HipPOPs Handcrafted Gelato Bars

This week, Marcus Lemonis visits Miami, Florida to help HipPOPs Handcrafted Gelato Bars, a gelato popsicle company that offers handcrafted artisan dessert treats from both gelato bars and a food truck. According to CNBC, the owner “jumped the gun by starting a franchise business and is struggling to take responsibility” due to a “waning work ethic.” Will Lemonis be able to keep the frozen desserts company from completely melting away in the Florida heat?

Visiting their food truck, Lemonis is immediately concerned about how much money owner Anthony Fellows has put into the food truck. He says he has grossly overpaid for the items in the truck, which ultimately cost more than $125,000 when it should have been about $75,000. Lemonis is also worried that the only franchise location they have is in Dubai. He is, however, impressed with the kitchen in the warehouse. He is concerned that there is only one freezer, though.

Speaking privately with the employees, they admit that they don’t see Fellows all that much. He is also worried that there is no inventory system and it is somewhat disorganized overall. He then meets with Fellows’ mother and company accountant Freyda, who admits that Fellows had a drug problem in the past. He has been clean, however, for 19 years now. Additionally, his ex-wife is also an employee of the company and manages their social media.

After gaining some insight into the company, Lemonis talks with Fellows and his parents, who have put money into the company, and offers $100,000 for 50 percent equity. Fellows expresses concerns about losing his current salary, which is $100,000. Lemonis also takes Fellows’ $10,000 Rolex watch, which will be used to buy a second freezer. He accepts.

Next, Lemonis tests Fellows’ commitment to the company, which quickly turns into a negative when Fellows shows up to the food truck late. Fellows reveals that he doesn’t even work in the food truck, while Lemonis dons an apron. Lemonis also discovers that they are simply not turning customers quickly enough, especially when it comes to milkshakes.

They then work on organizing the warehouse and improving the company’s process. He challenges Fellows to finish organizing the inventory, but Fellows’ mind is still focused on the division of equity. Fellows admits that his ex-wife has some equity (25 percent) in the business, which is a huge concern for Lemonis given that he hasn’t even met her. Lemonis agrees to meet with Fellows and his ex-wife Niva and Fellows suggests 35 percent equity, which Lemonis declines. Lemonis decides to lower his equity to 40 percent, which leaves 40 percent for Fellows and 20 percent for Niva.

Lemonis then decides to ditch the milkshakes, which take five minutes to make, and add more product offerings, such as banana and key lime pie bars. He also wants to expand the number of food trucks. A week later, Lemonis tours the newly-organized warehouse, which is incomplete. Fellows did not put up shelves, failed to organize the freezers and did not clean up the upper level of the warehouse.

Lemonis then takes Fellows and Niva to visit Mr. Green Tea in New Jersey in order to provide them with some organizational inspiration and ideas for new flavors for a T-Mobile grand opening event. Fellows then tells them he won’t be attending several catering events back home because he’s going to see friends in the city.

One week later, Fellows and Niva present Lemonis with their T-Mobile flavor idea: Mango Chile (T-Mobile Mango). They did not, however, put the new concoction into popsicle form and it is not the bold pink T-Mobile color. Fellows also admits that he did not sell his Rolex watch.

Ultimately, Lemonis decides to end the partnership, but encourages Fellows to keep pushing forward.

Social Media Reacts to HipPOPs Handcrafted Gelato Bars’ Appearance on “The Profit”

“The Profit” airs every Tuesday at 10 p.m. on CNBC.

What are your thoughts on HipPOPs Handcrafted Gelato Bars’ lack of process? How do you feel about the way Anthony Fellows acted in regards to his company? Do you think Marcus Lemonis made the right decision to end the business deal? Sound off in the comments section below!