“The Profit” is back and, this week, Marcus Lemonis is taking on Cuba to tell the stories of local entrepreneurs’ and their newfound freedom.
Despite their new freedoms, business owners still face many challenges day in and day out. He first meets with Armando, a taxi driver who, given a new taxi license, is able to make more money and hopes to launch his own startup someday. And of course, he welcomes any future investment from Lemonis.
At Burner Brothers Bakery, Lemonis meets a brother-sister duo Tony and Sandra who are experiencing cramped space. However, they are making more money now than when one worked as a dentist. They get plenty of visitors in a day and Lemonis estimates that they make about $35,000 per year.
They also just purchased a new location, which cost about $46,000. Lemonis is concerned by the amount of work that the space needs if they want to successfully turn it into a bar/restaurant. They don’t know their numbers and Lemonis tells them it’s a mistake, which proves to be an emotionally-charged piece of truth for the siblings.
With just 42 seats in the restaurant, Tony and Sandra will need a lot of turnover to hit their target of $1,500 per day. #TheProfit pic.twitter.com/a7U7VlkuJh
— CNBC's The Profit (@TheProfitCNBC) November 16, 2016
Visiting the kitchen at their current location, Lemonis is impressed by the amount of space they have and workers who are also making more money now than in their government jobs. They now make all the pastries, but some offerings are limited given that certain ingredients may not be available on a certain day. In the case of Lemonis’ visit, chocolate was in short supply.
Locals can only work in government-approved positions, which includes bakers. They are not able to franchise either. Lemonis finds it unfortunate that they have to study up more on the rules rather than focusing solely on growing their business. But they see a uniqueness and potential given the general lack of competition.
Next up, Lemonis visits Kirenia, a seamstress, who is located in a closet-sized workshop. She says she has gotten to this point based on sacrifices. She is also not able to charge very much for her clothing and the fabric must be purchased from the black market. The government still controls most of the clothing industry and entrepreneurs in that area still face many obstacles to advancement. She has considered leaving the country in order to provide a better life for her daughter.
After discussing their current economic troubles with socialism and their lack of freedoms, Lemonis visits a farmer, Fernando, who has a Ph.D. in agriculture. According to Lemonis, he sees farming as a way to promote socialism. He feeds and even houses some of his workers, but he is reluctant to admit how much it cost to build his house. Asked about how much he pays his employees, the tables (and topic) are then quickly turned on Lemonis as he is asked about investing in businesses and his life back home.
Visiting a restaurant, which was originally an apartment, Lemonis is surprised to learn that restaurants can only have 50 seats. With a cafeteria license, however, the restaurant Lemonis visits has 200 seats and a hefty price tag, making it a hot spot for tourists. Enrique, the owner, hopes to attract more locals at some point, but it proves a challenge given how much their food costs.
Lemonis then meets Sandra of D’ Brujas, who makes soaps and sells 1,000 per month. Their “magical potions” are made more special by each part of the process. Selling soaps in a market, they are not allowed to have more than one stand. Lemonis encourages her to sell candles and room spray, in place of the dream catchers that currently line the walls. To Sandra, however, “nothing is impossible,” as Lemonis says. He encourages her to keep the emotions in business, because if there’s no emotion, it’s doomed to fail.
"If anyone takes the emotion out of business, the business will die." @marcuslemonis #TheProfit
— CNBC's The Profit (@TheProfitCNBC) November 16, 2016
Before leaving Cuba, Lemonis is impressed by the resiliency of locals and, of course, he picks up his cutom-made shirt from Kirenia. He hopes to help her sell shirts in the United States in the future. He also visits Tony and Sandra, who took his advice and sold their newly-purchased restaurant space.
Finally, Lemonis is left questioning future changes in Cuba and what they could mean for businesses as he drives through the city, complete with the nostalgic, colorful buildings that line the streets.
“The Cuban people have an amazing spirit,” Marcus Lemonis said, according to CNBC. “Seeing how small business functions in a communist country gave me an understanding of what’s really happening in Cuba. Their tenacity and resolve despite staggering obstacles is the heart and soul of what makes that country work.”
Social Media Reacts to “The Profit” in Cuba
Dentist in #Cuba made 1000 Cuban pesos/month… about US$50. Awful. #TheProfit #TV #TheProfitCuba
— Matt Soleyn (@MattSoleyn) November 16, 2016
I want to go to Cuba to learn about their lifestyle, but more to see the classic cars! #TheProfit
— Dan Marr (@danmarr_co) November 16, 2016
"These people have nothing and they figure it out." -Marcus Lemonis #TheProfit #TheProfitCuba #survival #SmallBusiness
— Tammy Motola ❤️ (@tmotola) November 16, 2016
The idea that there is 201 approved professions is MIND BOGGLING #TheProfit
— Evan (@MJTM) November 16, 2016
Obstacles are everywhere. Good for all of us to remember. #perspective #theprofit
— Lynette Lovelace (@lynettelovelace) November 16, 2016
Thriving entrepreneurship in Cuba, this should motivate all #smallbusinesses in the US where our barriers to entry are much less #TheProfit
— Racquel Black (@racquelsbk) November 16, 2016
It's truly disheartening to see how oppressive the #Cuban government is to its own people. They're wasting talent! #TheProfit
— Ryan Carson (@rcar93) November 16, 2016
Real talk, I will NEVER COMPLAIN AGAIN……. #TheProfit
— FC (@FcOnTheBeat) November 16, 2016
The Cuban government has such a low glass ceiling. It's time for its amazing entrepreneurs to break that said ceiling! #TheProfit
— Ryan Carson (@rcar93) November 16, 2016
Their resourcefulness in the face of obstacles encountered (re: getting raw materials, old equipment, regulations) is laudable. #TheProfit
— Karen Sledge (@kpsledge7) November 16, 2016
We have so much in this country.Grateful we have the freedoms&opportunities we do! #GodBlessAmerica #TheProfit #TheProfitCuba #gratitude
— Tammy Motola ❤️ (@tmotola) November 16, 2016
Shocking to not only see what's going on in #Cuba but to hear these beautiful, hardworking people tell their stories.#TheProfit #IWantToHelp
— Tammy Motola ❤️ (@tmotola) November 16, 2016
I love the Cuban spirit and energy! Thank you for this episode. @marcuslemonis @TheProfitCNBC #TheProfit
— Marja Ricci (@marjamoo) November 16, 2016
Cuban entrepreneurs remind us that building a biz isn't all about money. It's to make your life better and more fulfilling. #TheProfit
— Cameron McGraw (@McGrawINC) November 16, 2016
What did you think of “The Profit in Cuba”? Sound off in the comments section below!