i want chris and his company to do what it does best, which is design, market, and manufacture. i think, literally, there could be thousands of these made a year. they did $5 million last year. this business should do $25 million in the next 12 months. ♪♪ ♪♪ man: ♪ whoa oh oh oh ♪ ♪ you can start again ♪ -♪ start again ♪ man: ♪ whoa oh oh oh ♪ ♪ start believing ♪ -♪ believing ♪ lemonis: over the years, thousands of businesses have applied for help from me. but with the pandemic, every kind of business is feeling the struggle. and now i want to help more than ever. and so this particular business is called grey block pizza. it's located here in santa monica, california. and they really specialize in all sorts of pizzas. what they also specialize in is drama. let's take a look. thomas: home of bagel crust pizza, home of the salad pizza. lemonis: um, is this for real?

lilia: yeah. thomas: we met on a dating app. lilia: he stood me up the first date. he ghosted me. he didn't text me. he didn't call me. thomas: i was toe-dipping. lemonis: you were toe-dipping. how do we find out what the different cheeses are per pound? thomas: i don't know. lemonis: we cannot leave here today until we know what a pizza costs. lilia: you're the 75% owner. you're the one that makes the decisions. vanessa: you're the manager. lilia: you need to shut the [bleep] up. thomas: you can't have it both ways. lilia: and neither can you. you can't have a silent partner and you can't have me here every day crushing it. thomas: can you be silent? lilia: i'm leaving. this is bull[bleep] we're done. you make the deal with marcus. thomas: understood. lemonis: i'm marcus lemonis, and i risk my own money to help businesses. i love investing in american businesses. woman: 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."

♪♪ thomas: i'm thomas schiffer, owner, business partner, head pizza nut. my hope is that marcus will be able to figure out how to scale this, and it's in every city in america. lemonis: for thomas, personal issues have interfered with his business goals. thomas: your whole life gets hijacked by this business and your commitment to it. my ex is out of state. i didn't see my kids for two years, so i had to leave l.a. lemonis: moving to oregon four months ago to be with his children required him to rely more heavily on his business partner. lilia: my name is lilia mead, and i am part owner of grey block pizza. my intention was to be a silent partner, as in like zip. zero restaurant experience. zero pizza experience. he is up in oregon, being a dad. yeah, i run this place. ♪♪

lemonis: i know thomas is looking for me to invest and take grey block nationwide, but i think the big question is, are they really ready to take the next step? ♪♪ man: ♪ whoa oh oh oh ♪ ♪ you can start again ♪ -♪ start again ♪ man: ♪ whoa oh oh oh ♪ ♪ start believing ♪ lilia: oh, hi. lemonis: hi. lilia: hi. lemonis: how are you? lilia: good, how are you? lemonis: good. i'm marcus. lilia: hi. nice to meet you. lilia. nice to meet you. lemonis: nice to meet you, too. lilia: and this is thomas schiffer. lemonis: how are you? thomas: nice to meet you. lemonis: nice to meet you. it smells good in here. is there, like, a special sauce or what am i smelling? thomas: we got a lot of special. lemonis: and you guys are partners in the business. lilia: we are partners. lemonis: are you a couple as well? lilia: no. lemonis: okay, were you guys ever a couple? thomas: we met on a dating app, but quickly realized that was not...our fate. lilia: he stood me up the first date. he ghosted me. he didn't text me. he didn't call me. thomas: i was, you know, i was toe-dipping.

lemonis: you were toe-dipping. which toe was it? -thomas: the big toe. -lilia: his big toe. lemonis: i would say just own it at this point. lilia: so anyway, long story short, we were both going through a divorce. he told me about his pizza shop. he told me that he has kids up in oregon that he hasn't seen and he wants to get there. thomas: i moved up to oregon because my now ex-wife number two -- lemonis: you've had two ex-wives? that's alright. i'm on one. thomas: if you want a date in the pizza business, they become your wives. lilia: except me. i'm out. lemonis: alright, let's get to pizza. how big is this building? thomas: about 2,400 square feet. lemonis: 2,400. and do you own it? thomas: unfortunately, no. in 1999, we secured this location right across the street from the college. lemonis: this place is a little bit of a pigpen. garbage in the parking lot, paint peeling off the top. thomas: no excuse. lemonis: what's the secret sauce behind why this place is 20 years? thomas: unbelievable ingredients, never cut corners on the ingredients. and we have different sauces, we have different cheeses. lemonis: the crust looks different than i've seen. thomas: because we have a garnishing. home of bagel crust pizza, home of the salad pizza.

