And his business will crumble. You dont always think things through. Tonnie really . Lemonis yeah, really. Tonnie welcome to tonnies. First time here . Woman yeah. Lemonis tonnie rosier has always loved to bake, and he learned the craft from his mother. In 2006, he opened his first bakery in new york city, and he was able to land big accounts with retailers like macys and bloomingdales. But his business skills well, they were halfbaked. Tonnie im a little lost as to a notice of cancellation. Tamika didnt i just pay that yesterday . Lemonis tonnie was constantly borrowing money from his wife to cover rent and payroll. Erenisse whats the plan to recoup the money and at least break even . Lemonis hes already been forced to shut down two stores. And his current shop . Well, its already losing money. Tonnie we are at a breaking point. Lemonis the gourmet cupcake business is still thriving, and its a business i know well. And while fixing tonnies minis wont be a cakewalk, hes got an idea that ive never seen before a buildyourown cupcake. Inwood is at the northern tip of manhattan. Its an upandcoming neighborhood with a lot of renovation, and theres a lot of new restaurants and new retail, and you feel like its really growing. But tonnies minis has the worst retail entrance ive ever seen. I mean, theres scaffolding everywhere. The places on either side of them look like theyre in really bad shape. This buildyourown cupcake better be great. How you doing . Tonnie how are you . Lemonis are you tonnie . Tonnie i am. Lemonis im marcus. Tonnie pleasure to meet you, sir. Lemonis nice to meet you. Its a small space. Tonnie yes, its been challenging. Lemonis im expecting to find a bright, fun retail environment. And what i end up seeing is no display and a bunch of packaged cupcakes that are made in the back. Its crowded. Its not inviting. I mean, who would want to come here . Tonnie how are you . Woman good. Tonnie welcome to tonnies. What can i do for you today . Woman let me get the cream cheese. Tonnie can i offer you a cupcake, marcus, at the same time . Lemonis you surprise me. So, thats the base . Tonnie traditionally, you walk in marcus, you have my another guy named marcus marcus, you have my steribag . Marcus no, it should be in the front. Tonnie never mind. I got it. So, the beauty of tonnies minis is you walk in, you pick your cupcake out, you pick your topping. Woman i like it. It means make your own cupcake, essentially. Lemonis you a cupcake eater . Woman yes, actually. Thank you so much. Have a wonderful day. Tonnie take care. Lemonis cupcakes good. Tonnie always happy to hear that. Lemonis the frostings good. The process seemed a little. Nonexistent. I would have thought there would have been a bit of an assembly line, like base, frosting, topping. I dont necessarily see that. Tonnies idea of a buildyourown cupcake, quite frankly, is phenomenal. But the idea i thought i was coming for i just dont see. Somebody takes a cake off a rack and then the toppings are, like, hidden under the counter. I mean, its terrible. How much business are you doing in this location . Tonnie average is 500 a day. Lemonis and what are your margins on that 500 . Tonnie um. Cupcake costs me a quarter to make. Lemonis wrapper, frosting, labor, everything . Tonnie so it, uh. Lemonis one cupcake what does that cost to make . Tonnie so, the cost of the cupcake would be closer to. 33 cents. Lemonis are you winging it . Tonnie im estimating. Lemonis i wouldnt call it estimating. Im gonna call it guesstimating. Tonnie touche. Lemonis what are you selling them for . Tonnie starting at 2. 25. Lemonis okay. If youre selling 500 a day worth, and you and i do a deal and we sell 5,000 a day worth, i still want to know what it costs to make one. If it costs tonnie 33 cents to make a cupcake and he sells it for 2. 25, hes got great margin. The worry here is that hes shaky on his numbers, and at 500 a day in sales, there is no room for error. Kind of a tight space. Tonnie this is the oven. Lemonis this is the only oven you have . Tonnie this is the only oven i have, yeah. Lemonis there is no workflow in this place, and its cramped and its hard to maneuver, and their ingredients are just stored randomly everywhere. I dont know how theyve been able to bake here. Tamika hi, marcus. Tamika. Lemonis tamika, nice to meet you. Tamika you too. Lemonis how are you . Are you the sister . Tamika yes. Lemonis id love to kind of spend a few minutes with you if you dont mind. Tamika okay. Lemonis whos the manager here . Tamika im on again, off again. Lemonis walk me through that. Tamika i worked for, like, really, really low pay, which was okay with me. Lemonis for how long . Tamika like a year. Lemonis wow. Tonnies basically relying on free labor. And the fact that his sister is willing to help out shows that he has real backing from his family. Thats a big advantage when youre struggling. So, whos doing the Quality Control on this kind of stuff . Tamika myself and tonnie. Lemonis yourself . And so do you think this looks right . Tamika no, that ones not going out. Lemonis i dont want to see paper. This wouldnt clear. Tamika and the more we go through, we realize how much is wasted. Lemonis when this happens, two from the same batch at the same time, theres no process. Tamika and let me tell you, i have fought with my brother on this process. Lemonis why are you fighting with him . Why arent you just fixing it . Does he listen to you . Tamika no. Lemonis no . Tamika no. Lemonis that looks nice. Are you a professional cake decorator . Marcus yeah, i am. Lemonis its a small space to work, no . And is tonnie easy to work with . Marcus yeah. Lemonis and how about her . Is she mean . Marcus [ laughing ] no, shes tamika [ laughs ] woman hi. How are you . Lauren what kind of cupcake would you like . Girl strawberry twist. Lauren you want a strawberry twist . All right, so, your totals gonna be 7. 