So, I've watched all the episodes of RESTAURANT STARTUP and I just don't understand whether they are actually investing in these businesses (not this specific episode, but overall). Basically, I don't buy it.
For example, Tim Love is a chef. A very successful chef with a few restaurants but that does not make you RICH. Not rich enough to be dropping a quarter of a million dollars on second-rate restaurants which are likely to lose all your money. How in the world does he have, say, $250,000 to blow on some random restaurant idea that is not even that great an idea. And, he's made 3 or 4 different offers like that. I assure you, he just does not have that money (it is true he could be representing a group of investors who combined have that money).
On SHARK TANK, it makes sense because Mark Cuban is a BILLIONAIRE so if he wants to blow some money on a business it makes more sense. And also, on that show, there are 5 investors and so any individual investor is not necessarily making offers on that many businesses.
But on this show, it just seems like most of the ideas are not necessarily that great. Like the cone idea. I don't buy that he would actually invest in that (where he is very likely to lose all his money). It seems in the real world, you would get 100 different restaurant ideas, and maybe one would be worth investing. Versus on this show where they are choosing applicants for a lot of other reasons than whether they are actually good business ideas.
Now, I know there are gonna be all sorts of guidelines where they don't have to invest once they do due diligence and stuff after the show. But, still, I just do not believe they are actually investing/interested in investing in virtually all of these businesses. It's like, "hey, let me make four different $250,000 investments in some not particularly great business ideas that just randomly were presented to us). "
On the spectrum of real to fake, I just am sensing this show is falling on the fak-ish side...
I just don't buy it. What do y'all think is going on? (e.g., they never actually invest this money and the offer itself is just for the show or what)?
