Transcripts For CNBC The Profit 20151201

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. Chicago, illinois, is home of da bears and, more recently, da lobsta. Da lobsta is a quickservice restaurant started three years ago by j wolf. The traditional lobster roll is, by far, our most popular item. Lemonis j exploited a void in the market and achieved initial success, expanding into three storefronts and a food truck that covers the entire chicago area. But those three locations turned to two when his landlord sold the site of his flagship restaurant, and now j is feeling pinched. But even with a smaller footprint, da lobsta has a loyal following and im excited to help take it to the next level. The foodtruck business is very competitive in chicago, so i decided to head downtown and see how da lobsta stacks up. Hey. J hey, marcus. Lemonis how are you . Are you j . J nice to meet you. I am j. Lemonis im marcus. Nice to meet you. Do you mind coming out to chat . J absolutely. Lemonis so is this the primary business right here . J well, i had three brickandmortars. One of them we had just to close. The landlord sold the building for development. Im now down to two, and then the food truck is a supplement to all that. Lemonis how much revenue will you do on a day like today . J ill do anywhere from 1,500 to maybe 2,000. Lemonis right here on the street . J yeah, ill do more in the truck in two hours for lunch than a restaurant will do all day. Lemonis okay. I like the Business Model of the food truck because of the portability. You can do high volume in one area for lunch, and then move it and do even more volume somewhere else for dinner. But if js truck is generating more revenue in two hours than one of his restaurants all day, then im wondering why he would even have the storefronts. Can i take a look inside . J absolutely. Lemonis whats happening, guys . Man whats going on . Lemonis id like to actually learn how to make a roll. J you take your bun. Lemonis so youre just doing this deal . J yep. Lemonis put it on the griddle . J yep. One thing i stress to everybody is we have a very visual product. Presentation is everything. Its a 12. 95 sandwich. Not only does it taste good, it needs to look good. Lemonis im ready to work. There you go. J marcusmade. Lemonis now, it goes without saying that before i invest any money in any business, i need to have confidence in the product. I love the concept. J thank you. Lemonis the bread was nice and soft. The lobster meat great. J thank you. Lemonis whyd you start the business . J when i was in l. A. In 2008, i pursued opening my own barrestaurant. Lemonis whered you get the money to open that . J my dad gave me my part. He lost a little over 300,000 when it was all said and done. I was having partner issues. That was back when i was living in l. A. And trying to be the l. A. Lifestyle. Lemonis so what does that mean living the l. A. Lifestyle . J everyone has to have a bmw, an audi, nicest clothes, go to the nicest restaurants. Lemonis were you living that lifestyle . You were spending money . J yeah. Lemonis whyd you start this business . J because i was so frustrated with that business, but i knew i still loved the food industry. Lemonis how much money did you invest to start this . J so the original investment was 185,000. That came from my grandmother. Lemonis from your grandmother. What did you do with that 185,000 . J we built the first store in gold coast. Lemonis the one that closed. J yes. Lemonis so that money that went into that is gone the buildout. J the buildout, yes. Lemonis none of your own money went into it. J no, i dont have any. Lemonis i always want people to have skin in the game, and its a little bit of a red flag when i find out that j hasnt put a single penny of his own money in the business. Well, now that ive seen the food truck, i want to understand what the brickandmortar locations are operating like. Its a nice spot. J thank you. Lobster chandeliers. Lemonis yeah. How you doing . Isaiah im isaiah watkins. Lemonis im marcus. How you doing, sir . So are you the head man in charge here . Isaiah one of the guys in charge. Lemonis can you give me a little tour . All right, so, front of the house right here. We got soups over here, as well. Lemonis did you make this soup . Isaiah we say we make it, but we dont make it. Lemonis you say you make it, but you dont . Isaiah no, we dont. Lemonis and so why do you tell people that you make it if you dont . J i just try to be vague as to where it is. Like, its a home recipe, doesnt say homemade. Lemonis j is trying to trick people into being convinced that his soup is homemade. I wonder what hes trying to trick me about . Can you show me the back of the house . How you doing, sir . Carlos carlos. Lemonis carlos . Im marcus. Nice to meet you. J carlos is the kitchen manager. Lemonis who do you report to . Carlos isaiah. Lemonis isaiah. You guys get along pretty good . Isaiah yeah, sometimes. Lemonis sometimes . Why not all the time . Isaiah the problem is the last time me and carlos got into an argument we have a 400 order in the morning. These people are expecting their food at a certain time on time, and guess what . If you ruin their lunch, you just blew it and theyre not gonna order from us again. So what happens is im fittin to start getting this order and im fittin get this order out. Lemonis so you back here cooking . Lemonis yeah. Nicholas when i was brought here, nobody told me the chain of command. They just told me, hey, well hes