50. Lemonis how many Staff Members do you have . Tonnie 12. Lauren will be the one wholl be in the front. Lemonis hi. Are you hi. Lauren im lauren. Lemonis hi, lauren. How are you . Lauren good. Nice to meet you. Lemonis very nice to meet you. Are you a baker . Lauren when i have to be. Lemonis so what is your primary role here . Lauren im in the front selling the product. Lemonis okay, great. Nice meeting you. Lauren you too. Thank you. Tonnie theres a lot going on with tonnies minis right now as we speak. Im doing a project in newark thats close to being finalized. The people who are giving me the space, theyre building out the store. Lemonis at their expense . Tonnie at their expense. So what i have to supply is equipment, the first months deposit, working capital. Lemonis and theyre giving you the money to do that . Tonnie theyloaning me the money to do that. Lemonis do you feel like youre ready for more expansion . Tonnie i am now. Lemonis the only time a business should be expanding is when its totally proven out its model. You have the product right, you have the right people, you have the right process, and it makes money. So goodidea people are good, but goodidea people that dont know how to execute can be very lethal to a business. Hi. Erenisse hi. How are you . Lemonis how are you . Erenisse im erenisse. Lemonis are you tonnies wife . Erenisse yes, i am. Lemonis hey, nice to meet you. Erenisse nice to meet you. Lemonis you want help taking your coat off . Erenisse thank you. Lemonis you got it. Erenisse what a gentleman. Lemonis so, what do you think of the store . Erenisse i think it needs an upgrade. Thats why i wrote you. Lemonis oh, okay. Tonnie, i thought it was you. Tonnie no, it was it was it was her. Erenisse the Business Aspect of it has placed a lot of stress on our marriage. Its to the point that im not giving any more money. Lemonis how much money do you have invested in this business . Erenisse like 250,000. Lemonis 250,000 is what erenisse has put into that business. That money is gone. Erenisse altogether, weve been together over 10 years now, so Different Things helped with the rent, helped with materials. Lemonis did you win the lotto or something . Erenisse no, im trying to support him, you know, until the business can take off. Lemonis okay. Erenisse i think he needs you. I think he needs your expertise. If he hears it from you, maybe hell take it. Lemonis he doesnt listen to you . Erenisse not all the time. Not quite. Lemonis tonnie doesnt listen to his wife, whos invested a ton of money. He doesnt listen to his sister, who works there virtually for free. How do i know hes gonna listen to me . So, cupcake tastes great, but the fact that you dont know what it costs to make it is disturbing, cause you dont really know if youre making money here or not. What does it cost you to open up the place every day . Tonnie the rent would be 100 a day. Lemonis all the employees how much do they cost a day . Tonnie average day is 180. Lemonis how about electricity . Tonnie 75 a day. Lemonis how about insurance . How about maintenance . How about Office Supplies . How about the phone . Youre already well over 350. With 500 a day in revenue, if you factor in all of the operating costs plus baked goods, paper supplies, et cetera, hes already operating at a loss. Tonnies been in business for 12 years, and he still struggles with the basics. But the big question for me is, is he willing to do what it takes to save the business and pay his wife back . I think the worry that i have is that you have two people ones your sister, ones your wife. Youre not listening to them. What confidence would i even have in the fact that youd listen to me if you dont listen to them . Tonnie but if someone is coming in that i think has done it before, it just gives me a different perspective. Lemonis were gonna do a little math. The total revenue that it shows on this b l is 250,000 for the year, and you lost 76,000. Theres the 250,000 that you put in. For this discussion, i consider that equity. Because you guys are married. Thats your business. Thats the fact that you own, today, 100 of the business. Erenisse i agree. Lemonis theres 134,000 that is owed to other people. And so what do we owe other people . Tonnie the payroll tax is 11,000. The state tax, 35,000. Theres 15,000 in arrears, of which is february rent and water escrow. And then late fees. Erenisse 15,000 . Tonnie then theres denise, 12,000. Robert is 25,000. My mom for 13,000. Michelle for 7,000. Erenisse wait a minute. Is this for her services, or she lent you money . Tonnie no, this is this is her loaning me the money. So [bleep] is the person who i borrowed money from and he picks up a weekly payment from me. Lemonis like a like a like a loan shark . Tonnie yes. Lemonis it can be tough for a business like tonnies to get a bank loan virtually impossible. So you end up going to small lenders with very high interest rates, and if you cant pay them back, their methods of collecting are very unorthodox often dangerous. This is a much bigger number of debt than i originally thought for a singlelocation bakery. Whats wrong . Erenisse im just upset, cause i didnt