Standard Burgers on The Profit
Hamburger Restaurant - Episode 304 - 6/2/2015
|Standard Burgers Owners with Marcus Lemonis|
from The Profit Show on CNBC
When Lemonis first visits Standard Burgers on Stanton Island, He meets Lazoja for the first time after exchanging emails for the past two years. Apparently it took more than a few emails to Marcus to finally get his attention, but the persistence paid off as he slowly convinced him Standard Burgers was setting a new standard in the burger market. The Profit Star's first impression didn't seem that impressed when the cameras started to roll.
Getting right down to business, all four owners of Standard Burgers meet Marcus as he takes the initial tour. Sammy's invested over $250,000.00 in Standard Burgers and owns 45% of the business. Todd Baslin & Joseph Tranchina own 22.5% of the company each, and Joe C. has a 10% controlling interest. None of the owners work there full-time. The restaurant has been in business since 2012 and losing $5 to 6 thousand a month when The Profit Show was filmed.
To understand the Standard Burger's process, the successful entrepreneur transforms from an employer of over 6000 strong, to an employee by putting on a Standard Burgers t-shirt. This is, in my opinion, what sets Marcus Lemonis apart from most Angel or Shark Investors by working side-by-side with the people and learning the process for making the product first hand.
As far as CNBC's sneak-peak of Standard Burger on The Profit Show, there doesn't seem to be much of a process in place. In fact, there appears to be a trust issue with some of the owners spending more time monitoring cameras then the time spent at the restaurant. How could a small burger restaurant with four owners who don't seem to get along and losing thousands of dollars a Month, get a deal on The Profit? By bringing back their secret weapon that made Standard Burgers a huge success when the restaurant first opened.
It turns out Sammy's Brother Fuji ?, who helped design the original Standard Burgers menu and ran the day-to-day operations, quit seven months before The Profit filmed this episode. The pressure of too many owner operator bosses with no real process in place was too much to handle. Fuji was also the only qualified person to run a restaurant when Standard Burgers first opened having 25 years experience in the industry. After two full years exchanging emails with Marcus Lemonis leading to Standard Burgers being featured on The Profit, Sammy never mentions this critical fact. It's no coincidence Standard Burgers has been losing money ever since Fugi quit working at the restaurant.
The Standard Burgers was generating $600,000.00 per year in revenue, but still losing money mainly because of the high food costs. As bad as the financial situation seems to the owners. Marcus optimistically still sees a way making a profit starting with controlling the costs. At least two conditions apply before Marcus will consider a deal with Standard Burgers. First, one of the owners must commit to running the day-to-day operation that Joeseph Tranchina agrees to the position. Second, Lemonis insists Fuji is re-hired as he's the only one with decades worth of restaurant experience. Does Fuji get an equity stake in the newly formed partnership? We'll have to wait until CNBC airs this episode of The Profit, but most likely this will also be another condition Lemonis will insist on if they want him as an investor.
Standard Burgers Update after The Profit ShowThe Standard Burgers episode on The Profit first airs on CNBC this Tuesday June 2, 2015. Coincidentally, they're also having a re-Grand Opening this Saturday June 6th filled with activities on Stanton Island. I wonder if The Profit Star might also be attending this event? That alone would be worth going to Standard Burgers re-Grand Opening to see his "people, process and product" now firmly in place.
Watch The Profit on CNBC this Tuesday night for the complete details Marcus offers Standard Burgers in episode 304.
Standard Burgers Website