There is a hidden danger in traveling internationally that no one talks about. You find a unique food, fall in love with it, and then you can’t find it when you come back to the US. This is the problem that plagued brothers Bryan and Caleb Lewis after a trip to Europe. They couldn’t believe how great the waffles were at the small cafes on their trip. When they returned to the states, they decided to try to replicate the food and share it with the greater Dallas area. Their dense, buttery, brioche style dough takes 24 hours to rise. They sprinkle pearly sugar on the waffle to give it a golden caramel color.
The sharks were chomping at the bit to make this super sweet deal. #SharkTank pic.twitter.com/lCklGWbgrw
— Shark Tank (@ABCSharkTank) March 25, 2019
Press Waffle Co. has 16 toppings to choose from as well as a savory waffle option. They have seen $900,000 in revenue with a 14% profit margin at their pilot location in a upscale food hall in Dallas. Food halls are popping up all over the country and they are an excellent way for consumers to try many unique culinary creations. Because this market model is exploding, they have seven more opportunities lined up in other food halls across the country. They are seeking a strategic partner that will help them to grow nation wide while also investing to help them get additional stores up and running. They ask the Sharks for $200,000 in exchange for 8% equity.
The Sharks are all very impressed by the sample product that Bryan and Caleb provided. They also like their business model. Mark Cuban is the first Shark to make an offer of $350,000 for 20% of the company. Barbara Corcoran offers Press Waffle Co. $200,000 for 15% or $400,000 for 30%. Kevin O’Leary also decides to extend an offer of $200,000 as a loan at 7-11% interest for a 3% stake. Lori Greiner thinks that’s an excellent offer and urges Press Waffle Co. to take it. She doesn’t feel like she can top that offer, so she is out. Robert Herjavec is also interesting in tossing in an offer for consideration. He offers $400,000 for 20% equity. Bryan and Caleb can not believe that they had so much activity from the Sharks. Because Barbara has had experience with a similar food company, they counter her offer and agree upon a $300,000 investment for 15% of the company. This would put their valuation around $2 million. She agrees and they officially partner with Barbara.
How @BarbaraCorcoran feels about landing a deal with Press Waffle Company! #SharkTank pic.twitter.com/SVfyYMptde
— Shark Tank (@ABCSharkTank) March 25, 2019
These guys remind me of @cousinsmainelob who have done big things since I partnered with them. I have no doubt @PressWaffleCo will do the same! @PressWaffleCo @ABCSharkTank #SharkTank
— Barbara Corcoran (@BarbaraCorcoran) March 25, 2019
Do you think that Press Waffle Co made the right Shark selection? Who would you have picked if you had your pick of these Sharks? Start the dialog in the comments below!
For a full summary of this episode, check out this article. Shark Tank airs on Sundays at 9:00 PM EST.