know about all those people that we owe money to. You know how i feel about that. Sorry. Tonnie i mean, you know i would never do anything to have you sitting here crying, but i did whatever i could to keep a door open, to keep from closing, to pay staff, whatever it took. So me hiding these numbers was not intentional. It was a mistake. It was foolish. Would it happen again . Never again. Lemonis if im gonna invest in this business, tonnie has to understand that everything is gonna change. The fact that he was willing to come clean with erenisse is a good first step, but hes got a mountain to climb. Theres 134,000 worth of debt, and so for this business to really have a chance, and for the 250,000 that youve put in this business to be worth something, we have some work to do. The reason that i came to this business was because i liked your idea. And so now that i understand these numbers a little more clearly, im prepared to make an offer. And so heres my offer im willing to put up 100,000. For that 100,000, were gonna satisfy some of the debt that is a real problem. And the balance is gonna go into getting this location really right, from the layout to the process to the way we organize ourselves. And were gonna understand every cost and every corner and were gonna have an inventory process. Were gonna know our pricing. And so, im interested in investing in this particular idea. So my offer is 100,000 for 20 of the business. Tonnie im having a really hard time with that. The number i had in my mind was 600,000. Lemonis 600,000 for how much . Tonnie id say 33 . Lemonis you thought i was gonna write you a check for 600,000, everybody was gonna get paid, and i was gonna have a third of the business, and i wasnt gonna tell you what you could or couldnt do . Tonnie no, no. And, again lemonis wrong show. Were closing the store. Do you think im taking advantage of you . Tonnie yes. Lemonis i dont want to be in a relationship where somebody feels like theyre getting taken advantage of. Yet up 90 fall short in getting key nutrients from food alone. Lets do more. Add one a day womens complete with key nutrients we may need. Plus it supports bone health with calcium and vitamin d. One a day womens in gummies and tablets. And its also a story mail aabout people and while we make more ecommerce deliveries to homes than anyone else in the country, we never forget. That your business is our business the United States postal service. Priority you trade you. Trade you. Trade you. We created the ripple the doughnut in a doughnut in a doughnut. Right away, it was a success. I mean, it really took off. What people dont know is that it all started with points from my chase ink card. I bought the ingredients, utensils, even custom donut cutters. Wow all with 80,000 points. What will you create with your points . Learn more about the ink business preferred card. Of being there for my sons winning shot. That was it for me. Thats why im quitting with nicorette. Only nicorette mini has a patented fast dissolving formula. It starts to relieve sudden cravings fast. Every great why needs a great how. It can be sculpted, in beautiful detail. Or painted in luxurious strokes. And in rare cases. Both. Livestreat the airport. E sport, binge dvrd shows, while painting your toes. On demand laughs, during long bubble baths. Tv on every screen is awesome. The allnew Xfinity Stream app. All your tv at home. The most on demand, your entire dvr, top networks, and live sports on the go. Included with xfinity tv. Xfinity the future of awesome. Lemonis you thought i was gonna wreverybody was gonna get paid, and i was gonna have a third of the business, and i wasnt gonna tell you what you could or couldnt do . Tonnie no, no. And, again lemonis wrong show. So, what are you thinking right now . Erenisse im thinking that now i see why your mother is uncomfortable sometimes, cause she probably wants to ask you for the money, but since i didnt know about it, she cant ask you in front of me. Lemonis well, your mothers 13,000, right . If my offer was 100,000, i have no problem going to 113,000, since if moms happy, everybodys happy. Do you agree . Tamika yeah. Erenisse im uncomfortable with [bleep] lemonis you mean the loan shark . Erenisse yeah. I dont know what these people are about. Im uncomfortable with that scenario altogether. Lemonis so it would make you happy if that got paid. Erenisse yes. Lemonis i agree with erenisse that its a good idea to get rid of all these sort of unscrupulous lenders. And if im gonna be associated with the business, i dont want any connection to anything like that. So, then ill up my offer to 125,000, and instead of 20 , well go to 25 . And im giving you about, like, maybe 10 seconds. Tamika you know what you having full control ends up being. So now see what sharing control ends up being. Tonnie and see, thats what scares me. Only because i dont have no control over that number. If we Start Building out and it costs me 50,000, then. Lemonis you have 75,000 left to pay all these people. Thats right. Which is, by the way, 25,000 more than you had 10 minutes ago. So. My final offers 125,000 for 25 of the business. We got a deal . Tonnie we got a deal, marcus. Lemonis you know that when you take my check, i am 100 in charge . Tonnie 100 in charge you said . Lemonis she knows that. Thats why she called me. She wants me to be 100 in charge. Is that right . Erenisse yes, absolutely. Thank you. Lemonis thank you. Tamika thank you. Lemonis thank you. So, let me tell everybody whats happening. Tonnie