lemonis: now the hard work begins. pantelis: yeah, we're ready for it. lemonis: very proud of you, pantelis. pantelis: thank you very much. petros: thank you very much for everything. lemonis: really proud of you. you have a great family and great parents. i'll see you soon. lemonis: you ever had shaved cream? a young entrepreneur dreamed up a fresh take on an asian-inspired dessert. tony: it's a very unique flavor. lemonis: it's really good. eventually bringing it to four shops across new york city. east village did $329,000, down from $600,000 the year before that. it's down almost 50%. but four years in, snowdays is melting. owner tony quach grew his business so fast, he failed to figure out the fundamentals. so, the mold's plastic. tony: mold's plastic. michael: you can't do that. with the new fda laws, you'd have to test that those chemicals aren't breaking down the plastic, which they probably are. lemonis: now he's letting down his customers... carolyn: there would be like five flavors out. lemonis: that'd be like going to baskin robbins

or 31 flavors and them saying, "sorry, we only have 20." ...he's letting down his employees... ovie: it'd be nice if my own opinion mattered. lemonis: it'll be a giant [bleep]show unless you guys are on the same page. ...and with a new baby at home, he feels like he's letting down his family. tony: my wife, steph, is an absolutely trouper. she's so understanding, but i know she deserves so much more. lemonis: if i can't help him see what he's done wrong... tony: i guess i just had visions of grandeur. lemonis: ...and where he needs to go next... i want to literally start new. ...this business will evaporate. tony: this is a little -- can we get off camera for this? this is, like, crazy. lemonis: my name is marcus lemonis, and i risk my own money to save struggling businesses. we're not going to wake up every morning wondering if we have a job. we're going to wake up every morning wondering how many jobs we have to do. it's not always pretty. everything's going to change. everything. but i do it to save jobs, and i do it to make money. this... let's go to work. ...is "the profit."

♪ the dessert market is one of the most cut-throat markets in all of the food industry. what i like most about snowdays and its shaved cream is that it's unique, and i've never seen anything like it. [ bell dings ] good morning. tony: hi, marcus. how are you doing? lemonis: are you tony? tony: yes, i'm tony. lemonis: nice to meet you. i'm marcus. ovie: hello. my name's ovie. nice meeting you. lemonis: ovie, how are you? nice to meet you. ovie: i'm doing alright. lemonis: how many locations do you have? tony: we have four locations. lemonis: four? okay. tony: yeah. tony: this is our first location. we have one in the west village. lemonis: okay. tony: we have one in brooklyn by the barclays center, and one in forest hills on austin street. lemonis: the concept's interesting. is that your mascot? tony: yeah, that's our mascot. that's eddie the yeti. a yeti's like a mythological creature, kind of like a bigfoot that lives in the himalayas in the snow. lemonis: how'd you come up with the idea? tony: it's really kind of based off

a more traditional asian dessert. in taiwan, they kind of do it with like a milk-powder base. lemonis: and it's not the hawaiian shave ice? tony: no, it's not. we actually do something called shaved cream. we kind of have our own play on it. it's a dairy base. lemonis: oh, it is? tony: so it comes out and the texture's just very light and fluffy, but it's very creamy in taste. lemonis: and how long have you had this store? tony: so, we're going on our fourth year. lemonis: oh, wow. high-five on that. most people don't make it that long. tony: yeah. lemonis: what i want to do is i actually want to try it. tony: yeah, sure. i have some gloves for you. lemonis: walk me through the board and how it works. tony: sure. so, the first step is choosing your size. lemonis: okay. then we go to choose our flavor. which one is the most popular? tony: yeti tracks and green tea are our two most popular flavors. lemonis: what is in yeti tracks? tony: yeti tracks is the blueberries and oreos. lemonis: oreos and blueberries, that's interesting. carolyn: hi. tony: this is carolyn. this is one of our other gms. lemonis: oh, how are you? carolyn: hi. lemonis: nice to meet you. the two of you oversee the four stores? tony: yep. lemonis: okay, so you're not just here? ovie: i'm pretty much at all the stores every day.

i also do maintenance work. there are things that i'm not really good at that tony's good at. tony is more familiar with orders and scheduling as well. lemonis: okay. so, we're going to make three sizes and three flavors. tony: all of our shaved cream is made into these blocks. lemonis: this is actually ice cream? tony: correct, but there's lower butterfat. it's much lower in calories too. lemonis: so that block sits on there and that machine shaves it? tony: yes. so, next would be drizzle and the toppings. we still make everything by hand. we're mixing everything ourselves -- i develop all the recipes. lemonis: oh, really? tony: yeah. lemonis: okay, this was...? carolyn: cookies and milk. lemonis: cookies and milk. so is this mostly an asian food? is that how i should think about it? tony: my inspiration was definitely more of a traditional asian dessert, but i felt like a lot of green tea, black sesame, red bean -- they were a little bit too traditional. i felt like this concept had a lot of legs to reach a bigger demographic if we did more western-flavor profiles. that's why, you know,

