tv The Profit CNBC March 27, 2019 1:00am-2:00am EDT
to go back to square one and start over, 'cause i know she's capable, and i know she's smart enough, and she's got a great product. ♪ man: rolling. amber: what are you eating? lemonis: soup. amber: because someone feels we need a prop with each episode. lemonis: okay. listen. it was the only business we've ever done in milwaukee. if you have a business in milwaukee, please. we only had one business apply from milwaukee. the soup market can't be the only thing you give me. here you go. amber: here? lemonis: let me fix that. amber: no, no, no. please. enough. you're not doing my hair. lemonis: i did it last time. amber: i know, and i saw the way it looked. lemonis: and you were like, "wow, that looked amazing?" amber: no, i wasn't. we got lower ratings because of my hair. [ laughs ] lemonis: in the last 5 years, i've visited over 70 businesses. it was delicious. and i traveled the country, trying to fix the people...
woman: i don't want to be that person that cries on tape. lemonis: ...fix the processes... i don't think you guys have any idea what's in your inventory. holy [bleep]. ...and create a few products. welcome to your new store. man #2: oh, my god. woman #2: i owe my life to this company. lemonis: that is the reason that i'm here. i spend hundreds of days a year working on these companies. why didn't you do it? man #3: i thought that we did. lemonis: holy [bleep]. but we can't always fit everything i'm thinking into the show. tonight, we're going to give you an inside look at one of the most frustrating episodes ever -- the soup market from season four. dave: i think there's a lot of things that you're good at, but when you start getting into my area -- lemonis: i didn't know that we had defined areas. what did he think was going to happen? tonight on "the profit," marcus comes in and writes a check and has no opinion. amber: the end. lemonis: [ chuckles ] over the next hour, i'm going to take you behind the scenes to share with you what i was actually thinking during filming -- what is the big secret? everybody is talking about her except you. dave: this does not interest me anymore.
amber: what's going through your head? lemonis: he seemed angry, and i didn't know what he was angry about. amber: so serious, yeah. lemonis: and i coupled that seriousness and that anger with the whole grace thing, and i was like, "okay, there's something funky here." amber: right. lemonis: ...share some secrets... ma'am, would you like some soup? i know who you are. amber: i think dave's wife was following us. so creepy. she just shows up everywhere. she's everywhere! lemonis: ...and give you an honest assessment of my decisions. grace: you know darn well that i worked really hard. lemonis: i was pissed. grace: why should i be the one that steps aside because you have some personal problems? lemonis: i didn't want to be associated with a business that had a claim regarding sexual harassment, period. my name is marcus lemonis, and this is an inside look. tonight we're going to give you an inside look of -- amber: frustrating episode. lemonis: uh-huh. soup market. do you know why i chose the soup market? amber: because you went to school in milwaukee, and this is in milwaukee. lemonis: yeah. i like milwaukee. you ever been to summerfest? amber: no. lemonis: harley-davidson? amber: no. lemonis: miller beer? amber: no. lemonis: the milwaukee brewers?
amber: yes. lemonis: do you like cheese? amber: love it. lemonis: let's go to milwaukee! amber: that's wisconsin, cheese. lemonis: milwaukee is in wisconsin. amber: it is? lemonis: milwaukee, wisconsin. that's definitely going to be the opener. milwaukee has some of the best food and drink in the country, something i know well because i went to college there. that's me when i had hair, and one of the newer local favorites is the soup market... grace: hi, honey. how are you? lemonis: ...a quick-service chain started in 2004 by chef dave jurena and his business partner. dave: anything else for you, sir? man #4: nope, that'll do it. lemonis: dave did the cooking while his partner ran the business. woman #3: that's good. lemonis: and before long, the soup market had expanded to five locations with plans for many more. then dave's partner and co-owner died suddenly, leaving him struggling to run the company and putting his dreams of expansion on hold. dave: can't do it. lemonis: and that's why he reached out to me.
a high-margin, high-volume concept like soup would make for a great franchise opportunity... i agree with that. ...and with 2 million in revenue, the soup market may just be a few small fixes away from being the next big thing in fast casual dining. i had already been heavily invested into the simple greek, so i had this giant infrastructure in the ml food group, and so i thought to myself, "okay. if the soup market works, it could actually just be a sister to the simple greek inside of the same organization." amber: right. yep. lemonis: score. that's from "wayne's world," score. come on. party on, garth. i'm meeting dave at the soup market location in hales corners, a suburb of milwaukee. what i notice right away when i walk through the doors about the design, well, there isn't any. it looks more like a hospital cafeteria. estephanie: hello. lemonis: hi. estephanie: how are you today? lemonis: good. how are you? estephanie: good, thank you. lemonis: i'm marcus.