lemonis: the crust is a bagel dough? thomas: it's bagel garnishing on pizza dough. lemonis: can we take a couple out? i'd like to just see what they look like. thomas: absolutely. lilia: try the salad pizza. it's so good. lemonis: is this for real? lilia: yeah. lemonis: okay. lilia: you don't eat a salad pizza on your first date, fyi. lemonis: did you? lilia: no! it's really messy. thomas: that is actually a fork and knife. lilia: that's a fork and knife. can you get him a fork and knife? lemonis: no, no, no. lilia: oh, here we go. lemonis: no, no, no. lilia: he's folding it. ♪♪ lemonis: it's not my speed... thomas: mm-hmm. lemonis: ...but i can see why people would really like it. what i like is the innovation. what you've taken as a commoditized product and you've put your own spin on it. thomas: right. lemonis: he really is trying to separate himself from everybody else, whether it's putting salad on top or using a certain kind of crust. and that may be the reason this business has lasted 20 years because he set himself apart from everybody else.

thomas: that's our "made from scratch gluten free." lemonis: that was actually pretty good. thomas: thank you. ♪♪ lemonis: this is delicious. thomas: thank you. lemonis: what does a slice sell for? thomas: uh, 5 bucks. lemonis: what does it cost you to make a slice? thomas: i'm not a numbers guy. i want to start off with that. lemonis: you knew i was coming. thomas: it's just if you want to answer accurately, how much does that pizza cost me to make unit cost? i don't do portion control. so i don't have that. food costs are high. lemonis: i continue to be frustrated that year after year, business after business, i go in there, they know we're coming, and they still don't know their numbers. now, i would understand that if this was a complicated business with 1,000 skus or some massive manufacturing process. this is pizza. seems kind of irresponsible. lilia: so i've only really been on the scene for four months, even though i invested back in january 2020. i was meant to be a silent partner. lemonis: how much did you invest? lilia: $120.

lemonis: thousand? lilia: uh-huh. and then the pandemic hit, and i gave $80,000, but that was not part of the investment. that was a loan. the loan was to protect my investment. thomas: right. lemonis: okay. how about we have a little fun and we make a pizza? thomas: i would love to do that. lemonis: okay, let's do that. ♪♪ what's the pizza you think is the most risky in terms of food costs? thomas: the alfredo sauce, deep cheese. lemonis: let's do it. thomas: alright. lemonis: okay, how do you know that's a small? thomas: i'm gonna say the small dough is about 50 cents. lemonis: about or for sure? thomas: i don't know for sure numbers. lemonis: so if you had to guess, if you put all the cheese on there, how much do you think that is? thomas: a lot. lemonis: i-i-i went to math class. "a lot" was never -- never got me an a. thomas: i'm gonna say... i don't know. lemonis: is the same answer gonna apply for you guys

all the way through? lilia: for me, for sure. lemonis: okay. lilia: yeah. lemonis: how do we find out what the different cheeses are per pound? lilia: gerardo, do you know where the form is for the ordering? lemonis: i mean, this is like... thomas: yeah, i get it. it's sad. i should know this. lemonis: so should she. thomas: fair enough. lemonis: so should he. thomas: yeah. lemonis: everybody should know. we cannot leave here today until we know what a pizza costs. part of the way that you improve food costs isn't just by raising the prices. you have to really understand every single component that goes into arriving at the cost, both labor and the actual ingredients. and so as we look to improve the profitability of the business, you're gonna see us pull on little levers. one lever may be raising one price or eliminating something that doesn't sell. another may be finding a different cheese purveyor or different meat purveyor or improving the cost of the box. to simplify it, you have to really look into the science of every single thing that goes into the cost. once you do that, the rest is easy.

here's the problem, guys. in order for the food cost to be 28% on a small pizza that is $19.95, you take 19.95 times 28%. it's $5.58. thomas: yeah. lemonis: okay? lemonis: the cheese alone is $5.57. thomas: yeah. lemonis: before any labor, before any meat, before any sauce, before any dough, before any box, before anything. thomas: yeah. yep. ♪♪ lemonis: i think the big question for me, for both of you is, who manages the place? lilia: we don't have that person. lemonis: how come? lilia: because that person left. lemonis: what do you mean they left? lilia: that person was his first wife. lemonis: this is your first ex-wife? thomas: yeah. lilia: yeah. she was supposed to train me. i was hoping she'd be able to catch me up to speed with what i was dropped into so that i could find a manager. thomas: i don't see it that way.

she was a 20-year veteran operator that i trusted. lilia: from the moment i met you, you were saying, "she's being paid too much." thomas: i'm not arguing that. lilia: "you got to replace [bleep] learn what she does and replace her." so i did it. 2k is nothing compared to 6k. thomas: you're close to that already. in our shortest month. lilia: in one month, i paid myself half of what [bleep] got. thomas: i'm getting worried because she's essentially either has no faith in this business and goes... lilia: i do have faith. thomas: ..."i'm gonna pay myself. i bought a job that i'm not maybe qualified for." lilia: wow. that's what you say to someone that gave you $200,000 on total faith and trust? thomas: all the things that she complained about with the ex-wife of, like, i had no stress. she's managing me to death. vanessa: [singsong voice] hi. lemonis: excu-- hi, i'm marcus. vanessa: i'm vanessa. nice to meet you. lemonis: nice to meet you. vanessa: this is meghan. lemonis: meghan, how are you? meghan: good. how are you? vanessa: i am tom's other half right now.

