would the candy be any different . Its a nice attempt at a theme, but im not really sure that the themes clear to me. When you walk in the front door, it looks like they went to the local Convenience Store and just said, give me some lollipops and some sweet tarts. Its not nostalgic. Theres nothing really curated. And whats this all this bacon . Why do you have bacon cotton candy . Sandy people like bacon right now. Same thing with the bacon soda. Lemonis i mean, i know the craze with bacon, but how does it connect to farrells . Shauna it doesnt. There is no bacon connection. Lemonis yeah. Shauna and i think that there are a lot of things that could probably go away. Sandy well, i love the product. Shauna the barrels used to be filled with oldtime candy, and thats what people really remembered. Lemonis penny candy. Shauna yes, yes. The createyourown in this day and age is huge. So i would definitely put the barrels back. Lemonis thats clever. I like that idea. The candy store, thats marketing to me, because its the first thing you see when you come into the store. You want people to be wowed by this. You want it to be special, something memorable, not to mention that candy, typically, has amazing margins. So, do you know how much the store did in total sales last month . Sandy 2,000 in candy and about 4,000 in merchandise. Something like that. Lemonis so 6,000 total . Candy sales seem terrible for what it should be. And theres a history of farrells being in the candy business. Wasnt an accident that bob farrell was successful. Nice meeting you, by the way. Sandy it was nice to meet you. Lemonis and these people screwed it up. Have you ever asked sandy, like, why this isnt right . Shauna no, i havent asked her. The frustrating part is, i feel like my a lot of either ideas or thoughts are kind of squelched. Lemonis even though youre the marketing person . Shauna yes. So, sometimes i feel like im still viewed as the boss daughter. Lemonis its common for the employees to be skeptical of the boss son or daughter, because they believe that theyre gonna get preferential treatment. But the only person that ive noticed that has any attention to detail is shauna. Buena park has a ton of problems, and its supposed to be one of their better locations, so ive asked mike to actually show me what he considers his worst location, and im a heck of a lot less excited now. Im marcus. How are you . Travis good. Pleasure to meet you. Lemonis nice to meet you. Youre the manager here . Travis this is one of my stores. So, im the regional director for the company. Lemonis how much revenue do you do . Travis well, last year, this location did 2. 4 million and lost 92,000. Lemonis why is that . Travis the floor plans not ideal, and, uh. In a little bit of a rougher area. A lot of it had to do with the management that we had in prior to me taking over this location. Lemonis and how long have you been here . Travis about three months. Lemonis take me back to the kitchen. Travis yeah, absolutely. Lemonis lets walk back there. Travis we need to replace a lot of equipment. We have a meat drawer underneath our charbroiler. Thats gone out. Every month, we have somebody come out thats repairing it. Our reachin coolers, i can repair this piece of equipment, or i can purchase plates and silverware. I was in a truly amazing job. I worked for hilton. And farrells came back. Got the job, cost me about half of my salary. Lemonis you took a pay cut . Travis yeah. Lemonis big pay cut. Travis big pay cut. Lemonis travis really believes in what farrells is doing, and hes got a good grasp on whats wrong and what needs to be fixed. I really was impressed with him. Lets go see what this food looks like. If you look at the presentation. Travis its boring. Lemonis i mean, this plate is too small for this setup. Travis to me, were just not competitive. Its loud. Lemonis too loud. [ siren wails ] travis and, you know, its its hard to compete. Lemonis its cute once, and its happening every five minutes. Travis yeah. Lemonis do people complain about it . Travis they just dont come back. Lemonis somebody needs to tell these team members that are singing that its not a tryout for a musical. If i make a deal here, the volume of the musics going down. You know what i thought we could do if all of us, including paul and sandy, can go in the other room. Mike sure. Lemonis . And just go over financials. Mike absolutely. Woman e. J. , party of three e. J. lemonis lets look at the revenue. Paul lets go to the sales tab. Lemonis 17 million of sales across the company. Mike right. Lemonis buena park 359,000 in profit. Brea made 200,000. Riverside made 70,000. Rancho cucamonga lost 92,000. Sacramento lost 300,000. Five locations of which three of them make money. Where is the cash to fund the loss coming from . Shauna buena park. Lemonis where else . Paul brea. Shauna riverside. Lemonis every location that makes money. Mike yeah. Were trying to keep it afloat. Paul yeah. Lemonis i want to summarize the debt, as i understand it. Its made up of bank loans, legal bills, the buildout loan for this place, taxes, and payables. You said that you man ah, farrells crowd, look this way cause i got something very important to say lemonis so, the total amount of debt. [ drums beating ] you want to hear something funny . Thats the reason people dont come back here. Shauna i know it is. Lemonis its actually annoying. It can be done in a more elegant way. I dont want to come here and enjoy a meal if its not my birthday, cause i dont want to listen to that nine times. 