Transcript

00:00 Next up is a modern version of a favorite food yo sharks how y'all doing. Today my name is mrs jenny goldfarb and I'm from the mean streets in new york city. I'm a fast-talking no-nonsense city girl. And I'm here seeking one hundred thousand dollars for ten 10 on my business unreal delhi capisce. Now although I hail from new york city about a decade ago. I moved to beautiful sunny los angeles there. I shed the pesky accent what.I didn't shed my deep love for the authentic delis. New york is famous for I wanted corned beef. I wanted pastrami. I wanted it stacked thick on rye with russian and mustard and all the fixins so you can imagine my dismay when I became vegan and realized. I couldn't eat my beloved corn before pastrami at all. That's why I created mrs goldfarb's unreal deli home of the most mouth-watering decadent vegan corned beef that's right sharks at mrs. Goldfarb's unreal deli. We use nothing but 100 super clean plant-based ingredients that are low in carb low in fat and protein packed to make our unreal deli need. Don't just take my word for it please dig in and try for yourself. Let's go a little closer to you. There is our sweeter rendition with some russian my signature. Russian dressing and some apple slaw further back. A little more of a zinger with kraut and spicy. Mustard has a little bit of a pastrami punch to it not bad thank you. I wanted to create a healthy rendition to the classic deli meat. I grew up on which is why I use ingredients like beets. Chickpeas tomatoes and a complex spice blend to make my deli meat not only delicious but also incredibly nutritious sharks. I'm a fighter and I'm going to keep fighting until our unreal deli meat is in every grocery store deli and restaurant worldwide so sharks who wants to sell some meat or do. I gotta break some knees around here jennifer. What's the calorie count on a sandwich 100 per two ounces oh that's really good yeah. It's really good. It's super low in fat. It's not bad so who came up with the the formula for this and I came up with the recipe uh.I became vegan about five years ago. I ate meat my whole life and then I started seeing videos of animal cruelty documentaries and it was so heartbreaking. I couldn't stand to continue to eat the way. I was eating and I had a meat and potatoes husband and some young kids and I had to figure out how to reconfigure my cooking methods. So I bought every vegan cookbook. I could find and I figured out how to cook from the produce aisle on the grains aisle. Ultimately the food started getting good and so I realized there are a lot of delicious burgers on the market in the plant-based world. But there was no authentic classic deli meat so how long have you been doing this uh only a handful of months. We just incorporated this year right now. We're at a about a half a dozen of the largest most iconic deli's around los angeles. But next month we're coming into 58 whole food stores and starting in january. We're going to be in two 30-plus chain restaurants.What's your history the uh. Prior to this my history actually goes back almost 100 years. My great-grandfather emigrated from romania. There he is in the middle. I never had the pleasure of meeting him. He emigrated from romania as a teenager not speaking the language without his parents so did mine one of mine by the way I was just thinking for us to be sitting here on the stage. Today. It's like what our parents and grandparents did for us to get here. I know he came from. Romania started working as a dishwasher in his first new york city deli and then went on to come and own and operate several new york city delis and cafeterias so corned beef pastrami.