and i and erenisse made a deal for me to become a partner in the business, and im gonna put 125,000 in the business. A portion of that money is gonna be used to pay the bills that are not paid today. And whether thats the rent or people that have lent the company money, were gonna pay down the debt. The rest of that money is gonna be used to renovate this whole place. The store is gonna close. Tonnie we have people who are relying on me. If were closed, that means that theyre not working. Lemonis it means that ill take care of them. They get paid. Tonnie maybe im stuck on the fact that im being told. Perhaps its an ego thing, but tamika stop. Im gonna choke him in like five seconds. Just trust the process. Lemonis i see that you said if he trusts the process and you trust the process, its gonna be fine. Tonnie thats it. I get it. Im good. Lemonis the goal Going Forward is to not only fix the look of the store, but to fix the process. And so my goal is to do everything we can to generate more cash without adding more fixed expense. Were not gonna be doing any sort of expansion until we get this one right. Tonnie i would like to be in a position where i can grow the company at the speed that it can grow. But i think were just kind of cutting off our hands by letting go of these other opportunities like newark. So for me, its a struggle. Lemonis were not doing any expansion until this place is right. Before we do anything else, were gonna go back here, and were gonna find out how much it costs us to make a cupcake. Like, right now. Lets get everybody together. So, what i want to do is i want to understand the cost of one cupcake. I want the raw ingredients, i want the package, and i want the frosting and the sprinkles. I want it all. In order for tonnies minis to stop losing money, we have to know what it costs to make the products, and so were gonna take time to find out what it costs to make one cupcake. And so youre telling me that one batch makes 24, so when we add up all these costs, were gonna divide it by 24. You ready to go . Tonnie eggs are 15 dozen. I pay 24. Lemonis 180 eggs, about 14 cents an egg. Tonnie this needs three eggs. Lemonis so thats 42 cents. Tonnie the buttermilk is 1. 40 per quart, and we use 1 1 4 cups. Lemonis okay. 44 cents. Something you didnt like about that math . Tonnie no, it just seems higher than i thought. Lemonis tonnie has a history of guessing on everything, but the one thing he shouldnt be guessing on is what it costs to make his most important product, the cupcake. We have paper and packaging at 5 cents. We have toppings at 5 cents. 8. 33 for materials only. Well divide that by 24. 35 cents apiece. By the way, you havent factored in waste the mistakes that you make, the stuff that drips. So its actually costs you 38 cents a cupcake. Now we have 15 cents a cupcake in labor. Thats 53 cents. So 53 cents is the minimum that it costs to make this before factoring in the lights, the electricity, the workers comp, the telephone bill, and all the other things. Tonnie right. Lemonis the fact that he didnt know the cost is the reason that the business was losing money. Going forward, i need to figure out a way to lower his production costs so that when tonnie sells, he can actually make money. Feel like you got something out of that . Tamika yes, i did. Lemonis all right. Thank you. Tamika thank you. Lemonis free cupcakes. Free cupcakes for everybody. Woman oh, delightful. Lemonis tonights the last time were open. Were closing the store. Woman aww. Man all right. Tonnie so, what happens with tomorrows orders . Lemonis were gonna make sure that every order for every customer gets taken care of. Tamika okay. Tonnie [ sighs ] lemonis tonnie, were not closing forever. Tonnies having a hard time trusting me, but ive been here for two days, and its obvious this place is struggling with the workflow. Its not good for customers, and its not good for employees. We need to totally redo this place, and were gonna start tomorrow. Were gonna rip this [bleep] apart. Whats going through your head right now . Tonnie uh [ chuckles ] you know, its just kind of sudden. I would have preferred to have some notice of some sort. Lemonis well, right now, were losing money every day, and so im trying to stop the bleeding. Tonnie you dont say, tonnie, guess what . We got 10 minutes to clear the house. Were gonna close the store. People tend to take advantage of my niceness. Lemonis do you think im taking advantage of you . Tonnie its not as simple as yes or no answer. Lemonis tamika, do you think im taking advantage of you . Tamika no. Lemonis okay. That was a yes or a no. Do you think im taking advantage of you . Tonnie yes. Lemonis if you think im taking advantage of you, its been awesome knowing you, nice meeting you. But i dont want to be in a relationship where somebody feels like theyre getting taken advantage of. It can be sculpted, in beautiful detail. Or painted in luxurious strokes. And in rare cases. Both. Of being there for my sons winning shot. That was it for me. Thats why im quitting with nicorette. Only nicorette mini has a patented fast dissolving formula. It starts to relieve sudden cravings fast. Every great why needs a great how. Every great why garden weeds are scoundrels. With roundup precision gel®, you can banish them without harming plants nearby. So draw the line. Give the stick one click, touch the leaves and the gel stays put killing garden weeds to the root. Draw the line with roundup precision gel®. Luckily theres powerful, 24hour, nondrowsy