Before The Profit
In 2004, Andrew Rosenthal founded LA Dogworks, a California dog boarding business catering to upscale clientele expensive and pampered canines. Andrew worked the company to the point of generating upwards of $1.3 million a year in revenue.
Before appearing on The Profit, LA Dogworks’ dog training services had fallen off significantly, which Andrew attributed to the services “not being for everybody.” The trainer at the facility admitted that their dog training had received several bad reviews on an online rating site.
Unfortunately, even though their revenue was relatively high, Andrew found himself $150,000 in debt after mismanaging the company through ineffective business practices in what many feel is a recession-proof industry.
LA Dogworks on The Profit
The Profit Season 1 Episode 5
The Profit host Marcus Lemonis wanted to see if he could help LA Dogworks get back on its own four feet.
Andrew started by giving a tour of his facility to Marcus, who noted there were no signs on the outside of the building to let people know LA Dogworks was there. Marcus spent some time playing with some of the clientele at the indoor dog park before Andrew presented the “dog haven,” an area filled with dog bunk beds that he said he invented.
The dog shelter in the back was grungy with chain link kennels. Andrew said that the dogs didn’t care how it looked; Marcus patiently tried to explain that the environment presentation was for the dog’s owners – not the dogs. Andrew brushed this point off, saying, “it works well.”
Concerning the negative reviews on their dog training services, Andrew brushed it off; his solution was that Marcus stays off the Internet. At this point, Marcus admits to the audience that he was not getting a good vibe from the owner of LA Dogworks.
The operations manager Neil told Marcus that despite the decline in business, the training aspect of LA Dogworks was the leading performer of the company. He stated that the boarding and grooming divisions were responsible for the company making just $78 in the previous quarter. Neither Andrew nor Neil knew what their current occupancy rate was. Neither even knew what Marcus was referring to when he asked. But Marcus knew and was not impressed at their 27% occupancy rate.
Andrew admitted to Marcus that the most challenging part of running LA Dogworks was himself. He acknowledged that he was very particular and was not great at communicating with his employees.
Marcus envisioned LA Dogworks as having the potential to expand to multiple locations and produce products to be distributed and sold at other venues. That was only possible if this anchor site was cleaned up and made more functionally effective. Morale would also have to go up, and the employees would need to get on board with some drastic changes to improve business and save the company. Marcus offered $1 million in exchange for 50% of the business and would need a full week to take charge of the operations to get things going in a positive direction. Andrew would control the brand; Marcus would oversee the day-to-day running of the business. Andrew strenuously objected, reminding Marcus that he had built up the business from nothing.
Without saying a word, Marcus took out his checkbook, wrote a check for a $1,000,000, and slid it across the table to Andrew, who paused to consider the offer once more with the check-in hand. Marcus then told him he would not have to worry about the money anymore, but told Andrew he would be fired if any of the employees were messed with. After some thought, Andrew shook Marcus’ hand on the deal.
The rest of the staff was gathered so Marcus could explain the changes that were to come. First off, days of demoralized and unhappy employees were over. Marcus was instituting a customer rewards program to increase kennel occupancy and was prepared to open new locations once this location was running at peak performance.
The delivery vehicle for LA Dogworks was called the “Fetch Mobile.” Andrew began complaining about a scratch he discovered on the bumper, insisting that the stupidity of his workers is what had brought LA Dogworks down. He referred to himself as the alpha dog and claimed that it all started going badly when he had to start hiring other people, telling Marcus he would be happy to fire the entire staff and start again from scratch. The very employee he was ranting and raving about walked in, and Andrew called “worthless” to his face.
An all-employee emergency meeting was immediately called by Marcus, who told Andrew he was not to talk to his employees that way ever again. Neil backed Marcus up by saying that Andrew frequently made his employees feel worthless by focusing on the negative (and by literally calling them “worthless”). Employees were afraid to approach Andrew, and their actual health was being affected by how they had been treated at work. Andrew yelled back he tried to communicate, but that (somehow) he needs to yell for his health and wellbeing. One employee was brought to tears, and Marcus told Andrew that his employees did not want to work with him or deal with unhinged antics.