lemonis: okay. thomas: my girlfriend, vanessa, is down here to protect me emotionally. and i brought meghan down to have a real operating manager. she has a lot of food-retail experience, better capable than the current situation. lemonis: um... i don't -- thomas: i'm not gonna get crucified for emotionality. lemonis: no one's crucifying you. thomas: i'm not saying you are. i have the right to say, "hold on, investor, have you lost any money? as a silent partner, she might have been better off. she's lost nothing. lemonis: okay, well... vanessa: didn't we just send, like, a $5,000 check? lilia: first of all, i don't understand why we're doing this. this is a business. vanessa: right. this is business. this isn't personal, lilia. lilia: i'm meeting you for the first time. and for you to know my business is not your business. lemonis: everybody, be calm. lilia: if you want to be, great. vanessa: lilia, i'm here to support -- lilia: this is not about you. vanessa: i'm not saying it's about me, but the way that you're dragging things down and making tom so stressed out...

thomas: stressing me out to where i don't sleep at night. how is she losing in this scenario? lilia: you're the 75% owner. you make decisions. vanessa: you're the manager. lilia: you need to shut the [bleep] up, okay? i don't know you. you show up and you're in my face, knowing my business. just be quiet. vanessa: no, lilia. lilia: just be quiet. vanessa: lilia, i won't do that. lilia: you have nothing to do with this business. vanessa: yes, i do. lilia: no, you don't. you're just sleeping with him, that's it. vanessa: i have everything to do with this man. lilia: for four months. you have to stop. vanessa: i'm so sorry. lilia: you really have to just stop. just stop it. vanessa: i won't do it. you can't bully me out of doing that. he can't even think at home. lilia: i'm out of here. vanessa: you're trying to manage this place, and it's not being managed properly. lilia: i'm trying to manage this place? are you kidding me? vanessa: it's not right. lilia: i am managing this place. you've got to be kidding. this is bull[bleep] lemonis: let's go for a walk. lilia: no. this is bull[bleep] i'm out of here. i'm out of here. vanessa: good god. lilia: i'm leaving. this is bull[bleep] this is way not what i signed up for. lemonis: lilia. lilia: i'm out of here. i don't care about anything anymore here. it's bull[bleep]

lemonis: let me be super [bleep] clear. i'm more upset than i was before i started. so now you're gonna see a different side of me. you want me to invest in this [bleep] box right now? because i'm not gonna do that. that's the thing about claims, you see. they don't happen on your schedule. i mean, take a chestnut, it doesn't just say “oh, beg pardon, sir, but is now a good time for a jolly bit of window cracking?” i mean, if they did, you wouldn't need

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lilia: no, i'm leaving. thatthis is bull[bleep]ed. i don't care about anything anymore here. it's bull[bleep]

lemonis: i don't -- i don't know what that was. all of a sudden, all hell broke loose. lilia: i want out of this business, marcus. lemonis: i know you do. we're gonna get you out. lilia: why don't you buy me out and have a great million-dol-- this place is gonna be booming. vanessa: you treat people with dignity and respect. i'm just not gonna let her talk to you that way. lilia: this is bull[bleep] lemonis: listen to me. take your temperature down and be a banker for a minute. you know how bankers can be really calm? i hear what you're saying. "you owe me 80 grand." lilia: yeah. actually he owes me 180. lemonis: separate from the business? lilia: i gave him a $100,000 loan. lemonis: why did you give him an extra hundred? what's the answer? lilia: because i was in love with him. lemonis: what i thought i was walking into was a very prosperous pizza location across the street from a college that had some proprietary ideas around it, and what i walked into is a bunch of crazy. it turns out that not only has lilia given the business $200,000, but she has lent thomas personally an additional $100,000 separate from his business.

meanwhile, thomas continues to be distracted. and whether that's his first ex-wife, his second ex-wife, his girlfriend, his manager, his partner that he brought in, he's not paying attention to the actual business. vanessa: lilia, i'm not out to get you. i don't want you to feel bombarded or attacked. i don't ever want to feel you, like, hurting. lilia: i was so excited to meet you guys. lemonis: okay, ready to... vanessa: alright. lemonis: alright. i just need to get my mind straight one more time. $120,000 in equity, $80,000 in debt to this business. separate from that, lilia lent you $100,000 for another venture. okay, we're gonna separate that out. this is a business discussion. so i would just clean up one thing. do you believe that she bought herself a job? thomas: no. lemonis: say that to her. thomas: i know she didn't buy the job. lemonis: okay, that's it. thomas: i have no desire other than to make lilia whole. lemonis: great. why don't we sit down and go over the financials? alright? okay. lilia: so many red flags.

i should have walked away before i invested. i mean, the first time we were supposed to meet, he didn't show up. i think we have a connection that is unbreakable, and this business is starting to break it. man: ♪ weights or wings ♪ ♪ i don't know who you are, should i? ♪ ♪ i don't know ♪ ♪ leave ♪ [ knock on door ] lilia: hello. lemonis: what is that smell? lilia: it's sage. do you know about sage? lemonis: like "i cook with it" sage? lilia: sage, as in clearing the energy and, you know, getting rid of negativity. lemonis: so you have a sage tree because i don't think that's enough sage. lilia: i'm really trying to be not emotional, but if it weren't for me, we all wouldn't be standing here because there would be no business. lemonis: alright, so i'm gonna summarize for you guys real quick. lilia: okay. lemonis: 2019, the business does $898,000, makes $105,000 with 32% gross margin.