the kitchen manager. He comes off as a jerk sometimes. Lemonis so give me an example of, like, what that looks like. Nicholas uh, yeah, i should just fire everybody. And just, winter times come, its gonna slow down, so its just gonna be me in front. J but i also told you a few weeks ago, facetoface, that nobody will be fired in this kitchen without me being the one to do it. Lemonis you say to him, nobodys getting fired without you knowing about it. Thats like basically saying, i dont give a [bleep] what he says. What kind of authority does he have now . Zero. Carlos zero. Lemonis the chain of command is important, especially in the restaurant business, but it also has to come with respect. And thats all youre asking for. All right, so you guys got to work on that. We know that js the owner. He owns 100 of the business, right . J no. Lemonis what do you mean, no . J no, i have partners in the business. I own 52 of the business. Lemonis really . Can we sit by ourselves and just go over some j i have an office downstairs. Lemonis oh, you do . Oh, yeah. How much money has been put into this business overall . Your fathers original investment was 300,000 . J my father gave me money for my first investment, which went south. I gave him 10 of this company. Lemonis but you got you started this business with your grandmas money. J she gave me 150,000. Lemonis 150,000 or 185,000 . J 150,000. My sister put 35,000 in and i gave her 15 of the company. Lemonis okay, so how much does your grandmother have . J zero all she asked is that i pay my father back at some point. And then i have a partner. His name is dan. He has 23 . Lemonis that leaves you with 52 . How much debt . J ill show you right now. Lemonis do you have the financials printed out or anything, or no . J no. Lemonis but dont you have Financial Statements . J yeah. I dont know how accurate they are. Lemonis i dont know what rock js been living under, but he contacted me. I dont need him to have, like, the most beautiful presentation, but how about having a printout that has your Balance Sheet and your Financial Statement . J heres where we stand right now. Lemonis you owe 120,000 in sales tax . J yes. Lemonis thats past due . Lemonis sysco you owe 55,000. 140,000 in internet loans. Square loan thats another loan. Thats 40,000 . J yes. Lemonis whats bill . J bill is my wifes grandfather. Lemonis how much is that . 26,000 . Whos debbie . J debbies my sister. She also gave me some money as a loan. Lemonis so you owe her 20,000. Dan you owe him 30,000. J yes. Lemonis so thats 431,000 in debt. So you borrow money from family. You borrow money from the government by the taxes. You borrow money from sysco. If this business doesnt get real cash, i dont know how it survives. If da lobsta closes, you got a lot of issues. All the employees are out of jobs, the city comes after j personally for the pastdue taxes, and js grandmother, js father, js sister they all lose their money. Its bad news real bad news. If you dont have a job, what happens to you . J i dont have any money. I dont have money saved. I dont take a paycheck. Lemonis couldnt you just go to your dad or your grandma . J no, me and my dad are hardly on speaking terms. Lemonis because of the money . J yeah. Lemonis how much do you end up having to take out a month just to kind of keep your head above water . J probably about 3,500 or 4,000. Lemonis in cash. J yeah. Lemonis whats the total revenue of the total business, overall. J well, last year was 1. 4 million. Right now, were at 1. 1 million, and its august. Lemonis 1. 1 million . J yeah. Lemonis this location . J no, all of it. Lemonis all three everything combined. And how much will it lose on paper . J right now, its not losing anything on paper. Basically, that sales tax not paying it, thats whats making it break even. Lemonis hit run report. Meals and entertainment, 25,000 whats that . J for, like, we go out to dinner. Do things, like, that goes on that. Lemonis so youre running it through the business . J yeah. Lemonis do your lenders know that . J no. Lemonis 134, 116 amc. Is that the Movie Theater . J yeah. Lemonis you went to a movie, like, about lobsters, or. J i dont know. Lemonis amc, amc, amc, amc, hugos, amc. Whats this one for 358 . Sunda a very expensive sushi place. You know what the unfortunate thing is . I live here. Hub 51 . J yeah. Lemonis 194. Another movie. Anoth jesus. J its my only relief i get sometimes. Lemonis i know, dude, but honestly. I mean, brother, i got to tell you something. J hmm . Lemonis im not feeling so bad for you. Youre taking out 3,500 a month in cash out of the business, and youre going to mortons and hugos and going to the movies all the time. J yeah . Lemonis and so this is not fair to the people that i mean, if i do a deal with you, do i have to. J no. Lemonis . Be thinking that youre gonna be going to the movies on my money . J no. Lemonis in my mind, as i sit here, what i feel like is, let me call marcus to see if hell put some money in to kind of continue this lifestyle. Im not that far off, am i . J no. Lemonis you need some discipline is what you need. I was so aggravated by what i was finding that i just needed to get some space and take overnight and just think about it, because i was pissed. The fact that you just told me that i wasnt that far off was not a good thing. I was hoping you were gonna try to convince me that i wasnt right about the fact that you called me here so that you can continue this lifestyle, because as an outsider j its not