new york cheesecake and the mint chocolate. lemonis: but it's like we're asian, but we really don't want to be asian. we want to be somebody else. why don't you just own the asian thing? tony: i don't say that. i mean, i guess i just had visions of grandeur. i wanted to tap into markets that were untapped. lemonis: if you go to a gelato place, right, it has an italian feel to it in the flavors and the spumoni. they embrace their culture, and so the asian community is one of the most powerful communities in the world. you should embrace it and not run the other way. my single biggest investment in the dessert space is mr. green tea, and it is a monster. and they're an asian -- as you know -- they're an asian-influenced dessert business. the asian community is our base. when tony says he wants to reach a wider demographic by going towards a more western angle, what he means is americanized, and i'm not really sure how he's going to reach a wider part of the market when he's doing what everybody else is doing. you want to reach a broader base of the market, you go to things that are unique that are going to attract people to you.

okay, yeti tracks, with blueberries and waffle cone added. tony: it's a very unique flavor. it's kind of our spin on classic cookies and cream. lemonis: it's really good. tony: thank you. lemonis: it's really light. it's funny 'cause when i think shave ice, i think literally shaved ice. tony: yeah, we try not to say "shaved ice" in here. we call it shaved cream. lemonis: oh, it says shaved cream, okay. tony: 'cause we don't use any water. ovie: customers tell me they thought it was snowcones because of snowdays. you can actually see it on our combos. it still says snow cream. tony: thanks for pointing that out, ovie. lemonis: huh? tony: i said, "thanks for pointing that out, ovie." lemonis: no, it's okay. so, tony, what i would love to do -- and i know this is like the uncomfortable part of the day -- i'm going to ask you to take a walk. tony: sure. lemonis: just go out, and i want to just spend some time with them. tony: okay. lemonis: so, if you had to list out issues, what are they? ovie: i feel like, for us, we know our staff. like, we know how to communicate and, like, how we should go about giving them direction, whereas tony, since he's the owner, he's very direct.

like, if they don't do it, you know... carolyn: he'll say they're a bad worker, but they're actually pretty good. it's just like there's other things happening, like, during the time, yeah. lemonis: the owner walks in and is like, "why is it..." people freeze. carolyn: basically. lemonis: do you guys always have supplies, or do you ever run out of supplies? ovie: yeah. toppings. carolyn: flavors. lemonis: how many different flavors are there? ovie: 10 different flavors. carolyn: but there would be like five flavors out sometimes. lemonis: really? carolyn: yeah. lemonis: that'd be like going to baskin robbins or 31 flavors and them saying, "sorry, we only have 20." carolyn: yeah. ovie: exactly. and we only have one truck that we deliver out of. carolyn: it's not big enough. ovie: it can't hold everything for that one day. it's a pick-up truck, and even that needs a bit of maintenance. a lot of the processes we implemented in the past -- they kind of just got buried. carolyn: and no one uses it, even though it's there. lemonis: what do you mean "the processes?" ovie: at the end of the day, we give him, like, things we want to try out.

lemonis: yeah. carolyn: but there's no change. lemonis: nobody listens to you guys. ovie: yeah. lemonis: so i went on yelp -- "the last time i came in, they were out of bananas and blueberry puree." ovie: there you go. yeah. lemonis: by the way, guys, this is a couple days ago. carolyn: tony would read the reviews, and then he'll come to us and, like, yell at us. lemonis: but what are you going to yell at the staff for? there's no ice cream. what do you want me to? ovie: exactly. mm-hmm. carolyn: someone actually just quit like last week. lemonis: over? carolyn: because they were fed up with tony expecting too much of them. ovie: yeah. lemonis: the frustration that ovie and carolyn have, as the frontline people in the store, that they're constantly running out of flavors means that there's a supply-chain problem. they're not to blame, tony's to blame. and so him taking out his frustration on them kills the morale. how much revenue will this store do? tony: first full year in 2015, we did almost $600,000, and then like $450,000 the next year, and it's $350,000, and then this year it's down about 20%.

lemonis: from last year? tony: yeah. lemonis: and so the four locations that you own -- do any of them make money? tony: no. lemonis: can we go see west village? tony: yeah, absolutely. lemonis: alright. woman: let me try the condensed milk. tony: awesome. lemonis: hi. how are you? so this store's a lot different, right? tony: right. lemonis: tony, why is this menu board different than the one at the original store? as i walk into the second location, it feels completely different than the first location i just came from. the menu's different, the sign's different -- it's a totally different experience. tony: so, the original store -- we did kind of bootstrap it. i did some of the construction myself. like, we built it out, like, you know... lemonis: but as you came up with this idea, why didn't you go back and fix that one? tony: we just didn't have the money to go back and... lemonis: but you had the money to go open up another store? tony: yeah. lemonis: okay.