2020, it drops to $673,000, 25% reduction. it loses $128,000 -- a 16% gross margin. 16%. i'm guessing this is the first time that the two of you have actually looked at these financials together... thomas: mm-hmm. lemonis: ...which is really wonderful that partners don't do that. lilia: yeah. lemonis: clearly, there's a food-cost problem. clearly there's a leadership problem and clearly there's a neglect of facility problem. thomas: big time. lemonis: okay. i don't know what happened today, but clearly you guys have a good dynamic when nobody else is around and a really bad dynamic when other people are around. i don't need to go back there, but that's a fact. is that a fair statement? thomas: yeah, i love lilia. lilia: i love him, and i want him to be happy.

♪♪ thomas: it's very hard to pull apart the love that i have for you. lilia: i really don't want to get emotional. lemonis: shh, shh, shh, shh. just chill for a minute because i'm telling you, this is -- we want to figure a path out, right? lilia: i know. lemonis: okay, so sometimes people have to talk through how we are gonna get out the door. so just be a good listener. lilia: okay, good. lemonis: okay. go ahead, brother. thomas: this isn't about the business. she saved my life. i was completely eviscerated in my divorce and not seeing my kids. i had no alternative. so she did -- she literally saved my life. she saw a human being in pain that didn't deserve to have that burden alone. and i recognize that in her as a human being. let's prop each other up and face the world, and i got to reclaim my life as a father.

lemonis: do you think that money... contaminated the relationship? thomas: yes. lilia: it was like we had a bigger purpose, you know, we had a bigger calling, like to get him to be a father, to get me to not be an insane, angry, divorced "a," you know? lemonis: the business, it ended up destroying the friendship. but i think the business could actually end up repairing it. thomas: i'm here to help. i'm here to solve problems. lemonis: i want to do some sort of deal with you guys. but i don't know what the deal is today. i think until this place is fluffed and buffed and cleaned up... lilia: yeah. lemonis: ...i don't know what the deal is. i think the innovation behind the dough and the sauce and all that is great. i think until the food costs are proven out and fixed, nobody's ever gonna buy off on a concept where the food costs are 50%. lilia: yeah. thomas: yeah. lemonis: look, i have sympathy for business owners right now, especially restaurant owners, but i feel like thomas is using it as a crutch or as an excuse. if he would just re-engage with the business

the way he did 15 years ago, it would instantly be making more money. so tomorrow morning, 10:00 a.m. sharp. thomas: mm-hmm. lemonis: all hands on deck. we will be outside in that parking lot telling everybody exactly what we're doing. i'll see you guys tomorrow. lilia: okay, bye. thomas: bye. lemonis: bye. ♪♪ men: ♪ higher, higher ♪ man: ♪ yeah, take it to the top ♪ men: ♪ higher, higher ♪ man: ♪ take it straight to the top ♪ men: ♪ higher, higher ♪ man: ♪ yeah, take us to the top ♪ ♪ here we go now, straight to the top ♪ lemonis: well, good morning. meghan: morning. lemonis: how's everybody doing today? lilia: great. vanessa: we're okay. lemonis: i want to bring everybody up to speed on exactly what we're doing. vanessa: okay. lemonis: so the shop is closed. vanessa: right. lemonis: we're all collectively gonna act as a team to get the place back on solid footing. here are the things that we're going to work on in addition to the aesthetics. we're gonna work on the food costs. we're gonna work on figuring out how the place should be managed, who should manage it, and what the process should be.

and we're gonna fix the relationships because ultimately i think the relationships and the breakdown of them is what actually has destroyed the business. lilia: yeah. lemonis: not the pandemic. any questions from you? lilia: no. lemonis: do you have any questions? thomas: yeah, i have concerns. no, i just need clarity. right. i mean, we're doing a lot. i don't have marching orders because i don't have a check, so... lemonis: what kind of check are you looking for? thomas: at this point, if you're investing, i need to know. if you're vetting me out, i need to understand that. this isn't about money. this is about people's lives and asking people -- lemonis: so if it's not about money, then why are you asking me for a deal right now? thomas: i'm -- no. i'm asking for your intent and clarity around your process. i'm used to being my own boss. lemonis: okay. thomas: i am a self-made guy. i did create this company. i am the most familiar with it. lemonis: yes. thomas: and my -- lemonis: what are your food costs again? thomas: okay, all that aside, food costs are -- lemonis: how much money did the business make last year? if you're your own boss, and you've made your own way...

