tv The Profit CNBC January 1, 2019 4:00am-5:00am EST
. tonight on the profit. dina: welcome to zoe's. lemonis: at a family-run chocolate shop in pennsylvania, the treats are delicious... lemonis: that was really good. -dina: yeah. lemonis: ...but the business is in meltdown. zoe: the last couple years, it's just been declining, and i can't figure out why. lemonis: though the owners, three siblings, have made great sacrifices, they've failed to properly market their product... sean: our initial reaction was that we didn't know how it connected to you. zoe: what's the story to this, that we're greek? lemonis: ...and they're resistant to even the smallest change. petros: we don't want to be mainstream and do what everyone else is doing. that's how we've gotten to 18 awesome chocolate pieces. lemonis: in 10 years. lemonis: if i can't get them to open up and try new things... zoe: i don't like the top. i don't like the cross.
lemonis: ...their beloved company will fall to pieces. pantelis: we'll get it together. lemonis: when? when are you gonna get it together? my name is marcus lemonis, and i risk my own money to save struggling businesses. we're not gonna wake up every morning wondering if we have a job. we're gonna wake up every morning wondering how many jobs we have to do. it's not always pretty. everything's gonna 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." ♪ in 2007, zoe tsoukatos teamed up with her two brothers to launch zoe's chocolates... zoe: thank you for calling zoe's chocolate. lemonis: ...a confectionery company based in waynesboro, pennsylvania. zoe: text pam and ask her if she can cover your monday shift. lemonis: their mission -- to turn out exquisitely handcrafted chocolates
inspired by their greek heritage. eleni: i really like the consistency. lemonis: you could say that chocolate is running through their veins. their family has been in the chocolate business for over 100 years, including their father, george, a greek immigrant. they brought him onboard as their master chocolatier and quickly gained a small following. pantelis: i just wanted to follow up on that order that you wanted for those clients that are coming in next weekend. lemonis: but 10 years in, sales have dropped sharply and their losses are mounting. zoe: you know what? yeah, refund his entire order. pantelis: that's ridiculous. lemonis: and zoe's fear is that her family legacy may disappear. zoe: [bleep] how are you gonna get all these orders out? ♪ lemonis: still, my research tells me that there are amazing possibilities with zoe's, and i'm always looking to grow my candy business. so this potential partnership could be very sweet.
dina: welcome to zoe's. lemonis: hi, there. how are you? dina: good. nice to meet you. lemonis: what is your name? dina: dina, dina hunter. lemonis: dina, nice to meet you. can i try a few things? -dina: sure. lemonis: there's baklava, black daphne, hazelnut, sesame-tahini. wow. dina: because zoe's family is greek, a lot of their pieces feature a mediterranean flavor. -lemonis: that's really good. -dina: yeah. lemonis: i eat chocolate literally every single day. so i know what good chocolate tastes like, and this chocolate was spectacular. unusual flavors, amazing texture -- i've never tasted any chocolate like it. -zoe: hi. -lemonis: how are you? -i'm marcus. -zoe: nice to meet you. i'm zoe. lemonis: nice to meet you. i was just eating your chocolate. zoe: oh, good. and you liked it? lemonis: this one's good. this is the baklava one? -zoe: yeah. lemonis: what is this one? zoe: sesame. it's like a tahini. lemonis: that one's good. i don't know what this one was. what was that? -zoe: pistachio. -lemonis: okay.
i've had one, two, three, four, five already. how many flavors are in the case? zoe: probably 18. lemonis: and how many do you have in your library? zoe: i think there are 18. lemonis: oh, so everything you make is out. zoe: yeah. lemonis: it was surprising to me that the case had all this space in it. zoe: i understand. lemonis: i've been in other chocolate stores where there's 60, 70, 80 different options, but in this instance, the offering was so anemic that it felt unimpressive. who came up with the packaging? who designed it? -zoe: i did with the boys. -lemonis: you did. zoe: my brothers, yeah. lemonis: whose idea was this business? zoe: my brother pantelis and i were living together in d.c. -lemonis: doing what? -zoe: i worked for a state and local government consulting firm. lemonis: and what was your brother doing? zoe: he was doing marketing, and dad was working elsewhere manufacturing chocolate for another company. lemonis: here in pennsylvania he was doing it? zoe: yeah. and they wanted to move away from hand-making chocolate. -lemonis: did they let him go? -zoe: yeah. -lemonis: they did. -zoe: yeah. my brother and i decided to come back and kind of get him back on his feet. lemonis: you just one day said, "we have to go help dad."
