Shark Tank US | OatMeals Entrepreneur Is 'Stuck In The Wrong Business Model'

[Music] next up is a business inspired by an old-fashioned breakfast [Music] staple hi sharks I'm Sam Stevens and I'm the founder of oatmeals I'm seeking a $500,000 investment for 20% of my business all of us have some sort of connection to oatmeal we were fed at growing up and it can remind us of the Comforts of being a child of being home and make us feel good it's also pretty awesome that it's one of the most healthy foods on the planet oatmeals is a build your own oatmeal Cafe where we put modern twists on an old-fashioned favorite we serve steel cut hot oatmeal with nearly 80 toppings but what really makes my Cafe shine are my nearly 30 signature bowls ranging from healthy to Sweet to even Savory oatmeal with non-traditional toppings like parmesan cheese truffle oil poached eggs and even bacon wow I'm ready to expand oatmeals all across America so sharks who's ready to top off my oatmeal with some cash feed me we want the oatmeal first yeah do you have truffle oatmeal yes I have some samples for you guys my gosh okay so I'm serving you guys the Truffle risoto and I added bacon to this one oh bacon that's like talking dirty to so the Truffle risotto is shave parmesan cheese truffle oil bacon sea salt and pepper what are the other ones so the then the hot date is bananas heans dates uh honey our house granola and some peanut butter and then lastly the antioxidant Awakening oh awaken meat awaken meat truffle is amazing oh my God is the pomegranate want a dessert well it's actually pretty healthy because it has the Greek yogurt chia seeds dark chocolate chips oh my God I'm in love awesome this is incredible I love the bacon with the cheese yum and I hate oatmeal it's like a dinner not a breakfast delicious people really didn't know about Savory oats but you can get all the benefits of eating oatmeal for lunch or dinner not just for breakfast what are the color and carbo metrics to this so in the shop the bowls come in a baby mama or Papa Bear size 8 12 or 16 oz the baby bear plane starts at just 110 calories the mama bear 150 calories and then the papa bear why don't you give us prices on those as well yes um the baby bear starts at 425 Mama Bear 525 Papa Bear 625 and that includes two toppings of your choice each additional topping is either 50 cents or 25 cents we get a lot of different things that come into the Shark Tank a lot of different foods these are some of the most delicious things ever brought in here thank you so much and the interest thing is they're all very different exactly what is the game plan here this is a store that sells oatmeal it is single location show you a picture of the store that's the exterior I'm in Greenwich Village on West thirdd Street in downtown New York City you want me to invest in this single store yes so I'd like to expand firstly in New York City either in Midtown want open more locations yes how did you come up with this so I had this idea but I really didn't know how to make it happen I was working in the invest banking world as an executive assistant for many years then I finally went to culinary school while I was working full-time because I knew I really needed the credentials to as being a chef to make this happen so after I became a chef I finally you know left my career and made this happen I've been open for 6 years the business has been growing every year can you tell us if it's been profitable and for how long over 6 years um I've made $2.5 million what about this year this year I'm on track to do 500,000 how many square F feet is the store it's 380 Square ft Sam what were your profits last year so uh $470,000 last year gross the net was $45,000 after you paid yourself yes and what did you pay yourself not much probably about 40 Grand and how do you support yourself if you're only taking out $440,000 I know New York is so expensive do you even have the money to eat your own oatmeal that's basically Al all I can really afford to eat um I'm also a spokesperson for Quaker Oats um I was approached by Pepsi Quaker right after I open the store um I've had some really great press just organically they pay you for that they do my contract with them is 60,000 this year it's not much making more with with them than you are in your store have you ever thought of taking your different oatmeals and packaging them so that they could be in freezer sections absolutely um because I always thought it would be fun to do a packaged food line you know getting oatmeal out of the breakfast aisle and into the rice and pasta aisle you face a pretty high mountain decline because the perception of the consumer in America with oatmeal is going to be forever with breakfast very creative products great everybody agrees but I don't think about eating oatmeal after 10:00 in the morning like 99.999% let me finish let me finish but I'm more concerned about the numbers 350 ft you need doing about a million a million two a year to make this an interesting opportunity to expand to more locations or to franchise because you're basically making no money you can't even live in New York for 45,000 there's rats that are making