tv The Profit CNBC January 1, 2020 9:00am-10:01am EST
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i'm trusting you here, bud. the check that i just gave you, that's for inventory, not for your engagement ring. strud: [ chuckles ] stephanie: i love you. strud: i love you, too. [ cheers and applause ] ♪ lemonis: who would like to try acome on down.? tonight, on "the profit"... finia: now i'm the macaron queen. lemonis: one woman's quest to become macaron royalty... what are we shooting for? why don't you tell me? finia: we are shooting for the moon! lemonis: ...resulted in a perfect dessert. nina: this is caramel chocolate. mindy: oh, my god, that's so good. lemonis: but her hands-on business plan is wrecking her health... nina: can you hold on one second? are you sweating? are you okay? finia: yes, it's...i had a heart surgery two years ago. lemonis: ...and creating an obligation for her daughter to fulfill. are you happy, yes or no? nina: if you asked my husband, he'd say no. lemonis: nina... if she can't learn to trust... are we using a recipe book? finia: no, the recipe is here. nina: waiting for our mixer. lemonis: ...her empire will never grow.
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finia: oh, 139. i have to relax. nina: okay. lemonis: okay, okay. nina: you're not dizzy, are you? finia: nina, you see how aggravating this is? lemonis: i'm marcus lemonis, and i risk my own money to help businesses. i love investing in american businesses. woman: these people are here because they care. lemonis: it's not always easy, but i do it to create jobs, and i do it to make money. do we have a deal? let's rock and roll. man: yeah! lemonis: this is "the profit." i'm in atlanta, georgia, and i'm on my way to perimeter mall, and i'm here to see macaron queen, which is a very small start-up in the dessert space. it's clear to me that macaron queen has a good business model on a small scale, but this particular product possesses all the qualities needed to actually become a direct-to-consumer product and a big wholesale product. they want to grow, but they want to grow profitably. woman #2: a princess cake, two of those crème brûlées.
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lemonis: i love french macarons. i would almost call myself a macaron snob. nina: hi! lemonis: i'm marcus. nina: hi, i'm nina. lemonis: nina? nina: yes. finia: pleasure to meet you. finia. lemonis: are you mom? finia: yes! lemonis: okay! this is a really beautiful display! nina: thank you. lemonis: look how colorful it is. nina: we wanted to make a place where macarons were in the forefront. lemonis: where did the idea come from? nina: well, it's a french cookie, and the origin is over 300 years old. lemonis: are you guys french? nina: no. my real father is part european, but mom is iranian. lemonis: okay, cool. finia: i took two classes in paris. lemonis: you went to macaron making? finia: yes. now i'm the macaron queen. lemonis: okay. i thought you were the macaron queen. nina: no, i'm the princess. i'm the daughter. lemonis: is this one of the hardest pastries in the world to make? nina: i would think yes. finia: yes, it is, very. nina: it's called the impossible cookie. people always say, "i tried it at home. it didn't come out right." so mom knew, from reading these books,
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why it's not coming out right. she condensed and slowly filtered her recipe. lemonis: and what's a busy day here, dollar-wise? nina: $1,700. lemonis: what's a slow day? nina: $400. finia: now, these days, everybody sell macaron for $3, but we sell them for $2 apiece. lemonis: i'm gonna try a box of 25. i'm gonna do taste-testing. red velvet? nina: yes. champagne. key lime. french raspberry. lemonis: so i'm gonna give you my honest opinion of these. finia: okay, please. lemonis: i actually think this is the best macaron i've ever had, by a lot. these had a cakey feel to it without collapsing. the flavors were very pronounced, and then i thought the fillings had their own personality to them. nina: thank you.
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lemonis: so as a potential investor, i need to get feedback, so i'm gonna start bringing people in to come try them. do y'all have a tray? nina: yes. lemonis: who would like to try a free macaron? you've got to give me feedback. come on down. how are you? man #2: i'm wonderful. how are you? lemonis: pick any flavor. man #2: i'm gonna get the chocolate. lemonis: have you ever had a macaron before? man #2: oh, yes. this is out of this world. lemonis: is it too hard, too soft? man #2: oh, no. it's a winner. man #3: it's not too sweet. man #4: i might be a tough critic because i don't usually eat sweets. man, that's good. woman #3: it's yummy, soft, rich. lemonis: too soft? woman #3: no, no, no. medium soft and good. woman #4: i think every macaron is different, depending on who bakes them. lemonis: how much do you think that one would be? woman #4: $3 to $5. lemonis: separate from me loving desserts, i like the idea of entering into a space that isn't widely distributed, and there's something different about these desserts because they're small. they're really tasty, and you don't see them everywhere. nina: it does look elegant.