claritin. It provides relief symptoms that can be triggered by over 200 different allergens. Ve claritin clear. quiet chatter soft gasp record scratching excited chatter various whoa mixed exclamations cheering it can be sculpted, in beautiful detail. Or painted in luxurious strokes. And in rare cases. Both. Leits been awesome knowing you, advanice meeting you. But i dont want to be in a relationship where somebody feels like theyre getting taken advantage of. Tonnie ive been accustomed for the past 20 years at running my business. Lemonis which is why i came here. Tonnie no, see, but if thats the case, then you have to understand how i feel at some point. I have no idea whats happening with the store and i have no timeline. I dont know. Im gonna struggle with this scenario. Its not one its not as easy as this may be for you. You know what . This is great. Im gonna just kind of step back here and watch this cause i know at the end, its gonna be amazing. That i know. It doesnt take away the struggle with it. Lemonis right. Tonnie i apologize if lemonis tonnie, no. Honestly, that was the most honest and open youve been with me since i got here. And im learning to trust you more as you share more with me. Its about trusting each other. Tonnie i agree. Lemonis hello. Tamika erenisse. Erenisse how are you . Lemonis good. So, were gonna be closing the store tonight for the construction. Erenisse im so excited. Im very happy. Thank you. Lemonis its early. Were gonna have fun. Out with the old, in with the new. Lauren oh, my gosh. This is ama im speechless. Lemonis in order for this place to function, im gonna have to take it all the way down to the studs. All this is getting [ glass shatters ] i want to create a layout thats good for people who work here. Lauren excuse me. Coming through. Lemonis . And shop here. Watch the stuff on the top of it. So when they walk in, they see the cupcakes. Then theres a station where they pick their frosting and their toppings. Theres a natural beginning and an end. Careful, guys. Dont worry about the floor. Tonnie i know you got some reservations about newark, but i truly believe that if we can figure out a way to have two different locations with the same type of setup lemonis but dont you think you should get one right first . Tonnie one right is easy. Im gonna get it done. I have your support. Ive got the team around me. Lemonis its not unusual that people want to expand quickly, but if you do it too soon, it could destroy a promising business. But being a good partner requires you to listen to ideas, even when you know theyre terrible from the start. Im willing to take the drive, but im telling you right now, i am not committing to it. So, me agreeing to go look at it. Tonnie fair enough. Lemonis . Is because i want to at least, you know, give you the benefit of the doubt. But, i mean, youre gonna have to be airtight with your plan. Youre gonna have to know exactly what youre talking about. Tonnie well, there will be a dilemma, because the areas still upandcoming. Lemonis you feel like youve done your research and youre ready to go . Tonnie my answers yes. Lemonis okay. So, what is this building . Tonnie this actually is 60,000 square feet of retail space coming in. Lemonis how far along are you in discussions here . Tonnie the lease was signed at this point. Lemonis a lease was signed . Tonnie its been signed. Lemonis you have one location thats in total disrepair, and youre several hundred thousand dollars in debt, and youre still feeling like this is a good idea . Tonnie i know its a good idea. Lemonis i dont mind ideas, but i dont like surprises. What am i gonna find out next . We have a store in boston . Tonnie this was gonna be the beginning here, give or take. Doors here. Retail space. And the remaining part, the commissary. So, that was the initial plan. Lemonis what are your projected sales for this location . Tonnie 590 per day. Lemonis oh, so 590 of cash is gonna go through your register. How much is gonna go towards paying the employees . Tonnie we scheduled two employees for the front and in the wholesale department, theres four. Lemonis youll have six people that work here at an average of 10 an hour, so thats 60 an hour. And 60 an hour times 8 hours is 480 a day in labor. Tonnie okay. Lemonis how much is your rent here a month . Tonnie 2,600. Lemonis so about 100 a day on average, right . So now were at 580. You just lost money. Tonnie its not as simple as just saying your six staff times whatever the number youre giving me. It doesnt it doesnt really work that way. It may it may work lemonis no, no, no, no. Let me give you a little news flash. It does work that way. Tonnies not a guy that lacks integrity. He lacks Good Business logic. This location would barely break even, and probably lose money. And he wants to build a commissary for his wholesale business. But he doesnt have any wholesale business. I have to be honest with you. In this moment, im not in favor of this idea. Because the numbers arent wellthought out. Tonnie i can only accept and take so much abuse. Lemonis if youre accusing me of abuse, i dont appreciate it. Tonnie no, but listen to what im saying for a second. Ive always been able to figure out how to land on the highest ground. Lemonis were just gonna be honest. From a business standpoint, you havent always just figured it out. Tonnie really . Lemonis yeah, really. Expansion is a great idea if you have your home base in order. I dont think you have your home base in order. Tamika okay. Erenisse i want to know when the moneys coming in. Thats what i want to know. Because at this point, were maxed out. [team member] yep. Now in the wells fargo mobile app [customer] i can access the atm with just my phone . You can request a onetime access code to use the atm. [customer] thats much better you know, that would come in handy when im out for a run. [team member] or, a bike ride. [customer] or, when you left your card in your yesterday pants. [team member] or walking the dog. [customer] or walking your dog. I have a dog. [team member] that is exactly the situation this was invented for. I love walking my dog. [customer] were dog people. [team member] everyone loves dogs. [customer] thats genius have you ever just sat down and talked to a dog . 