tv The Profit CNBC July 11, 2018 1:00am-2:00am EDT
that had staying power for the future. travis, allison, pete, and we're in control of our destiny, but have the right people, the right product, and the right process. ♪ ...at a small, family-run pizza chain outside of chicago... dino: got one in the pike. lemonis: ...the proud patriarch keeps such a tight grip... dino: there's certain ways you do it, and there's certain ways you don't. lemonis: ...he's squeezing the life out of the business. jeremy: he's just a control freak, honestly. lemonis: owner dino pavoni has long dreamed of taking his drive-through concept nationwide. dino: wherever you put a mcdonald's, burger king, taco bell, or wendy's, you're going to see me with my little pizza concept. lemonis: but with his resistance to change, he alienates potential franchisees. the franchise concept is not going anywhere. and now he's also alienating his family... what's your relationship like with your dad right now? doug: i'm here. he's there.
lemonis: ...still haunted by a tragedy in the past. debbie #2: my parents changed completely after that had happened. dino: we can talk about that later. lemonis: if i can't help him change the way he looks at people... dino: i think you're a genius. lemonis: i think you're a smart-ass. ...simply slices will simply stay the same. dino: this is me. this ain't an act. this is me. lemonis: you've been acting since the day i met you. my name is marcus lemonis, and i risk my own money to save struggling businesses. we're not going to wake up every morning wondering if we have a job. we're going to wake up every morning wondering how many jobs we have to do. it's not always pretty. everything is going to change, everything. but i do it to save jobs, and i do it to make money. this... let's go to work. ...is "the profit." ♪ ♪ simply slices has two locations, and right now, i'm on my way to the first. it's in a town called crestwood. i have an idea how to create a successful franchise.
the simple greek started with 5 locations and now has 35. i'm always looking for the next great fast-casual concept, and drive-through pizza, it could be just that. ray: thank you for choosing simply slices. how can i help you today? lemonis: i'll do tomato, green olives, and jalapeño. ray: perfect. okay, great. well, go ahead and pull around then. lemonis: there's drive-through ice cream. there's drive-through coffee, chicken, hamburgers, but i've never seen drive-through pizza, so it's a different idea. ray: here you are, sir. you have a great day. lemonis: thank you. ray: thank you very much. lemonis: the pizza was good. it was hot. it tasted fresh. the sauce didn't have a lot of oomph to it, but it was good enough where the concept had viability. ♪ ♪ chris: how you doing? lemonis: hey, how are you? chris: pretty good. lemonis: i'm marcus. chris: how's it going? chris. nice to meet you. lemonis: chris, how are you? nice to meet you. dino: what's up, marcus? dino. lemonis: dino, nice to meet you. i saw on the window i'm supposed to call you for franchise opportunities.
dino: yes. you need one? lemonis: i was just -- i mean, i don't know yet. how's everybody else? ray: hey, marcus. i'm ray. lemonis: nice to meet you. ray: nice to meet you. debbie #1: hi, i'm debbie. i'm dino's wife. lemonis: hi, debbie. how are you? debbie #2: i'm also debbie. i'm dino and debbie's daughter. lemonis: how are you? so, three family members. debbie #2: well, ray is actually my husband. ray: i am family. lemonis: and so all four of you work here? dino: always me, ray or debbie are here all the time. lemonis: okay, that's a good thing. so, dino... dino: yes, sir? lemonis: ...was this your idea? dino: yes. i worked in a pizza place called mango's, and there was a mcdonald's, and i'm watching cars go through the drive-through. i got the idea of drive-through pizza by the slice because nobody had done it. so i was going to revolutionize and pioneer the way people eat fast food. why is pizza the most popular food on the planet and you can't get it in a drive-through? lemonis: any time i find somebody with a concept that is different than anything else i've ever seen, the risks are that consumers don't adopt the idea of driving through and getting a slice of pizza and eating it in their car. the rewards are, if you're first to market, i mean, you could be a real trailblazer.