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lemonis: why doesn't your color scheme here match the... finia: actually, this color, they made a mistake because it's supposed to be tiffany blue, and it came out this way. nina: well, what i wanted to mention is part... lemonis: you just grabbed your mom's hand, telling her to be quiet. nina: yes, i did. no, i wanted to insert a fact. lemonis: okay, and tell her to be quiet. is this your only child? finia: yes! you can tell? lemonis: yeah. sure, right. finia: i really like you! nina: i knew this would happen. i'm screwed. bye! lemonis: i would almost describe nina and her mom's relationship as almost two sisters. they really do respect each other, and you can tell by spending time with them that they both bring something very different to the table. do you do everything she tells you to do? nina: no, no, no, no, no, no. finia: no, no. not when it comes to my business, no. lemonis: is it your business? finia: our business. nina: i've taken over since her heart surgery. finia: i had a heart surgery two years ago. i had been sick with heart problem since i was 7. one day in the bakery i fall, and i call her, and she call ambulance, and i go to the hospital.
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so she was... lemonis: how scary was that? nina: very scary. we've shifted roles. i, essentially, not in the food industry, opened our commissary kitchen. i'm not a chef. i'm not a baker. lemonis: but you did it to do your mom the right thing. nina: i did. lemonis: inside of every business, there's a story of why they got in the business, how they got there and the troubles that they've had, and the fact that finia has had real health scares puts a lot of pressure on the business. finia: nina designed the kiosk. lemonis: beautiful. finia: she was in fashion when she was younger. nina: i started as a designer. lemonis: in paris? nina: i was designing for a manufacturer, so he had, like, 12 labels, and that's what i did. lemonis: international distribution or just... nina: yes, international. lemonis: you should be very proud. you've done a great job. finia: those are good days. lemonis: every day is a good day. nina: these were good days, too. finia: she's so kind, and she tell me, "mom, don't worry about it. your passion is my passion," but sometime i think this took her life away from what she was doing before. lemonis: i respect nina because she's loyal to her mother,
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and she truly has put her own dreams and her own wants aside to support her family's business, but i wonder if over time resentment builds up, and then, all of a sudden, she's gonna be gone. so i'll meet you guys at the commissary... nina: okay. lemonis: ...and we'll learn more. nina: okay. see you soon. lemonis: see you in a little bit. ♪ nina: that's the office. this is the delivery entrance. lemonis: this whole thing is yours? nina: yes. lemonis: i want to see exactly what the process is. if this is the miracle cookie, or the hardest cookie in the world to make, i want to understand exactly how they're doing it. finia: that's my husband! lemonis: hi, sir! i'm marcus! nice to meet you! habib: nice meeting you. lemonis: so can you give me a tour? habib: sure. lemonis: so these are the shells. nina: mm-hmm. lemonis: you're the shell-maker. nina: so dad knows the recipe for the shell. the shell, no one knows the recipe. mom has had offers to write books, have classes,
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but she felt like someone might steal her recipe and go do their own business, so she kept it very close to her heart. lemonis: how are you, ma'am? i'm marcus. zion: i'm zion. pleasure to meet you. lemonis: nice to meet you. so you do not know the recipe? zion: no. nina: we've had a hard time, honestly, keeping employees. lemonis: no, but somebody... the business won't go anywhere. this isn't like a macaron incubator. if this business truly is going to grow, with me or without me, it's going to need to be able to scale production, and if the recipe isn't available to anybody, then i guess this thing isn't gonna make more than the two of them could make. nina: part of knowing the recipe is the experience in looking at the batter, and with your eye knowing when it's right. lemonis: it's a science. nina: would you like to go in the fridge? lemonis: yeah, let's do it. nina: let's go. so this room, i can put macaron shells here without a cover, and it ages faster. this is presold. this isn't dated, but for example... lemonis: presold to who? nina: our wholesale clients. lemonis: okay. who do you wholesale to?