thomas: i left, the place looks like [bleep] you know, i take all this very personally. lemonis: you should. it's your business. thomas: yeah. lemonis: what did we talk about last night? thomas: that the intent is to to help out the situation? lemonis: no. lilia: to get to a place where it's a presentable business... lemonis: for me to invest. lilia: ...for you to invest. lemonis: so what changed between last night and today? because i didn't bring up the deal and i didn't bring up money. you did. thomas: what changed is what has always been the driving force for me. that's the larger opportunity. if you can bring a larger opportunity, we can have 50 locations. lemonis: i don't want to do anything until i know that i have one that actually works. lilia: yeah. thomas: right. lemonis: i'm a little offended by the fact that while i went through hell living in that telenovela that happened inside, i'm now being asked why i'm not writing a check. and that is not gonna happen today. i don't think a check is going to solve anything. proof of that is that lilia gave him $200,000, and the place is worse off than ever. let me be super [bleep] clear. thomas: yeah. lemonis: i'm more upset than i was before i started.

so now you're gonna see a different side of me. you want me to invest in this [bleep] box right now? because i'm not gonna do that. but if you want to make a deal right now, i'll make one with you. lilia: not right now. lemonis: but i'll make one with you right now, right now in front of everybody. i'll do it right now. vanessa: let him help, babe. lilia: let's -- let's go through the process. lemonis: let's make a deal. thomas: hold on. lemonis: you don't want to make changes unless you have a check. if you're looking to take your business to the next level, log on to...

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yawns “okay okay, i'm up, i'm up!” “five more minutes.” “break me off a piece of that kit kat bar!” lemonis: if you want to make “five more minutes.” a deal right now, i'll make one with you. lilia: not right now. lemonis: but i'll make one with you right now, right now in front of everybody. i'll do it right now. vanessa: let him help, babe. lilia: let's -- let's go through the process. lemonis: let's make a deal. thomas: hold on. lemonis: you don't want to make changes unless you have a check. thomas: what would it take to have you as an active partner? lemonis: not this [bleep] box. thomas: i understand that. lilia: but we can turn the [bleep] box into a... lemonis: i don't know that.

i don't know that you guys are gonna put the effort in. i don't know that. thomas: i'm saying invest, buy lilia out. lemonis: nope, not doing that. that's why you called me here, and i'm not falling for that. thomas: i'm not used to staging and link building. i'm used to all in, all not, black and white. lemonis: yeah, i know you are. i saw it with her. you got 200 grand from her, and i think that was a genius business move. i'm smarter. thomas: okay. lemonis: i'm not gonna fall for that [bleep] sorry. lilia: it's alright. lemonis: i'm not gonna fall for that [bleep] lilia: lesson learned. lemonis: so what do we want to do here? how much does it cost to put a new p.o.s. in, clean up the inside, clean up the outside, work on our food costs? give me a number of what it costs. and don't say you don't know. thomas: 20 grand. lemonis: great. i'll put the 20 grand up. here's what i want in exchange for it. you give me back 30 grand. thomas: yeah, deal. lemonis: okay? thomas: yeah. lemonis: perfect. lilia: so... thomas: alright. thank you. lemonis: now i'm in charge. 100%. thomas: not an issue.

lemonis: we're gonna work. everybody's gonna work. and if you don't work, everybody can go home. i'll do the work myself. then i'm gonna make this place rock. lilia: let's do it. lemonis: alright. let's go. man: ♪ hey, hey ♪ ♪ i'm only in, i'm only in ♪ ♪ to win it ♪ ♪ i'm in it to win it ♪ lemonis: what i really want to start dig in now is aesthetically on the outside and the inside, getting this place right. man: ♪ i got a fever for the flavor ♪ ♪ sweet victory ♪ ♪ i'll shoot to win and catch the bullet right in my teeth ♪ lemonis: i also want him to think outside the box, and that means looking at new ways to save money and be creative. so we're competing today with $1.20. it's an inferior box with a lot of stuff on it. we need to obviously beat that price. scott: right. you're probably gonna be 75 cents. thomas: yeah. man: ♪ hey, hey ♪ ♪ i'm only in, i'm only in ♪ ♪ to win it ♪ ♪ i'm in it to win it ♪ lemonis: so the first couple of days you and i were together,

we were really struggling to understand all the food costs, and i think as you've unpacked some of it, the food costs have not been what you thought they should be. thomas: absolutely. lemonis: what i want to do here at concord foods is pricing and buying. thomas: right. lemonis: because when it comes to italian food and italian meats and italian cheeses in southern california, these are the people. thomas: yeah, they're top shelf. lemonis: okay, let's head in. ♪♪ ♪♪ what should the food cost be on a good pizza? john: [ sighs ] most customers like to keep it under 30%. thomas: we're about 48%. john: yeah, that's high. thomas: way too high. john: or you're selling your product way too low out there. thomas: both. john: yeah. you have to have a comfort level with the pricing. the market changes every friday. we would base your cheese over the market. we could do a cost-plus. thomas: right. john: you can come in and look at our invoices at any time. thomas: i appreciate that. lemonis: when a vendor tells you