dino: but i've mostly spent my life raising my family, so we ended up with seven kids. lemonis: you got seven kids? dino: yeah. dino -- he became a cop. lemonis: so, dino. dino: doug -- now, he runs my burbank store that we opened up two years ago. debbie. lemonis: okay. dino: derrick, darren, and dana. dominic -- he passed away when he was 18. lemonis: i'm sorry. dino: yeah, it was horrible. my life totally changed, you know, when dom died. so, anyway, we can talk about that later. lemonis: and you have grandkids? dino: yes. lemonis: how many? dino: so, 10. lemonis: and do they all start with a d? dino: no. no, no, no. so, we developed tommy because we wanted somebody irreverent and funny. lemonis: i don't disagree. i don't disagree. i have a character called good sam in my business. dino: yeah. lemonis: we have a big costume. do you guys have anything like that? dino: yes. lemonis: you do? i love the fact that dino was creative enough in his company to come up with a mascot. is it on right? [ laughter ] so, what do you normally do? go out into the street? and whether the mascot is corny, it is good because it gives people a visual,
and it gives kids and families something to hang onto, and it actually makes the business feel lighter and more fun. let's go! debbie #1: he's cute, isn't he? dino: that's how you do it, brother, right there. [ horn honks ] debbie #1: there you go! dino: bring them home! that's how you do it! lemonis: i can barely see you. come on. dino: that's how you do it. bringing them in, marcus. ♪ lemonis: so, what do you love about the menu? debbie #1: the slice part. i like the shaved ice part. lemonis: i personally don't like the menu. maybe it's the fonts. maybe it's the layout. 'cause you're not selling simplicity. what you want to do is simplify the messaging so that the customer knows what you want them to focus on. there's, like, 35 different flavors of syrup, 14 different sizes of pizzas. it's like sensory overload to me. it didn't feel like something you would franchise. how much revenue do you generate off a 20-pound bag of ice? dino: we got an ice machine, and it's like -- people want ice. lemonis: like a liquor store? dino: no, it's just... lemonis: i will be honest with you. the setup looked a little carnival-like.
how did you pick shaved ice? dino: we do what's called a slice and a ice. people love it. lemonis: good margins? what are they? dino: great margin. lemonis: about 96% dino: yeah, good. but i was also concerned about how dated it looked. if you're going for old-school "1984 called," then you got it. dino: marcus is going to make a pie. ray: uh-oh. lemonis: don't say "uh-oh." ray: clear the kitchen. dino: yeah, that's good. lemonis: what's different that makes your dough so crispy? ray: we make it ourselves. lemonis: from scratch? ray: yep. dino: learned how to make pizza when i was 17 from an old sicilian. everything's in operations manuals. everything's set. lemonis: so, you have or have not tried to sell this concept? dino: yes. wherever you put a mcdonald's, burger king, taco bell or wendy's, you're going to see me sandwiched in between them with my little pizza concept. we have a franchise company. i had a guy trying to sell them for me, and that was 100 grand of investment. we've done some franchise expos. we drew a crowd, marcus, but i couldn't get anybody to buy. lemonis: can i taste the sauce?
dino: oh, yeah. yeah. lemonis: do you make the sauce? dino: it's from a puree, yes. lemonis: do you make it? dino: so, it's puree, puree -- lemonis: so, you open up a can... dino: yep. lemonis: ...of tomato puree. dino: yep. lemonis: and then you doctor it. it didn't have a lot of kick. that's why i asked about the sauce. dino: i've been doing this for 40 years. that's the way we do it. that's the way i've done it. lemonis: and so is your process, "i've been doing this 40 years. "this is the way i make pizza, and if you don't like it, don't buy my franchise"? dino: i -- well, all i have to say from that is, again, it's is all i know, and it works. lemonis: there's no question that dino has been successful for the last 20 years with every family member working there. so, the labor costs are low, but a business in one location doesn't necessarily mean that it's scalable. when did you start doing this? debbie #2: i remember being 8 years old making pizzas with my dad. lemonis: and are you at this location all the time? debbie #2: yes. lemonis: and your brother's at the other one? debbie #2: yep. my brother runs that on his own. that's his. you know, this is ours, so... lemonis: and have you ever worked over there?
debbie #2: before the split, i worked there. lemonis: what do you mean, "split"? debbie #2: well, before -- [ chuckles ] before my dad sold it to him. lemonis: when you say "split," that means that's how you actually feel. it wasn't just that the business was sold. debbie #2: yeah. i mean... we were all working together in two different places, but doug and my dad were butting heads a lot. it was toxic, so my dad sold burbank to doug because it was really the only thing that was going to keep our family together, to keep his son close to him. you know, his kids didn't always follow the rules, so he really clamps down and tries to take over. lemonis: is your dad controlling? debbie #2: yes. lemonis: how does your mom manage that? debbie #2: they're just one. they're one. whatever he feels, she feels. lemonis: and how do your brothers and sisters divide who goes with your brother and who -- is it like a world divided right now? debbie #2: mm-hmm. yeah.
and a lot of that has to do with dom passing away. my parents changed completely after that had happened. lemonis: you're sort of inching your way back in, aren't you? yeah, you are. can i, just away from everybody, chat with you and your wife, if that's okay? you know, oftentimes people call me to get involved in their business for different reasons, to help them solve money issues, help them scale their business. i'm not sure which boxes i'm checking in this moment, but it's clear to me that debbie just checked one for me -- that there's some family issues here. debbie gave me the impression that you and doug don't really talk that much anymore. how did things erode with doug? debbie #1: he asked for burbank. lemonis: he said, "i want it, or i'm out of here"? dino: yeah. debbie #1: yeah. he was going to quit. lemonis: what led to all that? dino: well, basically, for us, it started when dom died. ♪ debbie #1: we buried him on thursday. we were back to work on friday. lemonis: how did your son die, if i may ask?