me wanting to continue the lifestyle, i was saying you were right that i need your help. Why, so that you can continue to go to hugos . J [ scoffs ] lemonis im gonna tell you right now, its [bleep] up. And i apologize for cussing, but, man. When i left da lobsta last night, i had no intention of making a deal with j. J how you doing . Good to see you again. Lemonis but theres a lot of people that work there a lot of people that invested money in this business. I felt like i just needed to hear him out to see if there was anything worth salvaging. I wanted to kind of maybe just have just a youandme bull[bleep] session for a little bit on kind of what happened yesterday. J i feel like we werent on the same page on some things. Lemonis the perception for me, yesterday, is that you werent being straight with me. Its probably the same perception that your dad has, right . J mmhmm. Lemonis and so we have to fix that behavior. Why dont you talk to your dad anymore . J one night, ill be honest, i just i was in the middle of building the river north store. We were so cashstrapped, cause the store was way over budget. I was using cash flow. It was the middle of the winter. I mean, i just kind of went off on him over the situation. I tried expressing to him that i really am trying to do everything to ultimately get his money back. I just need time. And he just didnt, you know, quite understand that. Lemonis understand that or believe it . J believe it. It really bothers me. Its. He didnt even come to my own wedding. Like, that was that was horrible, so. Lemonis he didnt come to your wedding. J [ sniffles ] [ voice breaking ] so i just need this company to fulfill that promise. I want to make this big enough where his shares are worth something that makes up, if not more, for what he gave me. Or i make enough out of it where i can repay him somehow. Lemonis in hearing jay talk about his lost relationship with his dad and him wanting to pay him back, he was accepting responsibility and i think thats what i really wanted out of him. He was deserving of a second chance. Just based on our little conversation here, youre a guy that wants to have a relationship with his dad. You want to fix that. You want to have a successful business. I feel like i learned more about you. And your honest conversation helps me do that. J thank you. Lemonis okay. J how you doing . Lemonis good morning. J good to see you. Lemonis how are you . Whats the good word . J pretty big day. Lemonis the reason that i came here is cause i like the idea. J right. Lemonis its in my hometown. I saw the people standing in line at the food truck. There was nobody else there that had a food truck like that. I have a product that i think has a lot of potential, and its a model that could be scalable. What i didnt know is that you didnt put any money in and you were taking money out for more than just your cost of living. Most entrepreneurs have some skin in the game. This skin isnt everybody elses skin. They have some of their own skin in the game. J most importantly, i want to pay those people back. I want to make good on it. Lemonis and im willing to help you figure that out, so im willing to make an offer. J okay. Lemonis my offers 210,000 for 51 of the business. It requires you to sell this location, to use those proceeds to pay down the sales tax. It requires you to go on a payment plan to pay your dad back and to service this other debt. One of the other things that i would want to do is put you on a normal salary. My confidence level in your ability to not put your hand in the cookie jar is low. And so youre gonna have zero access to the cash. If your business is in trouble and you need my help, log on to. By day, they must stay warm. Challenges to the feet. But by night, beautiful, smoother and ready to impress the other party animals. Dr. Scholls dreamwalk express pedi ok, weheres dad. Mom. The twins. Aunt alice. You didnt tell me aunt alice was coming. Of course. Dont forget grandpa. Can the test drive be over now . 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Now i can download my dvr recordings and take them anywhere. Ready or not, here i come whispers now hideandseek time can also be catchuponmyshows time. Here i come cant find you anywhere dont settle for uverse. X1 from xfinity will change the way you experience tv. Lemand so youre gonna 210,000 have zero access to the cash. J what salary would you be putting in place for me . Lemonis whatever you got last year. I dont want to pay you less. I dont want to pay you more. J 60,000 is what i took, so thats not what takehome pay would be. Lemonis thats not my fault you didnt pay taxes. Ill pay you the 60,000, but im 100 in charge. J i put too much in to give up full control of the company. Lemonis why do you think you should have operational control . So you think going out for elaborate meals and taking cash is consistent with being a good steward of the business . Why do you think you should have is it a pride thing . J sure. Lemonis cause if this sales tax doesnt get paid, theyre gonna lock the door and there goes your pride. J i know for a fact i can operate my company. Lemonis i mean, im not gonna budge off 51 . We have a deal, yes or no . J i dont want to give up 51 . Lemonis your answer is no. J yeah. Lemonis okay. J its not that im not respecting you or your opinion. Lemonis no problem. Whats obvious to me is that in this moment where j has an opportunity to do whats right for the business and for the people that have put money