Executive Suite 7/8/2012: Joseph Padula, Del's Lemonade

THE ICONIC SYMBOLS OF SUMMER
IN RHODE ISLAND.
THE BEACH, DEL'S LEMONADE.
THE RECIPE DEVELOPED IN
ITALY IN THE 1800s THE
DEL'S NAME CREATES
FRANCHISES AROUND THE WORLD
BUT THE HEADQUARTERS IL
STILL IN CRANTON.
HOW DOES THE COMPANY KEEP UP
WITH CHANGING CONSUMER TASTE
AND WHAT ARE THE LESSONS
FROM ITS LONGEVITY.
WEEK ON EXECUTIVE SUITE
EXECUTIVE VICE PRESIDENT OF
DEL'S LEMONADE JOSEPH
PADULA.
WELCOME TO EXECUTIVE SUITE.
I AM TED NESI.
SPECIAL HOLIDAY EDITION HERE
FOR THE FOURTH OF JULY.
I HAVE JOE PADULA HERE FROM
DEL LEM NONE MADE.
THANK YOU, TED.
LAST NIGHT, I WAS AT THE
FIREWORKS IN PROVIDENCE AND
A REMINDER TO ME AGAIN OF
HOW QUINTESSENTIAL RHODE
ISLAND IS, HALF OF THE
PEOPLE IN PROVIDENCE HAD A
DEL'S CUP.
THEY HAD GONE TO THE TRUCK.
DO YOU HAVE THE BIGGEST
SALES DAY OF THE YEAR WITH
THAT THE FOURTH OF JULY OR
THE HOTTEST DAY?
DO YOU SEE THAT SPIKE?
IT IS WEATHER DRIVEN.
IT IS A WEATHER PRODUCT.
THE FOURTH OF JULY IS A GOOD
DAY FOR US.
WE ARE THE FOURTH OF JULY
THE FIREWORKS AND WE ALSO
HAVE FIREWORKS IN WAKEFIELD
AND RHODE ISLAND AND
DIFFERENT PARTS OF THE STATE
WITH THE FIREWORKS THAT WE
DO A LOT OF STUFF HERE.
THE BUSIEST DAY IS A WEATHER
DAY.
WHEN IT IS HOT.
WE DO TREMENDOUS AMOUNT OF
BUSINESS.
DO YOU HAVE, DO YOU HAVE
TO SORT OF CALIBRATE HOW
MANY TRUCKS GO OUT.
THE HOTTER IT IS, ARE YOU
WATCHING THE WEATHER LIKE
THAT INTO BASICALLY, WE ARE
A FRAN CHASE COMPANY.
ALL THE FRANCHISES HAVE
EITHER TRUCKS, CARTS OR
STORES OR SOME OF ALL OR
EVERYTHING.
THEY PUT EVERYTHING OUT
EVERY DAY BECAUSE THE
SUMMERS THE SUMMER.
WE NED TO MAKE AS MUCH MONEY
AS WE CAN.
IT IS SHORT ENOUGH SEASON AS
IT IS.
WE DO WHAT WE CAN EVERY DAY
WITH EVERYTHING WE HAVE
OUT.
TELL ME ABOUT THE YEAR?
WHEN DOES THE YEAR REF UP
WHEN YOU START, IF YOU GET
HEAT WAVE IN MARCH, DO YOU
OUT THEN?
WE COULD BE ANTICIPATE AS
EARLY AS MARCH.
IT IS GOING TO BE 73 DEGREES
THEN WE'LL OPEN.
YEAH.
OUR OFFICIALLY WE ARE OPEN
IN APRIL.
WE CLOSE IN OCTOBER.
AND WHAT DO YOU DO IN
THOSE MONTHS BETWEEN OCTOBER
AND APRIL?
WHAT ARE YOU DOING THEN WE
PREPARE AND PLAN FOR NEXT
SEASON.
WE OPEN UP NEW FRANCHISES
AND DIFFERENT PARTS OF THE
COUNTRY AND HOPE TO GET
LUCKY AND DO SOMETHING LIKE
THAT.
SO I SAW ON THE WEB SITE D'S
YOU LISTED 13 STATES WHERE
YOU CAN GET THE DEL'S
FRANCHISE NOW.
I SAW SOME OF THEM FLORIDA,
UTAH, NEVADA, ON TWITTER,
ACTUALLY SOMEONE TOLD ME
WANTED HOW IT ENDED UP IN
VENICE, CALIFORNIA, HOW DOES
IT HAPPEN?