he's gonna operate in a cost-plus model, that means that they want to make a stated, fully transparent amount of margin on top of their cost. if the tomato sauce cost him a dollar and he wants to make a 10% markup, it's a dollar plus 10%. the benefit of the vendor giving you a fixed margin is that you understand what the pricing is, but you also understand how to build your own cost model. so thomas will take that cost model, add his labor in, and then he'll has his final cost. john: i definitely want to partner up again. lemonis: let's make it happen. thomas: that'll be great. that'll be great. lemonis: thanks so much for taking the time. john: thanks for coming out. it means a lot. i appreciate that. thank you. i mean that. thomas: alright, man. john: and thank you. lemonis: thank you very much. lilia: i started communicating with you at 7:45 in the morning. i shouldn't have to hear from someone at 10:45. thomas: i don't have to have my [bleep] phone on. lilia: whatever. thomas: no, not whatever. enough is enough, lilia. lilia: it is.

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♪♪ ♪♪ thomas: hey, guys. vanessa: hi. thomas: looking awesome. meghan: thanks. thomas: so since marcus was here, i'm hoping we exceeded his expectations. we got the entire exterior done. we had the parking lot repainted. we got all the glass replaced because of all the graffiti. and i'm definitely excited about all the improvements and the new look. it feels great. we have planters, plants, lights, umbrellas. wait. where's lilia today? vanessa: she's not here. she's never here. thomas: that doesn't feel fair, especially to the rest of the team. just be here. vanessa: oh, my gosh. [ gasps ] got it? got it? ♪♪ lilia: how you doing? thomas: what's up there?

lilia: so any reason why you didn't text me back or respond to my phone calls for three hours? thomas: i was sanding benches all morning and didn't have my phone on me, it's that simple. we've been coming here every day. lilia: i don't want to -- i don't care about every day. i want to know what happened today because it was very upsetting. thomas: i'm sorry that you're upset. we were here working. i didn't have my phone on me. lilia: well, i will move on. i could have been here sooner. there's a lot of work i can do from home. two people can't be on this computer. it's like... i've been here for four months by myself. thomas: mm-hmm. lilia: you show up in the 11th hour full of beans and firepower. you have done all the renovations. i grant you, i have not been a part of it because i'm not a part of the decision making. thomas: no, you opted out of all that. lilia: i opted out? thomas: yeah. lilia: wait a minute. thomas: you dive in and out. you can't have it both ways. lilia: and neither can you. you can't have me a silent partner,

and you can't have me here every day crushing it. thomas: can you be silent? do you hear the whole circuitous route? what are your expectations? what do you want from me, lilia? lilia: what do you want from me? you have my money. thomas: i don't want this stress. stop making everything personal and emotional and start getting into solution mode. lilia: oh, please don't talk to me about solution mode when i call you and you don't know the answers to questions. thomas: okay, i'm here to benefit the store. lilia: this isn't working. thomas: we're aware of that. lilia: so get rid of me. i'm happy to be gotten rid of. thomas: you guys are actually getting an insight into what i've been experiencing. at this point, i don't know what motivates lilia. i don't know why she's upset. i don't even know if she knows what she's thinking or doing. so why do i feel like [bleep]? lilia: all i was asking for was for you to respond. i started communicating with you at 7:45 in the morning. i shouldn't have to hear from someone at 10:45. i don't have to have my [bleep] phone on and a digital collar to answer to you. i'm out here working and sanding and doing other stuff. lilia: whatever.

thomas: i'm sorry i put my phone down for three hours. lilia: whatever. thomas: no, not whatever. enough is enough, lilia. lilia: it is. $200 [bleep] thousand i poured into this business with no intention of working here. i saved it and i saved his personal life, too. ♪♪ fascinating, isn't it? vanessa: i'm just seriously appalled at the way you talk -- lilia: just shut the [bleep] up and get out of my office. this is not your business. this is not your office. get out. get out, get out. vanessa: i'm appalled. lilia: get out. i don't want to do this with you. vanessa: you're not gonna do the uproar thing with me, lilia. lilia: i'm not doing this with you. you have no position in the business. vanessa: like, that's not okay. not okay. lilia: it baffles me that i've taken the bait at all, like i should know better. this is a [bleep] show. i'm livid.

i'm exhausted. nothing is worth your sanity. nothing is worth your peace of mind. okay, here's this -- 100% silent partner, and i'll never step foot in here again. thomas: so that's what you're deciding? lilia: yeah, i think it's the best thing for everybody because this whole situation is super toxic and i don't have this with any other aspects of my life. thomas: uh-huh. lilia: and i'm out. i have too much self-respect and integrity to volunteer for abuse. vanessa: don't even chase her, tom. it's not worth it. lilia: i won't be pushed in the corner, and i won't be kicked to the curb. no. no. thomas: so the whole -- lilia: don't do it. i'm done. thomas: so the whole thing with marcus -- lilia: you'll hear from my lawyer. i already have a lawyer. you know who you can blame it on? your girlfriend. thomas: my girlfriend? lilia: that was [bleep] up to bring her. she has nothing to do with the business. thomas: she's helping out. so with marcus -- lilia: we're done, we're done. you make the deal with marcus. you'll pay me back my loan. i'll get the 25%.

i'm out. thomas: understood. lilia: okay. is somebody taking this off? i'm standing here with my shirt up. can you take this off so i can leave? thank you. thomas: you're asking me to come up with $75,000... lemonis: nobody's asking you -- thomas: ...to pay off a loan that is in good standing... lemonis: nobody's asking you to do anything. you guys are both [bleep] this up.