estephanie: nice to meet you. stephanie. lemonis: stephanie? nice to meet you. how are you? dave: hi, marcus. i'm dave. lemonis: hey, dave. how are you? dave: great to meet you. lemonis: nice to meet you. jill: i'm dave's wife, jill. dave: this is my wife, jill. lemonis: how are you, jill? nice to meet you. so are you both in the business? jill: no, i work at awm in athletics. lemonis: oh, you do? his wife was nice. nice lady. well, i've never been in a place like this, so i wanted to kind of get a feel for it. dave: all right. so the line where they serve people. lemonis: what's the most number of soups you have in one day offered available? dave: we do up to nine. lemonis: i want to taste what you're known for. dave: okay. well, i would start with the african peanut and chicken. lemonis: it does have peanuts in it? dave: yes, peanut butter, peanut butter. lemonis: peanut butter. it's heavy. peanut butter in your soup. stephanie: this is the hungarian goulash. lemonis: what's in this thing? dave: that is pork cooked in bacon fat. lemonis: i'm sorry? dave: yeah, you heard me. lemonis: what's the calories in this one? dave: we don't provide that. lemonis: you don't?
what if somebody asks? dave: a lot of people do. lemonis: people ask for lighter options? estephanie: yes. lemonis: healthier options? estephanie: yes. lemonis: "yeah, people do ask for the calorie count. but you know what? we're just not going to tell them." amber: because there's too many calories. lemonis: because we don't want them to run... amber: right. lemonis: ...away. go. that's the bread? that's a big piece. estephanie: yeah. lemonis: what sort of sales data comes out of this system? by store, by soup? dave: no, we don't have it by soup. we actually do different price levels. lemonis: you'd need some sort of sales data. how many different soup recipes do you have? dave: 200. lemonis: pause. all right. i want you to tell me every time you see dave smile. has he smiled once yet? amber: no, he doesn't smile a lot. lemonis: why? what is he so damn mad about? amber: i don't know. lemonis: pause. amber: you mean keep going? lemonis: play. is the bread frozen? dave: no, we bake it here. lemonis: does it smell a little frozen to you or refrigerated? dave: i'm not sure what refrigerated smells like. lemonis: well, this doesn't smell fresh to me. it doesn't taste...
now, did you come up with the original recipes? dave: most of them. lemonis: and would you call yourself a chef? dave: yes because i've gone to school and been trained. i managed a bakery and noticed how much soup they were making. that was actually how i met my late business partner, tim, who passed away a year and a half ago, sudden, unexpected, very unfortunate. lemonis: oh, man. dave: i was always the food side of the business, and he handled paying the bills and things like that. i am dealing with his attorney and his estate. there's no plan in place for succession or anything like that, so -- lemonis: and how much did you guys own? dave: 50/50. lemonis: 50/50. what are they asking for? dave: a little under $100,000. lemonis: over here would be great. soup first makes up how much percentage of the revenue? dave: about 60 percent. lemonis: did you make that up, or do you know that for sure? dave: it's pretty close. lemonis: soup is one. what would be two? dave: i don't know. lemonis: if you don't know your numbers, you don't know your business. can i see the different sizes? dave: yep.
lemonis: but i need to do business with somebody, not just eat their food. what does it cost to make this? dave: um... lemonis: what are the margins on soups? dave: i don't know. lemonis: if your ultimate goal is to have more than five of these -- is that the goal? dave: yes. lemonis: how many would like to have? dave: 50 is a number that comes to mind. amber: 50? lemonis: what's odd about this place is it doesn't feel like it's part of a chain. amber: where'd he get that from? lemonis: his ass. ...and if this thing was going to be nationally franchised, there's a lot of work to do. so what do you love about this place? tell me your background. estephanie: my husband and i met dave, and we try his soups, and we just fell in love with it. lemonis: he works here now? estephanie: yeah. lemonis: so who do you report to? estephanie: long story. uh... lemonis: why don't we go outside? estephanie: sure. lemonis: yeah. amber: stop. "long story?" because they all reported to someone that's not there anymore. lemonis: we're gonna find out right now. why you got to be the spoiler alert? amber: oh, sorry. sorry. lemonis: spoiler alert! so who do you report to?
estephanie: dave. [ chuckles ] lemonis: why do you say it like that? estephanie: uh...well... lemonis: is there something more to the story? amber: yeah. estephanie: well, there's somebody that works with us, who her name is grace, and she's also working along with me with this store. lemonis: oh, she works here. estephanie: i don't know what's going on with her. amber: first mention of grace. lemonis: stephanie seemed reluctant to tell me exactly what's going on, so i'm going to talk to other employees at other locations. whoa. this is a lot bigger. this feels very different. this was the original one? dave: yes. 2004. lemonis: how you doing? i'm marcus. kevin: good, kevin. lemonis: kevin? oh, hey. i think i just met your wife. kevin: that's me. yes! lemonis: she's, like, all energetic and excited. so what happens here? kevin: this is where we make all our soup and product for sandwiches. lemonis: okay. how long have you worked here? kevin: i've been here a little over 5 months. lemonis: what is your role?