HOW DO YOU FIND WHERE YOU
FRANCHISE?
PEOPLE WILL CALL IN OR
SEND IN TO WATCH SOME TYPE
OF INFORMATION OR A PHONE
CALL LOOKING TO DO SOME
SOMETHING IN THE STATE THAT
THEY LIVE IN.
PROBABLY ABOUT 95% OF THE
PEOPLE THAT WE DEAL WITH ARE
EX RHODE ISLANDERS WHO WERE
IN RHODE ISLAND AT SOME
POINT AND REMEMBERED THE
DELLS AND MOVED TO A
DIFFERENT PLACE.
THIS IS WHERE THE GENTLEMEN
WAS IN RODE ISLAND.
HE OPENED OUT THERE.
HE BEEN THERE THREE YEARS.
HE IS DOING RELATIVELY
WELL.
HE IS DOING GOOD.
WE HAVE ANOTHER GENTLEMEN
UNMAY AMY BEACH DOING VERY
WELL.
THEY HAVE TO DO MORE
INTRODUCTION OF WITH A D'S
IS RIGHT?
YES THEY DO.
THEY HAVE TO DO MORE
MARKETING AND PRODUCT
GIVEAWAY AND GETTING THE ROD
DUCT OF PEOPLE TO LET THEM
KNOW WHAT DEL'S REALLY IS.
THAT IS WHY WE DO A LOT OF
PUSH CART TYPE OPERATIONS IN
OUR OUT OF STATE TYPE
SITUATIONS BECAUSE A
STOREFRONT IS NICE BUT IT
DOESN'T BRING PEOPLE IN SO
YOU NEED TO BRING PRODUCT TO
THE PEOPLE.
GO TO WHERE THEY ARE.
WHERE THEY ARE.
GET THEM TO TRY THE DEL'S
MUCH ONCE THEY TRY IT.
THEY ARE HOOKED AND WE GOT
THEM.
PROBLEM AFTER THIS.
IT SAYS.
IT MENTIONED A WORLDWIDE RES
SENSE.
WHAT ARE WE GOING WITH
THERE.
SOMEBODY GETTING SENT OUT
THERE?
WE DO SEND A LOT OF
PRODUCT TO DIFFERENT PARTS
OF THE COUNTRY.
YEAH.
WE GOT STUFF THAT IS GOING
OUT TO THE SERVICEMEN AND
ALL OF THAT, YOU KNOW, IN
THE MILITARY, AND SO THEY
CAN HAVE THE D'S THERE
ALSO.
WE DO DO A LOT OF STUFF OUT
OF THE STATE AND OUT OF THE
COUNTRY.
LETS TEA TALK ABOUT THE
PRODUCT HERE.
FIRST, HOW DO YOU, IF YOU
MEET SOMEONE WHO DOESN'T
KNOW DEL'S.
HOW DO YOU DESCRIBE SUBMIT
WE OF I WAS TACKING THIS
LAST HIT.
IS NOT EX KLY SLUR PEE, IT
IS ITALIAN ICE.
IT IS DEL'S.
HOW DO YOU DESCRIBE IT?
IT IS A SOFT FROZEN
LEMONADE IS WHAT WE LIKE TO
CALL IT.
IT IS A/Y PRODUCT BUT WE
DON'T LIKE THE WORD SLUSHY
WE CALL IT A FROZEN LEM ON
MADE.
WE BELIEVE WHAT SHOULD BE
DONE WITH WHEN YOU DRINK A
DEL'S, YOU SHOULD HOLD IT
THE HAN AND LET THE HEAT THE
HAND MELT THE PRODUCT LITTLE
BIT THEN YOU DRINK IT AS
DRINK.
A LOT OF PEOPLE USE A STRAW
OR A SPOON.
NOT REAL RODE EYE
LEARNS?
WELL, I GOT TO SAY, WE
STILL HAVE RHODE ISLANDERS
THAT LIKE STRAWS T. THE
PROBLEM WITH THE STRAW, WHEN
YOU USE THAT, YOU SUCK THE
JUS OUT NOW YOU ARE LEFT
WITH THE SLUSH PART THAT HAS
TO WAIT TO MELT.
QUEAS THE CUP A LITTLE BIT.
TAKE A SIP.
SO THE HEAT FROT YOUR
HAND THAT HELPS TO MELT THE
PRODUCT.