1,940,000 is the total debt for this entire company, and you have no cash. I mean, its just its like a train wreck. Paul yeah. Lemonis out of their five locations, three are making money, generating profits of just over 600,000 last year. But when you look at the two remaining locations, their losses take that profit down to just about 250,000. And then you factor in servicing debt of almost 2 million, its obvious to me why this thing is in the red. They cant make improvements, they cant make repairs, and their tabs with their food vendors are piling high. As far as im concerned, you might as well just turn the lights out after you do that math. Shauna i think we grew way too fast. By the time we realized where we were at, it was too late. Paul its been stressful the last eight months. Its its been its been rough. Lemonis we need to get this right, or its gonna die tomorrow. So what i want to do is take these numbers and think about them, okay . Ill see you guys soon. Paul okay. Lemonis what mike and paul have built really wasnt the farrells of yesteryear. Theyve come up with some poor imitation of it. The customer experience, the ice cream, the candy store those are just not here. I believe in the original concept, but i dont know if i believe in them. The scary thing for me as i sit here right now is, i dont really know what im walking into. What i see is a kitchen thats got Kitchen Equipment thats missing. I feel like im being asked to partner with people that dont know their numbers. It scares me. I mean, i hope you can appreciate that. How much ice cream do you buy a year . Mike are you gonna add it up . Paul yeah. Mike okay. cause i got the sheet. Lemonis the place is called farrells ice cream parlour. You should probably know how much ice cream you sell. Mike paul was handling the number stuff. Trust, but verify is what Ronald Reagan said. I trusted, but i didnt verify, and its pulling this damn company down. Lemonis in order to be a leader, you dont blame people. You solve problems. Take some ownership of your issues. When i think about making an investment, i think about investing in hard assets. Mike mmhmm. Lemonis in this case, theres no cash flow, theres no real assets, and so the only thing thats really left is, what is the farrells brand worth . Mike okay. Lemonis so i have interest in investing in two things the trademark and the locations themselves so i can invest in the people. And if i make an investment in these locations, there is no money going sideways. They stand on their own, and they either make it, or they dont. So, my offer is 750,000. But i want 51 . If your business is in trouble and you need my help, log on to. I put everything into my business. And i had all these points from my chase ink card. So i bought ingredients, utensils, even made custom doughnut cutters. Wow all with points. Thats how i created the ripple. The doughnut, in a doughnut, in a doughnut. Suddenly, its everywhere. I mean, it really took off. What will you create with your points . Chase for business. Make more of whats yours. Oh, thats lovely. So graceful. The corkscrew spin, flawless. His signature move, the flying dutchman. Poetry in motion. And there it is, the baby bird. Breathtaking. A sumo wrestler figure skating . Surprising. Whats not surprising . How much money heather saved by switching to geico. Fifteen minutes could save you fifteen percent or more. With its hightech the cameras and radar, contemporary cockpit, 360 Degree Network of driverassist technologies, and sporty performance, whats most impressive about the glc . All depends on your point of view. Lease the glc300 for just 449 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Lemonis my offer is 750,000. But i want 51 . That money would go into the stores to bring the payables current, to get the equipment fixed. The most profitable location is buena park. So buena park is gonna be a prototypical concept that were gonna come up with a model. Were gonna set a standard for the store. Were gonna set a standard for the ice cream. Were gonna set a standard for the menu. Mike golly. Lemonis so, do we have a deal . Mike yeah. We have a deal. Lemonis great. Mike we have a deal, marcus. Wow. Lemonis ill see you guys tomorrow. Mike thank you so much. Lemonis yep. Were gonna head outside, okay . All the store managers and the people from the office. I wanted to meet with all the employees at another location so more people can hear about the deal that i made and find out what the direction of the company Going Forward is. So, yesterday, paul and mike and i made a deal for me to invest 750,000 into farrells. Going forward, these locations either win on their own or they die on their own. Were gonna dig in to the presentation, to pay the payables, to make sure that the equipment you have in your store actually functions. Travis we appreciate you having the belief in us. Kim if it wasnt for you doing this, none of us would be here in six months. Lemonis i got your back. Okay . Everybody excited . Together yes lemonis lets go inside and get to work. Paul all right. Lemonis all right, 1, 2, 3. Together farrells lemonis all right. [ screaming ] [ growls ] hi, guys. Travis hi. Lemonis how are you . Sandy hi. Lemonis whats happening . Travis good, marcus. Nice seeing you. Lemonis