kevin: it's kind of been changing. i was supposed to be, you know, regional, helping him oversee five locations and get him some structure. lemonis: did he need structure? is it hard saying it with him standing there? kevin: no, it's not. dave: go ahead. oh, i know. kevin: i want to create a better people culture throughout the restaurants, and he needs to let me do that and trust me. lemonis: what does that mean, "let you do that?" kevin: he needs to trust me. dave: i don't want to just turn him loose to, you know, go visit the stores. i want to know what he's up to. lemonis: how do the stores get human contact, and who do they get it from? dave: a lot of phone calls, a lot of texts. you know, there is communication. lemonis: human contact. who tells them they're doing a good job? who gives them a hug? who does all that? kevin: grace was helping out with that as well. lemonis: who's that? kevin: grace. lemonis: she works with stephanie? what's that? dave: she'll be leaving, so she's not part of that. lemonis: oh, she's leaving? oh. okay. amber: everyone was told not to mention grace.
lemonis: he told me not to mention her, too. amber: right. lemonis: look how fired-up he looks. amber: he's beet red. lemonis: beat, like he's about to beat somebody down. hey, kevin? kevin: yeah? lemonis: what is the grace thing? kevin: i have no idea. maybe it's like a brother and sister thing where they can't get along. lemonis: yeah. no, i don't think it's that. kevin: i've seen arguments. lemonis: you have? kevin: it's just been dysfunctional since i got here. lemonis: it has been dysfunctional? kevin: yeah. lemonis: wow. kevin: yeah. amber: this is actually the fist time we've ever gone into a business and there's really one person that someone is not supposed to mention that you're not supposed to meet. i don't know any other business where this happened. they were all scared of him. lemonis: the public market is a co-op of individual vendors. the soup market makes its soup bases for all five locations here. so this is where you make the stock? dave: yes. lemonis: where's the? dave: no, we don't stir it. lemonis: you don't? just let it sit. dave: no. if you do it, you'll make it cloudy. lemonis: okay.
ma'am, would you like some soup? i know who you are. here's the thing that was weird. i legitimately thought it was a customer standing there. when she's like, "no, i'm dave's wife," i was like, "oh." amber: do you think it was weird she showed up? lemonis: yes, i thought it was weird. amber: she's watching him. lemonis: yeah, she was watching him. okay. does your wife come to work here every day with you? dave: nope, never. lemonis: why is she here today? dave: support for me. lemonis: is that the reason? dave: and to keep grace away. lemonis: what is that about? dave: i'm not going to talk about it on camera. amber: grace. lemonis: but i got to understand it. what is the big secret? because everybody is talking about her except you, and so it makes me uneasy. dave: i'm just -- i'm not going to talk anymore about it. lemonis: do you see how that even makes it weirder for me? dave: next subject. amber: ugh. lemonis: why are you getting so angry at me about it? dave: all i'm going to say is i don't want to talk about it. lemonis: why did you call me? dave: because i thought you could help. lemonis: i am going to help. dave: but if this keeps festering and coming up,
i'm not interested in talking about it. lemonis: dave, what is it that keeps festering? dave: marcus, i like you. i think you'd be -- lemonis: well, you obvious don't. dave: i think you'd be great for this business, but, you know, this does not interest me anymore. lemonis: dave, what did i do to you that's making you so upset? dave: i just wish you would change the damn subject. anything other than that. you know what? i appreciate your time. thank you. you know, i'm sorry you wasted it. i have no interest in pursuing this now. ♪ amber: in this moment, what's going through your head like, "okay. there's a secret. he doesn't want to talk about it." lemonis: he seemed angry, and i didn't know what he was angry about, and i coupled that seriousness and that anger with the whole grace thing, and i was like, "okay, there's something funky here." maybe she was the original partner. maybe she had some information about some financials. in my mind, i'm thinking, like, what does she know about the business that he doesn't want me to know? how come i haven't met you up until now? grace: because dave requested it, that i be invisible.
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i'm not sure why you reacted the way you did. i stood around there out of respect to him, and an hour later, he finally calls me back. dave: last august, she and i got in a big dog fight. we kind of came to the mutual conclusion that the best thing for her to do is to look for work elsewhere. you know, then it's like, you know, her name gets mentioned -- lemonis: so what i'd like to do is put that behind us. let's go back to work. dave: all right. lemonis: the fact that he's giving me this answer that she's going to be leaving doesn't mean that i just wiped it off my memory bank. i just put it off to the side. let's dig into the financials, and let's understand the business a little more. enough about grace, more about business right now. and so when i dig into the numbers, it's clear to me that you've proven that you can generate revenue, $1,850,000 in revenue, and how much debt is in the company today? dave: $85,000. lemonis: not much. counting any money you owed to tim? dave: we had come to an agreement on about $100,000 buyout.