03:52 This is in my bloodline so how are the sales now in the desert so we're brand new. We're just a few months in and in this time we've pulled off 10 thousand from the local delis and we just launched just a week ago. Our ecommerce cold chain store and we sold two thousand dollars. In the first 24 hours. It was up. We didn't even put any advertising into it. What do you sell it for and what's your cost. I pay 3.80 per pound to have it made and I sell it for an average between eight to ten dollars a pound now jennifer. I have to ask you this question okay. There are two very large well-capitalized public companies doing plant-based meats what stops them from doing this derivative of meat and crushing you like the corned beef cockroach. You are because I'm going to start working with one of you and we're going to bring this to market good answer why so much the value. I mean uh you're asking for a million dollar evaluation but at such an early stage agreed because I'll be honest. I invested in one of those companies just on the market and I made three times the amount of money you're asking for in a matter of three weeks and I didn't have to make any calls okay. I didn't have to do anything so why this valuation because there are teams of plant-based investors out there and they've already come knocking on my door and they're ready to give me half a million for ten percent of my business. Why would you do it offered to us for a hundred. I'll tell you why because I've been waiting are you ready yeah. I'm ready because one shark dollar is worth five regular dollars. So why so much the valuation.That's that's the point right aren't you saying that we bring value to this. But in it she said she's gonna do it a fraction of what she's already been offering. I bring value to my projections. Three million dollars next year well. You haven't lost your new york hustle all right you're right listen. My projections for next year is that I'm going to look like the guy who plays thor. It's not going to happen most likely. Jennifer do you have any flexibility in your your equity because I find it a little light. I don't think it is life. I came here to negotiate okay. So I'm gonna wait let me throw you an offer. I'm gonna throw you. An offer start to start this going and I will help you as chef wonderful. I'm amazing. I'll help sell it and he's selling beef so. I'm thinking. I'll give you the hundred thousand dollars and I want 20 thank you for that offer. So I love this space. I'm an investor in other plant-based foods.It's a super hot space right now in silicon valley. It's a lot of money going into this so I'd love if you could help me get a little bit more comfortable with you know. Why is it with all the silicon valley money that's coming and some of those big companies out. There. It's hard for me to understand how you can stay protected. I mean how is this actually going to be so.

06:32 I'll simply I'll simplify you jennifer. I'll simplify everything jennifer. I'll simplify everything go ahead. I love it yeah. I went vegetarian yeah. I'll make you an offer that you know my style right. I like the whole yes or no let's negotiate right now right. I'll give you 250 dollars for twenty percent okay. But this is right now do or die do or die tell me. What you want to do. I'll be. I'll be on the front page of it. I'll be the poster child for it. We'll go. We'll hustle mark cuban. You got yourself a deal. That's what's up very very smart. I know how so. I don't mess around either thank you so much thank you thank you so much congrats. Jennifer thank you guys thank you now that. I have a deal with mark. The future of unreal deli is extraordinary. We thought we were doing great things before just wait and see what's gonna come. This business is a cash cow we're making cash and we're saving the cows. Next into the tank is a special version of a beloved treat hi. I'm devorah torres and I'm jonathan torres. We're from san jose california seeking five hundred thousand dollars for ten percent of our company atlas monroe let's cut right to the chase sharks. We make the best most enticing extra crispy fried chicken you've ever put in your mouth but don't take our words for it. Sharks try for yourselves and dig in okay okay fried chicken. I love me some fried chicken. It's good mm-hmm.Some of the best fried chicken you ever had huh sharks very close. What if we told you that fried chicken wasn't chicken at all. You heard that right shark we make nothing but 100 vegan plant-based eats using only organic non-gmo ingredients all while satisfying your every taste bud. We started this incredible company from the ground up and now our chicken is an overnight sensation but sharks. We need your help to get our chicken to food lovers everywhere who wants to cash in on our chicken. This batter is extremely tasty.

08:43 It's got some zip to it thank you you really fooled me okay guys. What are you putting in the stuff we are eating right. Now our recipe is proprietary. However the base of it is organic wheat organic really yeah. So it's not soy not at all. Now did you invent all this or are you just packaging it all from other places. No this is 100 our original recipe everything better everybody. Everything we actually both are the ones that cook everything from start to finish. What's the story well a few years ago. My father was diagnosed with type 2 diabetes my whole family and I went on a raw vegan and organic diet for 90 days. We grew really angry at each other from eating just salads and fruit salads. We started going to work in the kitchen and experimenting making deliciousness like raw lasagna and tacos and after the 90 days he was completely healed. Wow we vowed to stay organic plant-based and natural. We continued to experiment and atlas mineral was born you manufacture.This or you have a commercial kitchen that does it for you. I assume by now and your distribution strategy is what so what we started off first was with festivals. We would always have two hour waits. People were just so intrigued by our chickens so we started shipping nationwide and were you were you shipping frozen products. We're shipping frozen yeah. What are your total sales and break it down by category well. Let me tell you guys something first. Let's let it look good when you don't give us the number you know that oh. I'm gonna give you the numbers let me. Let me tell you let me tell you we have celebrities. We have influencers who vouch for us telling the world that it's the best that they've ever had without us ever paying anyone a dime. We were the first and only vegan company to be invited to the national fried chicken festival that's cool yeah that is we were named best. Fried. Chicken are all the real chickens. I love the real chicken buy time magazines extra crispy from now within 24 hours. We net 12 thousand dollars just from a single instagram post. Wow we have over 20 wholesale customers itching to get their hands on our product very exciting.

