Fuelfood is a health food business based in West Palm Beach, Florida, that caters to athletes as well as healthy, clean eaters. Meals are prepared and delivered to consumers every few days by the firm. After some early investments and endorsements from prominent athletes, the firm is off to a solid start and earning a considerable amount of income.
The proprietor wants to be able to provide nutritious cuisine to folks who are attempting to be in better condition on a consistent basis. Given the company’s location in West Palm Beach, where people are always wandering around in bathing suits and bikinis, this seems to be the sort of business that may expand eternally. The value of a firm that becomes a nationally recognized clean food supply may skyrocket. Erik Leander, the proprietor of Fuelfood, however, needs the assistance of a true expert in order to take it to the next level.
Episode 5 Of Season 3 Of The Profit
When Marcus first comes on the scene, he has a positive impression of the organization and sees a lot of promise. Marcus initially meets the owner, Erik, during a marketing event where Erik is handing out product samples. It’s a two-edged sword, to be sure. On one side, the cuisine looks to be of high quality, and customers seem to like it. Erik, on the other hand, is a pretty brash and forceful salesperson, which Marcus finds off-putting.
Erik drives Marcus to the processing, packaging, and delivery facility where the food is prepared. Erik has roughly 300 clients that buy meals via various programs at this stage in his company growth.
Erik has a colossal size, complete with massive muscles. He acts just like you’d imagine someone like him to act in a movie, with all of your worst fears confirmed. Erik had a knack for scaring people just by being there, which included his relationships with his staff; Marcus had second thoughts about the firm after seeing Erik’s interactions with his employees.
Erik not only mistreats his staff, but he also mistreats his clients, it is discovered. He takes advantage of people in little but substantial ways. Marcus picks up on two key points during the conversation. The first is that, by his own admission, Erik isn’t particularly knowledgeable about the industry. Erik has an unfavorable image of women, regarding them as inferior, and he does not disguise his sexism in the second section, which is a significant issue.
Marcus interacts with a few other employees to have a better understanding of the organization and to inform them of the issues that need to be solved. He believes that enhancing client retention will be the most crucial factor since most customers only remain for three weeks. He chats with Diana, the sales manager who works seven days a week. Marcus is well aware that she is shouldering a significant share of the burden.
When it comes to the numbers, things start to become even odd for Marcus. He discovers that a $1 million investment was made, but that it has all been lost. A vehicle cost about $150,000. Erik argues that it was a marketing ploy. Worse, it turns out that Erik is also $200k in debt after taking out such a large loan. Marcus realizes that the company is backed by six investors.
Shareholders are a recurring theme throughout the episode. Marcus visits Erik before making his offer and inquires about the stockholders, but he receives no more information. He chooses to accept Erik’s offer of $300,000 for 51 percent of the company. Erik feels hesitant about handing up so much ownership, but he accepts.
Employees are informed about the investment and the modifications that will be implemented in the future. Erik’s hostility is still a problem when it comes to dealing with the corporation, and he tries to dominate every encounter. Marcus attempts to meet with all of the staff on a regular basis, but he always comes up short. Dealing with Erik is getting more difficult for him. He attempts to blame Marcus for problems that existed before Marcus arrived on the scene. Marcus goes out the following day to look for new kitchen equipment. When he returns, he discovers that many of the employees have resigned as a result of the disastrous meeting the day before. Confidence has all but vanished. Even Diana quit after learning that Erik had reduced all of the highest-paid workers’ wages.
Marcus eventually decided to call the sale off due to some unscrupulous investor behavior. Erik informs Marcus that one of the investors is being investigated by the authorities and that his assets are being seized. Marcus is worried, but he believes it can be fixed. That is until Erik discloses that this investor owns 46 percent of the company’s stock. The SEC now owns 46 percent of Erik’s company’s stock.
Things are just getting worse. This investor, it turns out, was conducting a Ponzi scheme, which is why he was prosecuted by the authorities. Marcus can’t have his name associated with a Ponzi schemer, and he’s surprised that Erik doesn’t seem disturbed by it. Marcus merely wants to mend things because he enjoys the people that work there.
“You going to walk out on your handshake deal?” Erik asks again near the conclusion of the episode. He attempts but fails, to frighten Marcus. Marcus departs, and Diana affirms that she will not be returning to the business.
After The Profit, Fuelfood
After The Profit, there is no Fuelfood. The firm finally closed its doors in 2017. It received an F rating from the Better Business Bureau along the way. Marcus probably made the correct decision by opting out of the investment. The corporation has previously received a large sum of money and done nothing with it. Erik’s caustic nature made it practically difficult for him to succeed.
Royal Pitch is not linked with Fuelfood, The Profit, or any of its subsidiaries, and the information presented in this article is only for educational purposes.
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