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nina: bubble tea clients, coffee shops. lemonis: is there more demand in the marketplace for wholesale? nina: yes, but beyond what we do here, we couldn't handle. mom wants us to focus on the mall. lemonis: a lot of business owners struggle with being able to determine the difference in profitability between retail and wholesale because on the surface, they look at just the actual cost of making the product, and they forget about all the other factors, and so i just needed to lay it out for them. here is what i want you to think about -- you know you have strong demand. you know you have capacity room. you know you're underutilizing your facility. why aren't you producing more? nina: can you hold on one second? are you sweating? are you okay? finia: yes, it's... i'm going to... just want to make sure my heartbeat is okay. nina: well, this is more than usual when you're sweating beads. lemonis: let's check it. finia: 92. lemonis: is that high? finia: is high. nina: her pills put her heartbeat at 50-something. finia: that's what macaron does to you! lemonis: finia's heart problem presents an issue to her health,
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but it also presents a huge issue to the business. my ultimate goal here is to create a business model that allows finia to be a member of the team, not the only member of the team. i'm not interested in making things worse for her. we're gonna wrap it up. the next time we meet, we'll sit down and we'll go over the financials, and we'll talk about the business. nice meeting you. nina: nice to meet you! lemonis: we'll see you soon. finia: thank you! nina: bye, thank you! finia: bye-bye! ♪ nina: let me move the dessert out of the way. i've never seen him go to anyone's house. [ knock on door ] finia: [ gasps ] lemonis: hi! nina: hi! lemonis: wow! this is the first time i've actually ever gone to someone's house to look at their financials. thank you for doing this, by the way. finia: oh, you're welcome. my pleasure. lemonis: that was so nice of you. finia made me a middle eastern meal like my mother would, so i have to remember as i go in there not to get sucked in
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by this motherly love and that this is still a business deal. i have a feeling it's gonna be hard. the food is wonderful. finia: i'm glad you like it. lemonis: i love it. so do you have financials that we can look at? nina: mm-hmm. finia: yes, sure. lemonis: in 2017, you did $390,000 of revenue, a net profit $77,000. for 2018, last year, $369,000 was the revenue. after all the expenses, $73,000 profit. the business does less than a half a million dollars, but it makes money. what we're gonna want to understand is what the true net yield is in wholesale and in retail. which one is actually more lucrative. nina: yes. lemonis: the cost to fulfill in retail, $1.39. what is the cost to fulfill the wholesale? finia: probably 10 cents. nina: yeah.
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lemonis: so 10 cents. finia: mm-hmm. lemonis: the cost to manufacture a single macaron is 39 cents. with retail, an additional cost of $1.39 is added to the product because of the kiosk rental, the delivery, the employees and the insurance. wholesale, the additional cost of the product is about 10 cents, between easy packaging and the delivery. the retail macaron sells for $2.08, and the wholesale macaron sells for $1.15. gross profit for retail, 30 cents. gross profit for wholesale is 66 cents. the real profitability is in wholesale. lemonis: alright. here's sort of where i'm at. i want to make an offer. what i would like to do is invest in $100,000 increments. the $100,000 increments would be based on achieving certain production levels without compromising any quality, and the total amount of money that would be out there
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would be a half a million dollars. for each $100,000, i would want 10% of the business. no less than 10%. finia: so you want... at the end, you want 50% partnership? finia: that's not macaron. i get insulted. i go, and they say "french macaron." no. that should be illegal. nina: it makes her want to change the name.
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and i like to question your i'm yoevery move.n law. like this left turn. it's the next one. you always drive this slow? how did you make someone i love? that must be why you're always so late. i do not speed. and that's saving me cash with drivewise. my son, he did say that you were the safe option.
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the way that i'm setting this up is that, for every $100,000, i would want 10%. you don't have to take the $100,000. you have the right to take the $100,000. essentially, what i want them to do is to prove out their thesis step-by-step along the way, and actually earn the investment, and prove to me that, number one, they know what they're gonna do with the money and, number two, they don't end up taking more money than they need. i don't believe the business needs $500,000, but if goes from making 1 million macarons a year to 10, i'll be glad to invest the balance of the money. if the business can make its own money...
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nina: it might not need money. lemonis: ...it won't need my money. that is my offer, and when it comes to the finances, i'm in charge of them. so what do you want to do? ♪ finia: i take your offer. lemonis: you do? finia: yes. lemonis: okay. nina: yes! lemonis: the macaron queen. okay. nina: thank you. yay! finia: i make this the best $100,000 you have ever invested. ♪ lemonis: good morning! nina: good morning! lemonis: hey! finia: good morning. lemonis: how are you? finia: good! nina: hi, partner. lemonis: high five. i just want to recap what we're doing, where we're going. you know, as all of you know, we all agreed to do a deal together. finia: yay! nina: yes! lemonis: but ultimately, at the end of the day, the company has to define
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who it wants to be when it grows up. if it wants to be a small city of atlanta kiosk... finia: that's not what we are shooting for. lemonis: what are we shooting for? why don't you tell me? finia: we are shooting for the moon! lemonis: okay. this business could be super profitable, but in order for that to happen, changes have to happen. first of all, we need to pivot away from retail and focus more on wholesale and direct-to-consumer, where the margins are way higher, and in order to grow the revenue, we're gonna have to find a co-packer -- someone that can actually accomplish the larger production runs. and lastly, we're gonna have to figure out ways for finia to monetize her expertise and her knowledge, either through a book or selling her recipes. but the most important thing that will come out of this -- it will allow finia to find the balance between work and preserving her health. how much is your rent at the mall? finia: $5,408 per month. lemonis: and how much time is left on it? finia: end of november next year. lemonis: ultimately, i think the mall is a deadweight.
