We Spent $250K To Open A NYC Bakery-Now It Brings In $50 Million A Year
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- เผยแพร่เมื่อ 17 มิ.ย. 2024
- Elisa Marshall and Benjamin Sormonte invested all of their life savings, plus more money from family and friends, to open a cafe called Maman in New York in 2014. Last year, Maman's 34 locations brought in nearly $50 million. "It was one of the biggest financial risks we could ever take," says Marshall.
Produced by: Raffi Paul
Senior Managing Producer: Eric M. Clark
Reporter: Tom Huddleston, Jr.
Editor: Amy Marino
Animator: Elham Ataeiazar
Additional Camera: Lauren Shamo
Additional Images: Maman, Getty Images
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We Spent $250K To Open A NYC Bakery-Now It Brings In $50 Million A Year
Guys, all it takes is hard work, 250k (doable) and then lots more money from extremely wealthy friends/family and then private equity. Anyone can do it!
Private equity, rich family, and a touch of treachery is the key. 🔑
his brother invested 1.5 million in equity. they are Rich-rich!
Easy-peezy.
@@elleyu9837 😏
And good looks.
Luckily, my spouse and I were able to pay off our mortgage early. We took the money we were spending to accelerate our mortgage repayment and invested it right away while we were both still working. We were able to retire early after accumulating what would have been our home payment for over 7 years and maxing out our 401K/403B plans. Thankfully, both of our parents taught in us the importance of living within our means.
Investing without proper guidance can lead to mistakes and losses. I know this since I've been there myself.Seeking guidance from a professional is preferable if you're new to investing or don't have much time.
Investors can have different investing results even with the best strategy and suitable assets. Understanding how experience plays a critical part in successful investing is key. Since I was aware of this, I consulted a market analyst for advice, which helped me build my account to about a million dollars. Having strategically cashed out just prior to the market correction, I'm now taking advantage of buying opportunities once more.
How can one find a verifiable financial planner?
Leah Foster Alderman is the licensed expert I use. Just look up the name online.
She seems to be literate and well educated. Thank you for sharing.
33 locations - now the $50M makes sense.
That's where I stopped watching. The title gives the impression that they spent 250k on a shop and now it profits 50m. Really misleading.
@@pouroverfinance50 million in sales is still a lot.
Aye! Should say BAKERIES NOT BAKERY!
Yeah duh, but that's still a ton. That's more than wingstop or mcdonalds franchises make a year.
@@starvingbymidnight Are you that dumb that you think a single bakery can make $50 MM a year? They're not selling yachts and private jets.
So did he graduate law school and pass the bar? Also, why did his friends pick them to run an overseas restaurant with no experience?
Thank YOU 😂👏🏽🤣👏🏽🤣👏🏽🤣
His friends picked him because they are friends and they trust and know him. I have given $2000 to my friend’s charity because I love her like a sister and I’ve given $40k to my mum to invest in her property business. Emotional intelligence and connections is something people underestimate in business. If you aren’t likeable, it is unlikely people will want to give you money.
@@pineapplesandvibes3277 Giving $2000 to a friend's charity is completely different then giving the reigns to an overseas restaurant to friends who don't speak the language or have experience.
It’s not what you know…
Targeted demographic - upper middle class white. Choosing NYC is very wise and crucial for cafes with such concept.
Obviously I doubt this would work in South Side Jamaica Queens where Tony Tayo lives.
Why Whites only? All types of people go here. There's no shortage of rich Asian American yuppies that want pastries and expensive coffee in NYC. Asians are the highest paid ethnic group per capita by far in the US.
@@kayflip2233family wealth at upper class white is higher
@@kayflip2233 They sell so-called childhood memories associated with mom's cooking. Milk, cheese, diary products in general are not popular in Asian food culture, which is kinda similiar to jewish food cultre on this front. The concept mainly resonates with upper middle class white households. Poor white ppl don't get to eat home-cooked nice pastries that often either.
Calling Asian American yuppies? Guess jelous really eat you huh. 杠精白男毫无吸引力
@@kayflip2233 These cafes market their products as evoking childhood memories associated with mom's cooking. Milk, cheese, and dairy products in general are not widely popular in Asian food culture, which is somewhat similari to Jewish food culture in this regard.