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a great tasting and easy way to start your day. woman: ♪ you ain't gonna stop me killing it ♪ ♪ want me on your team just a little bit ♪ ♪ take a look around, you can see they're all feeling it ♪ ♪ yeah, i'm feeling it ♪ ♪ oh, yeah, yeah ♪ man: ♪ i'm feeling it ♪ woman: ♪ oh, yeah, yeah ♪ man: ♪ i'm feeling it ♪ ♪♪ lemonis: this looks way better. woman: ♪ i won't stop being someone who don't wait for no one ♪ ♪ you can't tell me nothing, na-na-na ♪ ♪ you can't hold me down, i've got the power now ♪ ♪ you see me out here vibing ♪ lemonis: i'm definitely encouraged. i think there's definitely possibilities here if everything can get normalized. this looks way better. meghan: yes. lemonis: the shop looks good. credit to you. meghan: thank you. lemonis: but the one thing that isn't cleaned up yet is the relationship with lilia.

he's got disdain for her. she has trust issues with him. and whether she was in love with him or not, i'm not interested in all of that. i want to see the business move forward. and in my opinion, the only way to do that is to resolve the open items of the equity and the loan with her. so i've called thomas and lilia and have them meet me here so we can resolve the situation now. woman: ♪ i'm feeling it ♪ lemonis: hi. lilia: hi. lemonis: alright. so are you relaxed? lilia: yeah. lemonis: so when we did the math, when we look at all the money that came out, the one loan and the investment cumulatively came to $159,000. lilia: correct. lemonis: $75,000 of it is a loan because it started as $80,000. he prepaid you $5,000. lilia: yes. lemonis: that takes super priority over everything else. lilia: correct. lemonis: then what's left is $84,000. lilia: yes. lemonis: now it's what is that amount if you factor in the loans that the company took on? lilia: correct. lemonis: okay. thomas. now that we've established the remaining $84,000 of equity,

there are some outstanding liabilities, either ppp loans and other payables that put that $84,000 into question. but ultimately it comes down to two things -- what thomas is willing to pay and what lilia is willing to accept. this is where the negotiation happens. it's my opinion that the two of you may have a friendship, but you're not good at working with each other. my opinion only. thomas: mm-hmm. lilia: i would agree. thomas: it's been rough. lilia: it's been rough. thomas: it's been rough. lemonis: so the original loan was $80,000, prepayment of $5,000, brought us to $75,000. that is non-negotiable, first priority. there's no question about that at all. do you agree with that? thomas: yes. the only debt that this business has. lemonis: okay, so... lilia: i agree, too. lemonis: put your little john hancock there. ♪♪ put your little john hancock there. great. so that's resolved.

now the two of you have to resolve the remaining $84,000. lilia: if what we're discussing is a buyout for me... thomas: today. lilia: ...today, it would have to be negotiable. it couldn't be set in stone, because if the ppp is excused... thomas: no, no, just as the valuation i gave you was in the middle of going almost out of business. lilia: right. thomas: no alternative. lilia: right. thomas: hail mary pass. what's the risk today to you? the deal is today. the check is today. lilia: then i would just do... lemonis: okay, everybody, slow down. lilia: this is the only check i would do today. i feel the ppp is gonna be forgiven. lemonis: okay, but -- thomas: this is also time sensitive. lemonis: no, no, that's not gonna help. thomas: but this is $75,000. lemonis: that's not gonna help. thomas: this loan is on terms. lemonis: that doesn't help. thomas: but today you're asking me to come up with $75,000... lemonis: nobody's asking you -- thomas: ...to pay off a loan that is in good standing... lemonis: nobody's asking you to do anything. you're not listening. thomas: i wasn't saying no. lemonis: only for today. you guys are both [bleep] this up. ♪♪

already, it's a [bleep] mess. hey, meghan, how long has he been gone? meghan: about two weeks. lemonis: where the [bleep] is this guy? -we are here! -for new homeowners, a football game can really bring out the parent in them. it's smart we parked near the exit. -absolutely. -there you go. that way, [whistles] let's put away the parking talk, maybe, for a minute. parking is where the money is, though. can you imagine what this place pulls in on parking alone? alright, no more talking about parking lots. a lot of these are compact spots. it's not pretty. progressive can't protect you from becoming your parents, but we can protect your home and auto when you bundle with us. we still planning to head out around the third quarter? let's not talk about leaving before we're actually at the game.