into the business, he chooses himself. And thats where pride turns into ego. Nice meeting you, i wish you a lot of luck. J thank you. Lemonis okay . There are plenty of people who do not deserve the help, like j wolf, cause theyre unwilling to change or theyre ungrateful or they just dont respect the process, but there are other people who do deserve a chance, like this woman who reached out about 500 times. Betty harris is the owner of bettys pie whole a pie shop based in encinitas, california, specializing in both sweet and savory pies. Betty do we have chicken pies . Shay they are out on the rack. Lemonis a veteran of the restaurant world, betty started her own business nearly 10 years ago and soon gained a loyal following. The shop consistently made money, but after she opened up her second location, her fortunes began to change. Betty its just gotten away from me. I dont have a lot of time. Lemonis im already in the sweets business, but the savory pie market is growing in popularity. It offers a new opportunity to market pies as a meal rather than just a dessert. With my expertise, i believe i can help betty out of this spiral and get this onceprofitable business back on track. Bettys seemed to be nestled amongst this gardensupply space with several other businesses. Ive never seen anything like this before. If youre looking for a place to be a destination, this is it. Looks like people came and bought everything already. Woman mmhmm. Its very popular. Lemonis 11 30 and its empty. Woman ive come here twice in one day just to get the next selection. Lemonis youve come here twice in a day . Woman oh, yeah. Betty hi. Lemonis youre betty . How are you . Im marcus. Betty my god. How are you . Lemonis really nice to meet you. I did not know what to expect when i came here. Its really cool. Betty oh, its, well, its a little its warm. Lemonis and so is this the whole place here . Betty no, theres a whole dining room in there, too. Lemonis have you always been a baker . Betty its just something i always did. And i was kind of a latchkey kid, so i had to come home and get the chicken in the oven by the time my mom got home. Lemonis okay. Betty [ laughs ] lemonis so, today, youre operating two locations. What will this place do in total sales . Betty i mean. [ sighs ] sales. Lemonis thats like, when you ring the register. Betty i think maybe like 400,000. Lemonis 400,000 . Betty yeah. Lemonis thats a lot. And what does the other place do in sales . Betty 600,000 . Lemonis 600,000 . Betty somewhere around there, yeah. Lemonis so, does this location make money . Betty some months, but overall i would say no. Lemonis okay, and does the other location make money . Betty definitely not. Lemonis and how much does this lose . Betty i think last year we lost 500 bucks. Lemonis this place . Betty yeah. Lemonis so youre a couple pies away from making money . Betty apparently. Lemonis and the other place . Betty last year, it was 50 grand. Everybody was like, youre gonna double your money. Youre gonna make so much money. Oh, my god. Thats a better space and you can make so much money. And so i was like, oh, my god. Making money this is so great. But i havent taken a paycheck in over a year. Lemonis okay, can you give me a tour of the back . Betty okay. This is the kitchen. Lemonis hi, guys. How are you . Man hows it going . Lemonis whos the manager . You are. Shay yes. Lemonis im marcus. Shay shay. Lemonis shay. Nice to meet you. Shay all right. Nice to meet you. Lemonis so when i came in, you know, its the beginning of the day. Why is the case kind of empty . Shay cause we cant produce enough. Lemonis why . Shay today, were lucky we have three ovens working. Lemonis what, sometimes the ovens dont work . Betty yeah. Lemonis do you ever have a line out the door . Shay yes, we do. Lemonis and you run out within the first couple hours . Betty yes. Lemonis when you see the fact that theyre sold out of product and the business is not being able to satisfy the demand, its obvious to me that you dont have a sales problem. You dont have a demand problem. You have a production problem. Shay this, right now, is our only consistently working oven. Lemonis thats not good. Shay as you can see, our sink is cellophane wrapped and rubber banded together. This does not work. Lemonis so half of the equipment in here doesnt really work. Shay mnhmnh. Lemonis is elizabeth a good boss . Shay shes incredibly talented. Lemonis but is she a good manager . Shay no, not managing the business. No. I think maintaining the finances and managing us its too much. Lemonis can we try the pie . Betty yes. Thats Grandma Lucys chicken pie. Lemonis Chicken Pot Pie is amazing. Betty thank you. Lemonis which ones that . Betty the eat your greens. Lemonis mmhmm. This dough feels doughy, as opposed to flaky. Betty okay. Lemonis do you have, like, a recipe book for all this stuff . Betty i dont need a recipe. I winged it. Winged it, and its not the best way to do it. Its really not. Lemonis no . You dont think so . Betty no. Lemonis if these recipes arent written down, whats gonna ultimately happen is youre gonna have an inconsistent product. And inconsistency isnt gonna encourage people to make visits every month. At some point, every time they come, the pies different . Theyre gonna stop coming. Betty its my passion its just like finding new recipes. And my mom baked always. Lemonis and what did your mom inspire in here . Betty rosalees fancy pants pie. Lemonis are you close with your mom . Betty i mean, yeah. I