So, basically, they were rich, had rich friends and family, and now they're even richer. Got it. You need money to make money.
So stop crying and start making money
It also helps if you're very attractive lol
Their food is expensive.
Yeah, god created money, gave it to 1000 random people and that’s how every single business has been created ever since…
I LOVE MAMAN!!! I discovered their montreal location back in the beginning of covid when everything closed, they were still offering delivery and when I tell you I was SO HAPPY they did because I fell in love with their food and their pastries (the cookies are INSANE!!!)
So happy to see this episode, go maman team!!!
Is it a great story? yes. But, let's be honest, they had tons of help. How many people can find a relative to invest 1.5 m in their adventures.
Having access to capital and and a vast network of mentors and resources allowed them to scale much, much faster than it would be possible for most small business owners. Breaking $1 million in revenue is a big step for most small business because it requires knowledge, skills and resources most don’t possess. Opening another location is usually a risky step for a business unless you have the resources to make it happen. As much as I love success stories I hate being fed half-truths.
2 things I picked up from their story, the husband said he grew up in the south of France, and anyone who knows France, knows that most rich affluence families in France live in the south of France, the second part that reveals he's rich is his brother investing one million in his business! That screams rich family to me, they are trying to act like they came from humble beginnings, but the husband vibes alone screams rich man! Apart from that though their bakery looks amazing, despite all that, their story is amazing.
They didn’t say or come off that way. 😮
Yes. Definitely picked up on the ‘family helped’ so that they could stay in nyc, and then a cash infusion of 1mil from the brother. Just examples of how it’s not often just hard work. It’s hard work and breaks/luck/access to resources.
Why is it so important for you guys to focus on how people are successful? If someone marginalized you in any kind of way you would hit the roof. There is nothing wrong with having help, and rich people can be humble as well. Everyone has their own experiences in life.
The 250k figure seems dubious, unless the place was only 1000 square feet.
haha you dont know France at all then
It’s aesthetic and pastries are alright but I had the worst latte of my life at Maman.
Without a doubt, this year will be worse than the last. I lost a lot of money last year as a result of bad investment choices that I would not have made if I hadn't been so worried about my portfolio. I kept investing, but I couldn't determine whether to start paying for a house. In the end, I sold my positions, and the house needed more work than I had planned. I'm not sure how long I can keep going like this
We've all made mistakes at some point. You should consider financial planning
True. My portfolio was diversified across several markets with the help of a financial planner, and were able to achieve over a million in net profit among high dividend yield equities, ETFs, and bonds. It is vital that you have a variety of exposure, including in firms that are currently generating cash flows.
Do you mind sharing your financial planner ?
Leah Foster Alderman
You are most likely to find more info when you look her up.
Benjamin grew up in the south of France - yeah, this guy was rich
“His brother invested 1.5M” yeah. Definitely rich family.
Not everyone is rich in the South of France. Walk around Marseille and you can see some of the poorest and most dangerous slums in Europe.
and you are dumb, you think there is no average or poor people in the south of France ? check Marseilles, Toulon etc.......
@@kayflip2233 his brother invested $1.5m lol
Its so easy , everyone just makes excuses why they can not do it. Anyone can. Just takes small loan of $10 million from family and friends
This is amazing!! Kudos to the couple. Not to forget the cnbc team who is bringing such amazing Stories to us!
Do not know how you opened a cafe in NYC for only 250k with the regulations, high rent and then equipping it.
It’s possible, especially 250k back then not the current 250, they said they did a lot themselves and their equipment is never the last higher end models, but rather either older or used…
And the furniture is tasteful but not designer.
You need to clearly separate self made businesses owners from humble beginnings and those who already had a leg up because they come from rich families.
So is it not Self made if you get a loan from your family or friends?
I love that they paid hommage to Maison Kayzer in the opening shots. It closed back in the pandemic and got taken over in the US by Le Pain Quotidien.
So you’re telling me all I need is private equity, and to be from a rich family and I too could own a successful cafe?! Make it your a joke 😂
Great Story thank you CNBC entire staff watching from London.
Congrats love this! We open our Beach Hotel in the Philippines next year! Dreams come true!
We’re getting one near me! I’m actually looking forward to this opening
How do I get the rich family n' friends!? I need that part of the back story, thanks!
