Cinnaholic: Feed the Sharks, or They will Feed on You
By: Darci Phillips, Writer & Entrepreneur
On last week’s episode of Shark Tank, the luck seemed to be with the entrepreneurs as three of the four of them made deals with the Sharks. It is interesting to note that two of those three deals were for food and drink products, which can be a very tricky and temperamental market.
The Radke’s waded into the tank with their custom cinnamon roll business, Cinnaholic. The moment they entered the Tank, many of us watching fully expected these two to go the way of so many others with food offerings that have appeared on the show – out the door with no deal. But it turns out they knew that to avoid being eaten alive, they had to give the Sharks something else to satiate their vicious hunger.
The Radke’s handed each Shark one of their unique cinnamon rolls, and immediately, there were “oohs” and “ahhhs” and cries of “this is amaaaazing!” all around. Each Shark seemed totally taken by the Cinnaholic sample, especially Robert who looked like he had never seen food before in his life!
And then the Radke’s dropped the bomb: Their cinnamon rolls are not only half the calories of their competitor but are full of “frees”:
And they are 100% vegan. Upon hearing this revelation, there were collective gasps of amazement. It’s highly unusual for a delicious and decadent dessert to be made following those strict guidelines. But at the same time, it’s extremely market- wise to make that dessert available to a public-at-large who are suffering from food-allergies at every turn. Everyone can eat this, and the Sharks seemed quite impressed with the Cinnaholic business model.
The Radke’s informed the Sharks that they were looking for $200,000 for a 20% stake in their business. They planned to use the money to open another retail location. Immediately, the Sharks reacted. Kevin suggested they forgo the idea of another brick and mortar location and push their business online to capitalize on overnight delivery, which would increase their business exponentially.
Robert loved the product, and Kevin’s idea boosted him to jump on that bandwagon and offered the Radke’s $200,000 for a 40% equity stake with the plan being to sell online, not in stores. After both Barbara and Daymond dropped out, it was between Kevin, who wanted a $1.20 royalty on each bun sold but no equity, and Robert with his offer. Mark Cuban remained uncharacteristically quiet, claiming to just be listening.
The Radke’s took a short time-out to discuss changing their business model from physical locations to a stronger online presence, and came back to ultimately seal the deal with Robert. Cinnaholic is now primed to take a huge bite out of the gourmet cinnamon roll market with the help of this savvy Shark!