debbie #1: an overdose of cocaine. lemonis: okay. dino: we were a really tight-knit family. we were close. i worked with my kids. we homeschooled. we're gonna keep a tight rein and make sure the world doesn't come and destroy this, what we have. lemonis: and so why is doug gone? debbie #1: they have different philosophies of business, but -- dino: yeah, we celebrate thanksgiving, christmas, all have a great time, but when it comes to business, there's certain ways you do it, and there's certain ways you don't. if you grow a business, i'm gonna be the happiest person on the planet. debbie #1: but it's not growing. lemonis: and do you believe doug represents the franchise concept well? dino: we don't know. lemonis: what do you mean, you don't know? you don't go there? dino: i go there a couple times. i've been there a few times. lemonis: and so what happens if doug's location ends up ruining the entire franchise possibility? dino: we ain't gonna get to that point. debbie #1: he can't make any changes without talking to us... lemonis: why not? debbie #1: that's in the contract. lemonis: who does he get approval from, you or from... debbie #1: dino. lemonis: from dino. the leader of the free world.
dino: just a little man in a big world trying to survive. ♪ lemonis: can you get your financials together? dino: you want to look at these now or... lemonis: no. we'll look at them later, but i just want to make sure you have them. dino: yeah, i got them. lemonis: and then i thought it'd be a good idea for maybe all of us to go over to doug's place. dino: yeah. lemonis: i'd like to see it. can we go do that? ♪ ♪ ♪ lemonis: hi. how you doing? i'm marcus. doug: marcus. i'm doug. lemonis: oh, hey, doug. how are you? doug: nice to meet you. this is my wife, cristine. cristine: cristine. lemonis: how are you? nice to meet you. this is a nice place. doug: yeah. thank you. cristine: thank you. lemonis: is this place pretty busy? doug: it's building. it's growing. cristine: it's growing. lemonis: i notice that the menu's a little different. cristine: yes. doug: we have a smaller version. so, we don't do 20-inchers or 18-inchers.
lemonis: how come? doug: the 12- and 14-inch -- they're easier to make. they take up less space in the oven. 20-inchers are kind of a hassle to then put on your franchisees. lemonis: dino led me to believe that the second location is a total disaster. "they don't know what they're doing. the place is a mess." but i would argue strongly that some of the small tweaks that doug's made, like the menu, actually made the experience better. lemonis: how is this business treating you guys? cristine: good. doug: it's good. lemonis: what does it do in sales? doug: last year was $270,000. lemonis: but it's new. cristine: it's new. we're only a little over two years old. doug: we're actually up 11% from last january. lemonis: and contrary to what dino told me, burbank is growing. maybe dino should spend a little more time here. your parents are on their way here to meet me. doug: mm-hmm. lemonis: did they call and tell you they were coming or... doug: they did, to find out who was here. cristine: so, they have an issue with one of our employees. lemonis: okay. cristine: and so once he knew that he was here, that had to be why he's not coming.
lemonis: do you mind if i talk to jeremy? would that be okay with you guys? hi, bud. jeremy: how are you doing? lemonis: can i chat with you for just a second? so, my name is marcus, by the way. nice to meet you. i went over to i think it's crestwood. jeremy: yeah. lemonis: yeah. i was there for a while. jeremy: mm-hmm. lemonis: and i think there's this notion they don't want to come here 'cause you're here. jeremy: mm-hmm. lemonis: and there's some beef. what's the story? jeremy: they thought i took somebody's credit-card information. lemonis: and you... jeremy: and i didn't. lemonis: yeah. jeremy: so then he fired me. he was like, "i can't have you work here no more." lemonis: so, you used to work over at crestwood? jeremy: mm-hmm. i mean, it's just, like, tension, like, he's trying to cause, like, between me and doug. lemonis: how long did you know him? jeremy: since i was, like, 14. he was my basketball coach. lemonis: how old are you now? jeremy: i'm 27. i'll be 28 next month. lemonis: so you've known them half your life. jeremy: right. i used to talk to him about everything. lemonis: and were you hurt by the way he handled it? jeremy: yeah, i was pissed off. lemonis: pissed off or hurt? jeremy: both. he's having his problems with his own family, so it's like -- lemonis: what are his problems with his family? jeremy: he's just a control freak, honestly.
