Bantam Bagels is on a mission to change the way you eat a bagel. Nick and Elyse come into Shark Tank pitching their opportunity to eat the cream cheese and make a deal with the Sharks. They walk out with a deal from Lori Greiner.
Bantam Bagels Founded by Nick and Elyse pitch Shark Tank
Nick and Elyse, Bantam Bagels founders, are Columbia University graduates who love bagels, but they have been fighting the high calories. Nick had a dream about two years ago in the middle of the night. His dream envisioned mini bagel balls filled with cream cheese.
The couple launched Bantam Bagels in their kitchen and soon moved to a storefront where New York Daily News voted their bagels as one of the top three in New York City. They tell you to find the hole and bite into a great tasting treat.
Eighteen different versions of Bantam Bagels
Bantam Bagels currently features eighteen different versions of bagels, each one costing thirty cents to make while selling them at $1.50 each. Their shop is at two hundred thousand dollars since inception when they make their Shark Tank pitch.
Nick and Elyse's report having considerable return traffic amongst their customers, so they are looking to build a commercial commissary allowing them to increase Bantam Bagels capacity.
Additionally, they are testing retail channels which produce incredible revenues but poor margins to date. They tried wholesale, including QVC, which is their biggest account. The bagels sold out in five minutes. Unfortunately, they sell a bag to QVC for $19.80 which cost them $17.80 to produce. Their justification is the exposure to eight million people.
First Aired: 01/09/15
Company: Bantam Bagels
Entrepreneurs: Nick and Elyse Oleksak
From: New York City
Episode: Season 6 Episode 13 Week 12
Ask: $ 275k for 11% equity
Sharks: Mark Cuban, Barbara Corcoran, Kevin O'Leary, Lori Greiner, Robert Herjavec
Deal: Lori Greiner at $275k for 25%
Kevin thinks that the money is not enough.
They put in $50,000 of their own money and raised just under $600,000 from other investors. He has given up 23% of the company. He still has his Wall Street job making six figures but wants to quit his job.
What the Shark Tank Investors say about Bantam Bagels
Mark Cuban doesn't like that they are ‘coachable” because he doesn't want to go through that experience with them, so he is out.
Barbara Corcoran makes them an offer saying she is the ideal partner and because of Daisy Cakes, she has gone through everything that they need to go through. She doesn't like the brand, and she wants to change it. She offers the $275k for 51% of the business. They love Barbara but Nick and Elyse are unwilling to give up the equity, and she provides a counter offer going down to 25%
Kevin O'Leary makes an offer. He wants them to quit their job. Find a commercial commission and be direct to consumer and Kevin will do it for 50%. They want to do what Wicked Cupcakes did, and he has been down the road with them.
Lori Greiner likes them, but she doesn't like the name. She thinks they need food trucks and offers $275k for 30%. Lori goes to 25%, and they have a deal while Barbara is negotiating with them. Lori is going to sell a ton on QVC.
Robert Herjavec says that he makes too much money that doesn't let him bleed the business and have the passion for the business.
Bantam Bagels after Shark Tank
Lori Greiner closed the deal with Nick and Elyse from Bantam Bagels. They have sold over 2.1 million in sales in the following eight months after Shark Tank. They are now in four hundred plus Starbucks nationwide. Delta airlines are also featuring Bantam Bagels on all first class flights coming out of New York.