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they're spending a lot of time thinking about how to deliver to the kiosk, and who is going to staff the kiosk, and if they took all that time and energy and just allocated it all to wholesale with double the gross profit, then it was obvious to me, the kiosk is a giant waste of time. if you're gonna be direct-to-consumer and wholesale, then be that. don't also be running a mall stand. it's a distraction right now. finia: yes, it is. nina: okay. ♪ lemonis: hi, guys! finia: hi! finia: good to see you. nina: how are you? lemonis: i'm taking nina and finia to silverland bakery in chicago. it's a commercial co-packer that specializes in state-of-the-art equipment with state-of-the-art production. in order for this business to grow to the wholesale level that i'm expecting it to, i need to find somebody that can help me with volume. finia: hello! athena: hello! lemonis: nice to see you. athena: nice to see you, too. lemonis: so am i gonna be in trouble with three persian women? finia: yes!
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athena: come on in. very hot. so say you want a truckload shipped to california. a truckload is 22 pallets, up to 24 pallets. lemonis: so the way to think about this is, she produces. she stores it, and then we have to provide the logistics and the storage on the other side. so it just becomes a logistics game. why don't you guys take her through the process? finia: okay. athena: so are these french or italian? nina: well, actually it's a mix. finia: it's a secret recipe. i had to work on it and adjust it so many times to get the right texture and all that. it has to process. athena: so by processing, you mean you mix the almond flour with the powdered sugar and mix that together, and... finia: you have to run them first and then add to each other. you know, get it to the point that we want. athena: well, that's something we'll have to work together because i don't believe in doing anything extra because that adds labor cost.
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finia: with macaron, the batter is very, very sensitive. nina: processing our flour and sugar is one day. lemonis: are you doing some sort of magic voodoo to the flour? finia: no, no. we run it to our eye and perfection. lemonis: she doesn't like to tell anybody about the recipe. i need her to understand that the reason to share the recipe with more than one person is that she does have a health issue. god forbid something happened to her, without the documentation of the process and knowing the exact ingredients, what are we left with? a name and a kiosk? athena: you know what? in manufacturing, that stuff has got to go out the door. lemonis: this is an important thing, though. athena does millions and millions of products a year. all she's suggesting is, you're doing all these things over in the corner so nobody sees it, but there is a written process that could be installed that would accomplish the same thing that doesn't have to be like columbo
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is trying to figure it out. athena: costco sells macarons. i don't know what kind they sell, but i've... finia: that's not macaron. i get insulted. i go, and they said, "french macaron." no. that should be illegal. nina: it makes me want to change the name. they misunderstand the product. finia: to call something like that french macaron, no, never. i get insulted. lemonis: i don't think you should give up your dreams for anybody, and i don't think your mother wants you to give up your dreams. do you? if you're looking to take your business to the next level, log on to...
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lemonis: all she's suggesting is, as you go bigger, the requirements to process in a certain manner becomes more regulated. you disagree. finia: yes, completely. nina: we have a proprietary recipe, and that's our process we created in our kitchen. finia: your product is gonna be different. the macaron shell is not gonna be the same. lemonis: it's not completely different, actually. it's just documented. athena: so that there is no possibility. otherwise, you know, your quality control is out the window. nina: yes. lemonis: in order to grow the business and get a return on my money and make money for her, finia is gonna have to open her mind to the fact that there are different ways to skin the cat. athena has lots of expertise of taking homegrown businesses and giving them the resources and the tools to be nationwide. how many do you think this facility could crank out? athena: oh, we can crank out millions of them. lemonis: did you hear that answer? finia: yes, millions. you know, i am learning. you want me to learn.
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lemonis: i want you to be happy. finia: i think there is a possibility there, and we have to try it. lemonis: okay. unless you don't want to make more money. finia: no, i want to make more money. lemonis: okay. ♪ nina: i can't wait to see your store! finia: i love it! it's so pretty! lemonis: okay, so we'll set this down. finia: wow! gorgeous! lemonis: i asked finia and nina to do an event at my store in downtown chicago, and i had a couple of objectives -- number one, i wanted outsiders to give me some feedback about the product as we look to expand into other markets and find new wholesale clients. there are potentially different wholesale buyers that are here tonight. i want to get feedback on the product. what do they think of the flavors? what do they think of the taste? nina: mm-hmm. lemonis: and really engage with them. so i want to give you guys the chance to set up. nina: okay, yes. lemonis: mom, pile them all in here.
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nina: would you like to try a macaron? so we have the sugar candy on top to give you that little crunch. woman #5: this is fantastic. nina: thank you. man #5: delicious. not too sweet. i can taste a little of the berry in there. nina: a brownie might be four times the calorie of a macaron, and it's gluten-free. woman #6: ooh! it's even better! finia: and it's gluten-free! lemonis: have you had a macaron like this before? woman #7: no! they've always been a little harder. lemonis: what do you think of the texture? woman #7: i love it. it's nice and soft and creamy. woman #8: i would definitely buy this. lemonis: you would? woman #8: yeah. lemonis: so i want to give you guys some feedback. finia: okay. nina: mm-hmm. lemonis: i don't feel like you guys ask questions. nina: okay, so we can learn. lemonis: "what did you think of the flavor?" "what would you change?" no, not so you can learn, so you can learn and engage with them. the number-one thing that a good salesperson has to do is ask a lot of questions. determine what their feedback is, understand what their likes and dislikes are and sell something to them. so the more they tell you that they like something, the more they fall in love with it. nina: i get it. lemonis: okay? finia: okay.