mean, shes my mom. I dont know. Yeah. Lemonis that feels like an odd answer. Betty no, no. Shes far away. Dont make me cry. Lemonis where does she live . Betty she lives in texas and i cant go see her. Lemonis why . cause im here. I havent seen her in years. And she cant afford to come here and i cant afford to help her at all or buy her tickets or do anything. Lemonis whens the last time you saw her . Betty probably 2009. Lemonis wow. Betty yeah. And i was supposed to go out and i just couldnt go. I dont have a lot of time. Aw, man. Lemonis come on. Sit down. Betty i just i dont need to be a billionaire here. I dont need to be wealthy. I just want some peace. I just want some time, and im not afraid to work hard. And i will listen to everything you say. Its just gotten away from me. [ sniffles ] and clearly im doing something wrong. Lemonis i dont know about that. The pies were pretty damn good. Betty [ sniffles ] im a bit of a negative nancy at times. Lemonis no, you havent been negative. Betty im trying to be im trying to use the secret. But im secreting sometimes instead of using the secret. So. Its like youre the prophet, and im the nonprofit. This is so amazing. Its like worlds collide. Lemonis now that ive checked out her flagship location, i want to check out her other shop the one that she tells me is losing money. And right away, i see problems because its called elizabethan desserts. It doesnt look anything like bettys pie whole. What is this . Betty give me a chance its not top chef. Lemonis cause youre not a top chef. Betty wow lemonis im done. When a moment turns romantic why pause to take a pill . Or stop to find a bathroom . 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Thats not homework talk to farmers and see what gaps could be hiding in your coverage. We are farmers bum pa dum. Bum bum bum bum karl, dont you have fryeah, so . Ng over . It stinks in here. Youve got to wash this whole room are you kidding . Wash it . Lets wash it with febreze. For all the things you cant wash, use. Febreze fabric refresher whoa hey mrs. Webber inhales hey, it smells nice in here and try pluggable febreze. To continuously eliminate odors for. Up to 45 days of freshness pluggable febreze and fabric refresher. [inhale exhale mnemonic]. , two more ways to breathe happy [ indistinct conversations ] lemonis what is this . Why is it so different . Betty because thats pies and this is cake. We do wedding cakes, birthday cakes. Lemonis i got to be honest with you, im super confused. Betty really . Lemonis mmhmm. I thought this was gonna be like a second location that felt similar. Betty oh, no. No, no. I wanted them to be very different. Lemonis and how much is the rent . Betty with everything . 6,400 a month. I know. Lemonis in a Shopping Center . Betty yeah. Lemonis you see, the other place has a sort of Country Charm to it and it feels like a destination to me. This feels like a stripmall bakery. Nothing special about it forget the fact that shes paying exorbitant rent and losing over 50,000 a year. Betty shouldnt have opened up elizabethan desserts in the first place. Shes spreading herself over two places, but getting neither of them right. I feel like ive gotten a good sense of whats here. Betty yeah. Lemonis so im gonna meet you back at the other place. Well go over financials. Betty i have them some. Lemonis good. Ill meet you back at home base, okay . So are these your financials . Betty yes. Lemonis the financials that youre showing me are for the first half of 2015. Betty okay. Lemonis there are two businesses here. Theres bettys pie whole and theres elizabethan desserts. And this location, bettys pie whole, has done 256,000 worth of business. It has a 71 margin, which is pretty good. Actually its really good. Betty i like it when your eyes light up like that. Lemonis great job. Your Employment Costs are 152,000. Theyre 83 of your gross profit. Betty [ gasps ] lemonis which means that youre not getting enough revenue. Betty agreed. Lemonis . For the number of people that are here. Instead of them making pies that get you to 5 00 and generating the revenue, theyre making pies cause its so inefficient and machines are broken thats getting you to 2 00. But its the same amount of labor producing not enough. So far this year, bettys pie whole has generated 256,000 from selling pies, leaving her with about 182,000 in gross profit. But those profits are almost entirely eaten up by her labor costs of 152,000. Its not because she has too many employees. Its because the employees are working in an inefficient environment. If we can fix bettys process and stock her kitchen with equipment that actually works, we could double or triple her pie output without any increase in labor, leaving the store comfortably in the black. So at the other location 303,000 of revenue. Your total expenses there are 226,000 for the first half of the year. Your expenses here are 189,000. Here youve lost 6,000. There youve lost 17,000. I think the bigger issue for me, elizabeth, is theres only one you. And business thats doing better is not getting enough of your time. Betty yeah, yeah. Lemonis youre spread too thin. Betty and im doing terrible. Lemonis youre actually not doing terrible. This is a very charming destination. It feels like an interesting restaurant concept. So im willing to make an offer of 75,000. Betty wow. Lemonis . For 25 of the business. I can tell you that im going to solve working capital so theres money in the bank. Im going to fix the process in the