The First 10 Minutes: Grey Block Pizza | The Profit

Summary

This video follows Marcus Lemonis as he helps a pizza business, Gray Block Pizza, in Santa Monica, California. Owned by Thomas Schiffer and managed by his business partner Lilia Mead, the restaurant faces struggles despite its innovative offerings, like homemade bagel crust and salad pizzas. Marcus discovers the owners lack knowledge about their costs and are not ready to scale nationwide. Additionally, personal issues, including Thomas's move to Oregon to be with his kids and the departure of a key employee (his ex-wife), complicate the business's future. Marcus aims to address these challenges and improve the business's profitability.

Takeaways

• 🍕 Gray Block Pizza is a pizza shop located in Santa Monica, California, aiming to expand nationwide.
• 😷 The business has struggled during the pandemic, leading to challenges with finances and operations.
• 👥 The owners, Thomas and Lilia, are business partners who originally met on a dating app and decided to work together.
• 🏠 Thomas recently moved to Oregon to be with his children, leaving Lilia to handle the operations with no prior experience.
• 🤝 Lilia initially intended to be a silent partner but ended up investing $120,000 and lending an additional $80,000 to keep the business afloat during the pandemic.
• 📊 The business struggles with a lack of knowledge about its financials, including ingredient costs and portion control, which is impacting profitability.
• 🧀 Marcus Lemonis, the investor and advisor, emphasizes the importance of understanding food costs to ensure profitability and manage food expenses.
• 📉 The pizza shop’s food costs are too high, with one example showing the cheese alone almost exceeding the target cost per pizza.
• 💼 There is a leadership gap due to the departure of the previous manager, Thomas' first ex-wife, which has negatively affected the business's stability.
• 🔧 Marcus highlights that to improve the business, they need to take specific actions like finding cost-effective suppliers, managing food portions, and better overseeing the operation.

Q & A

Who is the main person providing business help in the script?

Marcus Lemonis is the main person providing business help in the script. He is known for investing in struggling businesses and helping them grow.

What type of business is featured in the script?

The featured business is Gray Block Pizza, a pizza restaurant located in Santa Monica, California.

What is the main problem faced by Gray Block Pizza?

Gray Block Pizza is struggling with a lack of management and financial knowledge, particularly when it comes to understanding food costs and managing day-to-day operations.

What unique types of pizzas does Gray Block Pizza offer?

Gray Block Pizza offers unique types of pizzas like homemade bagel crust pizza and salad pizza.

What personal issues are affecting the business owner, Thomas Schiffer?

Thomas Schiffer has faced personal issues, including a divorce and relocating to Oregon to be closer to his children, which has made it difficult for him to manage the business.

Who is Lilia Mead, and what is her role in the business?

Lilia Mead is Thomas Schiffer’s business partner and part-owner of Gray Block Pizza. She initially intended to be a silent partner with no restaurant experience but has taken on a more active role due to Thomas moving to Oregon.

Why does Marcus Lemonis criticize the business during his visit?

Marcus Lemonis criticizes the business for not knowing basic financial details such as the cost of making a pizza. He believes it's irresponsible for them not to know their numbers.

How much money did Lilia Mead invest in the business?

Lilia Mead invested $120,000 into the business initially and later loaned an additional $80,000 to protect her investment during the pandemic.

What was the previous role of Thomas Schiffer’s ex-wife in the business?

Thomas Schiffer’s ex-wife, his first wife, was a 20-year veteran operator at the business and played a key management role before leaving. She was also supposed to train Lilia.

What is Marcus Lemonis’s strategy to improve the profitability of Gray Block Pizza?

Marcus Lemonis’s strategy involves closely analyzing food costs and making adjustments, such as finding cheaper suppliers, raising prices, or eliminating less profitable menu items.