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And while we make more ecommerce deliveries to homes than anyone else in the country, we never forget. That your business is our business the United States postal service. Priority you its just a burst pipe, i co laugh it. No. With claim rateguard your rates wont go up just because of a claim. I totally couldve no switching to allstate is worth it. If you have your home base so, expansin order. Great idea i dont think you have your home base in order. Tamika okay. Lemonis tonnie thinks im abusing him, when in reality, im trying to get him to answer real questions. To tell you that my head popped off my shoulders would be an understatement. Tamika whats up . Tonnie im just running out of patience. Tamika i mean, i will say the way that business has been run destructive. Tonnie but i was doing it by myself. Tamika oh, heres marcus now. Welcome back. Lemonis thought id cool off. Tonnie im not used to being spoken to in that kind of way. I get you dont see what im trying to do. Lemonis actually, i do get what youre trying to do. But i am here to change the way you think about things in business. Tonnies upset, but i think he understands why this is a bad idea and he cant do this, and he realizes he has to get out of his lease. I am going to be like a dog on a bone and im not gonna let go. Tonnie and i think i need that. Youre right. Lemonis tonnies a frustrating guy to do business with, and i often have to remind myself that i made a commitment to come here and help not only him but his family and the people that work here. But its hard. We have to prove that we can make money without adding locations, and we have to find ways to actually put cash in the bank. And until that happens, we shouldnt be doing anything else. Tamika okay. Tonnie okay. All right. Lemonis hey, guys. Tonnie marcus. Lemonis how are you . Today, im taking tonnie to melitas bakery, a 47,000squarefoot Production Facility located in the bronx. Tamika wow. Tonnie [ laughs ] this is a bakery, huh . Tamika oh, my gosh. Fullscale operation. Lemonis i have an idea for tonnie to partner with melitas because theyll actually give him the ability to lower his production costs. Manny, this is my friend tonnie. Manny hi, tonnie. Lemonis this is tamika. Manny hi, tamika. Lemonis look, manny does millions of dollars a year in business, and so i thought it would be important for you to see how a very efficient process worked. So, what does it cost you to make a basic cupcake . Manny 44 cents. Tonnie so 44 cents . Lemonis thats about 9 cents cheaper, right . Tonnie right. Yeah. Lemonis he can make the same products for 18 less than you can make it for. And so if the break even is lower, what are you able to do . Tonnie make more money on each cupcake. Lemonis with an 18 reduction in production costs, its a nobrainer to use melitas instead of tonnies small kitchen. But when you look at the 250,000 of revenue they do annually, and you factor in the 18 of savings, well, thats 45,000 in additional gross profit. Thats real money. So, heres the deal if you didnt have to make everything that you sold last year and somebody else with a more efficient process made the exact same amount of product that you made, how much more would you have made . 18 to 20 . Tonnie youre right. Lemonis and so i want to be very clear you cannot bake anymore in that shop. At all. Tamika but the brand it wouldnt be tonnies minis if it wasnt his recipes. Lemonis oh, its gonna be his recipe. You mean of the cakes . Tamika okay, yeah. Lemonis sure, but hes not gonna be making them. Tonnie youre right. No, youre right. This is how it should look. This is the way it should be done. Lemonis and so id like you to come up with some ideas that could be signature tonnies minis cupcakes. Tamika get back to the basics, bro. Tonnie my moms carrots kind of how it started. Lemonis so the carrot cake is your moms . Tonnie its my moms, yeah. Lemonis okay. I like that. What else . Tonnie sweet potato. Chocolate kiss. Strawberry lemon. Tamika the pistachio cupcake rocked. Lemonis great. I love that. The best thing about today is that tonnie is finally recognizing that the margin of 18 is important. But whats even better is that i can get tonnie refocused on what hes best at, and thats selling. Tonnie im actually getting excited about this. Man do you want framers . Lemonis after my visit to melitas, i decided to swing by tonnies minis and check on the construction. What happened to, like, a little bit of work . Man a little bit of work turned into the ceiling falling down. Lemonis holy [bleep] man and it fell down. We come to cut some lights in, and the ceiling falls down. Lemonis literally fell down . Man i mean literally fell down. Lemonis when my guys started working on the ceiling, it wasnt