for me, farrells needs to be more than just a restaurant. It needs to be an overall experience, and in order for them to learn that and see that, im gonna take them to Universal Studios hollywood, a place that really understands the guest experience. Were gonna head down to one of the coolest places here mels diner. Travis awesome. Lemonis how are you . Im marcus. Eric chef eric. I oversee the entire food operation. Lemonis for the whole park . Eric for the entire park. Lemonis so, one of the reasons that i wanted to bring this team here is, ive invested in a Company Called farrells. Eric as a kid, i remember going there for ice cream and burgers and fries, and i remember it well. Lemonis at a sitdown place like farrells, how many menu items would you recommend, max . Eric i would have no more than 20. You know, its great to have 50 items, but is it better to have 20 that you do flawlessly . Lemonis part of the reason were here today is presentation. Would you be able to maybe give us some inspiration . Eric for sure. All right, guys. This is one of our signature items that we often have for our guests. And the key to this whole thing is the plate. The thing with a rim, it gives you a border, gives you, like, a target to aim for. Travis absolutely. Our portions take up the whole plate, as you saw overlap most of our plates. Eric and i say, if we make the portions too big, people can only consume so much. Lemonis thank you very much, chef. Paul thank you, chef. Travis we learned a lot. Lemonis why dont we go to the candy store . Sandy okay. Lemonis because when you come into our store, thats the first thing you see. Travis it reminds you of the oldschool farrells. When you walked in, it was just multiple rows of color. Lemonis and what youd be able to do is have whats called a cyo, right . Its a createyourown container, branded farrells, that they could fill up. Mike that would be great for birthday parties as an option where the kids can come into the candy store. Lemonis and get a cyo container. Mike right. And thats their goody bag. Sandy you know, this is great idea, but for our stores, it just means mess on the floor with the kids spilling it. Weve got issues of opening them at the table. Lemonis so you dont like this idea for your store . Sandy for our store, no. Lemonis respectfully, i dont agree. Sandy travis, operationally, do we have staff to be able to keep up with that on the floor, what thats gonna look like on a friday, saturday, and sunday . Travis to me, it works. Lemonis so you like that. Travis i do like it, yeah. Lemonis and youre worried about . Sandy the mess. Lemonis i have no idea why sandy was assigned to be in charge of the candy store. Shes shes not good at it. I want their store to look exactly like it looks here fun and colorful and stocked. Or is it just a restaurant that sells candy . Paul no, it needs to be an experience. Lemonis it was great to see the candy store at universal. We learned a lot. But what i really wanted to do is customize what our current customers want, so i arranged for a focus group back at the brea location. How does the candy store, just the general merchandise, feel to you . Woman it holds no interest to me. Woman 2 yeah. Lemonis no interest . Woman 3 so small and so cramped, its almost like you want to get out. Lemonis whats missing . Woman 4 chocolate. Lemonis okay. What else . Woman 2 like, where you can get, like, a little bag of candy and do penny candy. Lemonis penny bags, penny candy, okay. Woman 2 like, these arent special. I mean, you can get these candies anywhere. Lemonis shaunas in charge of marketing for the company. Shauna hi nice to meet you. Lemonis and what do you think about the candy here . Shauna i think we need a lot more of that oldfashioned candy. We used to have a lot of the barrels lining. Sandy um, were trying to get away from this 10cent candy, but thats. Shauna well, i think its about wanting to share something with your child that you had as a kid. Woman 2 yeah. Lemonis shaunas coming up with creative ways to make the business better and really seeing the candy store as visual marketing for the customers. Sandys thing i like the way my candy store exists. And i got a news flash for you, sandy its not working. I thought maybe the three of us could talk outside. Shauna sure. Sandy sure. Lemonis after seeing the tension between the two of them in the candy store, i thought it would be a good idea to go outside away from everybody and have a good conversation between sandy and shauna. One of the things that i thought we could do is have some really open dialogue about the dynamic between the two of you. Shauna i feel like i try to take on things, and you try to take them back. I dont know if thats your lack of trust in me or you think im not gonna get things done. Lemonis who do you report to . Do you report to sandy . Shauna yeah, and i think thats one of the reasons that i feel really held back. I dont get full control over things that fall under marketing. You dont want to make the changes that will positively affect the way we do things. I brought it up multiple times. Sandy yeah, unfortunately, its not that simple. Shauna well, it is. Sandy its not that simple. Shauna just the way things are brought up and shot down is really frustrating. Mike some of the areas that paul is in, he is not good at. Lemonis why are you blaming everybody else . Mike im not blaming lemonis what about you