kitchen so that the labor can actually produce the volume of product that i think it needs. Betty i mean. Lemonis you want to think about it . I dont want to pressure you. Betty no, youre not pressuring me. Its like you know the right thing to do, but then its like, uhh. Lemonis so do you accept my offer . Betty okay. Lemonis congratulations. Ill see you tomorrow morning. Betty really . Youre gonna come back . Yay lemonis well. Betty i didnt know were gonna come back tomorrow. Lemonis i just gave you money. Of course im coming back. Betty okay. So youre 100 in charge. Lemonis congratulations. Betty thank you, sir. Lemonis good morning. Shay good morning. Man good morning. Lemonis my name is marcus lemonis. Yesterday, elizabeth and i made a deal for me to put 75,000 into this business, and ill own 25 of the business. You can expect the entire process in here to change dramatically. How many of you have seen the recipe book and studied on it and been trained on it . You been trained on the recipe book . Thats because there is no recipe book. Were gonna upgrade and improve the process and the equipment so that the same amount of people can make enough pie to not run out at 2 00. On a scale of 110 10 being laserfocused, 1 being all over the place, describe her. 110. Shay all over the place. Lemonis so thats a 1. Shay i would say a 3. Lemonis a 3. Man i think 3 sounds pretty accurate. Lemonis 3 . Man 2 3. Lemonis 3 . Woman 3. Lemonis 3 . Man 3 3. Lemonis bettys struggling to manage this place, let alone her second place, which has been a drain on her time and her money. So for now, i want her to focus on this location and this location only. While you guys have done a good job, youve really had no leadership. I believe that you guys have the heart and the passion for this place. I think the product is really good in most cases. Im asking you to trust the process. Lets get to work. Thank you. I want to reimagine the eat your greens pie, and i want to make a couple variations of it. I want you to write a proper recipe and i want you to document the changes you made. Betty do i go now . Lemonis right now. Betty okay. Lemonis youre on it. Lemonis i have no doubt that betty can make pies. The reason that i wanted her to make variations of the pie is to also learn how to write things down so that any member of her staff can make the exact same pie. How we doing on those . Betty uh. Lemonis these are two of them. Where are the other two . The biscuit dough im working on. This is a chive dough, and then this one is like a flaky garlic. Lemonis where did you write all that down . Betty uh. I took our base flaky dough and i changed it. Lemonis and so where is that documented . Betty no, i remember it. Its the same process, but just a variation on ingredient thats all. The look in your eye makes me nervous. Lemonis well, the look in my eye is for the last two that you have nothing written down. How many ounces is the bottom . Betty 2. 5. Lemonis and what did it use to be . Betty im sorry, the bottom oh, no, i did reduce the bottom. The top was 2 1 2, so what im gonna do is this was 2. 5 and then this is going to be reduced. Lemonis one thing that drives me crazy about betty is that shes basically just winging it all the time. In my opinion, i think thats what got her in trouble. Let me wing it by opening up another location. Its like everything with her lacks a plan. I havent been this frustrated in a very long time. Betty give me a chance its not top chef. Lemonis cause youre not a top chef. Betty wow, marcus. Lemonis top chef would have their [bleep] together. They would know what they did. They would write it down. They would have a plan. They wouldnt just be winging it all the time. Betty im not winging anything. Lemonis okay. Im done. Betty what does that mean . I dont know what you want me to say there, marcus. So does that mean done for the day . That mean done for. Ever . Does anybody know . Lemonis you have to trust the process. And so. Betty no, dont you throw that heart. Dont you do that now. Come on, now. [ gasps ] other wireless carriers make families share data. Some way to say happy holidays. Switch to tmobile now and get up to 4 lines with up to 6gb each. Just 30 bucks a line, thats 6gb each plus unlimited video streaming with binge on™. Stream netlfix, hbo now , hulu and more without using your data. And now unwrap the Samsung Galaxy s6 for 0 upfront and just 10 bucks a month. This year tear into the holidays with tmobile. More sit per roll. More stay per roll. More whos training who per roll. Bounty is two times more absorbent. So one roll of bounty can last longer than those bargain brands. So you get more life per roll. Bounty. The longlasting quicker picker upper. And try bounty napkins. Plan well and enjoy life. 