suspended properly, and so it literally caved in on them, and i had to spend another 30 grand. Tonnie hello . Lemonis tonnie . Tonnie speaking. Lemonis hey. Its marcus. Tonnie marcus, how are you . Lemonis im down at the store, and the ceiling caved in. Tonnie the ceiling. Lemonis collapsed. The ceiling collapsed. Literally collapsed. Tonnie the entire ceiling . Lemonis the entire ceiling. Tonnie okay. Im on my way. Lemonis okay. If your business is in trouble and you need my help, log on to. Is unlike anything what we have ever faced. [ sinister laugh ] whats happening . You have been selected. [ dramatic music ] give in to me. Im scared. [ screams ] [ dramatic music continues ] [ grunts ] the mummy. Rated pg13. But with my back pain i couldnt sleep or get up in time. Then i found aleve pm. The only one to combine a sleep aid plus the 12 hour pain relieving strength of aleve. And now. Im back aleve pm for a better am. 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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 . Learn more about the ink business preferred card. What will you create with your points . Man how are you . Tonnie hey, guys. Lemonis hi. Tamika hi. Lemonis did tonnie tell you what happened to the ceiling . Tamika it fell. Lemonis collapsed. Completely. Crazy. After the ceiling collapsed, i had to bring in extra workers and materials, and its gonna cost me an extra 30,000. But i really dont have a choice. In order for this business to work, the space has to be functional. Erenisse oh, hi. Lemonis im really glad that erenisse is here, because i want her to see what kind of progress were making, especially since shes tonnies largest investor. Tonnie you know about the ceiling collapsing, so as you can see, theres a whole new ceiling. So, youre standing on the side where the customers will stand. Its being set up so that you have your cupcake, your icing, your topping. And that corner there where the stoves used to be is an actual display case. Erenisse but let me ask you a question. So, all of this is being done. All this work is being done. Have you done anything to bring in customers, some money . Tonnie i have things lined up. Erenisse like what . Well have this beautiful store, and what are we gonna bring . Tonnie great product. The besttasting product we can bring. Erenisse but if people dont know were out there, hows that gonna happen . Tonnie so, the Marketing Teams gonna be pulled together. Erenisse i want to know when the moneys coming in. Thats what i want to know. You need to give some thought to that. Tonnie okay. Erenisse because at this point, were maxed out. Lemonis so, ill give you the plan. Tonnie i appreciate that. Lemonis were about three days from the grand opening here, and we can invite the neighborhood. But i know right now i can tell youre a little annoyed, so im just asking you just to be patient. Erenisse i am annoyed, cause its been a while. Maybe its my way of thinking. Lemonis no, no. Erenisse he always tells me, you dont understand. Im a businessperson. Lemonis no, no, no. You understand. Were just not as ready as we want to be. And so we will be ready. Just give us a few more days, all right . Erenisse yeah, all right. Thank you. Lemonis i think erenisse is so tired about hearing how great things are gonna be in the future, and shes 250,000 in the hole, and she wants to be assured that tonnies doing everything in his power to bring in revenue, whether thats standing bethe all right, guys. Ill see you soon. Tonnie okay. Tamika okay, marcus. Lemonis goodbye. Erenisse all right. Lemonis look at all these people. Its busy. Now that tonnie is devoting 100 of his time to sales, ive set up a meeting at sylvias to see what kind of salesman he really is. Trenness, nice to meet you. Trenness welcome to sylvias. Lemonis thank you. Sylvias is one of the most popular soul food restaurants in all of america, and having an opportunity to sell to them would be big margin, because it doesnt come with rent or labor. Its establishing a relationship and fulfilling it. And so youve been around this place for how long . Bedelia the business is gonna be 53. Lemonis wow. Bedelia so do the math. [ laughter ] lemonis im not doing the math. Im with a lady, and im a gentleman. Tonnie i want to thank you for taking the time, obviously. Trenness of course. Tonnie i want to come to harlem. Trenness all right. Tonnie how fantastic would it be if we could identify one or two items that we can display and sell on your countertop . This is actually a sweet potato cupcake, which i believe you dont have. Bedelia thats right. We dont have. Lemonis but i think theres a good deal here for all of us, because your margins on Something Like this will be really, really good. I dont know what you sell a slice of cake for. Bedelia 5. 50. Trenness yeah, 5. 50, 6. Lemonis and so this may allow for a little lower price point but the same kind of margins. Trenness heres the thing im a little nervous about bringing them inhouse. Were working on quite a few different businessdevelopment items, and were already struggling trying to house the items that we have. Im not certain that we would have space for these. Abreak through your allergies. . Try new Flonase Sensimist allergy relief instead of allergy pills. Its more complete allergy relief in a gentle mist experience youll barely feel. Using unique mistpro technology, new Flonase Sensimist delivers a gentle mist to help block six key inflammatory substances that cause your symptoms. Most allergy pills only block one. And six is greater than one. New Flonase Sensimist changes everything. Rumor confirmed. Theyre playing. What . We gotta go. Where . San francisco. When . Friday. We gotta go. 