YES.
HOW MANY LEMONS DO YOU GO
THROUGH A YEAR?
HOW MANY GLONS DO YOU MAKE A
YEAR?
OH, GOD.
WE PROBABLY USE 1 MILLION
LEMONS THAT WE ACTUALLY CUT
AND WASH FIRST AND SANITIZE
MAKE SURE THE SKIN IS ALL
CLEAN THEN WE CUT THEM,
JUICE THEM, BAG THEM.
PUT THEM IN FREEZERS.
TAKES THROUGH THE PROCESS
ACTUALLY.
I BELIEVE ITS ALL STILL MADE
IN CRANTON.
YEAH.
90% STILL MADE HERE.
WHAT THESE PROFIT.
WHAT IS THE BEGINNING TO END
WHERE IT ENDS UP IN THE
TRUCK TO GET DEL'S
LEMONADE.
FIRST OF ALL, WE TALK THE
LEMONS AND WE CUT THEM.
THE JUICE WE MIX IN
00-GALLON VAC THEN WE MAKE
THE CONCENTRATE WITH WATER,
SUGAR AND LEMON THAT WE PUT
INTO THAT.
THEN WE PACKAGE IT.
PLASTIC GALLON BOTTLES THEN
THAT IS PUT INTO
REFRIGERATOR.
THEN THE FRANCHISE ES WILL
PICK UP THEIR PRODUCTS AND
COME TOLL THE STORE AND PICK
UP THE PRODUCT TO TAKE IT TO
THEIR STORES THEN THEY WILL
TAKE AND WITH THE BATCH
MACHINES THAT THEY HAVE IN
THEIR BUILDINGS LIKE THE
LOCATION HEADQUARTERS HAS,
THEY HAVE FILTER SYSTEMS FOR
THE WATER SO TOO THE WATER
IS FILTERED BEFORE IT GOES
TO THE MACHINES SO THE
PRODUCT IS TAKEN IN THAT
MACHINE BE A TASTES JUCH AS
GOOD AS IT WILL IN JNTON OR
ANYWHERE.
THE FILTER SITUATION IS
IMPORTANT.
THEN, THE PRODUCT IS POURED
INTO A MACHINE.
WITH THE AMOUNT OF WATER.
LIQUID, THE LIQUID
CONCENTRATE IS POURED INTO
THE MACHINE WITH THE
FILTERED WATER, THE MACHINE
IS TURNED ON.
IN ABOUT ANYWHERE BETWEEN 8
TOLL 12 TO 15 MINUTES YOU
WILL HAVE A FROZEN PRODUCT.
NOW WE HAVE OTHER FLAVORS.
EVEN THOUGH I AM A CLASSIC
LEMON GA MYSELF.
I LISTED WATERMELON, CHERRY
SHALL PEACH MANGO, LIGHT
LEMON GRATE FRUIT AND
POMEGRANATE.
YOU ONCE TRIED CARROT, CANTY
HOPE, HONEY DEW, THOSE DID
NOT COME OUT.
THEY ARE NOT AS OF YET.
NO.
THERE ARE SO MANY PROD DUBS
THAT WE DO EK PERMANENT WITH
AND TRY TO DO THINGS WITH
AND THEY TASTE GREAT BUT THE
BOTTOM LINE IS, HOW MANY CAN
YOU SELL AND HOW MUCH CAN
YOU SELL OF IT?
THE PROD DUBS THAT WE HAVE
OUT RIGHT NOW ARE THE
PRODUCTS WE FEEL THAT SELL
AND DO A VERY GOOD JOB OUT
THERE.
I ASSUME THE CLASSIC
LEMONADE THE NUMBER ONE
SEVERAL.
CLASS ISIC NUMBER ONE.
BLUEBERRY AND GRAPEFRUIT ARE
RIGHT IN THERE IN THE AND
FOUR AND HENN WE HAVE THE
ALSO THE CHERRY PRODUCT
WHICH IS ANOTHER GREAT
PRODUCT ALSO AND PARM MY
GRANITE.
YOU MENTIONED TO ME,
COMING IN THAT YOU HAVE A
NEW PRODUCT COMING OUT NOW,
WHAT IS IT?
EXPLAIN IT.
YES.
OUR NEW PRODUCT RIGHT NOW
COMES IN A FOIL PACKAGE THAT
OUR FRANCHISE USES TO PUT IN
THE MACHINE.
