Monday, August 16, 2021

Grey Block Pizza - The Profit Update

This week on The Profit, Marcus Lemonis is in Santa Monica, California to make a deal with Grey Block Pizza.  Grey Block Pizza has been around for about 20 years and serves creative slices of pizza. Owner Tommy Schiffer is hoping Marcus Lemonis is able to scale the business to help expansion across America.  Marcus needs to get him to fall back in love with the business and resolve his relationship with his business partner Lilia Mead. Lilia recently invested money in the business and was hoping to be a silent partner, but that hasn't been the case.

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

News and Links Related To The Company:
  • Here is a 10-minute preview video of the episode from the CNBC YouTube page. 
  • Here is the Grey Block Pizza website and Facebook page, which isn't updated much.  Their Instagram page is more up-to-date.  
  • Their Instagram shows updates being made to the building in March 2021, so that is probably around the time Marcus Lemonis visited. (Link)
  • Their website says, "Doing everything from scratch, and by hand daily used to be the only way, now it’s what sets us apart."
  • Prices for the gourmet pizza are: Slice for $5.25, 12” for $19.95, 16” for $23.95, and 20” for $26.95.
  • Here are the reviews for Grey Block Pizza from Yelp, TripAdvisor, and Google
  • Tommy takes the time to respond to reviews on Google.
  • Grey Block Pizza was a sponsor of the Theo Vonn podcast. (Link)

The Deal From The Episode Plus Post-Show Updates (this will be updated continually):
  • The Deal - Before making a deal, Marcus wanted to figure out food costs, who should manage, and work on  relationships. Tommy wanted to have a deal in place before that, so he agreed to take $20,000 to fix up the place, install POS, and figure out food costs.  He agreed to pay Marcus back $30,000 for this.
  • Marcus then tried to resolve the loan situation between Lilia and Tommy.  The buyout of Lilia was reached for $141,500, with $75,000 being for the loan and $66,500 for the equity.
  • When Marcus returned to Grey Block, the place was a mess and Tommy was nowhere to be seen and was gone for weeks.  Marcus flew to Oregon to see him and to see if he wanted to sell the business.  He arranged a meeting with a potential buyer and Tommy didn't show up.  He continues to own the business and runs it from Oregon.
  • This is the second time Marcus Lemonis tried to invest in a pizza place with the other being Simply Slices (update here). Both turned out to be disasters.
  • Public records show there were two PP loans for Grey Block Pizza - one for $74,721 and another for $62,418.
  • Marcus said that he did not get his $20,000 back. (Link)
  • Marcus also said that Lilia didn't get her money. (Link)


*To see how all of the businesses from The Profit are doing, go to the The Profit Updates page. 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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