Plated has a mission to help American's eat better. They pitch on Shark Tank Season 5 and score a deal with Mark Cuban.
Plated partners met at Harvard Business School
Nick and Josh met at Harvard Business School where they found it difficult to get good food on the table after school.
Plated meals are nutritious meals taking under thirty minutes to make at home. Customers come to the website and pick out the food from their available selections. The ingredients and instruction cards come to your home along with available instruction videos.
Plated launched six months before making their Shark Tank pitch, resulting in tens of thousands of meals delivered.
Meals run $10 per person with a four person minimum and are delivered overnight packed in ice.
Plated has margins at 40% and is expected to rise to 60% at scale. Grocery in comparison comes with 40-50% margins.
Sales six months to current are $350,000, projected to end the calendar year at $2.5 million. The following year will generate $10 million.
Nick and Josh each invested $50,000 into the business conception and raised $3 million with a $9.5 million valuation.
Entrepreneurs: Nick Taranto and Josh Hix
Ask: $500,000 for 4% equity
Companies in this episode: Kodiak Cakes, Monkey Mat, The Paint Brush Cover
Season: Season 5 Episode 522
Sharks: Mark Cuban, Daymond John, Kevin O'Leary, Barbara Corcoran, Robert Herjavec
First Aired: 04/04/2014
Deal: Mark Cuban, $500,000 at a nine-million evaluation and advisory shares.
Plated uses two hubs currently, and are adding Brooklyn, Chicago, and San Francisco.
Josh Hix ran a software business for five years, while Nick Taranto the Marine Corps before attending Harvard Business School. Nick is still in the reserves as of the Shark Tank Pitch.
What do the Shark Tank Investors say about Plated
- Mark Cuban said he would not be a customer, but he does not need to be a customer. Mark likes the subscription model and makes an offer. He gives them essentially precisely what they are asking for, they want to talk about it, but Mark tells them there is nothing to discuss. He gave them their ask. They take the deal.
- Barbara Corcoran thinks takeout is too big; she is out.
- Kevin O'Leary says he could build the Plated model for $3 million; he is out.
- Lori Greiner cooks frequently, and she believes if you cook a lot you don't need someone to send it to you, she is out.
- Robert Herjavec does not believe that he would order something he has to prepare. They offer to send Robert and his wife a free trial, but Robert claims he would not use it, and he is out.
Plated after Shark Tank
Plated was acquired by Albertsons Companies for $300 million in September of 2017. The companies goal is taking on Amazon Fresh. They believe the partnership will enable Albertsons to become a ten billion dollar brand in a few years.
Mark Cuban initially made a deal with Plated, but it fell apart after the show. Kevin O'Leary decided to get in and made a deal with Nick and Josh after the Beyond the Tank follow up on Plated.