you know what i mean? he'll tell you something, and then, like, if maybe you don't listen to exactly what he wants or something, like, he gets mad. lemonis: i'm starting to see a theme here that dino's got his own perspective on everything. and it is odd to me that dino spends no time here, but he cares about who doug hires. doug: you know, it's family and business. i was raised to want to own my own business. so, we have had conversations with my dad. "how am i gonna be an owner if i'm working for you? like, i want my own place." and then he offered us burbank, this place. lemonis: he offered it to you, or you demanded it? doug: no, he offered it. lemonis: 'cause it was presented to me that you guys demanded it. cristine: no. lemonis: what's your relationship like with your dad right now? doug: i'm here. he's there. lemonis: that's tough. doug: yeah. they were supposed to come here. that would have been their third time here in the 14 months that we've taken over. cristine: once we moved here, it just felt separated, but when we first decided we were going to work together
and we were going to be this team, and it was, like -- it was awesome. and then it just didn't happen. because we believe in this. we want to go forward. we want to make it huge. lemonis: while the concept is really cool, the worry that i have is, if can't dino can't even take feedback or have a discussion with his son or an employee, how is he going to take feedback from a franchisee that's four states away? i'm gonna head back over there. did you mind coming over, just follow me there? doug: our schedule is open, yeah. lemonis: okay, great. let's head over. doug: all right. awesome. cristine: thank you. lemonis: yep. ♪ what happened to you guys? you just wanted to stay back and make pizza? dino: yeah. yeah, i was busy. lemonis: you were busy? debbie #1: we did get really busy right after you left. lemonis: did you get really busy? debbie #1: we got hammered. lemonis: you just let me drive all the way over there, and you left me hanging. dino: how'd it go? good? lemonis: it was actually nice. ♪ ♪
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♪ is there tension in the room? dino: do you feel it or... lemonis: well, you're the grand poobah, so you set the tone. dino: what do you want to talk about? lemonis: okay. what are you so upset about? dino: i am not upset. i love my children like i always have, but we have our little disagreements in business. and you can see how it starts, and this is what it is. lemonis: as a business owner, you tend to get a little reactionary. the fact that i drove all the way over there, and you just didn't come -- it seemed odd to me. dino: all right, doug's got an employee that i don't think should be there. lemonis: so, because you don't think he should be there, you just choose not to go? you just protest? dino: i won't go there when he's there. that's it. lemonis: but it's not his business. it's your son's business. dino: he shouldn't be there, no matter whose business it is. lemonis: we should put the jeremy situation aside. dino: fine. good. lemonis: okay. you want this thing to be a big deal in this country? this idea? dino: yes.
lemonis: because we all believe in you. so, now what do we do? dino: does doug believe in me? doug: yeah. lemonis: jeremy is just an example. they'd probably argue over whether they're gonna have chicken or not. it felt like i was at an intervention more than i was at a negotiation. let's look at the crestwood financials -- 2015, $475,000, 2016, $519,000, 2017, $597,000. so, nice, steady growth. how much debt does the company have today? dino: we owe on a mortgage here. lemonis: the mortgage is $162,000, but you have the building and the land. dino: the business owes me probably 80 grand. lemonis: and so that's all the debt the company has? dino: that's it. lemonis: all right. let's go over burbank. in 2017, it did $274,000. dino: burbank is a baby. it needs to be loved, cared, and nurtured. lemonis: what's january look like compared to january of last year? cristine: right now, we're up 11% in january. dino: nice.
lemonis: you're feeling good about that. dino: oh, i love to hear growth stories. lemonis: there's a good foundation here. i want to do a deal with your family to put up $200,000 for 50% of the franchise concept, plus my infrastructure, which is 30 people that do nothing but work on franchise concepts. you keep 100% of the two operating locations. dino: that's not a decision i can make, like, within 10 minutes. you know, you're always big on, "i'm 100% in charge." what if you change the concept too much that i can't be the face of it? lemonis: you live the same way, don't you? aren't you 100% in charge? dino: yeah. lemonis: i think you have a great idea, but the franchise concept -- it's not going anywhere like this, and you haven't sold one. so, i want to look at the name. i want to look at the menu offering. i want to look at all of that. debbie #2: i'm ready for it. i hope that success will bring us closer together. lemonis: i think it's one team, one family, one mission.
so, dino, what do we want to do? dino: i'd be proud for this generation to work with you. i want to work with you, marcus. lemonis: so do we have a deal? dino: yes. thanks, brother. lemonis: you got it. okay, and by the way, who's 100% in charge? christine: marcus. lemonis: i'm sorry? [ laughter ] dino: you are, brother. lemonis: okay, buddy. we'll see you soon. bye, guys. ♪ ♪ i'm going to be outside. i want to talk to people, make some notes, and then i'm also going to do a little timing between when they order and when they pick up so when we talk to a potential franchisee, it's like, "having a store is great. having the drive-through is better. it saves this much time." dino: yes. lemonis: all right? i wanted to spend time outside in the drive-through area, really understanding the time that it took for customers to order and get their food. hi, folks. do you guys come here all the time?
