S15.E21: RoboBurger; Hood Baseball Hats; HYPE Footwear; K3 Shooting Band

[CrazyInAlabama]

Sharks-Guest Shark Michael Rubin (Founder and CEO of Fanatics, and other direct-to consumer companies) , Mark, Kevin, Barbara, Lori.

Roboburger-Robotic vending machine, a robotic vending machine selling custom hamburgers cooked when ordered, and ready in four minutes.  A 12 sq ft hamburger vending machine.   Asking $1.5 million for 5%.      The machine requires no special venting.   It can cook anything ground.   You customize condiments, toasted buns, cooked fresh.   They do it well done, for food safety.  They’re a robot restaurant company, with multiple patents, and want to do them for other companies.    There is a lease program, $3,000 a month per machine.   They can do multiple proteins, for breakfast or lunch/dinner sandwiches.  Burgers are $5.99 to $6.99, food costs are less than $2.00.    Kevin and Mark aren’t convinced this is viable for the valuation, or profitable.   They only produce 20 machines this year.  $7 million in revenue, and make $1.6 million.  Mark says a licensing idea may be the best, and doesn’t like vending machines, and he’s out.       Michael Rubin is out, with more work.   Barbara is out.    Lori is out.  Michael says $1.5 as a loan for the machines, at market rate interest, for 10% of the company.   Kevin says he’ll partner with Michael, 4.5% each.

Michael and Kevin make the deal, $1.5 million in loans at market rate, and 4.5% equity each. 

Hood Baseball Hats-hats designed to display hometown pride. Asking $500,000 for 5% equity.   Customizable luxury hats.   They use merino wool, velvet, cashmere and other luxury fabrics, customized. $1.9 million lifetime sales since 2018.   Since customizing in 2020 sales have soared.   $1 million for 2023.   They are not net profitable yet. Hats are about $90 customized.    Margins are great.   Michael owns Lids Hats which is competitor, but not customized.   The Sharks hate the valuation.  Kevin won’t do the valuation, and he’s out.   Michael is out, too similar to other companies, and hates the valuation.   Lori is out.   Barbara is out.   Mark is out. (I see no reason that anyone would spend $90 on a ballcap.   You can get personalized ballcaps everywhere.   I certainly wouldn't get a cashmere or velvet one). 

No deal. 

HYPE Footwear-customizable footwear.   Asking $125,000 for 5%.  Started with slides.  Customizable for whatever team you support, totally custom.  Sell direct-to-consumer, Fanatics and two other retailers.  They have a patent.  You buy the bases, and straps separately.   $500,000 is sales over 4 years.  Slider pro is the version with the two components.   You personalize online.  Margins aren’t wonderful.  Lori is out.   Kevin says data is missing and he's out.  Mark is out.  Michael is out, business is too small.   Barbara says use social media more, and offers $125,000 ½ cash and ½ credit line for 25%.   They counter at $100,000 cash and $250,000 credit for 25%.

Barbara makes the deal.  $100,000 cash, and $250,000 credit, for 25%.  She’ll be a great partner for them. 

K3 Shooting Band for Jump Shots-a resistance band to perfect jump shots. Asking $100,000 for 20%.   Mark tries it, and likes it. She's applied to Shark Tank for 15 seasons before making the show.   She has a patent.   Margins are fantastic.  Dick's Sporting Goods, and Walmart online, $43,000 last year in sales.  Kevin doesn't like the lack of reorders and sales.    Mark says he has a conflict, and he's out, but gives the seller great advice.   Kevin is out.   Barbara is out.    Michael says sell online direct to consumer, believes in the seller, and he makes an offer, $100,000 for 50%, and will give part of his shares to basketball players, and influencers.    Lori will partner with Michael.    They offer $100,000 for 50%, and settle for 40%. 

Deal with Michael and Lori $100,000 for 40%.  

Update:   Lose 12 Inches workout-Daymond made the deal for the workout, still haven’t made a profit, but he’s still friends with the seller, Ryan.