zoe: kind of, yeah. and 10 years later, here we are. lemonis: so, how much of the business do you own? zoe: we're at 35, 35, and then the other one's 30. just the kids. lemonis: your mom and dad don't any of it? zoe: nope. lemonis: your dad works here? zoe: yep. lemonis: so your entire family lives off this business. zoe: yep. lemonis: can we meet them? zoe: sure can. lemonis: it's much bigger back here. so is this the whole family? -zoe: pantelis. -lemonis: hey, i'm marcus. nice to meet you. eleni: i'm the mom, eleni. nice to meet you. lemonis: eleni, how are you? very nice to meet you. how are you? george: hello, marcus. lemonis: george, right? george: yes. lemonis: nice to meet you. george: nice to meet you. -petros: how you doing? petros. -lemonis: petros, how are you? petros: nice to meet you, marcus. lemonis: now, you've been in the chocolate business for how many years? -george: almost 40 years. lemonis: and how long ago did you meet? eleni: 39 years ago. he was in greece. lemonis: oh, you were in greece. who are these pictures of? -zoe: that's my mom's parents. petros: yeah, and a little push cart in baltimore. zoe: in baltimore, where they were hand-rolling chocolates,
and my dad came over. he learned the trade. george: i love to work for my kids. lemonis: it's nice to have your children support you. george: oh, yes. i think that's the most important, to love each other. lemonis: this place is -- it got a lot bigger. -petros: yeah, right. -lemonis: it goes back even -- petros: it goes back farther, yeah. lemonis: holy... petros: this is the kitchen, where we manufacture everything. lemonis: oh, my gosh. i just want to see the process. petros: so we're boiling the cream, and we have our raw chocolate, a little butter. lemonis: can i stir it? oh, yeah. petros: so this is gonna cool. after it cools, we'll cut it into squares. it'll go through the enrober and get covered in chocolate.- -lemonis: in plain chocolate. -petros: right. lemonis: why don't you do some basic things like chocolate-covered pretzels and chocolate-covered almonds? zoe: we have a lot of unique products. i mean, you can get the chocolate-covered pretzel anywhere. lemonis: people will pay more for a zoe's pretzel because it's zoe's chocolate, and the chocolate is what's amazing. shouldn't matter what it goes on. you need more. news flash -- pennsylvania is the heart
of the pretzel business in the united states. you want to use the same resources and the expertise that you have to make products that are more relatable. everybody loves chocolate-covered pretzels or chocolate-covered anything. where's the research and development happening? that's where those ideas come from. and who leads that research and development? zoe: well, technically... -petros: i mean, i think we -- -zoe: yeah. lemonis: i kind of knew that answer already. that's why there's no products. holy... petros: it keeps going back, yeah. -lemonis: even further? -petros: yeah, yeah. lemonis: this place is huge. is this the shipping department for online? petros: for online, right. everything that gets processed goes through here. lemonis: how much business do you do online in total? zoe: we do about $50,000 to $60,000 online. lemonis: how do you do marketing? zoe: digital marketing through facebook ads. lemonis: can you help me understand everybody's role? pantelis: yeah, so i help with the outside sales, finances, as well. lemonis: who's in charge of the business? -petros: zoe. -pantelis: more so zoe. lemonis: and then what is your role? petros: my role is the kitchen.
lemonis: would you say that the entire front-to-back of the building, would you call it organized? pantelis: no. lemonis: what prevents you specifically from organizing things that you see that are unorganized? do you have to ask zoe if you're allowed to? pantelis: no, it's like a snowball, then there's something else that needs to be organized, then there's something else. -lemonis: so it's just like, "eff it. i'm not even gonna start." pantelis: yeah, it's kind of like -- yeah. lemonis: i was trying to put my blinders on to not see all the disorganization and the mess everywhere. what i was focusing on is the infrastructure and the possibilities. it had the capacity to really pump out real volume. what's the brand identity? zoe: the product's good, we buy locally sourced ingredients. lemonis: we have a box. we have a pamphlet. i don't really know what the story is here. zoe: the insert is our flavors. lemonis: what is your real story? why did you create the brand? zoe: i think the fact that we're siblings. lemonis: like, you're siblings. do i know that? zoe: i do think we have a good story. lemonis: i agree you have a good story. i just don't agree that you've told it yet. you guys put in blood, sweat, and tears to go help dad.