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And so when you expect her to do something that she says shes gonna do and she doesnt, not only does it violate the relationship, but it puts the business in jeopardy. Do you know why i walked out . Betty im trying to understand. Lemonis i dont think youre as organized as you should be. I know that theres a ton of talent inside of you. I know that you have the ability to be a badass. I know it. In order for us to move forward, you have to trust the process. The one thing that is Crystal Clear to me is what betty needs is laser focus. She needs to become far more onedimensional. So heres what id like you to do. Id like you to go through this place and clean out anything that you dont need. I just have interest in you having a singular focus. Do you need this . Betty yes, definitely. Lemonis what for . Betty ice cream. Lemonis so now youre an ice cream manufacturer . Betty no, we just make it. Obviously people want ice cream and i feel like its lemonis you have to be the one that makes the ice cream . Lemonis i think that its a good yeah. I think people really love that. They love it. Lemonis focus, focus. This is not bettys ice cream whole. This is a savory and sweet pie shop. And so. Betty no, dont you throw that heart. Dont you do that now. Come on, now. [ gasps ] lemonis hey, elizabeth. Betty yes. Lemonis i want you to meet somebody. Betty oh, hi. Lemonis his name is mark. Mark nice to meet you, elizabeth, how are you . Lemonis mark is with an Equipment Company that ive used for all of my kitchens. This kitchens gonna shut down. Betty ooh, okay. Lemonis and all new equipments coming in. Lets start the process, okay . Now that weve started the construction over at bettys pie whole, were gonna take a ride over to elizabethan desserts. Theres some Serious Business that has to be finalized. I love to buy businesses. I love to invest in them. I love to have them. Betty youre great at it, yeah. Lemonis but when they dont work, im the first to admit it and im the first to shut it down. Betty i ju lemonis this place is costing you money. You cant spend your time chasing things that just dont work. Every idea cant be a good one. Its just not possible. Betty i agree. Lemonis then why dont you shut it down . Betty because i know that the potential is there. Lemonis three years later . Betty i think both can be done. Lemonis pick one. You run one place and you kick ass with it. You get a life. At some point, you see your mom. Everybody that works here still works. Or you keep going this way and they both close cause you run out of money. You asked me, please dont go. Ill do whatever you want. Betty [ groans ] [ sighs ] lemonis its closing. Betty when . Lemonis today. Betty today . Lemonis mmhmm. I mean, do you feel like youre losing a piece of yourself . Is that. Betty a little bit, yeah. Can i just have a moment . [ crying ] lemonis when did this get made . Betty we had to have some ice cream. Lemonis we got rid of the ice cream machine. Whered you get it . Betty. Carnie wilson. Thank you. Can you hold on . Hold on for one more day really . Hey, i know theres pain. Why do you lock yourself up in these chains . This would be so easy if you had progressive. Our mobile app would let you file a claim and help you find one of our Service Centers where we manage the entire repair process. Things will go your way if you hold on. [ sighs ] someday somebodys gonna make you wanna turn around and say goodbye. Say goodbye no, you just made it weird. So wi got a job ews . Ill be programming at ge. Oh i got a job too, at zazzies. friends gasp the app where you put fruit hats on animals . I love that guys, ill be writing code that helps machines communicate. interrupting i just zazzied you. phone vibrates look at it friends giggle i can do dogs, hamsters, guinea pigs. You name it. 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I was sad when i found out there was no santa clause lemonis im proud of you. Betty oh, god. Lemonis but i appreciate you being Strong Enough to push through it. I know youre sad, but i think youre relieved, too. Betty yeah, its like you broke up with your boyfriend or something. Lemonis i think the boyfriend you broke up with was basically taking about 50,000 a year from you. Betty ah, criminy. Lemonis probably good that hes gone, right . Betty it was a Silver Lining i suppose. Lemonis we need to be focused on moving forward, so lets lock it up, okay . Nobody in business, including me, likes to fail, but it happens and i think the best way to deal with it is to accept it and to learn from it and to move on. Closing the elizabethan dessert store down is a giant sacrifice of pride, but thats the only way that bettys is gonna be successful. Over the past two weeks, a lot of works been done here. Ive added new workstations with solidwood tops. It allows us to work more efficiently. Ive gotten rid of all the old equipment and replaced it with stateoftheart ovens and mixers. Weve added new display cases that highlight our product. Now its time for betty and her employees to fill this place with product. Betty im gonna be really specific in the recipes for you. And that way you can be sure to reference that. Man yeah, yeah. Lemonis i think the improvements have boosted morale. With the kitchen less cluttered and the equipment working flawlessly, the staff can be a lot more efficient. And i think that ultimately breeds success. Betty your stuffs melting, honey. This heat affects our ice cream. Lemonis shes still making ice cream . Betty no no. Lemonis sure enough, i walk into the freezer and what do i see . Ice cream that she made. When did this get made . Betty a week ago . Lemonis why would it get made a week ago . Betty cause we had to have some ice cream. Lemonis but we got rid of the ice cream machine. Whered you get it . Betty from the ice cream machine. But should we not have any ice cream to go with pies . Lemonis where did the machine come from . Because i was putting it out betty i dont know where it is now. I swear i dont. Lemonis did you bring it back in after i left . Betty i dont think you put it back out. Lemonis i definitely did. I even put it right there with all the other stuff that was going away. Betty i dont remember. Lemonis betty. Could you just admit to me that you just didnt do it cause you dont want to . Betty i dont want to. [ laughs ] its the final countdown the final countdown if youre the band europe, you love a final countdown. Its what you do. If you want to save fifteen percent or more on car insurance, you switch to geico. Its what you do. Rheumatoid arthritis like me. And youre talking to a rheumatologist about a biologic, this is humira. This is humira helping to relieve my pain and protect my joints from further damage. This is humira helping me reach for more. 