Wednesday 21 September 2016

The Profit: Honest Foods Catering Makes a Comeback after $300,000 Investment from Marcus Lemonis

Honest Foods Catering

Honest Foods Catering


This week, Marcus Lemonis takes on Chicago in order to help Honest Foods Catering cook up some good sales once again. Sales are down, heat in the kitchen has been turned up and patience is wearing thin.


Lemonis stops by to surprise an event that Honest Foods is catering and is surprised to hear that 80 percent of the revenue goes towards film production. He’s also surprised to see the chaos leading up to the event, but is impressed by the food.


Last year, they did $1.3 million, but that doesn’t stop Lemonis from starting in on his critiques. He thinks the presentation is lacking, including faded ink and drab table covers. He seeks the attendees’ advice and they all agree the food is amazing.


Lemonis also sees an issue in that owner Tad seems to have a little too much control over every aspect of the business. One of the pastry chefs agrees that he puts too much on his plate. Their numbers are down about 30 percent and Lemonis believes that’s because his efforts have been so concentrated into only one industry.


Things quickly become unraveled in the kitchen when one order requests a move up of 30 minutes. Tad begins yelling at everyone in the kitchen and causing stress among the employees. Lemonis notices that people seem to be used to it though, which worries him. Even the sales manager agrees Tad creates chaos.


Next, Lemonis visits their food truck, where he confronts Tad on the treatment of his employees. He said he wants to be able to just take care of his family and keep his business afloat. In order to help him do that, Lemonis offers $300,000 for 33 percent equity. Tad doesn’t want to give up control, however, which doesn’t go over well with Lemonis. Despite his reservations on Lemonis’ 100 percent control, Tad accepts.


Lemonis and Honest Foods first visit other food trucks to see how they could perform by channeling more of their efforts into their food trucks, rather than simply catering, which he likens to the theatre. They could make enarly $200,000 per year from just two trucks. Next, he challenges the team’s creativity and Tad’s respectfulness with a barbeque test, which swiftly goes awry when Tad’s leadership skills fall through, angering his employees.


He encourages Tad to loosen the reigns a bit and allow his employees to act more independently. Their presentation knocks it out of the park for Lemonis, who later asks for feedback from the team. They liked the impression they left, but everyone feels as though Tad still caused issues. He promises to work on improving his attitude.


Tad then presents Lemonis with their new and improved food truck, which cost $50,000. Lemonis announces the new direction the business will be taking, which causes one employee to say there could be a mutiny within the company. He invites everyone to share their feedback, which includes people wanting to leave, seeking more respectful treatment and wages, and a lack of transparency from Tad regarding the truck. Lemonis clarifies why they bought the food truck, which seems to calm most of their worries.


Their second food truck turns into a money pit because Tad didn’t take it to a service center before purchasing. Lemonis accuses Tad of dropping the ball and gives him feedback. Tad cusses out Lemonis and says he’s “spent.” Lemonis says to take it as a learning opportunity and realize that that’s how his team members feel every time he doesn’t appreciate them.


One week later, Tad offers his sincere appreciativeness and improves the way he interacts with his team. Lemonis prepares the wraps for the trucks, while Tad encourages his team to openly share their ideas. Back at Camping World for their 50th birthday, Honest Foods is put to the test. The presentation and the food both knock Lemonis’ socks off, and he presents walkie talkies as a new way to enhance efficiency.


Disaster strikes, however, when a storm unexpectedly rolls in, threatening to ruin their comeback. Complete ruin is avoided though, as the team works together to move the desserts under the tent and move again once the weather improves. To thank Lemonis, Tad and the team present Lemonis with fun celebratory glasses and, overall, Honest Foods makes an impressive comeback, including one in which the employees can now get raises and interact with a better, more effective leader.


Twitter Shares Honest Thoughts on Honest Foods








































What were your thoughts on Tad’s micromanaging style? Did you like the food truck idea? Sound off in the comments section below!



Source: B2C
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