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nina: would you guys like to try our macarons? man #6: i love it. it's delicious. nina: what do you love about it? man #6: i like that the strawberry is not too much. nina: okay. man #6: it's just kind of like a hint of it, the vanilla really brings it out. nina: okay. man #6: yeah, it's really good. lemonis: they seem to just want to deliver a beautiful cookie and move on to the next customer, and if they're gonna grow their wholesale business, they're going to need to continue to gather data and to dialogue with people. manny: we have five restaurants. finia: oh, wonderful! manny: so i think your macarons would be a great fit. finia: thank you! i appreciate it. nina: yeah, that's super cool. woman #9: do you think this would look good on me, or, like... nina: absolutely. woman #9: what do you think i should style it with? nina: well, what do you want to wear it with? like, for what? lemonis: nina went into that fashion environment, and it was almost like she lights up. nina: i think heels for sure. woman #9: okay. nina: and then jeans. lemonis: you can see the true passion and happiness in her,
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and it's a concern for me. she's back there selling people clothes. no joke. finia: i know. i know! nina: i really think this would look good on you. with your body and heels, this would look super hot. lemonis: that is what she loves to do. nina: you could do just, like, a tank, or you could wear it open. lemonis: what are you doing, lady? nina: oh, i was just helping someone out. lemonis: dressing somebody? nina: yeah. lemonis: what i'd like to do is go take a walk with the two of you. nina: okay. lemonis: we're gonna go sit down, have a drink, and just... we'll chat about something. nina: yeah. ♪ lemonis: we're gonna go right in here. nina: alright. after you, mom. finia: it's a complete city, chicago. lemonis: yeah. so let me tell you what i wanted to talk to the two of you about. finia: okay. lemonis: i feel like you both love each other so much. i think that's part of why i like doing business with you guys, but ultimately i feel
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like the two of you are trying to make each other happy, and i don't think you should give up your dreams for anybody, and i don't think your mother wants you to give up your dreams. do you? finia: no, i don't want her to give up her dreams. i want her to be happy, of course. lemonis: is she happy today? finia: no. lemonis: are you happy? nina: i mean...[laughs] finia: you have to be truthful. lemonis: nina, i need you to cut the [bleep] nina: no, i know, i just don't want... lemonis: are you happy or not? nina: i don't... finia: no, nini, don't cry. don't cry. nina: i love you, mom. finia: i know you love me, baby. lemonis: nina's undying loyalty to her mother is definitely one of her strongest character attributes, but deep down i really believe that nina's true love and true passion is the fashion industry. finia: you don't have to work with me to love me. nina: let's sit. lemonis: let's get a chair.
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nina: let's go sit. finia: nina, you see how aggravating this is? nina: you're not dizzy, are you? what do we wburger...inner? i want a sugar cookie... wait... i want a bucket of chicken... i want... ♪ it's the easiest because it's the cheesiest. kraft. for the win win. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from finding out what's selling best... to managing your fleet... to collaborating remotely with your teams. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.
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hour 36 in the stakeout. as soon as the homeowners arrive, we'll inform them that liberty mutual customizes home insurance, so they'll only pay for what they need. your turn to keep watch, limu. wake me up if you see anything. [ snoring ] [ loud squawking and siren blaring ] only pay for what you need.
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lemonis: nina...you're not. nina: i just want you to know that i'm proud of you, and i would do anything for you. and i'm also sorry that i couldn't take it to the level it deserved on my own. finia: that's okay. nina: that's part of my unhappiness. lemonis: i think there's a way for you to do both. nina: yeah, and that's nothing for me. i've done way more. lemonis: i want finia and nina to understand that, while i want them to work their tails off and be totally committed to this business, i also want them to have a balance. and if nina has some interests outside of this business, i'm totally fine with her pursuing those, as long as it doesn't compromise this. you have some thinking to do because i want to know how we're gonna move you forward. i'll see you guys tomorrow. nina: thank you so much, marcus. finia: thank you, marcus. lemonis: i'll see you tomorrow. i'm glad that you opened up about stuff. nina: thank you. ♪ lemonis: so what i want to do here today
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is prove that we have the process in place to hit the volume that we need to, whether it's inside or with a co-packer, and that we're not putting too much stress on you. i set up a meeting in atlanta with the intercontinental hotel. now, they're one of the world's largest chains. in fact, they have 68,000 rooms worldwide, and i thought it would be a good idea to start in atlanta, right in a market that they understand. the question is, do they actually understand how to sell wholesale, and do they understand that this is going to more than double, triple, quadruple whatever anything that a kiosk could do? nice to see you, i'm marcus. joseph: chef joseph. lemonis: chef joseph, nice to meet you. joseph: nice to meet you. lemonis: these are my partners. so do you make a french macaron today in-house? joseph: no, we don't. we don't have a pastry chef. we outsource, you know, macarons. we outsource some dessert items, so our pastry expense is large. nina: we can vary size, and we can also make custom flavors. finia: yeah, i think you should try the grand marnier.