Marcus was excited about the changes he was making for LA Dogworks, though he was concerned Neil would ask to be hired at one of Marcus’ other business interests.
A workplace psychiatrist was brought in, and Marcus had her meet with Andrew. Dr. Rivera explained to Andrew that his employees needed to be the backbone of his business, even if Andrew felt they were the bane of his existence. When Andrew was asked about the job he thought Neil was doing as operations manager, Andrew started screaming at Neil, saying he didn’t exist. Dr. Rivera asked Andrew why Neil was even still with the company if Andrew thought he was so useless. Andrew somewhat relented and said he had no intention of firing Neil, admitting that he was a valuable asset to the company. However, Andrew stubbornly refused to apologize to Neil.
Marcus suggested to Neil that he apologize to Andrew as an example of what compassion looks like. Neil agreed and ended up shaking hands with Andrew, and under the direction of Dr. Rivera, the two made amends and agreed to move forward in a positive direction.
This goodwill did not last long. As Marcus began to explain a plan to get more customer traffic, Andrew immediately shot it down, claiming his employees were too incompetent to carry out new ideas effectively. Neil spoke up for the rest of his fellow employees before leaving. Marcus was fed up, too, and called off the deal.
LA Dogworks After The Profit
Despite not being able to secure a deal on The Profit, LA Dogworks remains in business. Recent reviews on Facebook compliment the staff’s professionalism and friendliness, even the previously angry and unhinged Andrew. Their Yelp rating remains steady at 3.5 stars, with many customers leaving glowing reviews.
LA Dogworks is open all day every day and offers a plethora of services for dog owners, including:
- Dog Daycare – LA Dogworks boasts a 2500 square foot indoor playroom equipped with artificial turf called K9 grass, which has antimicrobial properties. The K9 grass utilized by the facility is cleaned using a high-pressure wash and a trench drain, promoting a bacteria-free (and odor-free!) environment.
- Boarding – the boarding accommodations at LA Dogworks are divided into two spaces: Bunk Bends for dogs 30 pounds and under, and traditional kennels for dogs of all sizes. Dogs are entertained by playing in the dog daycare area and can go back to their kennels and relax. The dogs are provided with TVs for background noise that play Animal Planet and other dog-related programs.
- Grooming Salon & Spa – The grooming services provided by LA Dogworks include bathing and grooming, ear and teeth cleaning, and nail trimming. LA Dogworks is equipped with state of the art grooming equipment such as specialized tubs, lifts, and dryers to make your dog’s grooming experience more comfortable.
- The Zen Den – An area where the staff gets acquainted with your dog, The Zen Den is where your dog’s LA Dogworks experience begins. The team learns your dog’s likes and dislikes, as well as temperament and behavior.
- Fetchmobile – With a 24-hour notice, LA Dogworks can pick up or drop off your dog using their fleet of Fetchmobiles.
- Canine Enrichment – LA Dogworks offers “Puppy Preschool” classes for both dogs and owners as well as a boarding and training option. Dogs partake in a rigorous training program, learning commands, and basic obedience.
In addition to their services, LA Dogworks continues to expand its retail section, selling premium beds, collars, training aids, toys, and treats. LA Dogworks products are a perfect fit for the prim and proper indoor dog to the rough and tumble sporting dog.
The staff is knowledgeable in all aspects of dog care, offering thorough product advice for dog owners.
LA Dogworks is an example of a business that, regardless of a somewhat negative portrayal on television, continues to grow and thrive.
Disclaimer: The information provided in this article is strictly informational; INSIGNIA SEO is not affiliated with LA Dogworks, The Profit, or any of their subsidiaries.