your dad's a greek chocolatier. all that's the story behind it. tell people. zoe: but, i mean, why would i choose one chocolate company over another? i mean, you buy it because i like the product that they're making. it's not family stuff like that. lemonis: i just want to just spend a minute with you out front, zoe, just you and i. look, it's paramount for any good retail company to have a story behind it, why it got in business, why it does what it does. but when i look at zoe's retail material, their branding, their brochures, there's no mention of any of that. and i can tell that zoe's getting uncomfortable with it. but i don't care. i'm gonna keep pushing her. ♪ why are you so uncomfortable with telling people how this business came about? why'd you roll your eyes? zoe: i mean, it's just, like, i hate it saying it because it's embarrassing for our dad. it has no bearing on what we do.
you know, it's over, it's done, and, i mean, here we are. lemonis: what is obvious to me is how much you've poured into this. -zoe: yeah. -lemonis: and for me, it isn't just about money, it's about what you gave up, moving back here, going through this on a daily basis. it really looks like you've sacrificed everything for this. zoe: but for having been here 10 years, i think it's painful to see that we haven't gotten to the potential that we know we can be it. you know, we're not stable at the age that we're at. lemonis: is it tight financially? like, no cash? zoe: yeah. lemonis: and so how do you keep the doors open? zoe: well, in the summertime, we had to get a line of credit. lemonis: oh, you got a line of credit. lot of debt on the business? zoe: yeah. i think about $170,000. -lemonis: that much? -zoe: yeah. for us, it's kind of one of those things, like, "okay, well, what else could we do at this point? you know, we've been doing this for 10 years.
if this doesn't work..." lemonis: you feel like it's close to failing? zoe: i feel like the last couple years, it's just been declining, and i can't figure out why. it just feels like we're bleeding somewhere. sometimes, we won't get paid, or sometimes, one of us will get paid and then we'll just split it three ways. lemonis: oy. zoe: or we haven't paid my dad for a couple months. lemonis: let's dig in to the numbers a little bit. ♪ so the revenue was what in 2016? pantelis: $675,000. lemonis: and in 2015, it was $757,000? so why the drop? that's a significant drop. pantelis: we had issues a lot. like, some distributors kind of dropped us. -zoe: whole foods. -lemonis: whole foods? zoe: we lost our whole foods. lemonis: how did you lose all these accounts? what happened? pantelis: they didn't want to sell our product. zoe: 'cause we don't come up with more products. pantelis: yeah, whole foods was like, "let's do a candy bar that has walnuts and pecans," because it's, like, in, it's a fad, but we'll be like, "i don't think so." lemonis: why?
pantelis: because we don't like it. we don't think it's a good idea sometimes. petros: right. we're gourmet, but we also don't want to be mainstream and do what everyone else is doing. that's how we've gotten to 18 awesome chocolate pieces. lemonis: in 10 years. look, i understand why zoe and her brothers want to protect their brand, but there's a point where protecting the brand becomes almost counter-productive. instead of letting the brand breathe and having people understand it and embrace it, they're burying it in a hole. and they're gonna bury the business with it. $82,000 loss in '15. what did you lose last year? pantelis: i think it's like $120,000. lemonis: so, how are you guys funding these losses? -pantelis: we have an loc. -lemonis: a line of credit. pantelis: yeah. lemonis: it's how much? pantelis: $90,000. lemonis: okay. what else? pantelis: so another $30,000. lemonis: another line of credit, so two lines of credit? pantelis: yeah. we have our car loan. it's a company car. lemonis: okay. how much is that? pantelis: $30,000. lemonis: how about credit cards? pantelis: $12,000. lemonis: okay. that's $162,000 in debt. how much cash is in the bank right now, today?
-pantelis: $60,000. -lemonis: $60,000. pantelis: yeah. lemonis: we need to figure out how to generate more revenue. -zoe: just need more sales. -lemonis: you need more sales. and you need to have a clear story. you need to have a clear brand identity. i don't want to have to ask companies who they are before i do business with them. i want them to tell me without me asking. what's the story? what makes the flavors unique? what are the unique pro-- i don't know anything. that's the problem, but the products are really freaking good. and the fact that you guys give and give and give to your parents, it tells me a lot about who you are as people. i want to make an offer. the company today has $60,000 in cash and $162,000 in debt, so my offer is $250,000 for 50% of the business. i want to be equal partners. the money will be used to pay down some of the debt
and the rest will go in to organizing the facility, making some retrofits to the retail location, launching the online business, doing some product development, and potentially coming up with some new packaging. how does that sound? pantelis: we were gonna ask for 60%. lemonis: so my offer is $250,000 for 50%, and your offer is... pantelis: 40%. lemonis: why? petros: moreso because we're a family business, and we've worked so hard, and i know our dad has put in a lot of time and has invested a lot of himself, and i think that would make him happiest. lemonis: okay. ♪ pantelis: what do you think? lemonis: $200,000 for 40%. but i have full financial and operational control -- full, 100%. -zoe: question. -lemonis: yeah.
zoe: so you want to add, like, pretzels and chips and stuff like that. whatever. -lemonis: okay. zoe: how would we talk about it and go for the deciding factor? lemonis: i would decide by myself. when i say i'm 100% in charge, it isn't just for fun. i mean it. you are not in charge anymore. if your business is in trouble and you need my help, log on to...