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Do the thing we talked about. What do we say . Its going to be great. Watch. Remember what we were just saying . Go irish see that . Yes im gonna just go back to doing what i was doing. Find your awesome with the xfinity x1 voice remote. Trewere already struggling trying to house the items that we have. Im not certain that we would have space for these. But just from our customer standpoint, they dictate, so. Lemonis how about you and i take them around . Can we do that . Can we give a few away . Trenness of course. Of course. Lemonis even though sylvias initially acts like theyre not open to taking on this product, the fact that they let us pass it out to some of their customers and get feedback tells me that they may be a little more open than they think. Tonnie can we offer you guys a complimentary cupcake on the house . Lemonis at a restaurant as popular and as busy as sylvias, this account could generate about 2,000 a day. And whats even better is that 1,600 of it would be pure profit. Trenness howd yall like it . Woman its great. Trenness oh, good, good. So, great feedback. Yeah, this is some good stuff. Tonnie you know, one of the things, of course, is to figure out a way to produce an item thats gonna be exclusive to sylvias. Trenness hmm. Well, we like exclusive. Tonnie this would be just here for you guys. Bedelia im sold. Trenness [ laughs ] i see this absolutely working. Lemonis the fact that tonnie was able to turn a no into a yes is proof to me that i invested in the right guy. He did a great job in this presentation. Well . Tonnie that was great. Lemonis you did great. When you start to follow the process, thats what happens. Tonnie okay. Lemonis okay . Ill see you back at the store. Im proud of you. Tonnie all right. Thank you, marcus. Bye. Tamika would you like a sample . Tonnie would you like a sample from tonnies minis . Grand opening. Grand opening one block down. Tamika awesome. Man thank you very much. Tamika youre welcome. Enjoy. Lemonis today is the grand opening of tonnies minis, and its a very proud day. Tamika would you like a sample . Lemonis id like a sample. Tamika oh hi lemonis the scaffolding outside is now gone, so you can actually see the store. Tonnie good to see you, marcus. Lemonis how are you . The space has been completely renovated, so its bright and open. Before, it was dark and cramped. Now it has an efficient flow for the employees to make the cupcakes. The store looks great. Tonnie it looks good. Lauren these are awesome. Theyve been selling like crazy. Man all right. Let me get one. Lemonis welcome to tonnies. Come on in. Woman hi. How are you . Lemonis youre gonna make a cupcake with me, okay . Woman yes, sir. Lemonis okay, so which one do you want . Woman got to go with the red velvet. Lemonis okay, im gonna take the strawberry and sponge together. Okay, lets go to the next place. Our frosting choices. Woman gonna do half cream cheese and half strawberry. Lemonis oh, see, now youre mixing it up a little. Woman yes. Lemonis we finally launched the doityourself. The signage is now clear and understandable. The toppings bar is easy for kids and adults to see and pick from. Thank you. Woman thank you very much. Employee enjoy. Lemonis i am part of the family. The best part was seeing tonnie pay his mom back. Tonnie as you know, over the years, youve been an amazing part of the business, never mind being my mom. And finally im able to pay you back. Tonnies mom love you. Tonnie love you, too. Lemonis the fact that hes paid his mom back is a big deal to me, but whats even better is that he now knows that erenisses money is safe and its headed in the right direction. Tonnie this day has been an amazing day. I actually have to thank marcus and thank all of you for attending. A big part of tonnies minis has been kind of pushed in a different direction because of the support of my wife. Im a very blessed man to have a wife like erenisse, and i thank you a thousand times. Erenisse this is really an amazing opportunity that i really never thought was gonna happen for my husband that i love dearly. Ive been blessed to have him and the family in my life, and, you know, im just, like, grateful. Thank you, marcus. Lemonis well, we used to do 500 a day in business. Were now doing a minimum of 1,500 a day, and our operating costs on a daily basis are averaging around 1,100, leaving us with gross profit of 400. On an annual basis, its about 140,000 of profit per year. Woman cheers to legacy building. Tonnie and continued success. Not long ago, i was focusing on just opening stores. Now im focusing on an empire an empire that is built to last. I love you so much. New tonnies minis, new me. No stress. Tamika get over here by my boo. [ camera shutters clicking ] lemonis selfie. Tamika we ready . [ laughs ] lemonis tada [ laughter ] announcer the following is a paid presentation for luminess air. Take a look at this blemish. Now you see it. Now you dont. It is amazing. Announcer do you see this age spot . Dont blink. Its gone like magic. Luminess is stupendous. Announcer watch this redness disappear at the touch of a button. People have said to me, you look amazing. What have you done . People ask me if ive had a facelift. People asked if i got botox. Announcer these women all switched to a new foundation. People come up to me and say,