tony made the common mistake of every entrepreneur that he expanded too quickly. now what he's left with is a half-baked business concept with inconsistent branding. do people ever ask you if there's any other products besides this? tony: it just happened. lemonis: what did they ask for? tony: they were asking for some vietnamese iced coffee. lemonis: tony has a very limited product offering, except he's got a huge space. it seems like an easy opportunity. look at every corner of the shop. you really want to think to yourself, "where is the opportunity here?" tony: right. absolutely. lemonis: do you think you could sell mochi here? tony: i don't know if people are going to be lining up for it. lemonis: have you tested it? tony: no, i haven't. it's just not, you know -- it never crossed my mind. other products i would definitely consider, like brownies, other baked goods. lemonis: i have nothing against brownies, but the problem is i can find them anywhere, on every street corner. what you won't find is mochi, and he's already selling a very unique asian dessert. why not just capitalize on that?

frequency of visits is determined largely by diversity of offering. tony: okay. lemonis: and so if you want people to come in more often, how do i need to increase the frequency of my visit, and how do i improve my margins? tony: sure. lemonis: can we go see the commissary? tony: i would love for you to go see that one. lemonis: why don't we head over there. tony: thank you, marcus. thank you. lemonis: as i drove an hour and a half from new york city to his distribution facility, it dawned on me that, yeah, this is one of the problems. you're not in the business of delivering food, and you're spending 3, 4 hours a day driving. tony: can you just rinse this out real quick? hey, marcus. lemonis: oh, hey. tony: so, this is bill. this is actually my wife, stephanie. lemonis: oh, hi. tony: she's transitioning jobs, so she's helping us out. lemonis: you mean she's saving your ass? tony: i mean, yeah. lemonis: okay. as wives normally do, right? tony: absolutely. she's the boss. lemonis: and so what is this area?

tony: this is where our deep freezers are. so this is like... lemonis: and all they do is get made in here? tony: yep. lemonis: and then they pop out and go into the bag? tony: correct. all these hold different flavors. so this is the yeti tracks, and this is what they're pulling from for delivery. lemonis: what's in this one? tony: it should be green tea, but we're making green tea right now. lemonis: empty. tony: there's nothing in here yet. lemonis: and then... green tea, nothing in here. tony: nothing in here. lemonis: so you're out of green tea. tony: this summer's been -- we've had a lot of production issues. so, our schedule is monday -- green tea, yeti tracks, full day of it, and then we do a smaller run of it today, this would be thursday. lemonis: so, you need to be producing all the time. i'm starting to understand that tony's drops in revenue could, in large part, be blamed on the fact that he doesn't have the manufacturing process right, which ultimately leads to a lack of product in the stores, which ultimately leads to a customer walking in and turning right back around and leaving.

let's make some green tea. tony: yeah, absolutely. so, the cream is getting whipped, to aerate and create that volume. lemonis: when was the last time you did this? tony: saturday. when there's nobody else for production, i'm the only person who knows the recipes. lemonis: it's very warm in here, and i will tell you it's not an appropriate environment to make ice cream. look, i know a lot about ice cream manufacturing facilities. i'm heavily invested in one. this particular facility in no way passes any standard that i'm comfortable with. and, obviously, this factory isn't even efficient enough to keep up with the demand that they do have. instead of tony spending time in each one of his locations, improving the actual results of the business, he ends up spending all of his time in the factory trying to produce shaved cream. why couldn't a traditional ice cream manufacturer just make this for you and take out some of the butterfat? tony: it's not quite mixed the same. you know, the process is very unique, and --

lemonis: but is it made the same way ice cream is made in the vats? tony: it's not. it's not like traditional ice cream where you can just go find a recipe on it, so i developed all these recipes myself. it's proprietary, you know, so i really kind of kept that close to the chest. it's been definitely a labor of love. lemonis: a labor of love starts as a hobby, and then the love has to come out of it and it has to turn into a labor of execution and precision. love only gets you so far. look, i understand that business owners want to have control of their product, and that makes sense to me. but based on his reaction to everything that i've told him and what i've learned from carolyn and ovie, he doesn't take feedback very well. and if we're going to work together, well, that's going to change. so, what is this neighborhood? tony: so, this is considered flushing. my parents actually own this building. lemonis: oh, they do? tony: they came over here as refugees from vietnam. they were, like, chinese people that were kind of persecuted by the communist movement. my dad was in an internment camp for four years. lemonis: really?