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it isn't just for fun i mean it. you are not in charge anymore. and if this is something that you're nervous about, then you shouldn't do the deal. you have to trust that i'm not gonna put you in harm's way. so, my counter-offer is $200,000 for 40%. but i have full financial and operational control. zoe: okay. we're ready. we're ready for it. pantelis: yeah, yeah. ♪ -lemonis: we have a deal? -zoe: we have a deal. pantelis: yeah, we have a deal. thank you. -zoe: thank you. -petros: thank you very much. ♪ lemonis: i decided to invest $200,000 into the business.
let me be super clear -- i am 100% in charge. i really believe that the product is good, but not great yet. i believe the product offering is too narrow, so we are gonna develop new products, new flavors, new ideas. we're gonna work on our storefront. the retail experience for me falls flat. i'm not wowed by anything that happens when i walk in the store. so i want to really work on that. we're gonna work on the online business and really understand how to manage capacity. this place has a ton of capacity, but we need more volume. and we want to look for new strategic partnerships. so we're gonna come up with cool ways to expand the business that isn't just storefronts. the thing i am blown away by is learning what this business really means to the family and the history behind it. and i'm a little confused on why you guys hide that story because i really believe that people buy from people.
it has to mean something that these three young people had the lack of selfishness to make a sacrifice to do things for the people that brought them into this world. that is the reason that i did the deal. george: i'm gonna help my kids. they saved me. [ sniffles ] lemonis: yeah. i get it. zoe, i asked you when i met you, what makes this product different? and you couldn't really tell me. and i'm telling you as i stand in front of you and i look at you in your face, that's what makes it different. and we have to tell that story. there's nothing wrong with it. so, we're gonna get to work. my job is to help your family figure out how to take your gift and share it with more people. okay? all right, great job. ♪
pull up the website so i can see everything. how many today? -zoe: one. lemonis: one order today. okay. and that's the website? zoe's chocolate? zoe: zoe's chocolate. lemonis: i'll see you in a minute. in order for this business to really be profitable, it's gonna have to capitalize on its online store, not just this small space in waynesboro. but as i look around this facility, it's wildly unorganized. rather than talking about it, i want to put it to the test. i'm at this business, zoe's chocolate, and what i'm trying to do is create the world's largest focus group, so i'm gonna do a facebook live video. process orders, and see how they measure up. so what i need you to do is log on to zoeschocolate.com, place an order. they're amazing. i normally would not do this, but i need to prove a point. zoe: oh, look at all these orders. oh, my. lot of orders. lemonis: so what i did is i did a facebook live video.
it's already had 8,000 views in 15 minutes. how many orders are there? zoe: a lot. 150. lemonis: 150 orders. okay, let's get to work. ♪ let's go, guys. let's get these orders filled 'cause they're gonna keep coming in. zoe: why don't you start shipping those? pantelis: no, no, no, get a highlighter. zoe: no, this is fine. the glass thing's right there. petros: right here, right? the thing's here. zoe: oh, is it there? eleni: here it is. pantelis: where? in here? lemonis: let's go, guys. pantelis: thank you for calling zoe's chocolates. how may i help you? okay, thank you very much. lemonis: what did they say? pantelis: they want to add an item. lemonis: does the system allow you to modify their order? zoe: no. ♪ just go -- reorder it before you cancel it. reorder. print this real quick. just print it. pantelis: should we count how many we have? zoe: no, just don't even count. pantelis: no, i'm saying make sure it adds up to that. zoe: no. lemonis: now, come on, guys. no systems, no process -- they look like chickens with their heads cut off. they really struggled.
i love the fact that everybody's pitching in now to solve the problem, but i could see how you guys just trip over each other. this is the reason there's a problem. now, in fairness to them, they didn't expect the volume. but i would expect that whoever was working in the internet shipping department and a small staff would be able to fulfill those orders without disrupting the kitchen or disrupting the retail store. zoe: so, what should we do in this instance? lemonis: you're the leader. zoe: but that's why i'm getting everybody to pitch in. lemonis: do you think that's the best use of everybody's time? pantelis: listen, i'll organize it, you go do your thing. if i need help, i'll call you. zoe: how are you gonna get all these orders out? lemonis: these orders are not gonna get out today... because nothing's organized. zoe: i don't think of that with our company. why would you choose all blue? lemonis: i mean, honestly, if you want to stop, we can. these guys put a lot of work into this.
