WHEN: Today, Monday, July 14th
WHERE: CNBC's "Power Lunch"
Following is the unofficial transcript of a CNBC interview with "The Profit's" Marcus Lemonis, Chairman & CEO of Camping World and Good Sam Enterprises, on "Power Lunch" today. Following is a link to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000292442.
All references must be sourced to CNBC.
TYLER MATHISEN: CRUMBS BAKE SHOP IF A BANKRUPTCY JUDGE GOES ALONG, HAS BEEN SAVED FROM CRUMBLING BY LEMONIS FISCHER ACQUISITION COMPANY, LED BY MARCUS LENONIS, HE'S THE CHAIRMAN & CEO OF CAMPING WORLD AND GOOD SAM ENTERPISES, AND OF COURSE HE'S THE STAR OF THE CNBC "THE PROFIT" AND A GOOD FRIEND OF "POWER LUNCH." WELCOME MARCUS LIVE FROM L.A. BEFORE MEETING WITH TV CRITICS ABOUT THE NEXT SEASON OF "THE PROFIT." LET'S START BY GETTING ONE QUESTION ON THE TABLE AND OUT OF THE WAY. WILL CRUMBS APPEAR ON "THE PROFIT"?
MARCUS LEMONIS: CRUMBS WILL NOT APPEAR ON "THE PROFIT." THIS UNFORTUNATELY HAS REALLY NOTHING TO DO WITH THE SHOW. IT'S REALLY ABOUT TRYING TO SAVE A BUSINESS THAT CLOSED ABOUT A WEEK AGO.
MATHISEN: SO LET'S TALK A LITTLE BIT ABOUT WHAT YOUR PLAN IS. WHAT IS THE BIGGEST THING THAT YOU THINK IS WRONG WITH CRUMBS AND WHAT WILL YOU DO TO FIX IT?
LEMONIS: WELL YOU KNOW IT'S NOT REALLY JUST ABOUT CRUMBS, IT'S ABOUT THIS WHOLE NICHE SPACE OF OPENING UP THESE FIXED-COST LOCATIONS AROUND THE COUNTRY THAT DELIVER ONE PRODUCT. AND WHILE I'M A FAN OF THE CUPCAKE I DON'T BELIEVE THAT ANY BUSINESS CAN MAKE IT SINGULARLY ON ONE PRODUCT. AND SO THE GOAL ULTIMATELY IS TO REALLY HAVE IT CARRY MULTIPLE PRODUCTS, WHETHER IT'S PIES, COOKIES, ICE CREAM, CAKE, A VARIETY OF THINGS, BECAUSE AS THINGS KIND OF MOVE IN AND OUT OF POPULARITY, WE WANT TO BE ABLE TO BE NIMBLE.
SUE HERERA: MARCUS, THIS IS NOT YOUR FIRST INVESTMENT BY A LONG SHOT IN BAKERIES AND BAKING COMPANIES. WHY DO YOU LIKE THAT PARTICULAR SPACE SO MUCH?
LEMONIS: WELL I THINK THAT SWEETS ALWAYS MAKE PEOPLE HAPPY. IT'S A THING I DON'T WANT TO SAY IT'S RECESSION PROOF, BUT IT'S LARGELY RECESSIONP ROOF. WE HAD A NUMBER OF EPISODES ON SEASON ONE AND SEASON TWO OF "THE PROFIT", WHETHER IT WAS KEY LIME PIE, WHETHER IT WAS ICE CREAM WHETHER IT WAS CANDY, THAT WILL ALL BE INTEGRATED. AND YOU KNOW IT'S ACTUALLY A REAL ODD THING THIS IS GOING TO BE THE FIRST TIME THAT REALITY TRULY MEETS REALITY. AND PART OF MY MOTIVATION FOR ATTEMPTING TO DO THIS DEAL WAS THE ABILITY TO INTEGRATE SOME OF THE OTHER BRANDS THAT I ALREADY OWN.
HERERA: RIGHT. CAN YOU TELL US WHAT THOSE ARE? SO EVERYBODY KNOWS WHAT THEY CAN EXPECT TO SEE.