Iconic Moment:   A look back at the iconic moments highlighted this season.  Bombas is the first $1 billion dollar Shark Tank company.

Edited April 21 by CrazyInAlabama

[bilgistic]

I'm watching the show, and I have to say that I can't believe (and yet I can) that some jagoff got on the show to pitch fucking ballcaps.

Edited April 20 by bilgistic

[eel2178]

11 hours ago, bilgistic said:

I'm watching the show, and I have to say that I can't believe (and yet I can) that some jagoff got on the show to pitch fucking ballcaps.

. . . and after only selling 11,000 units last year, yet he thinks this is a huge money maker.

The hand brace for playing basketball really wasn't much better. Mark couldn't even make a basket with it on 3 tries, and he wasn't anywhere close to a free throw line. 2150 units sold last year after being in business for more than 15 years!

Ditto for the footwear company. Barbara brought their valuation down from $2.5million to $400K, and I doubt the company is even worth that. They've only sold 1916 units in the last 2 years. In most climates in the US, you can't even wear them 6 months out of the year.

More people with delusions of grandeur.

It's the end of the season. We're scrapping the bottom of the barrel again.

[tired and hungry]

5 hours ago, eel2178 said:

. . . and after only selling 11,000 units last year, yet he thinks this is a huge money maker.

Agreed. He was way too full of himself for someone who just sells hats.

I dont understand what Lori was going to "help" with on the Basketball product. It did not seem like a kind of product she usually invests in. Idk why they always shove in Mark or Lori to "partner" with the guest shark to make a deal. Do they not want the guest shark to swoop in a single episode and make the deal single handedly?? Let the guest shark do an individual deal too!!!

[CrazyInAlabama]

I thought it was interesting that the ballcap seller couldn't get a deal with Michael, and Fanatics has carries the ball caps.  Seems like it would be a total conflict of interest for him to invest in a company that he buys and resells with already. 

I didn't see anything unusual or different with the ball caps either.   Unless you carry a signboard around saying how much it costs and what the luxury material is, they just look like any other ball cap.   

[EtheltoTillie]

I don’t even understand the basketball band. How was it supposed to help in shooting?  And if so was it only for practice?  Would it be illegal to use during a game?  
You’d think Mark Cuban would have done better shooting a basket.

Roboburger seemed ridiculous. I can’t see the public buying vending machine burgers. Awfully expensive rental for the machines, and they’re bound to need lots of service and cleaning. Think of the grease. 
It should be paired with the Cheffy robot cooking center from recent weeks in the wasteland of failed food prep inventions. 

[DEL901]

Thinking about Roboburger just from a practical perspective….it seems like it does one burger at a time and each takes 4 minutes….there is also the time to order that needs to be factored in.   Say you are in line.  The person in front of you has to study the menu, make their customizable choices, pay and then wait for their burger.   And what if you are 3rd or 4th in line?  You might be waiting half an hour for your food…and then what about getting a side and drink?   More time.  Your lunch time will be over before you take a bite.  

[seacliffsal]

I miss some of the innovations and ingenuity of the past.  Yes, the sharks have always invested in variations of existing products (I.e. Bombas which they highlighted this episode), but to continually see yet another hat, shirt, shoe, etc., gets very repetitive.  

As for Roboburger, it's an idea that I think is going to become more common as labor costs increase, but it's really going to have to come down in cost and be more time efficient.  As noted above, the process isn't 'fast.'  

Hopefully the producers are looking for more innovative and unique products for next season and fewer 'sob' story backgrounds thinking that that's what viewers want to watch.

[aemom]

On 4/21/2024 at 5:39 AM, tired and hungry said:

Agreed. He was way too full of himself for someone who just sells hats.

I dont understand what Lori was going to "help" with on the Basketball product. It did not seem like a kind of product she usually invests in. Idk why they always shove in Mark or Lori to "partner" with the guest shark to make a deal. Do they not want the guest shark to swoop in a single episode and make the deal single handedly?? Let the guest shark do an individual deal too!!!