WE WILL BE COMING OUT WITH
IT IN A SMALLER TAKE HOME
TYPE VERSION THAT WE'LL BE
ABLE TO USE IT AT HOME.
THIS NEW PRODUCT IS FOR THE
PERSON OF A DIABETIC OR A
PERSON WHO IS WATCHING SUGAR
INTAKE.
THIS IS A PRODUCT THAT THEY
CAN DRINK NOW AND HAVE AND
NOT HAVE TO WORRY.
IT IS MADE WITH A
SWEETENER.
ALL NATURAL SWEETENER.
THERE IS NO SUGAR.
THIS IS FOR A DIABETIC-TYPE
PERSON THAT CANNOT HAVE
SUGAR THAT WANTS DEL'S AND
FINALLY CAN HAVE D'S.
THIS IS PROBABLY THE FIRST
PRODUCT IN THE COUNTRY THAT
HAS BEEN DONE SO FAR.
BE HAVE FOOD AND BEVERAGE
GENTLEMEN BY THE NAME OF
DIMITRI IN ROD ISLAND THAT
WORK FOR US FULL-TIME WHO
HAS DEVELOPED THIS PRODUCT
LAST YEAR AND GOT IT OFF THE
FLOOR YEAR.
WE JUST STARTED A MONTH WITH
THIS PRODUCT OUT.
IN ANOTHER WEEK OR SO.
WELL BE A COMING OUT WITH
THE WALTER MELON FLAVOR
ALSO.
OKAY.
HE WATERMELON IS IN THE OUT
YET.
IT IS COMING IN A WEEK.
HOW DO YOU DECIDE?
WHAT IS THIS HESES?
YOU HAVE A LAB OF DEL SPHEA
YEAH.
HE HAS A LAB AND HE HAS A
COUPLE OF ASSISTANTS THAT
HELP HIM AND THEY TRY
DIFFERENT THINGS AND THEY
COME AROUND AND LET US BE
THE GUINEA PIG TO TASTES
THAT HE THINGS TO HOW THEY
THINK.
INTERNAL SUGGESTIONS THAT
SAY WHAT ABOUT A WATER
MILLION OWN.
IT IS INTERNAL AND
COSTUME.
COON YOU HAVE A WATERMELON
FLAVOR.
YOU KNOW, FOR EXAMPLE WHICH
WE DO.
CUSTOMERS DO ASK FOR AND
THEN WE WILL TRY TO DO WHAT
WE CAN TO SEE.
SOMETIMES THINGS WORK OUT
WELL AND ALSO YOU ED TO MAKE
SURE YOU CAN GET THE RIGHT
INGREDIENTS AND EVERYTHING
YOU DO NEED FOR MAKING THE
DIFFERENT PRODUCT.
ALL RIGHT.
WE HAVE TO TAKE BREAK.
WHEN WE COME BACK.
WE'LL TALK ABOUT THE MYSTERY
OF DEL'S LEMONADE.
SOME OF IT YOU MAY NOT
KNOW.
STICK WITH US.
YOU ARE WATCHING EXECUTIVE
SUITE.
WELCOME BACK TO EXECUTIVE
SUITE.
OUR GUEST THIS WEEK IS JOE
PADILLA THE SENIOR VICE
PRESIDENT OF DEL'S
LEMONADE.
JOE WERE YOU TELLING ME
BEFORE WE STARTED THE SHOW
TODAY.
YOU HAVE WORKED FOR DEL'S
FOR LONG TIME.
HOW DID YOU GET YOUR START
WITH THE COMPANY?
EYE USED TO LIVE ACROSS THE
TREAT FROM THE OAK LAWN
AVENUE STORE.
I STARTED WORKING FOR DEL'S
WHEN I WAS 7 YEARS OLD
PICKING UP PAPERS IN THE
PARKING LOT.
TO THIS DAY, I STILL PICK UP
A FEW PAPERS WITNESS IN
AWHILE.
MEAN, IT IS NO BIG DEAL.
SOMEONE IS GOING HELP OUT TO
DO THE THINGS THAT NEED TO
GET DONE.
THAT IS WHAT WE DO.
YOUR JOB CAN MEAN A LOT OF
DIFFERENT THINGS.
A LOT OF HATS.
A LOT OF HATS.
YOU KNOW, IN THE STOREFRONT
OPERATIONS, IN THE OFFICE,
IN THE PLANT, ON THE ROAD,
SO YOU OH, DOING DIFFERENT
THINGS TO MAKE THINGS HAPPEN
FOR THE DEL'S TO GET IT TO
TAKE OFF.