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joseph: okay. finia: it's a dark chocolate. joseph: i think the orange peel is nice and adds a different texture to it. finia: yes. joseph: the shells are soft. still have that crisp of the meringue on the outside, which is great. lemonis: what do you not like about it? joseph: i would have wanted maybe more on the grand marnier. lemonis: do you have a favorite flavor? joseph: i prefer some of the lighter flavors, so i love a great vanilla macaron. nina: our vanilla is right here, if you want to try. joseph: it's strong. it's aromatic. that's a perfect example of what i would be looking for. lemonis: how do we have to think about being price-competitive to earn the business? joseph: we're a large convention hotel, so we always appreciate deals. you know, the more we purchase, maybe the better price? nina: we would love to get your business. joseph: what if the agreement is more in terms of bulk purchasing? finia: it brings your price down. joseph: okay. nina: mm-hmm. joseph: we have two local vendors that we currently use.
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right now we're paying anywhere between 89 cents and $1.15-ish per piece. nina: mm-hmm. joseph: so we would want to stay competitive, but, for a great product, you know... lemonis: can we do that? nina: yes. that would work fine. joseph: i think that's really what we would be more looking at, is... finia: if we can talk about the minimum purchase. joseph: keep it to these specific days. finia: that's what we do locally. joseph: fantastic. lemonis: it's become clear to me that there is a ton of demand for macaron queen's product. finding a qualified, large-scale co-packer to produce these macarons is more important than ever. the demand is there. now we have to fulfill it. awesome. thank you. finia: thank you so much. joseph: thank you. lemonis: thank you very much. ♪ lemonis: this is huge! how many square feet is this?
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joe: it's 45,000, and our ovens and gluten facility is 55,000. lemonis: and what do you guys specialize in here? joe: cookies, sweets, baked goods. lemonis: i can't believe how big this operation is. this is a legitimate co-packer that's gonna be able to produce millions of millions of macarons a year, taking all the pressure off finia. hi, guys! finia: hello! lemonis: how are you? so what are we doing? finia: we are making french macaron. lemonis: are we using a recipe book, or what are we doing? finia: no, the recipe is here. nina: waiting for our mixer. finia: yeah, i know. we are going to share with them. lemonis: is it the real recipe? nina: he knows you way too well! finia: should i have two recipe? lemonis: well, you haven't been willing to share your recipe since i met you. finia: well, you never asked for it. nina: i mean, he didn't ask you to write it down, but he did tell you... lemonis: i did ask you to write it down. finia, i love you, but you haven't written anything down. i thought it was funny initially, but we're now standing in
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a 100,000-square-foot factory with a legitimate co-packer, and she's still pushing back on her recipe. finia: you see, my heartbeat went to 105. lemonis: is 105 high? finia: 105 for me is high. i have to be 50. lemonis: so you don't have the recipe. i don't have the recipe, but it's in your head, and your heart rate is high. do you have it written down? finia: yeah. nina: this is the recipe. lemonis: a recipe isn't just ingredients. nina: technique. lemonis: we need to write it down. not just for me, for mankind. lemonis: while i don't want to get upset with her, a recipe isn't just rattling things off. it's the ingredients and the process that goes with it. you know that, and i know that. now write this [bleep] down. that was one of the conditions of our deal. nina: yes. lemonis: you remember that? nina: yes. lemonis: next ingredient. finia: this is the coloring. lemonis: how much coloring? finia: full tablespoon. lemonis: okay. what's next? finia: 400 gram of granulated sugar. lemonis: with a little bit of a nudge,
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finia is now starting to understand that with this professional chef there who's gonna be in charge of the co-packing facility, that she has to start sharing things, and nina is taking notes, and we're starting to make some progress. how much almond and powdered sugar combination? are you checking your heart rate? finia: yeah, i have to. i don't feel good. nina: it's hot in here. finia: my heart, it does not stop. nina: can we just... can we pause one second? let him do that. you're good. keep going. finia: oh, 139. i have to relax. nina: okay. lemonis: okay, okay. nina: let's just take a quick break. lemonis: let's just take a break. i can appreciate that finia, she's being asked to do a lot of things -- meet with different co-packers, meet new wholesale clients, write your recipe down. it's a lot for any person. finia: br 139. i have to be 56. nina: you keep breathing. lemonis: i don't know if she's not getting enough sleep, or she's just excited, but she's starting to get worked up, and it freaked everybody out. for sure, it freaked me out. finia: 164. nina: it's 160.