10:49 But it's translated into what in sales please. I'm telling you about this value. The revenue is 60 000 that we've done this year our net is 73 000 and our gross is 76 000. Wait wait that doesn't add up that's confusion. I think you got it backwards. Your total sales are now our total. Sales are 60 000. A lot of our cost goes into the shipping. That's why our sales are 60 our net with shipping and everything is 73 and then our growth is 76. I don't want to stick a pin in the balloon here. But but your numbers are backwards. I mean you can't have 60 000 in sales. It makes 73. It's impossible. They're including their shipping equipment and then shipping revenue. Yes you got it. I'm just not talking confused. Product sales 60 yes including shipping revenue 73. What's your profit or your loss. We've made 45 000 and our expenses is 31 000. So we're at 60 profit margin when you send out a typical shipment. What do you charge for the chicken and what do you pay for the shipping. We charge 23 dollars for a six piece. Our average shipping cost is twenty. One dollars are you charging forty four dollars to the customer yes so now for your six. The six wings in any packaging what does it cost you. It costs us two dollars and sixty seconds per wing or for six wings. Four six wait a minute wait a minute six of these giant piece of fried chicken costs you two dollars and sixty cents oh my god but asking for five hundred thousand dollars for ten percent is a little bit crazy. It's it's it's ridiculous and so that's just wait wait.Wait let me finish that's the decision you made okay that's not my decision. You're not that clear on your numbers just being honest with you well. You're not worth 500 000 dollars. I'd have to have 120 percent kevin. You mean she's not worth 5 million. I'm saying she's not worth 500 000. There's no way to get to where we need to go with you. I'm out okay thank you so much have you tried to get a coat packer.

12:59 Yet we've been hesitant because it's the only one of its kind right. Now you don't want to reveal your secret recipe. However exactly speaking of that we are currently in talks with a mega famous internationally known fast food restaurant chain that is very interested in our chickens. Really. They have said that they would take this they actually have our chicken right. Now are you going to give them the recipe. No no. I do want to tell you before before you speak because I've been listening very carefully. I think you hear way too early but what bothers me is you're confused if you were to come in here and you had orders or some proof. We actually do have those orders we just can't meet the demands with the space and the story you have the compliments and the intent but you don't have orders. No we have orders we have the orders and you know what it's a ridiculous number. You're asking. I'm sorry. I'm out okay guys. I'm gonna make you an offer but there's gonna be so many contingencies okay look. I went vegetarian three months ago. So this is important to me and I love products that I can eat.They're obviously smart but you're learning to become business people as you go every business that goes through that hyper growth and I've been there if you're not organized at the bottom when you start to grow. It collapses so I'm going to give you the 500k as a letter of credit which means we'll draw down on it as we grow and I want 30 of the business. This is the part where you say yes so while you're mulling mark's thing. I wish you would come in with a little more of a game plan. I just I'm struggling with the operational setup and I think it's just gonna take a lot of heavy lifting and an evaluation that's really too sporty for me to jump in at so. Unfortunately. I'm out thank you okay thank you what are your projections for this year. Next year well right. Now like. I said we do 12 000 in a 24 hour period of time and if we can do that every single day just in the last three months of this year we projected 2.4 million just with the three months next year doing 2.4 million each month. That's 30 million in a year lori. What are you doing. I loved the taste. I like the space I'm super concerned about what's happening with eating meat from the antibiotic problem and the steroids. But the problem for me is is that your numbers seem really impractical.