Overrated, had the worst lattes and sandwiches. Sandwich bread was so hard we had to send it back. Baked goods were pretty good. Good aesthetics.
Agreed.
Real success hard work n dedication
I realized that the secret to making a million is saving for a better investment. I always tell myself you don't need that new Maserati or that vacation just yet. That mindset helped me make more money investing. For example last year I invested 80k in stocks and made about $246k,but guess what? I put it all back and traded again and now I am rounding up close to a million
You work for 42yrs to have $2m in your retirement, Meanwhile some people are putting just $20k in a meme coin for just few months and now they are multi millionaires. I pray that anyone who reads this will be successful in life
Thanks for continuing updates I'd rather trade the stock market as it's more profitable. I make an average of $42,500 per week even though I barely trade myself.
I'm favoured financially, Thank you Jesus $36,000 weekly profit regardless of how bad it gets on the economy.
How
..? Am a newbie in crypto investment, please can you guide me through on how you made profit?
Thanks to Mrs Maria Davis.
CNBC, are you guys kidding?
Maman pronounced « Ma-Man » which means mom 😊
they remind me of the wework people
love Maman and love their story!
Oh, I love it! What an elegant French cafe! If I ever go back to NYC again, I'd love to try it. ❤😊
They have the best cookies - nice and thin and chewy, with crunchy edges and good quality chocolate. However, they are baked inconsistently at least in my local location on the Upper East Side. Sometimes they taste freshly baked to perfection, sometimes they taste like day olds, sometimes they are overly sweet etc. But when they are made fresh and properly, they are really good. Much better than Levain, which is sickly sweet.
I like the laptop free enviroment sign at 3:36,,,,
I think more cafes should do the same.
Nice story
Im literally sick of life. Tired of failure after failure 😞 everything I do always fails.
This a corporation back funded by wealthy investors. Def not your mom and pops shop.
We need to know the net profit ! What they sell is the number one cause of being Overweight and diabetic : Refined carbohydrates and Sugars. One croissant or sandwich can have up to 700 Calories 😮it is written on their menu . I wonder why they are so fit 🤔 i like the design and the look of the shop. They also look so good.
French people aren't fat Because they eat in a rush and eat less portions than other western countries
Very cool story, I go to the Penn station location all the time
I remember walking into their first store in NoLita (not SoHo) on Centre Street. Hardly anyone was there, quiet- I could work in peace. I had coffee and a cookie which was the “cheapest” things I could order. It was so good I wrote a review on Yelp, although I didn’t think it was the best cookie in NYC,😊. Don’t remember this couple, though. I do remember thinking their interior space was more Brooklyn Boho chic than the city & it was SoHo $$$ for being on Centre. The interior design definitely existed in the Bushwick/ Bed Stuy / Williamsburg type neighborhoods, though. Centre is so quiet and lacked foot traffic, I didn’t think this large space would last selling coffee and pastries. Guess I was wrong. 😆
I find myself very curious what their prices for goods are.... 🤔
It's in the video.
Hard work , consistency & believed in them selves!!would like to taste their cookie!
I'm from Germany and I would never pay $17 for a sandwich or $5 for a cup of coffee! I live very frugally because I prefer to put my money into crypto and with the total $22 for these two things I could cook fresh meals for a whole week! 😂
Your Not from USA. Your dirt poor from a former Nazi country run by old stooges
I love Maman .
There's old romance charm style in the cafe, theyre in 😂
To all the haters: building a business is not easy regardless of your background. Plenty of smart people with little to no net worth raise money and built a business. And think about all the immigrants coming to this country with nothing and being successful and some of them building billion $ businesses. Many comments here talk about how these two people had easy access to money, but again, building a business is not easy at all and there are so many companies that raised billions and went bust. So kudos to these two for finding a niche market m, scaling their business, and just being happy (they’re clearly living life and happy).
I sympathize with many people who had no knowledge digital marketing because currently dollar is unstable and coin is taking over to be the universal currency
Hearing it last week got me scared so I agree with you! Investing puts money to work. The only reason to save money is to invest it
In my opinion, Knox jarrati's strategy is the gold standard right now, and I suggest it to anyone starting out because of its excellence and widespread recognition."
