The Sharks Love Yumble’s Yummy Lunches
Most parents can recall moments where it felt like they were basically forcing their children to eat healthily. Some parents work so much that they can’t even cook for their own children. Well, that’s no longer a problem because Episode 8 of Season 10 featured a company that is making life easier for Moms and Dads everywhere.
Joanna and David Parker, from Englewood, NJ, stepped into the tank with an ask of $500K for 4% equity and a simple message. Parents, if you can’t handle the heat, then just stay out of the kitchen… and let Yumble take care of the rest.
Yumble is Joanna and David’s convenient weekly subscription that delivers fresh, healthy meals right to your door. Each meal includes an engaging activity and collectible to keep your kids enthusiastic. The tasty food and fun gimmicks ensure that you’ll never have to force your children to eat their food.
After sampling some delicious hand-made empanadas, the Sharks could clearly taste that Yumble would be a hit. When the entrepreneurs went through the product specifics, it only reinforced that fact.
Yumble’s meals came in trays that easily fit in most lunchboxes. Customers had three different weekly meal plans to choose from; either 6 meals, 12 meals, or 24 meals per week. Plus, every week there were 22 different items on the menu for customers to choose from.
Being a weekly subscription, customers also wouldn’t feel the pressure of financially committing to something long-term. The combination of meal and portion variety was an optimal model for their business that provided options for every kind of buyer within their target demographic. This would facilitate consistent sales in the future, as not even a single prospect would slip through the cracks, and at $1.3 million in sales-to-date, that was clearly the case.
Yumble’s current performance was nothing to laugh at, the company had been growing by over 30% each month! In fact, Joanna and David had optimized their sales funnel to the point where their customer acquisition costs were only around $40 per lead. Their subscriptions ranged from $6.99 to $7.99 per meal, and since they generated their monster sales from only a few thousand subscribers, the magic was clearly in their marketing.
Their kid friendly theme not only attracted qualified prospects, but it also left customers so satisfied that over 70% of them re-ordered at the first opportunity to do so. At this point, all but a few Sharks looked convinced, particularly Kevin O’ Leary, whose previous investment in another meal kit company named Plated left him a bit skeptical about Yumble’s future.
He mentioned how difficult it would be for Yumble to compete with brick and mortar giants like Whole Foods and Amazon that could solicit customers who would otherwise buy from them. This was a valid point, but Bethenny Frankel presented a counter-perspective.
She emphatically pointed out that Yumble’s business model would have it competing against smaller brands like Lunchables as opposed to an Amazon or Wholefoods. But considering the recent trend of giant companies purchasing and growing smaller brands under them, Yumble was still in danger.
Rohan Oza jumped in, clarifying to the entrepreneurs that despite their unique marketing theme, if they didn’t establish a solid retail partnership strategy, they would be “whacked” by the industry giants.
“There is huge risk in what you’re doing,” Kevin said, explaining that because of his previous experience with Plated, he understood the dangers of their industry very well. Unfortunately, those dangers made Yumble look like a bad investment, so he backed out.
Mark Cuban had similar thoughts, but unlike Kevin, he believed that the entrepreneurs would be able to survive the competition. He just didn’t think that they would be able to thrive in it, so he backed out as well.
Bethenny, on the other hand, loved Yumble and thought that it had huge potential on social media. She loved their games and gimmicks but asserted that the company needed a spokesperson, so she offered to provide $500K for 15% equity and even volunteered to be the company’s spokesperson.
Before Joanna and David could respond, Rohan presented a very competitive offer of $500K for 12% equity. He believed that the entrepreneurs needed support on multiple fronts. They needed strategic relationships, retail relationships and someone with operational knowledge regarding customer acquisition. Rohan clearly saw himself as a component to Yumble’s success but that wasn’t enough, so he turned to Lori Greiner and suggested that they join forces and share his offer.
Lori, who usually waits until the last moment when making her offers, agreed with Rohan. She “fell in love” with Yumble’s savvy marketing and thought that her and Rohan could be the jumpstart that transformed Yumble as a business.
Realizing that this was now a two-on-one battle against the remaining Sharks, Bethenny brought up the fact that her other jobs connected her with over three million moms, Yumble’s sweet spot demographic. However, the entrepreneurs, while thankful for both offers, admitted that they couldn’t let go of that much equity.
Before they could even present a viable counter, Bethenny modified her offer to $500K for 6% equity. This was a major move on Bethenny’s part; it proved that she was serious about Yumble, but Joanna and David were still hesitant to accept; they couldn’t overlook the value of having both Rohan and Lori behind them. This obviously irritated Bethenny who then decided to withdraw her offer.
I’m honestly not surprised that this happened. Bethenny had given up much more than the other Sharks and was literally offering herself up as part of the deal, so her impatience was understandable. “Take it or leave it, don’t go fishing,” she said, giving them one last chance to accept her now fleeting offer. At this point, Rohan and Lori’s deal must have been an afterthought, because Joanna and David immediately accepted Bethenny’s offer.
In my opinion, it was the right choice. While Lori and Rohan would have provided incredible support, Bethenny’s deal granted several unbeatable benefits. Her modified equity grab was only 2% above their original ask, and she had a much stronger connection to their exact target demographic.
Lori and Rohan might have had the slight advantage in retail and strategic connections, but Bethenny’s offer to become the face of their brand was priceless. Based on her professional record, Bethenny was arguably the perfect spokesperson for them. Her presence would be enough to simultaneously differentiate Yumble from any industry giants and establish immediate brand credibility. Advantages like that were simply too precious to risk losing. The entrepreneurs handled the pressure well and came out on top, without losing too much equity.
So, the next time you’re stressing about what to feed your kids, don’t worry about it. Yumble’s flexible meal plans and mouth-watering menu will keep your kids well-fed and your life stress-free.