SO WE WERE TACKING BEFORE
ITALY IS WHERE THIS COMES
FROM.
GIVE US THE HISTORY THE
EARLY HISTORY OF THE FIRST
DEL'S.
WELL, THEY SAY THEY BROUGHT
IT ARE IN THE CAVES AND ALL
OF THAT AND BROUGHT IT IN
AND GREAT-GRANDFATHER
STARTED THIS WHOLE SITUATION
WITH THE DEL'S AND IT CAME
DOWN INTO RHODE ISLAND WHERE
AND DPEL LOW THE OWNER WHO
PASSED AWAY NOW AND THE
FAMILY-OWNED OPERATION AND
THE BUSINESS AND BRUCES THE
PRESIDENT AND THE CEO OF THE
COMPANY.
STILL FAMILY OWNED.
STILL A FAMILY-OWNED
COMPANY.
YES.
SO GREAT-GRANDFATHER AS I
UNDERSTOOD THE HISTORY WOULD
TAKE THE ICE AND PUT NIGHT A
CAVE DURING THE WINTERTIME
AND THEN ONCE SUMMER CAME
AROUND.
HE WOULD HAVE IT SAVED AND
HE WOULD BRING IT OUT TO MIX
IT TOGETHER.
MIX IT BY HAND AND PUT
THE LEMON VUS AND THAT AND
MCIT.
A YEAH.
THIS IS IN HAP PELLS.
IT CAME OVER AS THE FAMILY.
IT WAS FOUNDED IN 1947 OR
'48.
1948 AND THE FELLOW PASSED
AWAY A FEW YEAR AGO.
YEAH.
WHAT DO YOU THINK IS THE KEY
OR WAS AND IS THE KEY TO THE
SUCCESS?
WHAT DO YOU SEE?
IT IS THE TASTE OR THE WORK
YOU PUT INTO KEEPING IT IN
FRONT OF PEOPLE?
IT IS A LOT OF THING.
I THINK IT IS A BUNCH OF
SITUATIONS WORKING TOGETHER
AS THE TEAM AND EVERYBODY
PUTTING THINGS AND MAKING IT
HAPPEN BEHIND THE SCENES
WHAT GUESS ON TO MAKE A D'S
PRODUCT IN WHERE IT STARTS
FROM AND WHERE IT ENDS AND
ALL THE PEOPLE THAT ARE
INVOLVED FRANCHISE, WORKERS,
EMPLOYEES, A KEY PART OF THE
BUSINESS IS EMPLOYEE.
IF YOU DON'T HAVE EMPLOYEES,
YOU KNOW, YOU CAN'T DO IT
YOURSELF.
YOU CAN'T DO IT ALL
YOURSELF.
HOW MANY PEOPLE DO YOU
HAVE IN CORPORATE DEL ?EA WE
HAVE PROBABLY ABOUT A GOOD
HALF DOZEN OF FULL-TIMERS.
AND THEN, WE HAVE QUITE FEW
PART-TIMERS THAT ARE LIKE
YOUNGSTERS TO THE SUMMER
THAT WORK IN THE STORES AND
ON THE TRUCK AND THE PUSH
CARTS A. COME IN.
A LOT OF PEOPLE FIRST SUMMER
JOB WITH DEL'S.
WE WERE TALKING ABOUT
FRANCHISES.
I AM CURIOUS, SORT OF, HOW
DO YOU MANAGE THE FRANCHISE
RELATIONSHIP.
THEY COME TO YOU IN APPLY.
THEY ALY TO US ON-LINE OR
ON FEN OR BY LETTER AND THEN
WHAT WE DO IS WE EITHER
E-MAIL OR SEND OUT
APPLICATIONS AND THEN ONCE
WE SEE APPLICATIONS BACK, WE
LOOK AT THEM AND CHECK THEM
OUT AND HAVE CONVERSATIONS
AND MOST OF THE TIME WE SIT
DOWN AND TALK.
SOMETIME IT COULD BE A YEAR
BEFORE SOMETHING HAPPENS OR
IT MAY NEVER HAPPEN.
IT JUST DEPENDS SOME PEOPLE
ARE LOOKING TO TUCK AND ASK
QUESTIONS TO FIND OUT ABOUT
WITH TANGS TO OPEN THE DEL'S
REASON CHIS AND IN THE ONLY
DEL'S BUT WHAT ELSE IT TAKES
OUT OF TIME AND PHYSICAL
WORK AND EVERYTHING THAT IS
INVOLVED IN THE DEL'S.