woman: yeah. man: we come here, yeah. lemonis: what do you like about it? man: convenient, and it's good. lemonis: all right, 'cause your clock's running. ray: is that all for you? you can go ahead and pull around. thank you so much. lemonis: 1:40 already. woman: here's the shaved ice, and that'll be right out. [ indistinct conversations ] woman: and here you go. have a nice day. lemonis: bye. 4:35. that's too long. what do you think can be done to shave off 10 seconds from the drive-through already here? ray: it's the extra ingredients. lemonis: really? i noticed that it was averaging somewhere around four minutes. it's not fast enough if you're trying to sell the drive-through as the primary feature of this concept. the goal is, can you improve on the average? you're going to make one that's simple, and you're going to make one that's customized? is that how we're going to compare? debbie #2: let's do that. one slice of cheese. lemonis: great. they just ordered it, one slice of cheese, boom, in the oven. could different equipment change the model? debbie #2: i would love to see that, like a convection or a broiler or something like that
that could make it faster. ray: and that's our timer to take it out. drive-through, one cheese. okay. lemonis: so that's 2:27. so we're going to get a custom. ray: yeah. lemonis: do pepperoni, olives, jalapeños, green peppers, onions. so that really slowed you down. ray: very much so, and then imagine you have to add almost another minute of cooking time to cook through all these refrigerated veggies. lemonis: it took over three minutes. dino: customize when they walk in. lemonis: i don't think you need to say that with that big machete. dino: that's just the way i talk. ray: a little intimidating. lemonis: what i also want to do today is improve the menu, make it simpler, clearer, and more franchise-friendly. well, you want to get good feedback? hi, everybody. i am coming to you live from crestwood, illinois. come on by and see us. want to get some feedback from you. ask people that actually give you money and come there. the room full of customers is almost like a mini focus group. lemonis: can i see what a 16-inch looks like?
dino: ain't that beautiful? lemonis: today that's 18 bucks. what's the most you're willing to pay for that pizza? man #1: $16.50, somewhere right in there. man #2: $18. lemonis: $18? man #3: probably about 20 bucks. man #4: $15. dino: yeah, i agree with $20. lemonis: $15. what do you want to do here? dino: as long as we're asking the customers to decide the pricing, i got a question. lemonis: we're not asking them to decide the pricing, smart-ass. dino: i'm just saying, as long as we're taking feedback, everybody's like, "i'll give you 15 bucks for it." lemonis: no, no, no. people said $20, too. dino: well, i heard $16 and $15. $20's fine. lemonis: what we want to think about is, how do you even make this simpler? ♪ ray: sorry about the wait. ♪ [ indistinct conversations ] lemonis: what ingredients is the company gonna carry going forward? sausage stays. pepperoni stays. mushroom, onion, green pepper. green olives? ray: no. yeah, green olives can go. lemonis: ground beef? ground beef? man: no. dino: wait, wait, wait. people don't eat pork. they need an option. lemonis: i know you're getting annoyed. dino: yes, thank you for realizing.
lemonis: anybody need a 20-pound bag of ice? [ laughter ] sell it? ♪ lemonis: vote on yes or no on the shaved ice. [ indistinct shouting ] love it, right? what flavors are gonna go? man #1: coconut! woman: vanilla! man #2: cotton candy! lemonis: do you sell vanilla? ray: not a lot. dino: it goes with root beer. lemonis: does root beer sell? ray: i would say no. debbie #2: sorry, dad. lemonis: banana -- yes or no? all: no. lemonis: do you sell mango? dino: it don't matter. it's staying. lemonis: do you sell mango? [ applause ] who loves simply slices? [ crowd cheers ] lemonis: we got to cut four more. how's it doing, dino? dino: it's going good, baby, going good. i think you're a genius. lemonis: i think you're a smart-ass. come on.
i'm just waiting for my guy. he'll be here any second. hey, dino. it's marcus. i have the chef here. just give me an eta. that would be great. hey, dino. i'm getting a little worried that you're late. whenshe was pregnant,ter failed, in-laws were coming, a little bit of water, it really- it rocked our world. i had no idea the amount of damage that water could do.