15:33 They're not tangible so unfortunately. I'm out. But it's not all bad news. You have an offer for mark cuban. Maybe he's going to bring in rohan contingent on the orders all right. Let's hear what they got. He's replacing my offer which she obviously didn't like mark and i. I'm back in because mark sucked me back in. But here's what we're thinking you need more money. So we'd be willing to give you guys a million dollars. One million one million dollars for everything you guys have soup to nuts recipes. We'll give you guys a 10 royalty and everything and we'll do all the work and if these orders are real then this is a no-brainer. You are immediately a millionaire couple bam on top of that whatever infrastructure investments are required kitchen whatever it is we'll do all that you don't have to spend a nickel listen. This is an amazing moment in shark tank history. Here you came in with a very confusing pitch. Now you have a one million dollar offer by two behemoths who can actually execute and you're still their partner because you're getting ten percent in perpetuity.I mean I'm stunned what are you gonna do. Three sharks are out mark and rohan have offered one million dollars and a ten percent royalty on all future sales for deborah and jonathan's plant-based fried chicken company atlas monroe. What are you gonna do. I really like your original offer. That's not on the table anymore. It's gone yeah. This is the new offer you could have jumped on it right then but now but think about it. One million dollars you know how often that happens in shark tank are you ready never well um I like to come in and say thank you for your offer mark and rohan. But we would like to decline don't wow me you're going to turn this down. You guys are going to need a lot of money on this thing. It's going to die 30 offer with the line of credit. We will show you that we work extraordinarily hard guys honestly. The million-dollar offer is better. It's way better the money you're going to have to raise is going to get you down to 10 with a lot more heavy lifting as soon as we get our facility. We'll fulfill the orders and we'll hit a million dollars immediately. But you have all the costs associated with getting there and the operational headaches.I just want to make sure. I'm not in an alternative universe right. Here are you turning down a million dollars yes or no yes. Yes say it ain't so it is so everybody in america wants to be where you are right now and you're going to walk out of here without a million dollars. The fact that you guys are even offering us a million dollars. Just lets me know that you guys do understand right. Now you're right. You're like you guys are gonna take ninety percent.

18:40 I can't take it. I can't take it but you got to understand. We started our company because we really don't want to be improved. You're no different than we are. I slept on the floor exactly so you know the struggle ketchup sandwiches. I know where you're coming from. We've all had our backs up again exactly so guys. I don't think I don't think we have a meeting of the minds we're going to take the offer back and back out. I'm sorry unfortunately guys stick a fork in it. It's over good is good and good product always wins in the end thank you we're going to keep working hard. We'll see you guys on the flip side. Good luck bye.Next into the tank is an indulgent version of a health food trend. Hi sharks I'm chris sandra y'all and I'm here today with one of my three beautiful daughters. Hi sharks I'm india and we're the bumbling vegan junk food and burger bar sharks. We're here today looking for 150 000 for 10 of our company sharks. When you think of vegan food. You think bland and boring well. We are crushing that myth that plant-based food has to be just twigs and berries. Our vegan junk food is unlike anything you've ever had before whether it's our juicy clucker. A double dip fried chicken sandwich our award-winning coney island. Chili cheese dogs are the hank cajun fries or a fat juicy burger dripping with our creamy. Cheddar. Cheese sauce don't forget to finish it off with one of our sweet nectar milkshakes. The bumbling bee junk food and burger bar is the new generation of fast food. Whether you're dairy free vegan vegetarian or flexitarian or just a little herbal more. Curious. There's something for everyone and now our mom is our queen bee but we do need some more honey to help us pollinate hives across the country sharks to be or not to be that is the question you got some wrapping skills. There don't you hang on. This is all vegan. All of that is vegan every day oh my god. The mac and cheese is really good. We have won the award for best hot dog in our area and I don't mean best vegan hot dog. We won best hot dogs. It's not your hot dog. You must get it not our hot dog. It's what we do with it. We put our magic spin on it so tell us about tell us about the restaurant. Absolutely. We have two restaurants uh india runs virginia beach virginia my other daughter olivia who couldn't be here today runs boulder colorado. We decided to become a vegan company at the beginning of 2019.What