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because nothing's organized. i sent you into a chaos zone. -zoe: yeah. lemonis: and what happened was, there's no system and no process. you have to figure out how to delegate properly. what do you want everybody to do? i know this is a lot. like, i know it's like drinking out of a fire hose, i do. pantelis, you are responsible for the organization of this entire facility. -pantelis: okay. lemonis: and nobody can help you because i want you to take ownership of one thing and have nobody mess with you. okay, guys, thank you. zoe: okay. thanks. lemonis: while pantelis works on organizing the whole shipping area, i want to get started on renovating the retail space. i want to figure out a way to eliminate that wall and open up this whole space. we're moving all the shipping to the back, and we're gonna take the old retail space and combine it with the old shipping space with a giant window, so we can see what's happening in the kitchen. a floor that's industrial, but it looks nice. carroll: how about these ceiling tiles? lemonis: you could replace these with metal tiles.
carroll: and i can get the tin put in there, the metal tin mains. lemonis: that would look nice. while construction's going on up front, the retail store will be closed. but i want them to continue in the kitchen developing new products. so what i want you to do is develop another 12 products. can you do something with ouzo? -petros: yeah. so this is gonna go into the mediterranean flavor profile. lemonis: okay, what else do you have? what other ideas? -george: chai. -lemonis: chai? -george: yeah. -lemonis: okay, what else? -george: curry. lemonis: curry? you like that idea? -mm-hmm. -okay. we have to broaden our menu so that we can broaden our customer base. ♪ good morning. -zoe: good morning. -petros: good morning. -lemonis: how are you? zoe: good. how are you? lemonis: i asked zoe and petros to meet me in my office in los angeles. in that office is a company i invested in about a year ago called flex watches. over the last year, these guys have proved themselves
to be masters at marketing and branding, so i wanted them to sit down with zoe and petros and see if they can come up with some new ideas. so over the last year, i've turned over all of my web businesses and the creative that goes with that to them. so no matter what business it is, they're involved with it from beginning to end. what we're gonna start with is the results of the facebook live video that i called a giant focus group. all right. trevor: which was amazing. over 150,000 video views, 2,000-plus comments, and almost 6,000 likes on that one video. but when we looked at the comments, one of the comments was, "i wish there was more info about the company." so what is the story? zoe: so our dad was manufacturing chocolate for 35 years with his brother-in-law. petros: our dad lost his job, he got laid off, and he was in a really bad position. we wanted to get our dad working again, and we wanted to create something completely new. zoe: we were all working in d.c. and living in d.c., and we packed up and we just left
because we didn't want our dad to be out of a job. we wanted him to continue having something that he could feel proud about again. trevor: i think that's so special. brad: that's a really powerful story, that i think you'd be surprised on how much customers follow your brand and believe in it and support you. zoe: it's embarrassing for our dad or maybe he feels bad, and that's why i think, like, we don't like saying it. lemonis: i think people buy from people they connect with and they can relate to. it's just about taking this information and spreading it across the entire business. so why don't you start with your inspiration boards? sean: so the first step in our process is usually to do research on the brand and find out the brand's story and where you guys come from. we went back and we looked at inspiration from the mediterranean and from greece. and that's where we first start is looking at kind of iconic visuals that connect with that story.
we take that imagery and we start to build just a basic color palette off of that. lemonis: what do you think of the color palette? zoe: i don't think of that with our company. why would you choose all blue? how does it differentiate between different flavors? ♪ petros: like, when i see that, it reminds me of, uh... zoe: going to church. ♪ trevor: i mean, if that cross is gone, does that change your mind set on the church? zoe: no, the font is very church-y to me. it's like being in grace. and our circle with the big "z" in the middle, it's very identifiable. lemonis: i mean, honestly, if you want to stop, we can because... zoe: no, i mean... lemonis: ...these guys put a lot of work into this, and i feel like you're not even being open-minded about hearing what they have to say. you're like, "i don't like it." sean: our initial reaction to the branding and the logo was that we didn't know how it connected to you.
zoe: what's the story to this, that we're greek? lemonis: really? zoe: i 100% agree. lemonis: why does it look like this? zoe: 'cause we overlooked it. pantelis: we'll get it together. lemonis: when? pantelis: we're gonna get it together. lemonis: when are you gonna get it together? (danny) after a long day of hard work... ...you have to do more work? (vo) automatically sort your expenses and save over 40 hours a month.