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mabel here isn't a real cow. lemonis: nobody's asking you -- thomas: ...to pay off a loan that is in good standing... lemonis: nobody's asking you to do anything. you guys are both [bleep] this up. ♪♪ the key to having a business relationship is having two separate opinions

and coming to common ground. thomas: i agree. lemonis: let's look at it as if the ppp loan didn't get forgiven. then let's look at it as if it did get forgiven. the worst it can be is $47,000 and the best it can be is $66,500. so you guys have to figure out how you bridge the gap between the best scenario and the worst scenario. lilia: can't they be... future negotiation? lemonis: they could be, and i see your point. i think it could also be valuable to just get it resolved. i don't think you guys can be partners. lilia: yeah, i don't either. lemonis: loud or silent. i just don't think it's healthy. lilia: it's not healthy. lemonis: let's bridge the gap. lilia: okay. it seems like what we're really discussing is the $19,500. thomas: mm-hmm. lilia: and is that the hill either of us want to die on with our friendship, with our relationship, with our, you know, trust in one another, our good faith and words -- our words? ♪♪

thomas: i want to honor the human relationship and make you whole, and if that's the number, that's not something i'm gonna split hairs with. lemonis: sounds pretty good. lilia: this is great. lemonis: it's just like, "jesus." thomas: what's the two checks? that's where we're at. lemonis: $75,000. $66,500. that's the equity return. the total between those two is... drumroll, please. lilia: $141,000. lemonis: $141,500. are you both agreeing to that number? thomas: i am. lilia: i am. lemonis: please sign it. ♪♪ even though neither one of them came out ahead, i'm happy that thomas showed me that he's willing to compromise in order to save the relationship. are you gonna miss her? thomas: give me some time. lilia: [ laughs ] wow. thomas: give me some time.

lemonis: he's kidding, he's gonna miss you. i'm not gonna miss you, but he's gonna miss you. thomas: i am grateful. i'm sorry you feel the way you do. i love you. lilia: love you, too. thomas: and i'm grateful. lilia: alright, i'm out of here. thanks, marcus. lemonis: you got it. i'm super proud of you. lilia: thank you. can i... lemonis: you did a great job. lilia: thank you so much. lemonis: and he did a good job. lilia: he's a great man. i mean, you know... thomas: thank you. lemonis: you got it, brother. we got a lot more work to do here. we're just getting started. lilia: okay. bye. lemonis: goodbye. lilia: bye. ♪♪ lemonis: from the beginning, the goal was to get the one location in shape. i also wanted to make sure that the relationship between lilia and thomas got resolved. and now that we've achieved those two things, i'm open to figuring out what the next step is for thomas. but when i returned to grey block... i mean, already it's a [bleep] mess.

i was kind of annoyed by what i found there. hey, meghan. so i walked the property. megan: yes. lemonis: it feels not great. what can i do to help? meghan: um, i don't know. lemonis: you're frustrated, too? meghan: a little. you know, they're gone. i didn't have any training and nothing. just left, just like he did with lilia. lemonis: he did the same thing. meghan: yeah. lemonis: how long has he been gone? meghan: two weeks. lemonis: where the [bleep] is this guy? it really is upsetting, i'm not gonna lie. so rather than spending any more time or money here, i'm gonna head to oregon and i'm gonna understand from him directly, what are we doing now? so do you know why i came here? thomas: no. lemonis: are you curious? thomas: yeah. lemonis: the business needs attention on a daily basis. you can't run it this way. ♪♪

thomas: i already lost two years with the kids. i can't go back to l.a. at this point. lemonis: can you just sell the business? thomas: i'm open to that. lemonis: you are? and take that money and build something here? thomas: i would -- i would sleep well at night being able to walk away clean. lemonis: and so what is that number that you would want? thomas: anything more than $210,000 would be great. lemonis: okay, do you want me to try to help find somebody? thomas: i would love that. lemonis: okay, let me make one phone call. thomas: alright. lemonis: okay? if ultimately thomas wants out of obligation, i'm willing to help him do that. i know a ton of people that may want to take over the location, somebody who actually wants to put in the effort every day. 15th at grey block, three of us would all get together and the two of you would either get a deal done or you wouldn't. man: i'll come out there and see if we can do something. lemonis: okay, great. alright. we'll see you then. thomas: great. lemonis: here's the good news. the hail mary, somebody actually caught the ball. we just got to get him into the end zone. thomas: that would be great.

lemonis: if you don't want to do that, then you can take a knee and we can just call it a day. thomas: no, it would simplify my life. lemonis: alright, brother. ♪♪ new info on gabby petito's boyfriend and his family the trip they took just revealed today. i'm shepard smith. this is the news on cnbc. >> it is obvious the war in afghanistan did not end on the terms we wanted. >> top defense officials grilled by lawmakers for the first time about the withdrawal from afghanistan. the tough questions asked and the strategic failures revealed. gabby petito's family addressing the public. >> it's an emotional roller coaster. >> demanding brian