Custard Stand launched in 1991 as a dairy bar serving Custard Stand Hot Dog Chili and Custard Stand Chili Beef and Bean soup. They produce their own Chili and soup in their facility along with owning six restaurant locations. They are pitching Custard Stand in Shark Tank Season 7, asking for $ in exchange for % equity in their company.
Custard Stand Chili Hot Dog number one menu item for 24 years straight
Custard Stand has a favorite Chili that customers keep coming back for, and they want to take it nationwide. The Hotdog with Chilli is their number one selling menu item for twenty-four years.
The Custard Stand Chili is a sweet Chili. Their company has $1.6 million in sales the year before. Hotdog Chili is a regional product, and they want to take it nationally. $217,000 is their profit on the Chili.
The Custard Stand restaurants are not part of the deal. Custard Stand has $700,000 debt in the business. Half the debt is from the brick and mortar. The other half is a brand new massive freezer that you can drive a fork lift in and out.
Company: Custard Stand
Entrepreneur: Dee Cowger and Angie Cowger
Website
From: Webster Springs, West Virginia
Ask: $400,000 for 10% equity
Companies in this episode: Insta-Fire, PRxPerformance, Rags to Raches
Season: Season 7 Episode 719
Sharks: Mark Cuban, Daymond John, Kevin O’Leary, Lori Greiner, Robert Herjavec
First Aired: 02/21/2016
Deal: No Deal on the Shark Tank
What do the Shark Tank Investors say about Custard Stand
Mark Cuban sees their business as a value of about four million dollars, and people are wondering if they can be that couple. He applauds them, but from an investors perspective, there are too many moving parts.
Daymond John tells them to roll out nationwide; you need to do research and development as well as advertising to educate people on your product. He is out.
Kevin O’Leary tells them that a big player in this market would do this for about a million dollars which is a lot for a brand that is regional. He is out.
Lori Greiner likes a spicy chili, but she loves the passion. She is out.
Robert Herjavec loves that they are passionate about, but he thinks it will be a challenge to roll out a regional product nationwide. He is out.
Custard Stand after Shark Tank
Dee and Angie were disappointed that they did not get a deal from the Sharks. That said, their Chili is selling in stores nationwide and online through their website. Drop me a line and let me know if you like their chili!
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