about hearing what they have to say. you're like, "i don't like it." sean: our initial reaction to the branding and the logo was that we didn't know how it connected to you. zoe: what's the story with this, that we're greek? lemonis: your dad is an immigrant from greece. he came to this country and became a chocolate-maker. i literally was shocked by zoe's reaction. she should have at least given them the decency of some feedback or some idea, but what i saw was, "i hate everything." is there any changes that you would make that you feel like would get you closer to where you would like to be? zoe: i don't like the top. i don't like the cross at all. lemonis: so the icon -- this icon right here -- you'd like to see something different. -zoe: yeah. -lemonis: okay. i'm open to coming up with new ones, but i don't think it's so visceral that, like, people are gonna be like, "oh [bleep] i'm not buying the chocolate." it's a work-in-process. look, zoe needs to clearly understand that when she took my check that i really was 100% in charge.
we are gonna make changes to the business. we are gonna make changes to the process. and the business is gonna be successful, in spite of how she feels right now. this packaging is gonna start getting produced next week. and so you're gonna be working directly with sean on landing at a final place because we are going to have new packaging and new colors. get to work, okay, guys? thank you. awesome job. trevor: nice meeting you. ♪ -eleni: hey, we put dad to work. -zoe: nice. so i wanted to talk to you guys about, um, how he wants us to tell the story about why we came back home. i feel uncomfortable talking about it, and i don't know exactly what... how to handle it. it was a tough time for everybody,
and i don't like reliving it. and i don't want dad to be upset or to be sad. eleni: i think it's an important thing you should do because it was a difficult time, and i think, for the longest time, we put it under the rug, but i don't think we're unique in situations like this. and i don't think we should feel embarrassed because you have to know how important you guys were all for us, especially for dad. george: how strong we got is because everybody loves it. 'cause of you. eleni: the fact that we've managed to get past everything, you should be proud. you should be proud because you've proven how much you care for us, also, and i think that's extremely important as parents, that you have always been there for us. i don't think we could have really asked for anything more.
zoe: well, mom, you're such a good teacher. such a good mom. george: we love you. zoe: i love you. ♪ lemonis: the remodel of the retail space is coming along great, and it's gonna provide a much more open feeling. we're putting giant stone slabs as counters, and we're putting in vintage metal ceilings to echo the old tin ceilings that were used during zoe's grandparents' time. zoe: this is where the bar would be with some bar stools. lemonis: i like the colors that you've picked. i want to make sure that we don't lose our sense of history. ♪ i'm back at the shop, and i want to check on how pantelis is doing with organizing the entire facility.
okay, i like what i'm seeing so far. zoe: yay. we worked our asses off organizing it. lemonis: guys, it doesn't look that much more organized, it just looks like there's just less [bleep] here. pantelis: we had to, you know, get orders out. we still had to do online shipping. sorry you don't like it, but it's pretty much the best that could be done. lemonis: okay, well, what about that? -pantelis: those are orders. -lemonis: look at it. pantelis: what should i do with it? lemonis: organize it. pantelis: it's organized -- online, wholesale. lemonis: i mean... pantelis: don't let it fool you. it's not that bad. lemonis: don't let it fool me? no, no, don't let it fool you. -pantelis: no, it didn't -- -lemonis: it's not that good. i thought i was very clear about what i wanted pantelis to do -- set up a process, clean the place out, throw out the trash. it doesn't look that different to me. we got to fix it up. really?
it's like a goddamn maze here. is this guy coal or something? pantelis: that's the chocolate from where it drips underneath the enrober. lemonis: so here's the moment of truth. do you guys want me to be your business partner or not? all: yeah. zoe: yeah, i mean, we called you for that. we're hard workers. we're up for a challenge. lemonis: i don't want to be here 'cause of [bleep] like this. this makes me crazy. zoe: i 100% agree. we need to clean it. lemonis: why does it look like this? zoe: it shouldn't look like that 'cause we overlooked it. lemonis: you overlooked that, you overlooked the stuff in the back. zoe: you didn't see all the stuff that we did do. we did as much as we physically could do. pantelis: we'll get it together. lemonis: when? pantelis: we're gonna get it together. lemonis: when are you gonna get it together? pantelis: i'm doing it right now. -lemonis: when? -zoe: we want to get better. our ultimate goal is to make this company great. lemonis: but i can only see that with actions. ♪ meg: what's the largest order you've ever done? pantelis: 7,000 bars. meg: 7,000 is less than two ships.