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What every coconut wants. U just admit to me that you just didnt do it cause you dont want to . Betty i dont want to. [ laughs ] youre right. I do feel that we should make our own ice cream. I feel like its part of what we do. We make things from scratch. People love the fact that we make it here and we use local eggs and were using pure ingredients. Its less processing, and if you dont agree okay. Lemonis its not that i dont agree. I didnt agree when i left, and then you and i had an understanding, just like you had an understanding that we were gonna buy allnew equipment. And so i cant be in a oneway relationship where you ask me to do things and i do them out of respect for you. And i ask you to do something, its like it didnt matter enough for you to put the effort in it. Its just about the relationship and trust. Betty okay. I dont think bettys used to people helping her. You can read on her face that shes struggling with letting go. Change is hard for people. I know that her heart is in the right place, she just cant get her head around this yet. Ill give you everything that you want, as long as we are always on the same page. Betty okay, ill take the ice cream machine and i wont make any more except at my house, just to eat. Lemonis so youre gonna take it home. Betty ill take it home. Lemonis okay. Betty is that okay . Can i have it at home . Lemonis what you do in your own home is your thing. Betty ill try to fit it in someplace. Ill put it in the garage. Lemonis hi, everybody. Shay hi. Lemonis bettys is finally ready to reopen. Hi, how are you . Welcome. Woman can i get two of those little thanksgiving individual pies . Betty absolutely. Woman theyre so pretty all of them. Woman 2 hi, how you doing . Betty bonjour. Woman 2 bonjour. Lemonis how you doing, buddy . Man doing good. Lemonis hows it feeling . Man good. Learning how to adjust with the new ovens. Lemonis oh, cause you mean theyre cooking on time. Man a lot quicker. Lemonis and so does that mean youre able to get more pies out in less time . Man yeah. Shay yes. Lemonis and so you should be able to pump out twice as many Chicken Pot Pies, twice as many pumpkin pies. You look around this kitchen and you feel people functioning in their lanes. Pies are being made and pies are being prepped. It seems organized and streamlined. People seem happy and energized and, more importantly, theyre pumping out a lot of pies. Betty what are those . Oh, my god. This is so weird. [ both laugh ] lemonis whole savory pies. Betty look it. Chicken. Lemonis so this is the Chicken Pot Pie recipe. Youre telling them whats inside and exactly how to do it. Betty yeah. Lemonis this is really all i ever wanted. Betty yay me, too its all i ever wanted. Lemonis everything seems to be in order, but i still have one final thing that i want to check on. Wheres the ice cream . Shes finally following through on the things that she said she was gonna do, like have ice cream made by somebody else other than her. Betty this is gelato vero and its in mission hills. Lemonis is it good . Betty its really good. Lemonis are you struggling with not making it or are you kind of over it . Betty i wish we could, but i understand and im listening to you and trusting the process. I know the journey to get here from me closing down elizabethan to me taking away the ability to make ice cream, were all painful steps along the way. And change is never easy for people. Whats been the best part of the process for you . Betty i work through it. It makes me a little bit tougher. I feel like i went through boot camp lemonis boot camp. Whats this . Plane tickets. [ laughs ] lemonis who you gonna see . Betty my mother. And a hotel, too [ laughs ] lemonis i think this is the first time ive seen you speechless. Today, betty has one brand and one business, allowing her to focus on what she does best turning out amazing sweet and savory pies. Even better, she has more time, especially to visit her mom. In looking at how happy she is, i feel like weve nailed it. Betty [ chuckles ] lsammy this is where the magic is. Lemonis . A burger business in new york city. Tranchina dont be shy with the sauce. Lemonis . Built by four best friends. Sammy we had a dream. We had a [bleep] passion. I dont know where the [bleep] it went. Lemonis . Who now cant get along. Sammy so, why the [bleep] wouldnt you open up the restaurant on time . Thats [bleep] tranchina hey thats enough lemonis its a dire situation. Sammy i build it for my brother, for my family. [ voice breaking ] i feel i failed them. I really do. [ sniffles ] lemonis . Compounded by lagging sales and mounting debt. How much are you losing . Covello 5,000, 6,000 a month. Lemonis if these guys cant get on the same page, its just a matter of weeks before this business goes belly up. Todd if we dont fix the problem, were gonna have to close the doors. Lemonis new york city has a ton of energy,