HO HOW DO UTECHT THE
DEL'S BRAN WHEN YOU HAVE
LOTS OF PEOPLE FRANCHISING
IT ALL OVER.
HOW DO YOU MAKE SURE IT IS
GIVEN THE SAME DEL'S
EXPERIENCE THAT YOU WANT?
ONE OF THE THINGS WE USE
AS A WATER FILTER SYSTEM AND
A MT.ER TO METER THE WATER
THAT GUESS IN AND ALSO THE
FILTER SYSTEM TO LOOK SHORE
THE WATER OR THE QUALITY OF
THE WITH AER IS THE SAME.
WE DON'T HAVE SOMEONE WHO IS
OUT EVERY SINGLE DAY
CHECKING ALL OVER BUT WE DO
IN RHODE ISLAND HAVE A LOT
OF PEOPLE WHO DO DO THINGS
FOR US AND GO TO PLACES,
THEY CHECK PROD DOESN'T AND
GET PHONE CALLS AND THINGS
LIKE THAT.
I LOFT TIME WHEN WE GET A
PHONE CAL OR A LETTER FROM
OUR CUSTOMER WHO WAS NOT
SATISFIED WITH THE PRODUCT,
WE TAKE THAT TO HEART.
WE WILL HACK THE CALL TO
THEM TO FINNED OUT WHAT
HAPPENED OR WHAT THEIR BAD
EXPERIENCE WAS.
A LOT OF TIME WHEN PEOPLE
TELL US THEY HAD A ROD DUCT
THAT DID NOT TASTE JUST
QUITE RIGHT.
A LOT OF TIMES WHAT HAP PEPS
IS WHEN YOU TO A D'S WHETHER
WITH IT BE A STORE, A TRUCK
OR A PUSH CART.
YOU SHOULD ALWAYS ASK THE
PERSON THAT IS SERVING THE
ROD DUCT TO PREAS STIR IT
FIRST.
WHAT HAPPENS IS, THE PRODUCT
IS IN A BIN.
THE LIQUID SETTLES TO THE
BOTTOM.
THE SLUSH STAYS THE TOP.
IF ITS BEEN SITTING FOR
AHILL.
THE FLAVOR IS AT THE BOTTOM
NOW YOU NEED TO TIR STIT.
YOU MIX IT TOGETHER.
MIX IT THEN SERVICE THE
PRODUCT.
95% OF THE TIME THAT IS THE
REASON WHY.
BE A WE HAVE WORKERS
WATCHING US.
I HOPE THEY ARE ALL WATCHING
AND LISTENING YES.
YOU HAVE OTHER PRODUCT AS
WITH.
YOU SELL THE MIXES T. PEOPLE
CAN BUY IT AND MAKE IT AT
HOME.
I HAVE SEEN DEL'S IN A
BOTTLE AS LEMONADE.
WE HAVE A BOTTLES DRINK THAT
COMES IN LEMON, DIET,
TANGERINE ORANGE AND PINK
LEMONADE ALSO.
HOW BIG OF A ROLE, HOW BIG
OF A ROLE DO THEY PLAY IN
THE BUSINESS?
THE BOTTLE DRINK IS A
PART OF OUR OUR BUSINESS.
WE DON'T BOTTLE THIS
OURSELF.
WE HAVE SOMEONE WHO DOES
IT.
A COMPANY THAT DOES IT FOR
US.
-WE HAVE THE DISTRIBUTOR
THAT HANDLES THAT FOR US.
HE IS DOING THAT.
THAT IS A DECENT PORTION OF
OUR BUSINESS.
IT IS.
THE FROZEN PRODUCT IS THE
BIG CORE OF OUR BUSINESS.
YES.
I WAS TALKING TO A FRIEND
FROM VERMONT.
HE SAID TO ME, YOU KNOW, DEL
AND BEN AND AREA RY'S WHICH
WAS VER MOP'S IN ITUTION AND
RAPIDLY CREW.
I READ AN INTERARE YOU FROM
A FEW YEARS AGO WHERE HE
SAID, YOU KNOW, WE NEVER HAD
A HUGE EX PANG OUTSIDE OF
RHODE ISLAND FOR WHATEVER
REASON.
