Thursday, February 8, 2007

What is Paciugo? Where is it?

If you just tuned in..... PACIUGO is a gelato chain that was started by an Italian couple who treated hard working employees like dirt. They hired illegal workers to work in their shops and kitchen so they can control those people. Employees were trained to tell customers that their gelato is wholesome, 70% less fat than premium ice cream and made fresh every day. Their milk based gelato is not made with whole milk only. Their sorbet is not made with water, sugar and fruit only. There is food coloring, jams and very little fresh fruit. They gelato is recycled every morning. The story that are told to the customers are scripted lie and deception.

I feel really bad for the people who bought their franchises. Prospective franchisees do not know how they do business. Paciugo owners looks nice and polite to the outsiders. Especially to the people who are willing to pour money on them. What happen to Novo Networks who had 33% stake in Paciugo? The italian drove them crazy after pocketed $2.5 million. Read the story here: http://bankrupt.com/TCR_Public/031120.mbx.

Please think twice before buying a Paciugo franchise. What happen to Paciugo stores that were closed? Do you ever ask why about it? The owner only shows the best performing store to impress prospective franchisees. That sales result shown is a few years ago result. There was only one store in Dallas. Sales never goes up to that level after more stores are opened. Sales was really bad in the fall, winter and spring. Summer was good but it is not enough to cover the loss.

No comments: