Cinnaholic Shark Tank Pitch
Cinnaholic features the worlds best custom gourmet cinnamon rolls hot out of the oven. The calories are around 480, which is about half the amount of their competitors. They have a store in Berkley, California.
The current Cinnaholic location is 640 square feet and had $265,000 in sales. They netted $45,000 selling the average roll at $5.50.
Florian said that they are planning another store with the $200,000 to continue to prove their model, and then they want to franchise locations.
The Sharks love the rolls, and then find out there is a secret to the Cinnaholic roll is that they are 100% dairy free, egg free, Cholesterol free, allergy friendly, and 100% Vegan. Shannon and Florian served the Sharks three day old rolls, which leaves Barbara Corcoran stunned.
Cinnaholic has a small eCommerce store online, primarily for celebrities to order online.
Cinnaholic Episode Data
- Company: Cinnaholic – Website
- Entrepreneur: Shannon Radke and Florian Radke
- Ask: $200,000 for 20% equity
- Episode Season 5 Episode 528
- Companies in this episode:
- First Aired: 05/09/2014
- Deal: Deal Robert Herjavec $200,000 for 40% equity
What do the Shark Tank Investors say about Cinnaholic?
- Mark Cuban – listens to all the other Sharks as they make their offers.
- Daymond John – is jealous of hearing what Cousin's Main Lobster is doing, the numbers are not there for him so, he is out.
- Kevin O'Leary – compares this to Wicked Good Cupcakes. He tells them how their sales changed and blew up the business. He thinks this may be more lucrative than opening up a second space. Kevin is contemplating screwing up Robert's offer. Kevin has the customer base with his brands, and is offering a strictly royalty deal. He doesn't want to see a second store. He gives them $200,000 for a royalty of $1.20 until the investment is recouped and then drops to $.60 in perpetuity.
- Barbara Corcoran – doesn't think the business model is working so well, saying that each truck is generating $800,000 a year. She is out.
- Robert Herjavec – will give them $200,000 for 40% provided they don't do another store, and they focus on selling them online instead. Florian counters at $200,000 for 35% equity at the risk of Mark Cuban jumping in. Robert holds and they take his original offer.
Cinnaholic after Shark Tank
Take a visit to the Cinnaholic website and you will see that the business is adding franchise locations around the United States and now Canada. Currently they have over 20 locations and continue to expand. They rejected the $200,000 offer from Robert Herjavec after the Shark Tank episode.