Tuesday, May 26, 2015

The Profit - Tonnie's Minis Update

On tonight's episode of The Profit, Marcus Lemonis is in Inwood, New York with the hopes of making a deal with Tonnie's Minis.  Tonnie's Minis is a struggling cupcake shop that has had to close a few of its stores.  They once had large corporate accounts, but now have a business that is in debt and that has been using Tonnie's wife's money to keep it afloat.  Marcus, who also owns the Crumbs cupcake chain was attracted to Tonnie's due to his build-your-own cupcake concept.

Let's take a look at some information related to Tonnie's Minis as well as what kind of deal was made on the show.

News and Links Related To The Company:
  • Here is the Tonnie's Minis website.
  • Here is the Tonnie's Minis Facebook Page and Twitter Page.
  • Here is an extended sneak peak of the episode and a business profile video of Tonnie's Minis from the CNBC website.
  • According to a DNAInfo article, The Inwood shop featured on the show closed multiple times due to bad business decisions and issues with the Health Department.  The shop reopened in October 2014.  The Inwood location was originally for custom cake orders with cupcakes being  sold on the side, but Tonnie decided to add the build-your-own cupcake concept made popular at his Harlem location.
    • Also revealed in that article is that Tonnie had a deal with Dallas BBQ to bake 60,000 cupcakes a week for their 11 NYC restaurant locations.  This overwhelmed his staff and his stores took a backseat, which forced the closures of the cupcake shops.
    • Tonnie rented out kitchen space in the Bronx to help deal with the demand of wholesale business.
  • Here are the latest reviews for Tonnie's which are mixed.
  • Tonnie's is currently offering Groupon deals for their cupcakes. (Link)
  • According to the Tonnie's Minis Facebook Page, they are looking for a location in Harlem. (Link)
  • Tonnie and Marcus Lemonis were in talks with Macy's about possibly opening up a store in their Herald Square location. (Link)

The Deal From The Episode Plus Post-Show Updates (this will be updated continually):
  • Marcus' initial offer - $100,000 for 20% of the business. Money would be used to satisfy debt and to update the Inwood location.  Tonnie envisioned $600,000 for 33% of the business.  
  • The Deal - Marcus' offer was then upped to $125,000 for 25% of the business, which was accepted.
  • The baking was outsourced to Melita bakery in the Bronx.  This bakery had to lay off 75 employees when Crumbs bakery filed for bankruptcy (Link).  There is a tie there with Crumbs/Marcus, so perhaps he did this as a favor.
  • Tonnie is working to get out of the lease in Newark. (Link
  • Tonnie's Minis is working on launching other minis such as danishes, cookies, muffins, brownies, etc. (Link)

*To see how all of the businesses from The Profit are doing, go to the The Profit Updates page, and also Like us on Facebook or Follow Us on Twitter  to stay up to date with all things involving The Profit.

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