This is correct, Knox jarrati strategy has normalized winning trades for me also and it's a huge milestone for me looking back to how it all started
I remember giving her my first savings $5500 and she opened a brokerage account for me it turned out to be best thing that ever happened to me
Same here though I started with as low as $2,000, actually because it was my first time and it was successful, she's a great personality in the State
My advice to everyone is this : if you want to grow big this year especially in your finances. Be willing to make investments. Saving is great but investing puts you on a pedestal where you wouldnt have to worry about savings as you do now. With Samantha Jack, my portolio is doing really great and im proud of the decisions i made last year.
Samantha's analyses go beyond surface-level trends. She delves into technical, fundamental, and sentiment analysis, providing a holistic view of the market..
Samantha Jack's strategy has normalized winning trades for me and it's a huge milestone for me looking back to how it all started.
She is all about simple technique that are highly profitable, I really admire her winning mentality.
Wow. I'm a bit perplexed seeing Samantha Jack being mentioned here also. Didn't know she has been good to so many people too, this is wonderful.
gram with her username
This looks delicious
They got the backing from a “restaurant group” 👀 that’s all I needed to hear, everything else doesn’t matter. If you know what a restaurant group is and does, you’ll know what I mean. This is not a rags to riches story.
So we just use private equity to secure cheap leases from second generation restaurant owners who were not fortunate enough to go that route during hard times and pat ourselves on the back. I hope they fail miserably
How much did they pay to be put on "make it."
Maman in Farsi means Mother!! Make sense
that's an expensive menu ! dang
Success story for suckers who believe in BS
For them to be the 1% who actually made it, 99 other start up restaurants failed where the entrepreneurs lost their 250k.
So basically to survive in the US, u have to open a business
Writing "We spent $250k on a bakery; now it brings in $50M" to then go on and say it's from 34 locations is the biggest clickbait (and switch) I've yet seen.
The French accent gives them en edge. I'd buy a baguette from him.
50M gross sales. I bet theyre netting less than 10 mill / yr.
33 locations and 50m is not much. Must be VC funded.
expensive
$250k? On second thought maybe I don’t want to open my own bakery 😅
Plus they had $1.5 million injection from a family member later on. Hard work yes, risk yes, but also connections.
Once you find a winning business model, you're going to have an easier time convincing investors. The hard part is getting started and finding the right product-market fit
In NY absolutely
@@oeckstei money, first of all
"laptop free environment" give me a break
Don’t make a kid because it costs like $100,000 dollars from 0 to 18 years
Maman means mom in French.
Not really educational or insightful about business here, just two people promoting their business. I wonder if they paid for this advertisement?
I love Maman and continue to frequent it when I'm near one. But it's rich people who got richer. Not a rags to riches story
Yeah does not hurt to have French husband 😂
This CNBC Make it either makes it look like 1. No hard work was put in to make that much salary with the videos around 'how live on $$$'
2. rag to riches story in this series.
you gotta spend $ to make it.
I doubt the plants are real
Personally I’m not a hater and wish them success and love the design, but the quality as a customer sucks…
I’m sure back when the opened they were great, but in 2024 its average at best.
I can see the French technique they are talking about but it taste like Paris worst bakers, not best.
Their cookies are hard, almost stale like, some pastries are decent, others are average.
Drinks are pretty bad…
Hopefully quality control will become more important than quantity expansion at some point…
But they are in demand
We all learn from god.
Why "A NYC" and not "AN NYC"? I know a New York City sounds fine but A NYC sounds weird. PS: English is my second language (or perhaps third)
You're right it might be a typo
Use “An” before a vowel
@@Saltpeanutssexactly - an is used before a word beginning with a vowel
@@MrTmenzo not a typo - "a" is before consonants "an" is before vowels, hope that helps!
Because, the “A” is describing the “B”akery!
👎🏽🤣
Doesn’t seem very successful. You aren’t even averaging $2m per location- what’s the EBITDA? 50% going to PE. Also- a lifestyle brand? Are you kidding me? This woman is out of her mind. They have way too much going on. I’m confused on the brand positioning. And no laptops allowed?! lol. Weird.
Agree, the "lifestyle brand" when we are talking about poorly made pastries and some food… like what 😂