tony: actually, he got the family over here intact. they saved up their money, and they got an opportunity to open up a laundromat up in connecticut, so you know we grew up more westernized, more exposure to that type of lifestyle. lemonis: and what does owning this business mean to you? tony: i mean, it's been everything. it's been a roller coaster up and down. it's probably some of the happiest times of my life and some of the most stressful times in my life. you know, my wife and i had a baby. she's gorgeous, she's great, but, you know, because i'm not taking an income, my wife steph is an absolute trouper. she's basically been supporting the family, and, you know, i just feel like she's so understanding, but i know she deserves so much more. and with the baby, it just... to be able to afford, you know, like, childcare, it's just not in the cards with one income. lemonis: while i don't necessarily like all the decisions that tony has made, i do like the fact that i feel like he's fully immersed in his business, and he's fully committed to seeing it succeed.

tomorrow, i want to meet with you at the brooklyn location. tony: absolutely. lemonis: okay. tony: i appreciate it, marcus. lemonis: you keep your head up, okay? we'll go back. tony: alright. ♪ ♪ [ bell dings ] lemonis: well, this looks different. tony: a little bit, right? lemonis: i'm now seeing the third different sign and the third different store design. does he have an identity crisis? so let's go through the financial statements. east village did $329,000 in revenue, down from $445,000 the year before, which is down from $600,000 the year before that. it's down almost 50%. west village -- $260,000 of revenue, which is shocking, 'cause it's a pretty good location. tony: yeah. sales have dropped significantly over across the board.

it's so dead in the winter time that we actually close down. lemonis: it looks like it's dead in the summer, too. that's not good. and then brooklyn -- $100,000 loss. tony: um... i mean... lemonis: all the stores combined -- east village, west village, forest hills, and brooklyn -- lost $198,000. of that, half of it came from brooklyn. so the challenge i have is that the stores all lose money. but i think deep down, amidst all the chaos that you've created, you're very talented, you're very smart. tony: i appreciate that. lemonis: and it's still a pretty freaking cool idea, and so that's a good formula. tony: yeah. lemonis: so i'm willing to do a deal with you. tony: okay. lemonis: okay? but it's going to be a deal that... it's not going to be great. tony: okay. lemonis: okay? so i'm willing to invest 300 grand for 50% of the business.

tony: would you be willing to maybe lower your equity just a little bit, maybe down to 40%? lemonis: the $300,000 offer is for 50%. i'm offering you $300,000 for 50%. we got a deal? ♪ ovie: there are times when you give us direction and it can be kind of vague. lemonis: but you guys got to get better at this communication because it will be a giant [bleep]show unless you guys are on the same page.

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call, click, or visit a store today. just a little bit, maybe down to 40%? lemonis: the $300,000 offer is for 50%. i'm offering you $300,000 for 50%. we got a deal? tony: i think we have a deal. lemonis: okay. tony: appreciate it, marcus. lemonis: okay. we did it! tony: i'm really excited. lemonis: okay, so a lot's going to change. tony: absolutely. lemonis: and then next time i see you, we're going to get to work? sound good? tony: sounds good. lemonis: good morning. carolyn: good morning. lemonis: you know, i made a deal with tony to invest in the business. you know, i love the idea of the shaved cream, and i think you guys have built something

that's got some real potential. i don't like the idea that this isn't something special that embraces your culture. it's just an idea that just got off the rails. tony: absolutely. lemonis: and you started opening up shops and didn't even get the first one right. i don't like the fact that there's just not a lot of options for people. i think you need to press the reset button and literally wipe it out and start over. what i'd like to do is remodel the east village store, and we're going to shut the other ones down and start over with a concept that has the right product, the embracing of the culture, it's different, something you've never seen anywhere before. this is supposed to be exciting times. tony: i mean, i'm nervous about all the changes and what's going to be happening. we're going to close down and tear everything down, like, that's a lot to take in. lemonis: draconian changes is the only way this business is going to survive. i'm not just going to sprinkle fairy dust and keep all these stores open. i want to get to one concept, and i want it to work.

every store you have is different. tony: right. lemonis: so there is no actual concept. the east village loses the least amount of money, so brooklyn needs to close, forest hills needs to close, this needs to close. tony: that makes sense. lemonis: over the next 60 days, we're going to begin winding down the three poor-performing locations, and we're going to focus on the people, the process, and the product. i like the people, but we definitely have to improve the communication between tony and his staff. he needs to listen to their feedback, and they need to feel comfortable offering it. we need to streamline the ordering process so that snowdays never runs out of supplies or product. and we need to fix the manufacturing process of the shaved cream. the product we have is great, but we need to diversify the offering and add more products to actually increase the revenue and make a profit. if you look at what's happened in the marketplace, especially in new york, it's a melting pot of a lot of different cultures, and millennials like culture.