i think, "okay, maybe not a fit for global fulfillment and distribution." sweat. dedication. cupcakes. i'm michael griffin. i'm brian orakpo. we played football together for the titans. now, we own a cupcake shop. we bake, we decorate. i love this new surface pro. it's light, it's sleek, it's fast. i'm able to draw what color frosting we want. we do a lot with social media.
our ultimate goal is to make this company great. lemonis: but i can only see that with actions. zoe: help us. we're trying to learn how to do that better. lemonis: here's what we need to do -- clean the place and get it organized first, which is what i thought i was coming back to. ♪ i thought i sent the message that i wanted the place cleaned up,
but i wanted to give them a chance to do it themselves. i feel like the only way i'm gonna get it done is if i start doing it, and maybe they'll take a clue from it. i'm pissed. ♪ how are you, buddy? -brian: good afternoon. lemonis: good seeing you. brian: welcome. lemonis: joe's stone crab is the second-largest restaurant in the united states, but what they also do is they have a phenomenal online shipping department. i wanted to take pantelis there so he could see the importance of every last detail. brian: i'm doing about 900 boxes out of this area here alone. lemonis: a day. brian: that's two to three fedex trucks full. -pantelis: that's incredible. -lemonis: but look at the boxes. pantelis: yeah, i see the upc, the size, and it's all set up. everybody knows what's going in each package. brian: this is my product for tonight. -pantelis: wow. -lemonis: look how organized. lemonis: this is what the walk -in cooler needs to look like.
pantelis: yeah, it can look like this. lemonis: next time i see you at the shop, it really needs to feel like you've applied these things. okay? -pantelis: okay. ♪ lemonis: so, do you like this or not like this? zoe: no. do not like it. lemonis: we need to figure out our branding and we're gonna do it now, so i'm bringing more mock-ups for zoe to review. zoe: well, i definitely don't like the font. that's a no for me, but the boys like it. this could potentially be cool. -pantelis: yeah. lemonis: i love the fact that zoe was willing to compromise on the logo. the cocoa bean and the colors tie back to their heritage. meanwhile, we're putting the finishing touches on the entire renovation and we're hanging pictures that speak to the family's history. the shelves are going in, but most importantly, we're putting in a ton of customer seating. i want the locals to feel comfortable to hang out here and have a cup of hot chocolate. and with the grand opening right around the corner, i'm anxious to see what new products
petros has come up with. petros: this is a quinoa brittle. lemonis: that is good. also, i'm super excited that pantelis took what he learned at joe's stone crab and implemented it here in the back. it's now a well-oiled machine with every detail thought of. pantelis: starting here, all of our barcode upcs are labeled here. lemonis: love that. finished goods here. pantelis: finished goods, as well, yeah. lemonis: all labeled. i think you did an amazing job. it feels like a real production process now, and it's, like, ready for volume. lastly, i have some exciting news that i want to share with the family. i am taking you to miami. we are going to be meeting with norwegian cruise lines to put your chocolate on all of their boats around the world. -zoe: that's awesome. -pantelis: amazing. lemonis: they needed to have a library of types of pieces -- 50 pieces, 18 bars, and 12 novelty pieces. zoe: we'll have it ready. ♪
lemonis: i set up a meeting with the senior executives at norwegian cruise line for zoe's. i felt like luxury meets luxury, and i ultimately wanted to give zoe's a chance to be part of their cruise lines that are around the world. zoe: we'd like to tell you guys a little bit about our company. so we grew up in the family business, and aside from having our dad be mr. willy wonka, we loved it. but ultimately, we all left and went to school, continued our professions, and after about 30-some years, our father lost his job. so we left our jobs, we moved back into our parents' house to continue on the family legacy and also start something for our dad again. petros: we wanted to create flavors that really stepped outside of the box with a large array of products. so we have everything from apple pie to baklava chocolates to even chocolate-covered edamame for your more exotic flights. we have things like gluten-free chocolate-covered cookies for kids. pantelis: and we're committed. i mean, no matter how big an order,
no matter what you might need specifically for your vips or your birthday parties, maybe even a wedding, we make it happen. meg: that's great. the three of you seem super passionate about your brand, but what's the largest order you've ever done? pantelis: um, 7,000 bars. meg: 7,000 is less than two ships. pantelis: okay. meg: so, when i think about that, i think, "okay, maybe not a fit for global fulfillment and distribution based on the conversation we've had."