were you before that. I was a real estate investment. Broker flipped a lot of houses with my husband. Unfortunately I got trapped and that was the market crash so when the market crashed. I had ten thousand dollars to my name. So I went and I said what can. I do with this money. So I started with a food cart. A hot dog cart took my money from the hot dog cart bought. A trailer took the money from the trailer bought a truck and I got it to the point where I had four trucks plus a backup truck yep and I got to the point where it wasn't worth it to me anymore to kill myself for that kind of money. If my kids weren't interested in being part of it. I needed something that my daughters could be a part of so that's when I said to them. What is it going to take to get you passionate about this. My other daughter. Lexi was a healthy vegan what's missing in the market junk food well can I ask your economics because in order to franchise you have to be able to operate at about 17 to 20 percent pre-tax profit per location. We are at a 15 margin last year switched over with our first truck in june. Then we opened up our brick and mortar which was my commissary in october. That's what you wanted you want more brick and mortars right. No. I want both tell me your sales for last year 194 000 for one truck part-time and one brick-and-mortar that opened in october. Now what's this year going to look like 324 000 came from virginia beach virginia which was closed for six weeks yes and boulder colorado which opened january 16th and closed april 4th and reopened july 20. And with that we also pulled back our food trucks right. We had to pull back our food trucks because events were canceled and how are you doing that you're still open or yes heck yeah. You have huge spunk and passion and and obviously grit.I mean lots of lots of words come to mind with you firecrackers. I love firecracker right so where do you think you get your drive from my parents separated. When I was very early. My. Mother was a she's recovering now for almost 50 years but she was an alcoholic and I grew up in the homeless shelters. I learned how to dumpster dive at eight years old to get my food but that led me to understand that I wanted to be a stronger person. I wanted to have control of where I went in my life. I will never be hungry. I will never not know how to make money and I don't think that I would change anything because I would not be the woman. I am today so great thank you yeah good congratulations. That's you know they say. The strongest swords are forged in the hottest fires you're beaming india how proud are you of your mother. I love her she's amazing thank you like. I said she's a firecracker are my girls awesome. I find you so inspiring and the challenges that you overcame but for me.I don't see enough differentiation between other things that I've seen. I'm not completely drawn uh to the food and for that reason. I'm out thank you there's not that one thing that makes it impossible to copy right your execution. Your relentlessness will make it successful. Anybody can copy. Mcdonald's the mcdonald's also started in 1955 right and was one of the first with drive-throughs for dry suits and we're one of the first vegan junk foods well yeah and that's true but again. It's you haven't gotten that scale yet where you can say to everybody else. We don't care what you do right which just makes it very hard so for those reasons. I'm out cassandra amazing job. I mean you know it's one of the great things about business. It gives you the freedom to do the things you love and spend the time with your family absolutely. I will tell you in california. I've seen this yes and it's a race whether you realize it or not. You're not the first one you're not the only one there's lots of them. That's right and I would never bet against you and the bumblebee family but as a business. I don't know if it's ready for an investment until you get to a critical point of scale only for that reason. I'm out okay thank you thank you. I think that it would be smarter for you to not expand to stay solid and grow what you have right now. I'm not going to invest. I'm sorry. I'm out.We appreciate it. Sandra. I really connected with your story cause. I lost my father when he was 37. I was raised by my mother and she uh was very tough but I learned from what she did. But that gives you power so for you. Obviously you've learned that I mean it gets me emotional just thinking about it but your numbers they're not investable. You need to make at least 500 000 per location on a 20 pre-tax profit and you know I try and keep the discipline. Not letting my emotions tug me into a deal that doesn't make economic sense and that's the only reason I'm out well. I do hope that you will all come and eat at it. Absolutely absolutely sorry. You guys are amazing congratulations and all you've accomplished. Thank you thank you bye. It's okay right. I am the woman that I am today because of what I've been through and where I've come from. I've raised my daughters to be the women they are today based on that yeah. I don't think we're ever going to stop you.