tony: i think bringing you on board is, like -- we obviously need changes in the company. but, to be fair, saying an "asian culture" is just so broad and so big. lemonis: it is. tony: you know, it's like, this isn't just taiwanese, it's not just korean, it's not just chinese. lemonis: exactly. do they have desserts in other parts of asia? tony: yeah, absolutely. lemonis: great. i want to know what those are, and i want to find them. tony: right. sure. lemonis: and i want to make this place different so that people want to come here and people are fascinated, like, "you can go to this place and you can have these unbelievable desserts, like, things i've never seen before." my idea is to have a curated asian treat shop with a selection of exotic candies and snacks from an array of asian cultures. we need to try new products, we need to test them and focus group them to find out what products will actually make a new store successful. we're going to take one location and we're going to make it a perfect model. i want to literally start new. tony: right. ♪ lemonis: oh, my goodness!

today i'm bringing tony, ovie, and carolyn to one of the coolest asian grocery stores in the entire country. i'm going to get a shopping cart. and all i want them to do is go in there with an open mind, have fun, and pick products that they find to be interesting and they think people will like. tony: ovie, get another cart. lemonis: what are shrimp sticks? jessica: like, seafood kind of -- lemonis: is it good? jessica: yeah. lemonis: try those pea crackers. ♪ this bottle's awesome. we have to get two. these are kind of cool looking. no, that's weird. everybody grab something. let's have fun. jessica: we have some very popular, um, herbal drinks. lemonis: what about this one? jessica: it's like a vegetable yogurt drink. lemonis: we'll get a couple. get the orange one, too. jessica: melonas are really popular. lemonis: it's a green bean ice cream bar? jessica: uh-huh. lemonis: you ever had this? is it just plum juice?

jessica: it's so good. lemonis: it is good? jessica: yeah, it's a little sour. lemonis: if i was a consumer and i walked into a store that had shaved cream and mochi and all these drinks, i would be like, "this place is..." wouldn't you think? ovie: that's exactly what i thought when i saw these. i was like, "wow. this is cool." lemonis: ovie and carolyn seem open-minded and excited about adding all these products to the store, but tony not so much. and what really concerns me is how the three of them are actually going to get along going forward when they don't agree on something. i want to understand how you guys work together a little bit better. when somebody has an idea and the other person doesn't like it, how do you communicate it? ovie: usually i voice my opinion about it and then, you know, usually me and tony would have our little disagreements. and then, you know, i'll get chewed out for it. it'd be nice to know if, like, if my own opinion mattered in those situations. there are times when you give us direction that can be kind of vague.

carolyn: we usually, like, discuss with each other to try to figure out, like, what exactly you want. tony: i don't think it's fair for you guys to be, like, you know, i'm not explaining it. lemonis: you guys have got to get better at this communication because it'll be a giant [bleep]show unless you guys are on the same page. you made this mold, right? richard: yeah. so the mold's plastic? tony: the mold's plastic. richard: so you re-use the mold? tony: i re-use the mold. we clean it and we wash it. michael: you can't do that. with the new fda laws, you'd have to test that those chemicals aren't breaking down the plastic, which they probably are.

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movies? i'll get snacks! no, i can't believe how easy it was to save hundreds of dollars on our car insurance with geico. i got snacks! ohhh, i got popcorn, i got caramel corn, i got kettle corn. am i chewing too loud? believe it! geico could save you fifteen percent or more on car insurance. lemonis: you guys have got to get better at this communication because it'll be a giant [bleep]show unless you guys are on the same page. ovie: i don't know, man. i feel like somewhere down the line i just ended up taking over. i feel like it should have always been you. tony: you never communicate to me

that you're having issues with it or that these responsibilities are falling onto your lap and that you can't handle it or you don't want to handle it. ovie: it's been two-and-a-half years. tony: i think moving forward, there's going to be very clear responsibilities for everybody -- for the three of us, right? ovie: right. tony: you good? lemonis: while i'm not convinced that tony and ovie have solved all their communication issues, i am happy about the fact that they're at least dialoguing about it. hi, guys. how we feeling? before we move forward with the new concept, i want to get some customer feedback about all these new ideas. but more importantly, i want to see how tony's going to react if there is positive feedback. is he going to be able to implement these new changes and move the business forward? if he doesn't buy into this -- i've got to be honest -- i'm kind of out of ideas. ovie and carolyn, if you guys could come over here and just take notes on what they like or didn't like.

let's get some people in here. let's have some fun. you guys want to come in and taste some stuff? woman: like what? lemonis: you ever had shaved cream? do you like asian desserts? come on in. come on in. we're going to have you guys help us do some testing. carolyn: how do you like it? woman: i like it. lemonis: oh, those are good. woman: right? it's like a really hearty potato chip without the oil. woman #2: this is really interesting. ovie: so if we had both of these on our shelves, you would go for this one? woman: well, i've seen that one in stores. but i think most people would go with this 'cause it just looks more familiar and you can tell that it's, like, watermelon flavored. ovie: alright, thank you guys for the feedback. carolyn: so this is the original flavor. ovie: so what's your opinion on the passion fruit? man: i don't like the texture of this drink to be honest. ovie: how would you describe this one's flavor? woman: it's definitely stronger. carolyn: lychee. okay, do you want to go check out some snacks, maybe? lemonis: their biggest complaint is that they just didn't feel like you were giving them enough direction.

