Tonnie's Mini Cupcakes

Tonnie's Minis on The Profit

Build Your Own Cupcake - Episode 303 - May 26, 2015

Tonnie's Mini Cupcakes seen on
The Profit in Season 3, Episode 3

 In the third Episode of Season 3 it looks like Marcus Lemonis is going into the Tonni's Mini Cupcake Business. The Tonni's Minis owner Tonnie Rozier has been in business since 2006 with an interesting Build Your Own Cupcake concept that certainly seems like a sweet deal considering the high margins involved. At the time this Episode of the Profit was filmed for CNBC Prime, Tonnie's Minis was averaging $500,00 per day in sales from one location at Inwood, New York. At one time, Tonnie had three stores, but for obvious reasons Marcus soon discovers, two stores were forced to close because of mounting debt. The last store doesn't seem to be in the best of locations either, but apparently was generating the most profit.

The Profit Star quickly learns Tonnie's wife has invested $250,000.00 over the past ten years with no real business plan to recoup her investment. Furthermore, Toni's Mini Cupcakes has an additional $134,000.00 in debt on the books and falling further behind with each passing day.
The small location has a good idea building your own cupcake, but zero process involving the customer in the experience.


Marcus meets Tonnie's sister Tamoka, who's also the General Manager and been working for little pay for the past year. He quickly discovers the baking process also seems a little broken when Lemonis finds two mini cupcakes within the same batch that cannot be sold. She wants to change the process, but Tonnie seems set in his ways and reluctant to change. Lemonis also discovers Tonis wife who got a hold of The Profit Show and primary investor in Tonnie's Minis, doesn't have much say in how the business is being run either. Going over the numbers the business is generating $500 in revenue, but almost $400 in expenses not including paying any debt down.

From all the Profit Shows I've watched thus far, (all of them) Tonnie's Mini Cupcake's seemed a little small and too far in debt for Marcus Lemonis to consider as an investment. But the idea of building your own cupcake's into a National Brand is an excellent idea indeed. Tonnie's Mini Cupcakes already has the dedicated "People" part of his 3-P's Successful Business Model, and a good product with a unique twist. The main ingredient missing was a reliable process to sell more gourmet cupcakes and make this a profitable and successful business.

Tonnie Minis makes deal on The Profit

During CNBC's preview of Tonnie's Minis on The Profit, Lemonis gets down to business with Tonnie, his Wife and his Sister during the negotiations. Going over the $134,000.00 in outstanding debt, Marcus learns the business also borrowed $10,000.00 from a Loan Shark, who collects with interest on a weekly basis. For obvious reasons, Tonnie's Wife who's already invested $250k and didn't know about the other loans is clearly upset. Nothing about this deal seems to be adding up as a good investment, but Marcus still see's the profit potential in this relatively small bakery.

Marcus offers Tonnie's Mini Cupcakes $100,000.00 to help pay off some of the debt and have the working capital needed to apply his new process to start making a profit. For his investment that's basically a very good idea at this point, surprisingly, Lemonis only asks for 20% equity stake in this opportunity. Considering the mounting debt and no real plan to pay it off generating only $500.00 a day in sales, most entrepreneurs would gladly accept this low of a percentage for what The Profit Star brings to the table. Tonnie, on the other hand, valued his Build Your Own Mini Cupcake idea at a much higher valuation. He offers Marcus 33% stake in the company but wants a $600,000.00 check for a third of essentially a good idea. For $600k couldn't The Profit Star just start his own Bakery (or two) making custom cupcakes with a better process firmly in place?

The producers picked a good time to end the preview of the next The Profit Show this Tuesday night that make's you REALLY want to tune into CNBC Prime. Marcus seems offended by Tonnie's counter-offer where everyone gets paid with a few coins to spare in basically a good idea, but clearly not making any profit thus far.

With a valuation of $1.8 million from a small bakery generating $500 a day that doesn't even cover the expenses, Marcus Lemonis famously say's. "Wrong Show". Will The Profit Star convince Rozier he's offering a once-in-a-lifetime opportunity because He's on the Right Show? And the only way to make this idea successful and worthy of that kind of valuation is first show a Profit by changing the entire process.

Watch The Profit this Tuesday night on CNBC Prime at 10 P.M. Eastern and see if Marcus Lemonis makes a deal with Tonnie's Mini Cupcakes and takes this very good idea Nationwide.

Everyone love's cupcakes, especially when you can build your own.

Tonnie's Mini Cupcakes Website
FaceBook
Twitter