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's the largest order you've ever done? pantelis: um, 7,000 bars. meg: 7,000 is less than two ships. pantelis: okay. meg: so, when i think about that, i think, "okay, maybe not a fit for global fulfillment and distribution." zoe: we're under-utilized, for sure. we have the capacity to do at least 5 times what we're doing right now. meg: which is roughly... pantelis: we do about 700,000 pieces. zoe: a year. ross: you think you're producing 20% of what you're capable of? petros: i would estimate about, yeah, about 20%. ross: well, i think we'd start with one ship.
that's typically what we do with anything new. lemonis: can we taste some product? meg: yes! zoe: absolutely. petros: i think the sea-salt caramel is really nice. our ouzo piece is excellent. meg: that's delicious. ross: mm. that's good. meg: i've never tasted anything quite like that. petros: what i wanted to focus on was the fact that we can customize anything for you. we can even put your logo imprinted on our chocolate piece. pantelis: so this is a coconut curry. meg: i love curry. i love all the variety. -tim: love it all. -ross: that's great. meg: oh, my gosh. that's amazing. lemonis: yeah. zoe: what can we do to get your business? what is something that you would like to see from us? meg: we're always looking for brands that have recognition or a key differentiator to bring onboard. i think your heritage and how you came into this business is actually something that really differentiates you. the more you can share that with people through the product, through the visual identity of your company, i think the more it can be a strength for you.
zoe: can we leave here today with a handshake that we will develop a program for you guys? meg: we would love to see the program you have to offer. zoe: thank you very much. -ross: pleasure. -zoe: pleasure. thank you so much. -tim: thank you. lemonis: i'm proud that zoe had the confidence in her business, her process, and her product to actually ask this billion-dollar company for the sale. she went for it. ♪ today's the day of the grand opening, and i couldn't be more excited to get the store put together. okay. the new space looks amazing. i put over $100,000 into renovating the facility i installed new floors, new ceiling, a giant window to look inside, new lighting, new fixtures, new displays. the new look and branding came out amazing. it's got a touch of what zoe wanted and a touch of what i wanted. but what was most important is the picture of george. ultimately, this was about him.
are we ready? zoe: yeah. -eleni: we're ready. -george: yes! zoe: let's do it. george: everything is gorgeous. we've gone through a lot of ups and downs many years ago, and thanks to my kids, very, very happy. and very proud. lemonis: wow. george, since this business was all really built for you -- you're the one that taught everybody everything -- i would like you to be the one to turn the sign. -george: okay. -lemonis: okay, are you ready? george: i'm ready. ♪ [ bells jingle ] -zoe: hello. welcome. -lemonis: go around. you can sample anything you want. welcome. this is zoe. zoe: hi. very nice to meet you. pantelis: we have a hazelnut for you. it's hazelnut with roasted hazelnuts on top. you like that? good, good. lemonis: there are tons of people coming through the doors, and for me, this is the start of something really big and new.
petros did an amazing job with the new flavors. zoe did an amazing job getting the store set up. and pantelis put in a great process. how were the pretzels? were the pretzels good? -woman: amazing! -man: potato chips were better. lemonis: potato chips were better? and the pretzels were? -woman: oh, awesome. -lemonis: pretzels were good. -zoe: awesome. pantelis: we'd like to take a quick second to say thank you to you, big guy. -pantelis: thank you. pantelis: means a lot for us, you know, being part of this. [ applause ] lemonis: as i stand here today, i'm proud of what's been done. you can see the pride on their parents' face. you can feel the pride in the town. this is a true family business. -zoe: hello. -man: hi. zoe: how did you like everything today? man: best chocolate i've ever had. zoe: thank you. lemonis: the most important thing that's happened, for me, is zoe's transformation, not only her understanding of the importance of her store, but her willing to listen to other people and compromise. i'm very proud of how you handled this whole process. i really enjoyed it. -zoe: thank you. i appreciate it.
lemonis: now the hard work begins. pantelis: yeah, we're ready for it. lemonis: very proud of you, pantelis. pantelis: thank you very much. petros: thank you very much for everything. lemonis: really proud of you. you have a great family and great parents. i'll see you soon. ♪ lemonis: tonight, on a special edition of "the profit," i'll take you to puerto rico, american paradise crippled by a perfect storm. reporter: hurricane maria slammed ashore, with torrential rain as much as two feet, turning roads into raging rivers. reporter 2: the situation here is dire. maria, the worst hurricane to strike the island in more than 80 years. i'm marcus lemonis. i had to see it myself. i have friends here, and i wanted to help them get out. thank you for your service. it was chaos, crowds of people just waiting for help. governor, how are you? how are you?