more money than that right you are not worth $2.5 million as an opportunity I'm out I think you're figuring out I mean it's clearly you're the oatmeal Whisperer but you know at $500,000 I think even if you had some good years on the second or third store it would take me 12 years to get my money back so I'm out thank you well here's one of the problems locations right my band and bagels they came in with one Bagel ball that was stuffed with great cream cheeses and different flavors and we got into Starbucks Nationwide that was pivotal and then got into all the grocery stores and now we've done 40 million I'm trying to think how could we try to replicate that model and the big question question really goes to you so are you open to packaging selling and Retail like doing completely different models absolutely all right then I'm going to give you an offer I'm going to make it contingent though on if you will figure out packaging pick top flavors we'll try to bring it to Starbucks I'll give you the 500,000 but I want 33 and 13% I want to be a third partner cuz it's going to be quite a bit of work I have another offer for you but I have a whole different spin on your business I believe you could have a very successful business if you brought your business onto a cart and serve oatmeal to Corporate America in the morning and risotto for lunch I don't think it's that much of a change and I'd be happy to give you the $500,000 but I want 50% of not your store no interest in something that doesn't make money but I'll give you the $500,000 if I could own 50% of the cart business and let the money be entirely use for making that business reality that doesn't have a contingency like Lori right well I guess you could say the contingency is the money is only to be used for the cart business we must be on the planet zutron right now you with a store that makes no money have two half a million doll offers that never happens on the planet Earth so you better think about this right now and make a decision Sammy what do you want to do two sharks are out Sam has two offers on the table from Barbara and Lori for her oatmeal restaurant oatmeals but they have very different plans for what to do with the business we'll try to bring it to Starbucks and to the frozen food sections but may I tell you why you should really do the deal with me because I picked up cousins main lobster they never thought they could move off of one truck they now have 40 trucks they have $50 million in sales in 4 years let me tell you the key to that deal was looking at it differently the one liability every entrepreneur has when they have a slow start financially is they're too close to the problem to see it your problem is not your ingredients your dedication the product you're making you're getting rave reviews your product is your literally physically stuck in that store so you're really crazy not to give this a shot and I wouldn't certainly put my money into it if I didn't totally believe in it I could see clearly from a mile away how to expand the business see how to untie that knot and get it pushing forward Lori would you consider 30% ah it's a 33 and a thir I mean we I want to be a third remember it's contingency if you don't get that distribution you don't have a deal well you're going to get it I think Barber's deal safer for you I go with my gut I mean I think this is something I wouldn't give the offer if I didn't think you can't guarantee Starbucks you can't do that guarante they s meal already you got to knock the other guy out Sam one offer is a bet on distribution for a product you don't have the other offer is taking what you already do and replicating in a more profitable and more efficient format Sammy what do you want to do Laura you have a deal oh great you'll be greedy not at all just on that little thank you very much thank you me too thank you because we're not on the planet thank you guys very much amazing worst news of all she wasn't smart ultimately I went with Lori because I have seen the success that she's done with Phantom bagels and I followed that and I don't think I'll have any regrets tomorrow um you know I came in initially wanting a deal with Barbara but um Lorie's offer just sounded really great you just stole millions of dollars from this babe and sent her down the wrong path what you never even make a I make it it doesn't freeze it's not even good the next morning you just sold her a bill of goods honey you're just upset because I of course I'm upset that I lost what do you think why were you asking 50% 50% of an entirely new business

Channel: Sony Pictures Television

Views: 95,328

Keywords: Shark Tank, Shark Tank US, Shark Tank USA, Shark Tank America, American Shark Tank, Shark Tank Pitches, Shark Tank bad pitches, Shark Tank Best Pitches, Shark Tank Covid, Shark Tank Season 12, Mark, Blake Mycoskie, Kevin, Lori, Daymond, mark shark tank, kevin shark tank, lori shark tank, daymond shark tank, mr wonderful, shark tank moments, shark tank deals, shark tank pitch, shark tank best pitch, kevin oleary, mark cuban, lori greiner, Barbara Corcoran

Id: wH0yBPKIqkM

Length: 10min 55sec (655 seconds)

Published: Sat Jun 08 2024