look how included they feel now. like, this is becoming their project too. tony: yeah. lemonis: look how excited he is. ovie: would you come back for more? man: yeah. ovie: that's great. lemonis: ovie and carolyn were engaging and they were enthusiastic about what it is that we're doing. they were talking to people, getting good feedback. are you guys having fun? woman: yes. lemonis: would you come in and buy something walking by? woman #2: i would, yeah. so i can have it in class or something. lemonis: and while tony started out a little skeptical, he has warmed up -- especially once he noticed the customers really liked it. tony: we just picked these up. i thought they looked pretty cool. it's like a watermelon soda. you ever have cucumber flavored lay's? man: very good. tony: very good, right? man: this is very good, yeah. tony: they really like the mango crepe cake. lemonis: and i don't know if he's completely there yet, but i do like the progress. this is the asian version of pop rocks. tony: yes. ovie: thanks for, you know, all the feedback. it's really going to help us out. lemonis: i'm going to have tony start to work with precise graphix, one of the companies inside my portfolio. and i want them to work on a whole-new concept

for the east village location. tony: so i was thinking, like, this area over here we would do some kind of bleacher seating, or tiered seating. keith: we're thinking a whole-new design -- new colors and everything. lemonis: precise is designing a whole-new concept that will incorporate coolers for drinks and display spaces for snacks with cool, new design elements that really tie into the concept. tony is responsible to supervise the demolition and construction. ♪ tony: you can take this all off. ♪ lemonis: because tony's really struggled with keeping things in stock, i've tasked ovie with coming up with an inventory management system that ensures that the supply chain works and we're never out of anything. what's this? tony: "sold out" magnet for the menu. lemonis: this is crazy-town. and finally, there's one more step we need to take to get this company back on track. for me, you need to survive. tony: yeah. lemonis: right? and you need to be able

to provide some stability for you and your family. tony: absolutely, and i totally agree. lemonis: i think part of it is you got to fix that production facility. you should not be in the manufacturing business. we've got to figure that out. going forward, i want to show tony a different way to get his shaved cream manufactured -- a way that doesn't involve his current, sub-standard facility. i'm going to have to convince him that not only is it a smart thing to do, but in my book, it's essential for him to stay in business. ♪ the emanuele family, richard and michael, are the owners of mr. green tea, a business that i invested in several years ago. and they are the leader in manufacturing asian-inspired ice creams and asian-inspired mochi. michael: nice to meet you, tony. lemonis: i wanted tony to meet them so that he could see the possibilities of having somebody manufacture his product. so i had his shaver and some cream sent over so tony can show them his unique dessert. the goal would be to get you out of the expense of production...

tony: sure. lemonis: ...and the expense of logistics and the expense of staff. tony: yeah, i mean, listen. i'm open to suggestions and i'm not just going to say, "no, i don't like that idea" without thinking about it first. lemonis: this isn't an attack on tony's ability, this is a way to make tony's life easier. tony: it's less than 150 calories for this cup. richard: really? tony: yeah. michael: it's very good. tony: yeah, we use ceremonial-grade matcha imported from japan. richard: okay. lemonis: i would want the flavor if we're manufacturing here to match exactly what we're doing. you made this mold, right? tony: i didn't make the mold, but yeah. lemonis: you just use, like, a tub? tony: yes. lemonis: but there can be a more efficient way to make an actual mold. michael: oh, yeah. a more food-safe way. richard: so the mold's plastic? tony: mold's plastic. richard: so you re-use the mold? tony: i re-use the mold. we clean it and we wash it. michael: so that -- so that's, like -- you can't do that. because the correct chemicals you have to use now with the new fda laws,

you'd have to test that those chemicals aren't breaking down the plastic, which they probably are. ovie: three years of work i put in and there's no appreciation. i think i owe it to myself to, you know, look for other opportunities. tony: can we get off-camera for this? this is, like, crazy. >> tech: so you think this chip is nothing to worry about? ricwell at safelite,'s plastic? we know sooner or later every chip will crack. these friends were on a trip when their windshield got chipped. so they scheduled at safelite.com. they didn't have to change their plans or worry about a thing. i'll see you all in a little bit. and i fixed it right away

