A former Wall Street broker has lost $180,000 in retirement savings after investing his 401(k) into a Nestlé Toll House franchise that failed within four years, leaving him to drive for Uber and Lyft full-time.
Bill Lewis, 58, who worked on Wall Street for 24 years before being laid off in 2013, now completes 43,000 trips annually while working 75 hours per week to earn approximately $75,000 annually. His experience highlights the financial risks of transitioning from corporate employment to small business ownership.
Lewis began his career in 1989 as a runner at the American Stock Exchange, later becoming a broker. His layoff in 2013 coincided with the rise of algorithmic trading, which reduced the need for floor traders. After leaving Wall Street, he sought a new venture and purchased a Nestlé Toll House franchise, a retail dessert bakery chain, in an effort to leverage an established business model.
Franchise struggles despite initial sales growth
Lewis reported that while his franchise experienced strong sales growth in its first year compared to the previous year, the high costs of operating in a mall environment made profitability unsustainable. After four years of operation, he closed the business, having earned less from those years than the $7 he made on his first Uber ride.
"The sales weren't the problem," Lewis stated. "It felt like the mall was simply too expensive for me to turn a profit."
Gig economy as a fallback
With his retirement savings depleted, Lewis turned to gig work for flexibility and income. He now drives for Uber and Lyft seven days a week, citing the ability to adjust his schedule as a key advantage. "If something happens at home, I can stop driving. If my brakes need repairs, I don’t have to call a boss," he said. "I’ve always liked driving, and I’ve learned how to earn a living doing it."
Despite the financial setback, Lewis has no immediate plans to leave the gig economy. He acknowledges the unpredictability of his situation, stating, "I know how quickly things can change."
Regrets over 401(k) withdrawal
Lewis expressed deep regret over using his retirement savings to fund the franchise. "I definitely regret putting my retirement savings into the Nestlé Toll House franchise," he said. "That decision is something I’ll have to live with."
His story underscores the challenges faced by workers transitioning from traditional employment to entrepreneurship, particularly when relying on personal savings for business ventures.