Marc Kreiner Interview: How Your Business Can Survive in California

Not every lesson for business owners comes from legal frameworks. Some come from how experienced operators navigate uncertainty and survive difficult cycles. This interview is one of those conversations.

John Fagerholm, Managing Partner at DefendMyBiz, speaks with entrepreneur Marc Kreiner about resilience, business strategy, and operating in California during challenging conditions. This happened during the pandemic, when Marc had just come out of 30 days of quarantine, and The Morrison had just reopened for takeout at about 20% of normal business. 

The conversation covers business resilience, operating challenges in California, and key lessons from Marc's career.

Operating a Business During Revenue Collapse

John opens by acknowledging the obvious: The Morrison had just reopened after the lockdowns, operating at a fraction of capacity.

"Business, thank God, we've got some people that have been regulars and have come in here for years," Marc says. "We're in our eighth year, so it's nice, but we're at about 20% of where we were."

John acknowledges the difficulty. "Brutal," Marc agrees. "Because your rent doesn't drop by 80%. Your other expenses don't drop by 80%." For California businesses operating in physical industries such as restaurants, retail, or services, this dynamic is common. 

Fixed costs don't flex when revenue collapses. Marc's approach is less tactical and more focused on mindset: "For me, it's like not quitting two minutes before the miracle. Just take it one day at a time and do the best I can do." He's not dismissing the difficulty. He's describing how he stays functional inside it. 

"When I started thinking about tomorrow or next week or the next holiday, are they going to open up, are they going to open up for 25%, it's like, I just don't want to participate in the insanity. There's so much insanity going on right now that I just have to try to stay focused."

The Reality of Operating a Business in California

John brings up a tension he sees playing out across his client base, businesses relocating to Texas and Nevada, Elon Musk threatening to leave, and employers exhausted by the regulatory environment.

Marc doesn't disagree. "It's such a brutal state to do business in, in all areas. The laws, being an employer, all that stuff, the taxes, it's pretty tough."

Despite these challenges, he has chosen to continue operating in California. His answer for why captures something honest about the California business owner's dilemma: "300 days of sunshine. That's what keeps me here."

Then, more seriously: "I'm not anchored here anymore. Does that make sense? I mean, if something came up, an opportunity, I'd never say I'll never leave California."

John references a Tony Robbins quote he'd been reading that Robbins had always been a California guy until he realized California didn't want him anymore, driven out by taxes and cost of living. Marc hears it and nods. The frustration is real. For now, the economic and strategic trade-offs continue to justify staying.

Building and Scaling Across Multiple Industries

Marc's career spans multiple industries, each with significant scale.

He started as a DJ in Marina Del Rey at 19, making $50 a night, lying about his age to get the job. A record executive came into the club, heard something in Marc's ear for music, and offered him the rights to an unknown group for $6,000 money Marc didn't have.

"I had 6 cents to my name, but I knew where my parents kept their $20 bills underneath the mattress. So I said, 'Oh yeah, no problem.' I said, 'Well, I don't really know how to make a record deal. Why don't you be my partner?' And that was the beginning of Chic."

That group, Chic, became one of the defining acts of the disco era. Over 200 gold and platinum records followed, and eventually a Grammy.

"The boys at that time were doing about 400,000 in 2006, just through the internet. And when I came in, in two years, we were doing 200 million in sales."

John asks what made the difference. Marc attributes the growth to complementary skill sets within the team. "They gave me the tools to take it to the next level. In business, you really want to get people who complement each other. What they did, I didn't do, and what I did, they didn't do."

TapouT eventually sold for several hundred million dollars. Marc moved on to restaurants — and then The Morrison became the seventh-best restaurant in America, according to Yelp, in its eighth year of operation.

Mindset: Persistence and Decision-Making

John asks Marc, near the end of the conversation, if he has anything to say to entrepreneurs watching.

"I just think the most important thing from my experience is that you've got to have confidence in yourself and believe, really believe, and go after your passion and your dreams."

Then the line that defines how Marc operates: "The word 'no' doesn't exist in my vocabulary. I'll keep going until I can't go anymore."

John highlights this mindset as a defining trait of Marc's approach.

Watch the full interview here:

The Bottom Line

This interview highlights the realities of operating a business in California, the importance of resilience during downturns, and the role of mindset and team structure in long-term business success. Marc's story is a reminder that the employers who survive unusual adversity are usually the ones who refuse to let the environment make the decision for them.

Operating in California requires both strategic and legal awareness.

If you're managing legal exposure alongside business challenges, DefendMyBiz works with employers to assess risk and navigate complex employment issues. Start with a free 15-minute consultation to understand where you stand.

You can also explore our employer FAQs or read how other California employers have approached high-stakes situations in posts like I Just Got Sued for Unpaid Overtime — What Do I Do First? and Termination Risk Assessment.

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Disclaimer: The above content is for informational purposes only. This is not legal or tax advice. Laws, IRS guidance, and withholding requirements can change, and outcomes depend on specific facts. You are advised to contact a qualified attorney for any legal advice.