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lemonis: okay. nina: marcus, let's sit. lemonis: let's get a chair. nina: let's go sit. finia: nina, you see how aggravating this is? nina: you're not dizzy, are you? if i built a van, it would do more than haul. if i built a van, it would carry my entire business. i'd make it available in dozens...
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okay, guys, the bus is down, but we've got a spot! follow coach kevin. let's go, guys. sorry again that we're fully booked. this is the best we could do on such short notice. this is amazing. thank you so much. (announcer) treating others like we'd like to be treated has always been our guiding principle. it's been reported that there's a cyberattack on business every 39 seconds. ouch. i don't even want to think about it. comcast business has a solution. we go beyond fast with a cloud-based security system that automatically updates, so you always have the latest protection. phishing. malware. risky sites. it can help block all of that. it's one less thing for us to worry about. comcast business securityedge automatically protects all the devices on your network. call 1-800-501-6000 today. finia, can you do me a favor? can you just look at me and just not look at your watch just for a minute?
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finia: thank you. lemonis: let's get the pill. let's get the water. there we go. everybody is relaxed. her heart rate got up to 166. it's supposed to be, like, 56. nina: take deep breaths. lemonis: we got done what we needed to get done at the co-packer. the recipe is documented, and i don't want to push her. right now, let's just take a beat and just slow down. nina: keep breathing, mom. lemonis: i think we break down and get the crew. let's get out of here. now that macaron queen has nailed down a relationship with the co-packer, nina is able to go out and find other wholesale clients... nina: hi! are you tony? tony: yes. nina: i'm nina. tony: nina, nice to meet you. nina: nice to meet you. lemonis: ...like mr. green tea and snow days, who specialize in specialty desserts. tony: very cool. it's a perfect fit. nina: see, that's fantastic. tony: thank you so much. nina: thank you. tony: i appreciate it. it was a pleasure meeting you, nina. nina: yes, a pleasure meeting you, too.
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lemonis: and we also need to continue to find ways for finia to monetize her knowledge of the macaron space, and a good way to do that is for her to publish a macaron cookbook. douglas: we are a 17-year-old independent publisher. we do a wide variety of different kinds of books. finia: everybody ask me, "do you have a book?" douglas: wow, that is amazing. that could be a successful book. nina: alright, guys. what we're gonna do is alex torres, who has been doing our gelato for a very long time, he is gonna be taking over the lease of the kiosk. lemonis: and they've even signed over the lease of their kiosk at the mall, which allows them to focus exclusively on wholesale and keep the customer of the kiosk as a wholesale customer. nina: mom and i will take a back seat, and then hopefully, the goal is that if any of you guys want to have a kiosk like this, or you want to elevate into other positions in the company, these positions are being created. lemonis: look, i have to admit that the progress we're making at macaron queen has been unbelievable,
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but there's one more thing... nina: alright. group hug, guys. group hug! zion: i'm crying! nina: no, it's okay! lemonis: you excited? nina: yes. lemonis: i reached out to the c.e.o. of weight watchers, now ww, mindy grossman, who is, like, a pioneer and badass in the world of business. she agreed to take a meeting with her staff and nina and i in new york. oh, wow. nina: okay. lemonis: look at how cool this is. nina: i know. look at all this food. lemonis: to tell you that i'm excited would be a giant understatement. nina: it's colorful, like our macarons. lemonis: do you want to get set up? nina: yes. lemonis: i'm kind of bummed that your mom is not here. nina: oh, i'm very bummed, too. lemonis: with all of the health scares and all of the travel required and the excitement, i thought it would be a good idea if finia stayed back in atlanta. mindy: hi! nina: hi, patsy. patsy: nice to meet you, marcus. lemonis: nice to meet you. so this is nina's meeting. nina: okay. well, i want to start off by first saying thank you very much
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for letting me represent my family business on behalf of my mother. weight watchers has actually been a part of our family for over a decade. i found it to help me have a healthy relationship with food. i don't know if you have in-house production, or do you outsource? mindy: we have a core group of suppliers that we work very closely with. nina: okay. mindy: within our ecosystem, we have 4.6 million subscribers, and in each country, we're looking at food partners. nina: mm-hmm. mindy: could i taste one these? nina: yes, please start -- please start eating. we tried to make the color coordinate. this is caramel chocolate. mindy: oh, my god, that's so good. nina: this has cocoa in it. that one is double dark chocolate. so... lemonis: do you notice the lack of air in them? patsy: that's what i was looking for. mindy: i think the first thing is really to get the nutrition side, to understand the point values for the different ones.
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nina: calculated, it's, like, on the edge of 1.5 to 2, and so they're not fattening. patsy: points are very important to our members. have you ever done a mini version of this? nina: yes. we have the ability to do anything. you have low calorie. you have gluten free. mindy: no artificial ingredients. no artificial sweeteners. no preservatives. nina: no. lemonis: while i'm sitting there watching nina with these two executives, and hit it and answer the questions and put a beautiful presentation together, i was very proud. mindy: what is the shelf life? nina: that's what i was gonna say next -- i would sell these in the frozen-food section because that way, you have a year. patsy: what if it's not frozen, what's the shelf life? nina: if it's not frozen in the refrigerator, on display in a store, it's 5 to 7 days. patsy: we have challenges in that regard. we don't have freezers or refrigerators in our studios, and our products do need a decent shelf life. nina: mm-hmm. mindy: we recommend, like, different alternatives.
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lemonis: we've had a lot of dialogue about nina's dreams. i guess your mom and i wanted to hear from you what you want to do. now you can switch to sprint and get both (paul) i'm going to keep this short and sweet. an unlimited plan and the samsung galaxy s10 plus included for just $35 a month. yup. short and sweet. for people with hearing loss, visit sprintrelay.com. green things and brown just eat the food. i'm allergic to all things green. [audible sigh] ♪ kraft. for the win win.
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so that would be a challenge for us, but you do ship direct-to-consumer. nina: yes. lemonis: it's gonna largely be a direct-to-consumer business. patsy: okay. mindy: i mean, we do have elevated studios. you could, at some point, see a mini-freezer that actually is branded that you can take the product.
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nina: sure. i would like to get weight watchers certified. lemonis: are there any products out there that get a stamp or a certification of some kind? mindy: our idea is that ww becomes the mark of this is a healthier option for you... lemonis: like a "good housekeeping" seal. mindy: ...but still being delicious. lemonis: i've learned that it's about the science, facts and knowledge. mindy: i think that's really important. if you can take the science and then apply deliciousness... patsy: and taste. mindy: ...that is the way. lemonis: and presentation. mindy: absolutely. it would be great to have you connect with the nutritionists and the science team, and then at the same time, we could partner. nina: that would be a dream come true. lemonis: should we facetime mom so she can say hi? mindy: yeah, can we do that? nina: yeah! sure. mindy: i would love that. nina: hi, mom! mindy: hi, mom! patsy: hi, mom! finia: how are you? mindy: beautiful product. wonderful story. thinking of ways how we can help support each other's efforts
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to help people lead healthier lives. finia: that would be wonderful. that's my dream. mindy: thank you. lemonis: yeah, we love you. we'll call you later, okay? mindy: feel good! lemonis: this is the kind of relationship that is a big game changer. huge. thank you so much! patsy: oh, you're more than welcome. lemonis: it is definitely one of the biggest wins in small-business history for me. it was that big of a deal for me. ♪ you know what i thought we could do, we could just sit here and chat real quick. nina: i would love to. finia: sure. lemonis: we'll put you in the queen chair. so i had a specific thing that i wanted to talk about. we've had a lot of dialogue about nina's dreams. we've talked about fashion. and so with the weight watchers opportunity, and with all the wholesale and the co-packers and all these great things happening, i guess your mom and i wanted to hear from you what you want to do. nina: well, in all honesty, i'm not a quitter,
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so because of all the great things that are happening and the possibilities, i want to see them through. i don't want to leave my mom here and then it all fall apart. you can't replace me that easily. so... lemonis: did you hear that? nina: ...i'm just saying. lemonis: it sounds like she's negotiating. finia: just like my daughter. lemonis: she's just like you. the fact that nina committed to the business long-term gives me comfort as a businessperson, and it also gives me a lot of respect for her as a individual. she knew it was important to her mom. with nina fully engaged and taking over the development side, finia can focus on her health and still own the business. what we have to acknowledge is that your heart condition is real. we need to make sure that we protect your health because this business will be much better with you 100%. finia: yes. lemonis: you proved to other people that there's no excuses. you could have heart surgery on tuesday
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and making macarons on wednesday! nina: yes, that's true. finia: i'm gonna shoot for that. lemonis: i thought you were shooting for the moon? finia: i am shooting for the moon! lemonis: can we sell some more macarons first? finia: yes. lemonis: okay. ♪ ron: yes, you do. lemonis: tonight on "the profit," i visit two businesses with twists that i never saw coming. first, i visit austin, texas... lauri: good to see you. lemonis: ...and meet a woman who owns a hat store... does it fit my fat head? lauri: nope. lemonis: ...with an unbelievable passion... how many different hats are in here? lauri: all of them. lemonis: but how many different kinds? lauri: lots. lemonis: ...offset by her quirks. lauri: this is my cash wrap, and if i die i'll be buried in it or burned up in it. lemonis: then i go to utah to meet a snow and skiboard manufacturer funded by deep pockets. and how much have you invested in this business? lou: $6 million. lemonis: i'm sorry? lou: $6 million. lemonis: unfortunately, its leader has an arrogance to match.
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