DO YOU SEE A LOT OF
OPPORTUNITY THIS DO YOU EVER
TALK INSIDE OF DEL'S.
CAN WE GET MUCH BET BIGGER
OR YOU LO, YOU CONTEN FOR
WHERE YOU ARE IN THE MARKET
NOW.
WE ARE NOT CONTENT.
WE WOULD LIKE TO BE IN MORE
PLACES.
I THINK SOMETIMES WE GET THE
PHONE CALL.
LIKE I SAID THE E HILL MAIL
FROM SOMEONE WHO WANTS TO
OPEN UP A DEL'S HEN THEY
HEAR THE DOLLARS AND THE
CENTS THAT IS INVOLVED IN
OPENING THE DEL'S.
THIS IS A LITTLE BIT OF A
SHOCK SOMETIMES TO PEOPLE
BECAUSE THE EQUIPMENT WE USE
IS ALL STAINLESS STEEL AND
APPROVED THE DOLLARS AND
CENTS ARE FOR THE PROD
DOESN'T AND THE EQUIPMENT
THAT WE HAVE TO GET SO THE
PRICE TAG IS A LITTLE HIGH.
IT IS UNFORTUNATE THE SEASON
ALSO DETERMINES THINGS,.
, WHEN YOU ARE GOING TO
SPEND $1-00,000 TO GET INTO
A DEL'S FRANCHISE, YOU WANT
MICK SURE YOU WILL BE ABLE
TO MAKE SOME MONEY AND NEW
ENGLAND STATES, IT IS A
LITTLE TOUGH YOU KNOW.
ABSOLUTELY.
OOP DO YOU, UM, HAVE YOU HAD
AN EFFECT FROM THE DOLDRUMS
IN RHODE ISLAND THAT WE HAVE
BEEN.
HAVE YOU SEEN A DIP IN SALES
OVER THE YEARS OR RECESSION
PROOF.
I DON'T THINK WE HAD, I
THINK WE HAVE DONE WELL, WE
ARE A WEATHER-DRIVEN
BUSINESS SO IF THE WEATHER
THERE IS.
WE ARE DOING BUSINESS.
I THINK OUR PRICING IS AT A
POINT WHERE PEOPLE CAN
AFFORD TO TICK A FAMILY TO
DEL'S AND STILL BE OKAY.
AND HAVE YOU HAD MUCH
COST PRESSURE ON THE COST
PURCHASE PRESSURE ON THE
COST SIDE WITH THE
INGREDIENTS AND EVERYTHING.
YEAH.
INGREDIENTS ARE GONE UP.
YES, THEY HAVE.
SO WE HAVE HAD TO ADJUST
SOME THING AS HILL BIT♪♪
OURSELF YOU WE STILL TRY TO
MAINTAIN AND HOLD PRICING SO♪♪
PEOPLE CAN AFFORD YOU KNOW
AND WE HOPE WE'LL WORK ON
MORE VOLUME AND MAKE HE
SALES THAT WAY AND GET MORE
MONEY IN THAT WAYS.
WE HAVE TO TAKE ANOTHER
BREAK.
COMING UP IN THE THIRD
SEGMENT ON EXECUTIVE SUITE
WE'LL TALK ABOUT HOW DEL'S
SITS THIS THE ROADER PICTURE
IN RODE ISLAND.
STICK WITH US.
WELCOME BACK TO EXECUTIVE
SUITE.
OUR GUEST THIS WEEK IS
JOSEPH PADULA OF D'S
LEMONADE.
JOE, DEL'S HAS BEEN IN RHODE
ISLAND A LONG TIME.
THERE IS A CONSTANT DEBATE
ABOUT RHODE ISLAND IS BAD
FOR BUSINESS.
DO YOU FEEL LIKE IT IS?
I DON'T THINK ITATION BAD
PICK.
KITE BE A BETTER STATE FOR
BUSINESS?
I THINK IT COULD.
WHAT DO YOU RUN INTO THAT
MAKES YOU THINK THAT THIS I
NY TAXESES ARE A BIG ISSUE
IN RHODE ISLAND.
YOU KNOW?
AND SOMETIMES DOING BUSINESS
IN RHODE ISLAND SOMETIMES IT
IS DIFFICULT JUST TO GET TO
WHAT YOU WANT TO GET TO TO
GET THINGS DONE.
HOW SO?
REGULATIONS?
REGULATIONS IS
SOMETHING.
YOU KNOW?