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richard: so you re-use the mold? tony: i re-use the mold. we clean it and we wash it. michael: so that -- so that's, like -- you can't do that. because the correct chemicals you have to use now with the new fda laws, you'd have to test that those chemicals aren't breaking down the plastic, which they probably are. lemonis: the fact that michael just told him that he is violating fda regulations in the way he's manufacturing food should stun tony. because i've got to be honest with you, i'm stunned. lemonis: get out of the nightmare of production right now. tony: i just -- i can't wrap my mind around just getting rid of our production facilities. michael: well, here's another big part of it. when you now go to franchises, you're going to have to come to the table and show them, "the facility we make this at

is sqf certified, it's gmsi certified." and, you know, these certifications cost hundreds of thousands of dollars... tony: sure. michael: ...a year -- every year. lemonis: and then we're in trouble. michael: yeah, that's big trouble. lemonis: you opened up in new york city, you had great success, people love it, but it needs an evolution or it'll die. tony: i agree. lemonis: and relationships like this will be like gold to you. richard: tony, you have to evolve, you know? and you can't be afraid to do that. i'm telling you from experience, you can't be afraid to do that. lemonis: what they don't know is the business took a lot of heat for being out of flavors, out of stock. tony: that's true. lemonis: close your commissary, get out of the nightmare of production. it's just, like -- what are we doing? michael: yeah. richard: yeah. tony: i think that makes sense. that's fair. lemonis: let's get going. michael: let's make some, uh... lemonis: money. michael: ...some snow bunnies. tony: thank you, michael. lemonis: to say that i'm happy that tony is handing over the logistical process

of making his product is an understatement. and i know it's a huge hurdle, but there's a lot more work to be done. ♪ while ovie is putting in extra hours making sure the store is ready to open, tony is scouring the city looking for more asian desserts to add to his location. now, because of everybody's hard work, the east village location is just about a week away from opening. ♪ ovie: for some reason, it's a lot smaller than before. tony: than before? ovie: yeah. tony: yeah, so, did you get everything i asked you to get done? all of the inventory's in, sorted out, getting people scheduled to get them coming back into the space this week? ovie: i couldn't get everything done. i did schedule the movers, and i'm still working on the catalog for the inventory. tony: you know, we're restarting with everything and it's a new -- you know, a new concept and there's a lot more that goes into it.

ovie: yeah. i get that. it's just that you give me a task and i'm forced to go at it alone. you know, we're kind of spread thin and carolyn's out of town, as well. if [bleep] hits the fan, like, i don't know how much more i can give. it's getting harder and harder, you know? tony: there's no room for the negativity. i need you to be on board and just focus on getting this shop open. ovie: i've pretty much given everything. tony: i get it. listen, ovie, i've got an 18-month-year-old daughter at home. ovie: yeah. tony: i've got a wife that's, like, supporting me right now while we're going through this process. i need you to be less negative. ovie: it just shows me, like, three years of work i've put in and, like, there's no appreciation for it. like, everything i did just crumbled and i had to think about, like, what i want to do going forward with my life. i think i owe it to myself to, you know, look for other opportunities. tony: uh, i... i'm sorry this is -- this is a little --

can we get off camera for this? this is, like, crazy. ♪ (count) time for one chore [thunder crashing], ah! ovie: i think i owe it to myself to, you know, ahh! my mower! (burke) the number "one." seen it, covered it. at farmers insurance, we know a thing or two because we've seen a thing or two. (bert) mmm. ♪ we are farmers. bum-pa-dum, bum-bum-bum-bum ♪

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the last thing i want you is to make an abrupt decision because, you know, you're emotional right now and, like, it seems really stressful. ovie: it is. like, it is. tony: no, i know it is. look at everything. look what we're in the middle of. and, like, you know, you're just going to potentially leave? ovie: i just don't know how much more i can sacrifice. tony: i just closed down three shops -- four shops with this one under construction. there's no room for the negativity. like, and i'm handling most of the work with development with mr. green tea, figuring out the rest of the design work for precise. hey, marcus, how are you doing? lemonis: what's happening? how's everybody doing? i wanted to stop by the east village location to meet with tony and ovie to find out what's happening with the construction and the whole process. but it's clear to me that i walked into something else. ovie, how are you? ovie: um... we just had a talk about, like, the issues where tony's management style was non-existent.

and he can be kind of a dick sometimes. tony: yeah, to a certain extent. but, like, it's a lot going on right now. we're all stressed. ovie: at some point i had to realize, like, we can't keep going. lemonis: look, i knew there were problems between ovie and tony, but i am surprised to find out that ovie is so frustrated that he's considering leaving. losing such an experienced, dedicated person right before the opening would be a massive death blow to tony. tony: we're at a crossroads right now, you know, and we're going to get through it. like, that's all i've got to tell you. like, we're going to get through it. ovie: i get you're saying that, but i don't know, man. tony: this is going to be a good opportunity for us. it'll be like -- i promise i'll do right by you. i don't want you for a second to feel like i don't appreciate all the work that you've done 'cause i really do. and i really can't do it without you, and i really do think that this is going to be a success. ♪ ovie: i do take your word on it.