lemonis: so there's $185,000 of liabilities, and the consolidated margin is probably somewhere around 52, 53 percent. they should be closer to 70, 72 percent. look, i'm a big fan of soup, and i love to eat it, but i want to make sure it has really healthy margins. in order to close the gap between 52 and 70 percent margins, the soup market could use more cost-effective ingredients without compromising quality and make sure items are priced properly. right now dave doesn't even know how much it costs to make a single serving. making those adjustments could give him an 18 points of margin. with the current $1.85 million in gross revenue, that would be an additional $333,000 of gross profit. i could have done a better job in this particular explanation. margins in the food business are a function of food costs, and food costs are what you really ultimately want to focus on, and your food cost should be 30. if you start to break over 30 percent in food cost,
it gets expensive. at a restaurant, you may have an item that has more than 30 percent food cost, like a steak or something like that, but once you add the broccoli and the rice and the french fries, you're basically taking that total average down. in this particular case, his food costs were almost 50 percent. amber: and why was the food cost so expensive? where he bought it from or...? lemonis: no, the ingredients. see the little circle? amber: uh-huh. lemonis: we have $100,000 problem with the estate, an $85,000 problem in terms of your debt, and we probably have $130,000 problem in terms of -- i want to brighten up some of the stores and update them a little bit and rebrand them, so my offer is $315,000, and i want to slide in as your 50/50 partner and just take out the estate. dave: i mean, saying you want to put money into the stores, i'd be interested to see what that looks like. you know, i mean, we're going to get a concept before we --
lemonis: no. so my offer is $315,000 for 50 percent of the business and i'm 100 percent in charge of everything. dave: of course. lemonis: of everything. dave: of course. lemonis: we got a deal? okay. dave: thank you, marcus. lemonis: there you go, man. i'm excited. are you excited? dave: oh, yeah. lemonis: oh. okay. amber: he has zero trust with anything. like, he can't -- lemonis: you can see even the way he looks at me. amber: yeah, he has zero trust. lemonis: and by the way, when i said no to him -- amber: right. you were just saying no to him. lemonis: i was just saying no to shut him down. of course he's going to be part of the process. he's like, "yeah, we get it." amber: hmm. lemonis: before we spend a bunch of time making healthy soup options, we need to find out how unhealthy the ones that he has now are. northland lab is one of the world's leading researchers on food nutrition. gretchen: hi. gretchen. lemonis: good morning. i'm marcus. gretchen: nice to meet you. lemonis: this is my partner, dave.
dave: hi. dave. nice to meet you. lemonis: this should be an eye-opening experience for dave. we're going to test the african peanut soup. let's do it. gretchen: this is going to tell us the total protein. we're reading the nitrogen gas content. lemonis: how cool is that? amber: it's very cool. gretchen: so this is an automated method for looking at the fiber content. lemonis: and so could you take a soup like ours and then add something to it that could make it have fiber? dave: we're getting into an area that makes me uncomfortable. messing around too much with existing recipes, that concerns me. lemonis: have you ever tried? dave: no. lemonis: why? dave: because i don't think like that. amber: you'd think when people apply to this show, they actually want your advice, right? lemonis: what did he think was going to happen, i was just going to open up 50 and not taste the food? amber: and not have an opinion. lemonis: right. tonight on "the profit," marcus comes in and writes a check and has no opinion. amber: the end. lemonis: [ chuckles ] gretchen: this is all of the information that we provide. so here's your total fat. lemonis: boy, that's high. gretchen: it's just alphabetical. dave: i don't want to limit the things that people have come
to expect, you know, just because all of a sudden we got on a health kick. gretchen: the cheeseburger one, could you do a low-fat version of it? not get rid of your original. dave: i'd rather just get rid of it at that point. you know, that soup is not meant to appeal to the bikini crowd. lemonis: whoa, whoa, whoa, whoa. you mean the non-heart attack crowd? can you make a lighter version of it? dave: quite honestly, it doesn't really appeal to me. lemonis: there'll be no healthy options. like, you remember the old "seinfeld" episode. dave is like, "no healthy soup for you. no healthy soup. you will eat a fat soup, and you will like it." dave: i think there's a lot of things that you're good at and you can bring to the table here, but when you start getting into my area -- lemonis: which is your area? dave: food. lemonis: i didn't know that we had defined areas. i'm really trying to get you to be better and think differently. pause. amber: i think i'm going to say that to you from now. "you know, there's a lot of things that you're good at it, but when you get into my territory, producing..."