LEMONIS: WHAT WE COULD EXPECT TO SEE THERE IS MR. GREEN TEA ICE CREAM, HOPEFULLY BE MAKING A PRIVATE LABEL PRODUCT FOR CRUMBS USING THEIR CUPCAKE BATTER. WE'LL HAVE SWEET PETE'S CANDY THERE, WE WILL HAVE DIPPIN' DOTS. OUR PARTNERS OWN DIPPIN' DOTS, WE'LL HAVE DOC POPCORN, WE'LL HAVE MATT'S COOKIES. WE'LL HAVE KEY WEST KEY LIME PIE. WE'LL HAVE COFFEE, AND SO REALLY WHAT WE'RE TRYING TO DO IS TAKE CRUMBS BACK TO ITS ORIGINAL INTENTION. IT WAS MEANT TO BE A BAKE SHOP, NOT A CUPCAKE SHOP, SO THE GO-FORWARD PROPOSITION IS THAT CRUMBS WILL BE A SWEETS AND SNACK DESTINATION, NOT A CUPCAKE SHOP.
HERERA: SO ABOUT 50 PEOPLE CAME UP TO THE SET TO TELL ME THAT THEY WANT ME TO ASK YOU TO PLEASE REOPEN THE WALL STREET STORE. IT'S ON BROAD STREET.
LEMONIS: WELL, YOU KNOW WHAT? AS YOU KNOW, SUE, I TAKE BUSINESS AND MONEY VERY SERIOUSLY. IT'S GOING TO BE A HERCULEAN EFFORT TO MAKE THIS BUSINESS WORK. AND WE'RE GOING TO BE LOOKING THROUGH THE BANKRUPTCY PROCESS AT EVERY SINGLE ONE OF THE LOCATIONS. AND IF THEY'RE NOT PROFITABLE, THEY ARE GOING TO GO ONTO A DRAWING BOARD AND WE'RE GOING TO SEE IF THEY CAN BE MADE PROFITABLE. THIS IS NOT AN OPPORTUNITY JUST TO OPEN UP ALL THESE STORES AND SELL A BUNCH OF PRODUCTS. WE WANT TO BE DISCIPLINED ABOUT IT. AND SO IF THAT STORE IS A MONEY MAKER, THEN IT WILL REOPEN. AND IF IT'S NOT, I CAN'T PROMISE THAT IT WILL.
MATHISEN: SO MULTIPRODUCT – AND IT SOUNDS LIKE IT'S GOING TO BE MORE A QUICK FOOD DESTINATION RATHER THAN A BAKE SHOP WHERE YOU COME TO BUY BAKED GOODS. IS THERE ANYTHING ABOUT THE QUALITY OF THE CUPCAKES THAT YOU WOULD CHANGE? I HAVE HEARD CRITICS SAY THAT THEY TASTE COLD AND NOT AS SOFT AND SUCCULENT, LET ME PUT IT, AS THEY EXPECT.
LEMONIS: AND I'M ONE OF THOSE CRITICS AS WELL. I THINK ONE OF THE PROBLEMS THAT HAPPEN IS THEY OVEREXPANDED TOO FAST, AND THE KEY TO THE BAKING BUSINESS IS THE ACTUAL MANUFACTURING PROCESS. AND WHEN YOU'RE NOT KIND OF PUTTING THE CARE AND LOVE INTO MAKING A PRODUCT AND YOU'RE MASS PRODUCING IT IN A WAY THAT REQUIRES YOU TO FREEZE IT OVERNIGHT AND THAW IT OUT, IT'S NOT EXACTLY THE BEST SOLUTION.
LEMONIS: AND SO IT WON'T BE A PLACE WHERE YOU CAN GET A HAMBURGER, TYLER. IT WILL BE A PLACE WHERE YOU CAN BUY A CUPCAKE, PIE, COFFEE, ICE CREAM. AND SO I WANT YOU TO THINK ABOUT IT AS A SWEET AND SNACK SHOP DESTINATION, BUT THERE WILL BE NO SANDWICHES OR SOUP THERE.
MATHISEN: ALRIGHT MARCUS, THANKS AND GOOD LUCK THIS AFTERNOON WITH THOSE HARSH TV CRITICS.
LEMONIS: THANK YOU, TYLER.
HERERA: THANKS, MARCUS.
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