THE DIFFERENT RULES AND ALL
OF THAT.
THERE'S CERTAIN THINGS THAT
ARE GREAT PRESIDENT WE HAVE
HEALTH DEPARTMENT SITUATIONS
THAT ARE GOOD.
YOU NEED HEALTH DEPARTMENTS
TO KEEP ALL BUSINESSES
RESTAURANT-TYPE BUSINESSES,
DEL'S LEMONADE, ICE CREAM
AND SO IT IS A GOOD
SITUATION.
BUT THERE ARE SOME THINGSES
THAT COULD BE YOU KNOW, THE
RULES AND THE REGULATIONS
AND THE COST OF LICENSES AND
THINGS LIKE THAT THAT COULD
BE A LITTLE BIT OF HELP ON
THOSE THINGS TO HELP THE
SMALL BUSINESS PERSON OUT.
HOW MUCH DOES A COMPANY LIKE
DEL'S WORRY ABOUT TAXES
REGULATIONS, HOW MUCH DO YOU
EVEN THINK ABOUT GOVERNMENT
OR ARE YOU JUST DOING YOUR
OWN THING IN A LOT OF WAYS
IN YOU LO, IN THE SUMMERTIME
WE DON'T THINK ABOUT
ANYTHING BUT TRYING TO MAKE
MONEY THEN IN THE WINTERTIME
YOU START THINKING ABOUT ALL
OF THESE THINGS THAT HAVE
GONE ON.
YOU NO HE?
WE WERE VERY CONCERNED WHEN
THE GOVERNOR WANTED TO PUT
THIS NEW TAX ON WITH THEED
IF AP THE BEVERAGE AND THE
RESTAURANT AND ALL OF THAT
BECAUSE YOU KNOW, EVERY TIME
THEY PUT ANOTHER TAX THAT
TAKES-NY OUT OF OUR POCKET
BECAUSE YOU MOW, IT IS A
DIFFICULT THING TO MAKE
MONEY AS IT IS IN CERTAIN
SITUATIONS AND YOU WANT, YOU
PO OH, YOU WANT PEOPLE TO BE
HAPPY AND HAVE A GOOD
PRODUCT AND ALL OF THAT AND
THE RESTAURANT THEY HAD
THEIR ISSUES WITH THEIR HELP
AND LOSING HELP AND
BUSINESS.
SO WE WANT BUSINESSES TO
STAY IN RODE ILAN NOT CLOSE
AND MOVE OUT OF STATE
BECAUSE OF DIFFERENT TAXES
AND PROBLEMS THAT HAPPENED.
A NOW, THERE WAS ANOTHER
THING THAT JUST PASSED.
I WAS CURIOUS AND THE IMPACT
ON DEL'S WHICH IS THE
MINIMUM WAGE GO FROM $7! 40
TO $7.75.
DOES THAT MATTER TO YOU?
WE HAVE TO DO WITH WE HAVE
TO DO.
THAT IS.
WE HAVE YOU KNOW A BUNCH OF
GAD PEOPLE THAT WORK FOR US
AND WE TREAT THEM RIGHT.
I FEEL THAT.
WE WORK TOGETHER AS TEAM.
IT IS A BIG ISSUE AS A TEAM
TO WORK TOGETHER.
YOU KNOW THAT IS WHAT
HAPPENS.
WE HAVE TO HAVE 3 SECONDS
WITH YOU YOU GIVE A TIP AS
WE WERE STARTING ON HU TO
GET RID OF A BRAIN FREEZE.
S WHAT THE SECRET FROM
DEL'S.
EBRAIN FREEZE THAT YOU GET
FROM DEL'S IS TACK THE
TONGUE AND STICK IT ON THE
ROOF OF THIS MOUTH AND HOLD
IT THERE AND THE BRAIN
FRIEZE WILL AWAY.
YOU HAVE LEARNED SOMETHING
IMPORTANT THIS WE CAN ON
EXECUTIVE SUITE.
THAT IS ALL THE TIME WE
HAVE.
I WANT THANK OUR GUESTS JOE
PADULA, D'S LEMONADE AND
THANK YOU FORTUNING IN TO
ITV.
IF YOU MISSED ANY OF THE
SHOW YOU CAN CATCH IT ON OUR
WEB SITE.
I AM TED NESI.
WE HOPE YOU STAY WITH US
NEXT WEEK AND EVERY WEEK ON
EXECUTIVE SUITE.