[ laughter ] what a jerky thing to say, for real. i mean, that is -- lemonis: you just said it to me. amber: not like that. lemonis: you said, "yo, stay in your lane." amber: that's actually nicer than this. i'm not a condescending jerk about it. lemonis: no. you're just an upfront in-your-face sort of -- amber: [ laughs ] i'm just an upfront jerk. lemonis: hey, bud. so i have somebody on the way that i'm partners with in another business. it's going to help us redo the inside of the store. we're going to clean up the facade, and we're going to look at the menus. we're going to do all of that stuff. wow. dean, dave. dean: dave? nice to meet you. lemonis: dave, dean. dave: nice to meet you. dean: how you doing? lemonis: let's come out in here. so dean is my partner in a business called precise graphics. what did your business do before we met? dean: 3.4. lemonis: and what do you think you'll do a year later? dean: close to 11. lemonis: wow. my ultimate goal with the soup market
is to create a national scalable franchise model. amber: pause. did you think this business really could be a franchise? lemonis: i did. amber: yeah. lemonis: i mean, honestly, i think that's why i hung in there as long as i did. people do like soup. amber: yeah. lemonis: okay? it's sort of portable, and it's easy, and you can -- it's quick, and it's hearty and all those things, and by the way you could do soup and what else? amber: salad? lemonis: and soup and what else? amber: sandwich. lemonis: there you go. lemonis: so we may have to close for 3, 4 days. dave: yes, and i'm glad we're only doing one. i went to the simple greek yesterday. it's very stark. lemonis: the one that sold 56 franchises in 4 months? dave: it's very white. it's very -- to me, it's a little cold. lemonis: everything that we do, you're not going to have full control of. you got to get your head around that. dave: sure. surprise me. lemonis: okay. perfect. thank you. dave: all right. lemonis: trust. he's a dick. dave's constant resistance is exhausting, so i'm going to spend some time with kevin to really dig into these operational issues.
where are all the sandwiches at? estephanie: this buddy is not working good. kevin: that went on the fritz. estephanie: so we just put them in here for now. kevin: yeah. lemonis: is there any other equipment not working? estephanie: this one right here is, like, old and really having problems with it. we already fixed it, like, three times. kevin: yeah, and -- yeah. i've never seen it quite like that. estephanie: excuse me. kevin: i haven't been to this store for a while because i've stuck at bay view. lemonis: if kevin is responsible for operations, but he's not in charge of this stuff, then who is? oh, ma'am. you can't have customers back there. grace: i'm grace. lemonis: i'm sorry? grace: i'm grace. amber: bum-bum-bum! lemonis: jackpot! with grace coming, you should just press pause on your television and find some popcorn and then press play. grace: i needed to let all this out. you need to be brought out and be told, "it's not okay to treat people like that. it's not."
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that's not my problem, it's your problem. book at hilton.com and get the hilton price match guarantee. by having a cool business in milwaukee... amber: right. lemonis: ...and making it a sister to simple greek and how it all -- i think i really was honestly romancing that whole idea. amber: you were, but i also think when people are definitely kind of an enigma to you, you do like to stay and just sort of figure it out and just really test the waters and see kind of how long and how much you can push and what, you know -- you do kind of like this at times. you think that i do as a producer, but sometimes you're like, "okay, i'm going to get this dave guy to crack," and you think like that too sometimes. lemonis: yeah, that's true. oh, ma'am. you can't have customers back there. grace: i'm grace. lemonis: i'm sorry? grace: i'm grace. lemonis: excuse me. let me introduce myself to her. kevin: okay. lemonis: hi, grace. grace: hi. lemonis: i'm marcus. nice to meet. grace: pleasure to meet you. lemonis: i'm sorry for stopping you when you came through. i didn't know who you were. grace: well, i'm kind of freaked out, and i'm shaking right now, so i'm here to drop off keys. our staff doesn't have keys for all stores.
lemonis: okay. what are you freaked out about? grace: our situation that i find myself in right now. lemonis: what is your role with the company? grace: i'm the director of operations. lemonis: i thought kevin was the -- grace: no. lemonis: problem. everybody needs to get their story straight. okay. here's the deal. pause. amber: this is good stuff. lemonis: with grace coming, what do i want you to do? amber: enjoy the ride. lemonis: i don't normally like to look right at you, but right now i'm going to tell you that you should just press pause on your television, get up and find some popcorn and then press play. okay? let's go. what i don't understand is how come i haven't met you up until now? grace: because dave requested it, that i be invisible. lemonis: he told me that you weren't even working here anymore. grace: you know, that's hurtful. lemonis: do you still work here? grace: i do. lemonis: do you get a paycheck? grace: i do. lemonis: okay. something really stinks here. grace: all right. the details are this -- he's got a wife who does not, for some reason, trust her husband. he and i have never crossed that line ever.
they're making me a problem in their marriage. lemonis: yeah. grace: that's interfering with my livelihood. lemonis: do you love this place? grace: i do. i have a really great relationship with all of the employees. lemonis: on a daily basis, who should run the business every day in your mind? grace: myself and kevin. lemonis: you want to work with kevin? grace: oh, kevin is a saint! he does come with a great deal of experience. lemonis: and he reports in to you right now? grace: no, kevin comes in 3 days a week, helping in the kitchen, helping develop that area. lemonis: yeah. grace: he's a good man. lemonis: i'm done soft pedaling on this issue. i'm going to confront dave, and i don't care if he likes it or not. yeah, that was interesting. oh, hey. kevin: oh, hi. lemonis: how are you? jill: hey. lemonis: as we're leaving, who do you think we ran into? how are you? jill: good. lemonis: yeah, again. isn't that a small world? jill: yes. lemonis: i told you she was lurking. amber: it's so creepy. she just shows up. i think dave's wife was following us. she just shows up everywhere. she's everywhere.
