Tuesday, November 24, 2015

The Profit - Da Lobsta Update

Tonight on The Profit Marcus Lemonis is in Chicago, Illinois with hopes of making a deal with Da Lobsta.  Da Lobsta is a fast casual restaurant that also has a food truck specializing in lobster rolls and other lobster dishes.  While Marcus is there, he finds there is tension among the employees with conflicts between the front and the back of the house.  Also, the owner J is using money from the business for his personal eating and entertainment expenses.  The financial situation of the business has also strained the relationship between J and his father.

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

News and Links Related To The Company: 
  • Here are some videos of the episode from the CNBC website - Video 1, Video 2, Video 3, Video 4
  • Here is the Da Lobsta website and their menu.
  • Here is the Da Lobsta Facebook Page and here is their Twitter account for the food truck.
  • There are currently 2 locations of Da Lobsta as well as a food truck that roams Chicago.
  • Here are the Yelp reviews for Da Lobsta River North location which are mostly positive and have a 4-star average. (Link
  • Here are the reviews for the French Market location that are also mostly positive with a 3.5 star average. (Link)
  • In a 2014 article, J said in the first year of Da Lobsta, both locations grossed $1.2 million combined and turned a profit. 
  • J Wolf raised $70,000 in April 2014 through the site Bolstr to help fund a Da Lobsta food truck.  He was able to repay the loan within seven months and said the food truck would help him test his concept in different parts of the city to scout locations for another brick and mortar Da Lobsta. (Link)
  • In November 2014, Da Lobsta raised an additional $150,000 on Bolstr from the same investors to help open its River North location.  You do not give up any equity on Bolstr, so it is pretty much a business loan from investors. (Link)
  • According to this article, J Wolf said the investors were looking for 25% return on their loan.  He said, "It's high, but it's better than going to a bank. It would take forever, if they'd even lend."

 The Deal From The Episode Plus Post-Show Updates (this will be updated continually):
  • Initial Offer - Marcus offered $210,000 for 51% of the business that requires the sale of one of the brick and mortar locations, and to help pay J's father back.  J would have no access to the cash and Marcus would be in charge.  J would be also be put on a salary of $60,000.
  • J rejected this offer and Marcus walked out on the deal. 
  • J did not reach out again to Marcus after he left. (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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