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but then something happened. we had to deal with spam, fake news, and data misuse. that's going to change. from now on, facebook will do more to keep you safe and protect your privacy. because when this place does what it was built for, then we all get a little closer. dino: i thilemonis:e a genius. i think you're a smart-ass. come on. dino: it's just a bunch of groupies. you just got to deal with it. lemonis: dino. dino: what do you need me for?! lemonis: i need you because you're important. dino: obviously, i'm not that important. lemonis: come around. we got to cut some flavors. if 10 people are saying the same thing, it's not just an idea anymore. it's a consensus, and dino doesn't operate well with consensus unless consensus' definition is "dino's idea." [ indistinct conversations ] lemonis: i think we got a plan. thank you guys very much. ♪
♪ have you done a car count? do you know the car count? dino: yeah, it's 35 to 40 a day go by here. lemonis: thousand? dino: yeah. lemonis: understanding traffic counts in a franchise model where it's a drive-through concept -- one of the first things you have to do. how many actual orders are you taking? dino: like 200 checks probably. lemonis: 200? dino: yeah. lemonis: most cities in america don't have a street that has 35,000 cars a day. i'd rather pick a quiet market and prove the concept there. it's easier to say, "look, this store in bowling green, kentucky, makes money." if you take it to a market that has twice the population, the math is the math. so, we have to be able to sell a concept where people are gonna have objections. dino: yeah. lemonis: and we're gonna have to give them an answer. dino: yeah. lemonis: in addition to understanding the traffic, you also want to understand what's going to stop people and catch people's eye. okay, so, number one -- what about the sign on the street? debbie #2: i definitely think that needs to be better. lemonis: a new faceplate.
that's probably gonna be 2 grand, okay? you come to the front. does it seem appealing? does it seem dated? debbie #2: it's dated. lemonis: so, new awning. in a drive-through business, you only have a couple seconds to send a message that's going to get somebody to stop. debbie #2: him and i struggled seeing any other concept but personalized pizzas made to order. lemonis: do you have a new logo or a new look or a new name? debbie #2: i don't have any ideas. ray: one that got thrown out was, like, simply slice and ice. debbie #2: i thought it was stupid. lemonis: ohh. so, i asked dino to meet me at my restaurant in chicago called mlg to bring in a surprise for him, something that i thought would help him improve his business, where he can learn more about how to make the business scalable. [ line ringing ] dino: hi, this is dino. lemonis: i don't want to say anything about it. i'm good. hey, dino. it's marcus. i know we were meeting at 10. just give me an eta. that would be great, buddy.
thanks. bye-bye. how are you doing, buddy? fabio: how are you doing, man? lemonis: appreciate you coming. fabio: is everything good? lemonis: good. i'm just waiting for my guy. he'll be here any second. fabio is a celebrity-chef friend of mine who's based in chicago, and he's been on a ton of cooking shows, and he specializes in the italian-food space. and so if you're going to learn about how to improve your sauce and make it scalable, i think this guy could teach you something. hey, dino. i'm getting a little worried about you, bud. it's 10:45. i have the chef here. you're running late. i don't know where he is, so let's you and i get started. fabio: as long as you're going to make the sauce for him, then we're good. lemonis: okay. well, it's too bad that the guy that was supposed to be here learning how to improve his business decided not to show up. fabio: so, for franchise, you got to source good tomato can. what are you gonna buy? you're gonna buy the best-quality tomato, or you're going to buy a lower-quality tomato puree? lemonis: what's the difference in price between these two? fabio: almost double. lemonis: cheaper isn't always better,
and business owners sometimes think that they can cut their way to a profit. fabio: garlic, crushed pepper. lemonis: sometimes having a better product and getting better repeat visits will actually make you more profitable. ♪ man, that's fantastic. thank you, buddy. i learned a lot. ♪ ♪ hi, there. debbie #2: hey, marcus. lemonis: i wanted to drop off some sauce that i made this morning. debbie #2: oh, cool. lemonis: is your dad around? debbie #2: he asked me to call him when you got here. lemonis: yeah, do you mind? debbie #2: mm-hmm. lemonis: i understand that dino likes to control everything, but when people put their reputation on the line or they bring somebody in to help and you just flat-out embarrass me, well, now it's just rude. and while i'm furious that he's disrespectful, my job is to continue to move the business forward. ♪
where were you before? dino: being involved in this process is like riding a tilt-a-whirl. yesterday, i'm trying to give my kids a day where there's no drama. and i'm like, "i'm just gonna work," 'cause i do much better when i'm working. lemonis: yeah. dino: and i got a call to come up to... lemonis: my restaurant. yeah. dino: and it was, "we want you by yourself." "all right. my wife's not gonna like that. we don't do anything separate." and i said, "no. no, no, no." cristine: the things they were saying about doug -- they were like, "doug's toxic," and we don't deserve this place. lemonis: did you guys just get pushed out of your own business? bundle and save big, but now it's time to find my dream abode. -right away, i could tell
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lemonis: my restaurant. yeah. a call to come up to... dino: and it was, "we want you by yourself." so, i'm like, "all right. my wife's not gonna like that. we don't do anything separate." and i said, "no. no, no, no." lemonis: it wasn't intentionally to leave you out. it was just you and i to work with the chef on how to find a co-packer. dino: that's fine. lemonis: i'd like to show you the sauce. dino: okay. lemonis: look, dino likes to control the entire environment with his presence. so he figures that if he doesn't show up, the sauce isn't gonna get made, things aren't going to happen. well, here's a news flash for dino -- if you don't want to participate in it, no problem,
but you're not going to control me or this process. now i think for 10 minutes we could just have a little fun. and maybe some of these ideas, like changing the sauce, aren't the worst idea in the world. what do you think of the sauce? ♪ what do you think of the flavor? dino: i think if i was at a fancier place, i would go for that. it's heavy on ingredients, and that gives you that -- like you're out at a fancy restaurant. lemonis: do you like this sauce? dino: i wouldn't change my sauce to it, no. lemonis: dino is never going to admit that anybody had an idea that was good unless it was his, but i'm okay with that because he's eating the pizza like it's his last meal. the reason i wanted you to come to the restaurant was to have somebody talk to you about the scalability of it all, that could say, "here are some ideas that i have." but i think, with you, if it's not your idea, you just don't like it. dino: i mean, that's possible.