lemonis: look, the renovations are underway to build the prototype for the soup market back at bay view. i gave them instructions to remodel the entire front of the store, but now i'm wondering if i didn't jump in too quickly after what i just learned about the situation with grace, but all i could do now is tackle this thing head on, and if he isn't straight with me, i'll take my losses from the renovation out front, and he will never see me again. amber: pause. how much did you spend here? lemonis: on the renovation? amber: yeah. lemonis: 100 grand. amber: so all this stuff is happening with the weirdness of grace and the wife showing up at random places... lemonis: yep. amber: ...and dave being dave. lemonis: mm-hmm. amber: and you still put $100,000 into the business? lemonis: well, because i want the business. i was caught up in the romance of owning a cool business that i can make cooler in milwaukee. amber: right. lemonis: okay. so i went to hales corner. while i was there, some woman comes barging in,
rushes by the counter, and i actually said, "ma'am, you cannot go back there." dave: uh-huh. lemonis: she said, "yes, i can. i'm grace," so that's number one. she proceeded to tell me she was the director of operations. you didn't tell me that. she told me she still worked there. you didn't tell me that. dave: but you have to understand it was really awkward. lemonis: i can't work in an environment where you and i just can't be straight the whole time. dave: hmm, wow. lemonis: you should be very careful about what you're saying. if your business is in trouble and you need my help, log on to theprofitcasting.com. i can choose from all their different hotel brands... like a doubletree for my cousins. a homewood suites for my uncle. a hampton for my sister and her kids. and the waldorf astoria beverly hills for me. can i get a..? thank you.
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lemonis:yes, i could. you not i go to movies all the time. what are you doing? i thought you didn't want to get popcorn. you were like -- amber: can you show me that popcorn please? so, yeah, you're producing this -- lemonis: why did he get more popcorn than me? amber: apparently he likes to enjoy the show, too. lemonis: oh, i wanted to tell you something. have we ever been to a movie together? amber: no. lemonis: really? amber: un-uh. lemonis: we've never been to a movie together? amber: i don't think so. lemonis: what are you doing with -- like, we have cameras. amber: we've been to -- lemonis: we don't need your phone. amber: we don't have one -- we've been to a play together. you couldn't sit through the whole thing. lemonis: it was a dumb play. amber: huh?
lemonis: i can't work in an environment where you and i just can't be straight the whole time. dave: hmm, wow. lemonis: and you should be very careful about what you're saying. dave: well, when tim died, she stepped up, and one thing i will never trash is her work ethic. i can't fault her for that. it's the personal side. lemonis: no [bleep], no games, no gimmicks. did you ever have feelings for her? dave: i did, and i told my wife that. lemonis: yeah. dave: and it's -- lemonis: and it was over. dave: and it's done with. nothing ever happened. lemonis: yeah. pause. amber: bingo! lemonis: okay. so he like -- amber: so he had feelings about someone. lemonis: so he had feelings for somebody. it's like, "okay. that's not a big deal." amber: really? lemonis: he had feelings. he didn't do anything. amber: right. so then why was it such a big deal? lemonis: that's what i couldn't -- amber: who cares? why -- lemonis: because what dave did is he made it, like, a mystery that everybody wants to solve. i appreciate you being honest with me about it. let me be super clear, this nonsense with grace stops right now.
♪ i wasn't going to move forward... oh! this is my favorite part of the whole episode. we're going to stop serving that weird refrigerated bread. we're going to serve up something with a twist. woman #4: it comes up through this machine here and turns it into a string, and then we have twisting and shaping. lemonis: you might think homemade bread is cheaper and more profitable, but baking our bread, we're using a ton of labor where we could use somewhere else. by serving these pretzels, we free up our labor, and we're able to add something to the concept that increases the perceived value of the menu, giving us the ability to raise our prices. dave: i like it. lemonis: you're open to that? dave: oh, yeah. lemonis: i also wanted to take dave to maglio's, one of the largest produce suppliers in all of wisconsin. historically, dave would buy grade-a tomatoes, the kind you would see in a beautiful salad, but when you're making soup, presentation of the tomato doesn't matter.