tony: you've done a great job, ovie. and thanks for standing by me all these years. ovie: of course. tony: i appreciate it. give me a hug, man. ovie: i kind of needed that. lemonis: look, for people to stay and want to work somewhere, they have to feel appreciated. and i'm finally happy to see that tony is recognizing that he needs ovie to be successful. it's not a one-man band. it's almost like a new chapter. tony: right. ♪ ♪ lemonis: today is the day that the store is finally going to open. tony is totally committed to the changes and the concept. carolyn: oh, they look good. lemonis: partnering with mr. green tea has allowed him to focus on the important things like the store redesign and sourcing new products. michael: one of the things we wanted to get rid of was plastic.

right, single-use plastics are, like, really bad right now. tony: yeah, absolutely. michael: so what we have here is 100% cardboard, paper-based packaging for your shaved creams. and the packaging's 100% recyclable, as well. tony: that looks beautiful. michael: there we go! tony: a little drizzle. michael: ready for instagram. tony: yes, seriously. lemonis: i know that tony, carolyn, and ovie have been working around the clock. tony: you're going to make the peanut butter sauce, right, ovie? ovie: yeah, let me just wipe that area down. lemonis: there is a lot riding on this for tony, and i know he's feeling the pressure. tony: hey, ovie? ovie: yeah? tony: do you know why this freezer's not running? did you unplug it? ovie: no. tony: so weird. ovie: yeah, it was on last night. tony: is it defrosting? ovie: oh, most likely. carolyn: they're kind of soft in there. tony: it's not on. ovie: we should check everything inside. carolyn: oh, my god. tony: definitely not on. lemonis: if your business is in trouble and you need my help, log on to theprofitcasting.com.

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tocarolyn: oh, my god. tony: it's definitely not on. ovie: i'm going to press the reset button. ♪ tony: oh, there it goes. ovie: did that do anything? tony: yep, it's working. ovie: we should check everything inside. tony: good work. thanks for figuring that out. that would have been really bad. lemonis: while i've seen prototypes and drawings, it never truly encapsulates what's actually going to happen in the store. what? but as i go inside, i almost didn't recognize it. holy moses, it looks totally different! carolyn: hi, marcus!

lemonis: really good to see you. look at you with your outfit on. tony: you like it? lemonis: how are you? carolyn: hey. ovie: hey, marcus. lemonis: you guys look like you're a team. it's like a new business. it looks kind of amazing. can you give me kind of a walk around? tony: yeah, absolutely. essentially you follow the footsteps through the store. lemonis: okay. tony: so it brings you to some of the stuff from, like, the bakery that we, you know, kind of private labeled. and then footprints go up, so they lead you to the menu. lemonis: it looks totally different. tony: it looks totally different. i'm so excited. this is the yeti outpost. lemonis: this is cool. people are going to love this. tony: yeah, we have the grass jelly drinks. these are more like, you know, some of the japanese coffee drinks. we have our pocky shelf, japanese and korean candy. lemonis: can i try a black sesame? carolyn: a black sesame, yeah. lemonis: so in addition to shaved cream, tony also added mochi, which is another unique asian dessert, to the lineup, and a real differentiator in the market. not something you see on every street corner in new york. tony: hey, guys, come on in. how you doing?

woman: oh, i love pocky! ♪ ovie: and what would you like? carolyn: we also have a peanut butter sauce here. man: this is really good. lemonis: you ready to take, like, a deep breath? tony: i am. i mean, carolyn and ovie have really stuck by my side. it just, uh -- it makes me really happy because we just -- the three of us have put in so much work and it's a -- a relief to, you know, really show you and have you be proud of this. lemonis: i, honestly, no bs, i don't think you missed a trick. tony: thank you so much, marcus. lemonis: tony now has multiple streams of revenue for 365 days of success. while this location did do $600,000 in its best year, with the new products and the new feel, this location can get close to a $1 million. tony can now have some balance in his life. he can get one concept right. and now he can make money and spend time with his family. over time, if this concept works,

then the possibilities of opening up two or three -- no problem. let's see if people want to come try some mochi. tony: yeah. lemonis: these folks -- talk to them. ♪ ♪ -you're steven, also? to-steven: yes. profit"... lemonis: three generations right here. steven: right here. lemonis: a multigenerational custom-furniture business... do you and your dad have blowups here? steven: all the time. lemonis: ...struggles to stay up with the times... [ screeching noise ] steve: some of the machinery here are 50 years old. lemonis: ...and a father who won't give up control... steve: do you have a packing list? steven: are you really gonna micro me again right now? steve: please. lemonis: ...leaves a son struggling to make his mark. steven: oh, my god. lemonis: if i can't bring these two together... steven: when it's done, it has a sticker. if this doesn't have a sticker, is it done? -steve: no, it's not done. -steven: okay. lemonis: if he can't do the job, you fire him. ...there may not be a next generation of grafton furniture.