lemonis: okay, buddy. we'll see you soon. ♪ ♪ [ indistinct conversations ] woman: and then another one? lemonis: it's clear to me that the biggest challenge in this family is them actually working together. if that tension can be overcome, then maybe that's what's actually going to unlock dino's openness to ideas. i think the reason this family really called me is 'cause it doesn't know how to communicate with each other, not because you guys don't know how to launch a franchise... debbie #2: i mean, that's for sure. you just "dr. phil"-ed us right there. lemonis: ...which is what's preventing the business from moving forward. debbie #2: yes, i totally agree. lemonis: i think we have to find the balance between that and your controlling father. ray: who's gotten way better. debbie $2: a million times better. dino: i'm like a fine wine, baby. i get really softer and sweeter as i get older. lemonis: i think what i'm starting to realize is that there's two dinos. there's the one that records his voicemail, that likes to act like a happy-go-lucky pitch man,
and then there's the guy who doesn't show up, likes to control things, and likes to tear people down. so, if the franchise company that's owned 50/50 by dino and i put $30,000 up for each location -- team one, team two -- and you guys are actually competing to come up with the perfect concept... debbie #2: you guys are going down. cristine: oh, i was going to say, make it a competition in this family. lemonis: we'll do 30 days. you should start to plan. the idea is to give each team 30 days to re-imagine their location, the name, the branding, the process, everything. after that, we'll start renovating, but there's a twist. which team do you want to be on? dino: i'll be on the team where i'm at. i'm in crestwood. lemonis: actually, i think it'd be better if you're on that team, working with doug. cristine: no, he doesn't... lemonis: why you don't want to work with doug? ♪
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♪ while they're working on coming up with their concept and making the improvement, i wanted to head out and contribute, so i went equipment shopping, like, for a new oven and other things that i think we'll need in the new process. and i want to find the right source for fresh ingredients for the sauce, so i'm headed to a bunch of distributors that have the products that i think we need. if we can get the right equipment and speed up the process, there is a viable concept here that's totally scalable. ♪ ♪ everything good? ray: awesome. lemonis: you guys got ideas? debbie #2: yes. ray: got ideas. lemonis: it's 3 weeks, and i'm back in crestwood, and i wanted to check in on the progress that the family has made with their ideas of transformation. okay, so, how do you want to spend 30 grand to create your perfect concept? ray: one of our biggest problems is refrigeration space. we're talking about putting a walk-in off of here.
lemonis: do you have a quote on it? debbie #2: no. lemonis: okay. so, how we spending the $30,000? ray: it needs a face-lift. debbie #2: yeah. lemonis: exterior, interior? debbie #2: interior. ray: interior. lemonis: did you find a contractor yet? debbie #2: no. lemonis: have you done any designs or sketches? debbie #2: mnh-mnh. ray: we're weak in that department. debbie #2: my dad doesn't want us to screw it up. lemonis: okay. i'm a little confused because, three weeks later, they haven't even called a contractor. so, either they've lost interest, or somebody is stopping them. so, i said to them, "okay, what's the plan? let's go." but there's no plan. dino: so you don't know it? lemonis: i don't know anything. dino: oh, okay. doug has made a decision to step away from the business. yeah. lemonis: how come? dino: well, he wants family first. and i respect that. obviously, i'm gonna be taking back burbank on april 1st, and doug's gonna walk away from it. lemonis: so, he won't have it anymore? dino: right. lemonis: and then you guys will manage both stores? dino: yes. my plan would be this -- instead of $30,000/$30,000, put $60,000 into here.