the quality and the taste do. so in the past, dave would spend around $5,000 a month in tomatoes, but you can buy grade-b tomatoes and save about 20 percent. over the course of a year, dave would save about $12,000. and that extrapolates across all sorts of vegetables. dave: you want to try my new soup? lemonis: that's it? dave: that's it. lemonis: what's in it? dave: it doesn't have any dairy. lemonis: it was delicious. amber: so stop. do you think because the grace thing is behind him, he's now being a little bit more open-minded, trying different things? lemonis: so here's what i determined with dave. he usually would come around, like, a week later. amber: right. lemonis: so i started to notice that if i said something to him today, he'd say no today, and then a week later, he'd come back and do it, and the soup, by the way, was fantastic. it's been about 2 weeks since i've seen dave, and i'm back for the grand opening of the new
and improved soup market, and i have a feeling it's going to look amazing. kevin: well -- amber: wow. lemonis: see that giant pretzel on the wall? amber: the place looks great. yeah. lemonis: look at the place. amber: it looks awesome. lemonis: what do you think? dave: incredible. lemonis: i spent over $60,000 renovating the soup market -- new floors, an entirely new front counter, a new pos system so we can keep track of what's selling and not selling, new wall graphics. dave's soup forecast! dave: mm-hmm. lemonis: a new facade, new lighting -- and we got our pretzels. dave: we do. dessert pretzel is an interesting idea. lemonis: yeah, it just gives you one more add-on. i invited all the people from the local community to come out and try the new soup market. hello! crowd: hey! lemonis: okay. so this is dave. dave: thanks a lot for coming. this has been a long process, but we're real happy with it,
and we hope you are, too. let us know what you think. lemonis: that's it? dave: that's it. that's all i got. lemonis: let's go have some soup. dave: all right. man #5: let's go with the mexican corn, please. really impressive. lemonis: there's a vegan gazpacho. there's a vegan mexican lentil. do you feel like there's enough healthy options? man #6: absolutely. lemonis: so what do you think? jill: this is awesome. lemonis: are you proud of your husband? jill: very. lemonis: suddenly, i see grace hovering outside, and i realize that she's not inside celebrating with the rest of the staff, and i'm pissed. you and i. dave: let's do it. lemonis: dave had better not be excluding her because we talked about this. okay. it's probably a good idea that, you know, you guys get whatever water is under the bridge behind you and -- grace: absolutely. you know darn well that i worked really hard to ensure that you would get what is happening today, dave. you did not ask me to come here.
why should i be the one that steps aside because you have some personal problems? and it's very hurtful that i get to watch from the outside everything that's going on inside. i needed to let all this out. you need to be brought out and be told, "it's not okay to treat people like that. it's not." how dare you? lemonis: well, hey, grace. how are you? grace: my employment at the soup market has been terminated. he took out his phone. he dialed 911, and he had the police come and escort me out. lemonis: i was pissed. you can't just do that to people. amber: no, you can't.
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the world's most refreshing beer. coors light. grace: i needed to let all this out. you need to be brought out and be told, "it's not okay to treat people like that. it's not." how dare you? lemonis: "how dare you?" amber: "how dare he?" lemonis: you were very helpful to the business. you were an amazing worker. he's owned all of it. grace: all of it? lemonis: all of it? dave: yeah. i never talked about your work quality. things that end badly, you know, there's always regret. i am sorry. grace: thank you. i appreciate that. lemonis: your friendship maybe will rebuild over time, and your respect will rebuild over time. okay. we're making progress here. grace: i think that we needed to, like, you know, vent and get it out. lemonis: look, i'm glad that dave apologized to grace, but the fact remains is that he did exactly what i told him not to -- exclude grace to punish her. dave: all right. lemonis: okay. grace, thank you so much. right now, this grand opening is in full swing,
and the only thing that i could think of is that maybe i made a mistake with this guy. ♪ it's been about 10 days since the grand opening, and i'm back in chicago at work. [ cellphone rings ] hello? then i get a phone call from somebody in milwaukee. grace: marcus? lemonis: yes. grace: hi, marcus. this is grace. lemonis: well, hey, grace. how are you? grace: i kind of wanted you to be in the loop of what's going on. my employment at the soup market has been terminated. he walks in and says, "you are fired for insubordination." he said, "you need to go now. you need to go now," and i refused to accept that. i said, "no, i'm not going to leave." he took out his phone, he dialed 911, and he had the police come and escort me out. lemonis: literally the police came? grace: literally the police came. lemonis: after all of this, now he fires her? grace: i want to give you a little bit of a backstory because unfortunately for him he does have the eeoc hanging over him.
two months ago -- amber: the what? lemonis: the eeoc. grace: he made an advance. he has strong feelings for me. i did not accept the advance, and that was part of the eeoc. yes, i did file one because of the situation. lemonis: so you filed the claim with the eeoc? i knew that dave had feelings for grace, and i knew it wasn't a healthy situation, but to find out that she filed a complaint with a federal agency for sexual harassment and to find out that he's now terminated her employment after everything that's happened? this is a real big problem. let me get a hold of him, and i'll get back with you, okay? grace: sounds good. thank you. lemonis: take care. bye-bye. grace: all right. bye-bye. lemonis: i was pissed. amber: yeah. lemonis: because i didn't want to be associated with a business that had an eeoc claim regarding sexual harassment, step one, period, new sentence. it's against the law to fire somebody once they file a claim.
they become protected. amber: right. lemonis: you can't just do that to people. amber: no, you can't. lemonis: and i thought, "if this guy reacts this way, i can't take this risk." amber: right. lemonis: for exclusives, extras and business advice, visit theprofit.cnbc.com. what does it take to work that's a great question. if you'd stop in a monsoon to help someone change a tire,
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♪ would yo♪ like it anyway? [ ringing ] grace: hello? lemonis: grace? grace: yeah. lemonis: marcus lemonis. grace: oh, my gosh. marcus, how's it going? lemonis: how are you? grace: everything is wonderful with me. amber: grace, did you know that we made t-shirts about you? we made t-shirts that said, "who's grace?" grace: yeah, i believe that.
