Analysis Of The Brooklyn Burger

In the season two episode two, Marcus Lemonis takes a visit to A. Stein Meat Products that is fabricated Beef and Lamb Cuts. The whole sale meat supplier is in Brooklyn, New York and it does 50 million dollars of revenue annually with a high operating costs in razor thin margins. The A. Stein Meat Products has been selling their quality meats for about 75 years to the finest restaurants along with shipping their products all over the country. In the last year they lost $400,000 if it continues the A. Stein Meats will be forced to close its business and with about 47 employees will be out of work.

While Marcus is walking around talking to the owners he is asking questions about how much the rent costs and it is about $32,000 a month. The rent and cooling cost is averaging about $60,000 a month and then there is union

Marcus thinks the Brooklynn Burger could be the golden goose for the company because they can hopefully get the product into the grocery stores around the country. Marcus also thinks that the concept of the Brooklyn Burger is a real winner to the company because it has a very efficient manufacturing process. Marcus then meets up with Donna who is the office manager. He asks what are the things that eat at her and she said the receivables because the customers pay late and there is a lot of money out there. The total receivables are almost 4 million dollars that people owe the company. Some of the money is from over 2 years old that they are still waiting to get back but most likely will never see it again. If they don’t collect money from the customers who owe them back, they will have serious cash flow problems. As Donna looks at all the bills she doesn’t know how much longer the company will stay