we'll close for a month, starting april 1st. you come back may 1st, and if you don't love every change we made by may 1st, i'll give you your money back, and you can step away. you like that? lemonis: no. dino was pissed that i asked him to work with doug, and three weeks later, doug "decided" to leave the business. and i'm supposed to just act like it's no big deal and just move on? sorry, dino. you can't fool me that easily. so, is doug still working there? dino: yes, he's going to work it through march. lemonis: what if he wants to stay? what if we could change his mind? i mean, one of my goals is to grow the business by helping the family work together. dino: but that needs time, and i think you need to just respect that it needs time, and that's it. you can hear it from doug, but i'm telling you -- debbie #2: because it's really his choice. lemonis: doug over at the other shop? dino: yes. lemonis: all right. let me drive over there and just chat with him. you want to meet me over there? dino: okay, i'll be there. lemonis: okay, let me run over there. i'll see you guys later. ♪
how are you? woman: how are you? lemonis: dougie? doug: marcus. lemonis: we were going to renovate the store. they're like, "well, doug is leaving." doug: um... we were given the ultimatum of, "go back under simply slices crestwood or change the name of simply slices," because they don't foresee me being very adaptable. and once that meeting happened, it was pretty clear to me that it wasn't going to work going forward with me still being in the business. can you get that? cristine: mm-hmm. lemonis: i am so confused. did you guys just get pushed out of your own business? ♪ for exclusives, extras, and business advice, visit theprofit.cnbc.com.
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lemonis: did you guys just get pushed out o♪ your own business? why did you choose to leave? why don't you guys just change the name and have your own concept? doug: 'cause i think that would just cause a further divide between the family and i. lemonis: so, basically, somebody said to you -- cristine: that we didn't deserve this place. like, that was clear to us. lemonis: who said that? doug: that was my dad. cristine: it was hard to sit there and just, like -- the things they were saying about doug -- they're like, "doug's toxic," and we don't deserve this place. lemonis: doug and his wife have a lot of vibrance and a lot of ideas, and they're very committed,
but all they were told was that their store sucked and they were terrible and they did things that were wrong, and at some point, you start believing it. you just wave the white flag. your dad said to me that you guys all sat down as a family and that you decided it was best for you not to be here. cristine: wow. do you guys want to leave here? cristine: no. and the hard part about it is, like, we took the pay cuts. we've put everything into this place. we have -- like, what are we going to do? like, he's done this his whole life. ♪ dino: hello. lemonis: hey, buddy. i've met a lot of controlling people in my life, and i have a tendency to sometimes be controlling, as well. it's a bad habit. but i think when it crosses the line is when you take people's ability away to make decisions for themselves. i thought you guys said that they wanted to leave. dino: doug has made a decision,
and i am respecting it. 'cause that's what you wanted. lemonis: right, no, it is -- dino: you said me and doug have to get under one umbrella, and this is the solution. lemonis: they have to follow your rules. they have to get permission for stuff, no? dino: see, you're just... [ clears throat ] all you're doing is dragging up something that -- we spent three weeks to get to this point here. tell me what you're trying to tell me, that this doesn't mean nothing, that the three weeks that i put into my family don't mean nothing, marcus? come on. i asked you -- i said, "respect the decision that was being made," and all you're doing is getting under my skin. lemonis: you're getting yourself under your skin. i'm asking you -- dino: no, you are. and you know it. doug: the meeting wasn't like, "let's kick ideas around. how would this work if we were back together?" debbie #1: we can sit here and say, "she said, he said." we can play that game all night long. they were presented with some options. they didn't come back to us with any other options. lemonis: nothing was done at crestwood,
no plan, no notes, no nothing. debbie #1: there was a plan. lemonis: that was not a plan. debbie #1: that was a plan. dino: we spent three weeks... lemonis: that was not a plan, and, debbie -- dino: ...healing our family, marcus, three weeks. lemonis: first of all, you don't need to talk to me like i'm an idiot, okay? dino: i'm just mad. lemonis: i'm so confused. i really am. dino: well, then maybe i'm not the person you should be in business with. maybe we're at that point. lemonis: it's getting to that point because any time anybody asks you a question and you don't want to talk about it, you just get mad. dino: that's fine. lemonis: when i found out about doug leaving, that was a surprise to me. but you guys did misrepresent it. you guys gave him an ultimatum. dino: i misrepresented it. lemonis: you made it seem like he left. dino: you can un-mic me now. ♪ debbie #1: and this is doug's decision. cristine: it's doug's decision. dino: take that camera off me. i don't think we should stay. ♪
lemonis: dino, do you want just you and i to talk away from everybody else? dino: you want to talk to me? lemonis: yeah. you want to look at me like you want to threaten me? i mean... dino: i'm not threatening you, marcus. i'm talking to you. this is me. lemonis: yeah. no, i get it. i see the real you. dino: this ain't an act. lemonis: yeah, it actually is. dino: this ain't no tv show for me. lemonis: you've been acting since the day i met you, until when you get upset. then the real dino comes out. ♪ thank you for firing me. ♪ doug: bye. lemonis: bye. that was fun. i feel sorry for dino. he really cares about his family, but dino's problem -- he and his wife, by the way -- they love their kids so much that they suppress any idea or any freedom that they could ever have to be their own person. i guess love works in two very different ways, and this love i don't want any part of. ♪
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