i've gone to concerts in san diego where people have, like, stared at me and said, "you're grace." everybody has a person or has seen the episode has been very supportive and been kind, and i get a lot of women saying, you know, "thank you for speaking up." lemonis: i think you proved to a lot of men and women that if they feel wronged, they don't have to take it, and i think you should be very proud of yourself for that. grace: aw, you're so kind. lemonis: take care of yourself, and we'll talk to you soon. amber: good luck with everything. lemonis: bye, grace. amber: bye. ♪ lemonis: i'm heading back to milwaukee because i'm going to confront dave about this phone call that i got from grace. he had the gall to terminate her employment. i'm not going to tolerate this kind of crap from dave. hi there. what the f? kevin: hey, marcus. lemonis: how are you, buddy? what's the good word? look. look at the sign. what happened to the menu items? kevin: well, on my end, i've been trying to get that done. lemonis: and where's all that stuff?
kevin: that, you know, we didn't use enough items. lemonis: how's the new pos system? kevin: dave wasn't happy with how much work it took to enter the soups every day. amber: wow. pause. what do you think at this point? you come into this business -- lemonis: i'm coming back to confront him about... amber: about something else. lemonis: ...the grace issue, and what i walk into is he basically took the concept that him and his wife both said they were happy with, the customers liked, and he just unraveled the whole thing. amber: right. lemonis: and it was almost like he said yes to me while i was there just to placate me. amber: yeah. it's a big "f you," right here. lemonis: it was a big "f you." so what? i mean, it's like, we need the data, you know? kevin: i know. lemonis: where's the pretzels at? and what's that now -- what's this thing? kevin: that's his ice cream. lemonis: i never knew that. putting a white cooler on the counter to sell ice cream. pretzels are gone. let's just assume that i couldn't have been any more pissed at dave. well, i've broken a new record. i'm more pissed. how you doing? dave: good, how are you? lemonis: how are you? so where's everything that was put up here? dave: it's down.
it was confusing. lemonis: why? confusing to who? dave: the customers. lemonis: but just to take them off, and what happened to all that stuff? dave: you know, these are great ideas in theory or in your head -- lemonis: in my head or in reality? dave: no, you came up with the idea. it's not practical. lemonis: what's not practical, to change a menu board? dave: i look at the expense. i don't want to do that. lemonis: you didn't pay for any of this. i paid for it. you haven't put -- taken a dime out of your pocket. kevin, can you give me a minute with dave? kevin: sure. lemonis: i'm sorry. this was about building a prototype for a soup concept, and then, after all this stuff is done, you basically just dismantled it all. dave: okay. the problem i have, you just come in and you do things without any kind of consultation. this just appeared, and then on the day -- lemonis: i'm sorry. this beautiful store just appeared? you know what else just appeared dave? a filing from grace. i was able to get over the fact that you were very secretive about this because i felt like i got the reason why towards the end. what i can't get over is she says you made advances to her.
this [bleep] pisses me off. dave: i'm working on that. lemonis: what do you mean you're working on it? dave: i have an attorney handling it. lemonis: dave, i got to tell you, she is going to light this place on fire. i mean, dave, this is bad. when she calls me and tells me you fired her, it's like, "come on, man." honestly, the biggest issue i have right now is that you have to respect people, and these claims about you sexually harassing her, like, i don't want to be partners with somebody that does that. dave: you know what? it's fine. i think i came to that conclusion on my own as well. lemonis: you came to what conclusion? dave: that this is not a good partnership. lemonis: if you came to that conclusion on your own, why didn't you call me? amber: because he'd rather just take all your stuff down. lemonis: because you don't have respect for me either. nice meeting you, dave. good luck to you. i've spent about $100,000 on this business, but i have to walk away. i don't want to be in business with somebody that won't compromise, and while i don't know exactly what happened between him and grace, a federal agency will determine that. i've seen enough to know one thing -- this guy does not know how to treat people,
and at the end of the day, i saw his true colors, so i'm out of here. amber: that is the bottom line, is that he has no respect for anybody. doesn't have respect for his wife. didn't have respect for you. didn't have respect for employees. didn't have respect for -- lemonis: grace. amber: grace. and so now what happens to all your money? lemonis: it's gone. i cut my losses, and in a situation like this, it's just a loss. amber: you can't ever get anything back from somebody like that. lemonis: what are you going to get back? amber: the money you put into it. lemonis: take the wood off the walls? take the pretzel down? amber: have you talked to dave since this? lemonis: you know what? i went back to public market to have lunch, and -- amber: was he there? lemonis: he was there, and i just said, "hi. hey, dave. how are you doing?" and he just waved, and then when i sat down, the guy next to me is like, "hey, man. isn't that the guy from the soup market from the episode?" i was like, "yeah." he's like, "is it uncomfortable to be here?" i was like, "yeah, it is." amber: yeah. ♪
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