I rolled my eyes at ball cap guy too, especially when he was so proud of the customized hats that he gave the sharks.  I had to chuckle at Kevin's which says "Mount Royal."  It's actually "Town of Mount Royal," or "TMR." Nobody would ever refer to the town as "Mount Royal."  Mount Royal is what you call the actual mountain in the city.

Lori was going to help with the packaging for the basketball gadget.  If it actually works, I think that they have the right idea that getting the trainers, etc. to promote and use it is the way to go.  She's definitely a hustler and willing to work hard, so if nothing else, I hope that this helps her make a livable wage.

I had to laugh at Barbara asking if she could get her Robo Burger cooked medium.  Really Barbara?  You want to have a burger out of a machine that clearly won't have beef-just-freshly-ground cooked medium?  Do you know ANYTHING AT ALL about food safety?

The flip flops were completely uninteresting to me.  I only wear those things in my backyard or at a pool.  The price was insane as well.

[Tango64]

The robot burger guys were instantly annoying with their cheesy, cringey, overly rehearsed presentation at the start. Then they just got more annoying. Like trying to evade the question of how much it costs to run one of those things once you buy it. I'm not sure we ever heard an answer to that question and they came off sounding like like they're all about selling you this machine and then you're on your own -- no supplies, no maintenance, probably won't even answer your phone calls when you need help.

And the guy repeatedly saying they have a patent on "anything that can be prepared in a restaurant!" What does that even mean? You have a patent on preparing a duck pate en croute? Or nobody else can make a machine that prepares food? Doesn't seem likely.

Don't get me started on the guy selling "luxury" ball caps with (gasp!) a local name stitched on it!

[lh25]

1 hour ago, Tango64 said:

And the guy repeatedly saying they have a patent on "anything that can be prepared in a restaurant!" What does that even mean? You have a patent on preparing a duck pate en croute? Or nobody else can make a machine that prepares food? Doesn't seem likely.

That "anything that can be prepared in a restaurant" line got to me too.  No, you can prepare round sandwiches.  That's it.  

[eel2178]

5 hours ago, seacliffsal said:

As for Roboburger, it's an idea that I think is going to become more common as labor costs increase, but it's really going to have to come down in cost and be more time efficient. 

With fast food franchise wages now being $20 per hour in CA, I can see an interest in this after a lot of modifications.

5 hours ago, seacliffsal said:

 As noted above, the process isn't 'fast.'  

That's probably why their recommendation was to lease at least 3 machines.

I remember another food prep vending machine that was similar to the old fashioned automat. It served a lot more than just hamburgers. I don't remember the name of it or what season it was on, but it would be interesting to know if it is still in business. That would be a pretty good clue as to whether or not this machine will produce a viable business.

[jcbrown]

I just wished they had said something about cleaning the dumb machine. They made a passing reference but I thought that was something the Sharks should have asked about.

This season has been largely a snooze.

[dogdays2]

I could see Roboburger at a rest stop - ones that only have vending machines. You have a little time and something hot might be appealing.  But would need servicing to refresh ingredients, if nothing else. 

[marny]

I prefer episodes where the presenters are showing a product or service that the audience may be interested in buying or supporting. Lately it’s all people who want to become billionaires by selling some unnecessary tech to businesses that will make my life decidedly worse or less convenient. 

[EtheltoTillie]

On 4/22/2024 at 2:21 PM, eel2178 said:

With fast food franchise wages now being $20 per hour in CA, I can see an interest in this after a lot of modifications.

That's probably why their recommendation was to lease at least 3 machines.

I remember another food prep vending machine that was similar to the old fashioned automat. It served a lot more than just hamburgers. I don't remember the name of it or what season it was on, but it would be interesting to know if it is still in business. That would be a pretty good clue as to whether or not this machine will produce a viable business.

The old-fashioned automat had live humans preparing the food behind the wall of "mailboxes."  It was just a gimmick, really.  As stated above, the Robot cooker will need servicing.

Edited Wednesday at 11:15 AM by EtheltoTillie