Nick Oleksak and Elyse of Bantam Bagels are asking the Shark Tank investors to help them ‘change the way you bagel.’ They say that New York bagels are ‘huge, doughy, monsters’ that are too much of a commitment. Their idea was to create mini bagel balls, filled with cream cheese.
They say they’ve been voted in the top three bagels in New York, and they want to expand from coast to coast. That’s where the sharks come in.
The bagel balls cost about 30 cents apiece to make, the couple says, and are sold for $1.50. They’d like to use the money invested by the sharks to build a commercial bakery commissary, that will allow them to expand their business.
They’ve invested $50,000 of their own money, and have received $600,000 from other investors. They’ve brought in about $200,00 to date. Both have had Wall Street careers, and Nick is still working, but they say they’re devoted to this product.
They asking for $275,000 for 11% of the company, and have already allocated 23% to other investors.
However, the Shark Tank investors didn’t seem convinced that the couple know where they’re going next, and what they need in order to do it.
Robert Herjavec, citing concerns about the couple’s direction, was the first to bow out.
Barbara Corcoran wasted no time in stepping in with an offer. She proposed they change their brand, drop sales on QVC, and give her 51% of the business for the $275,000 they’re asking. “It’s a great offer, because you’re not going to succeed without me.”
Kevin O’Leary was next to make a proposal. He, too, had requirements. Nick would have to leave his job, and the couple would find a commercial kitchen to produce their wares. Finally, they’d need to be direct-to-consumer in sales. If they’d agree to these terms, he’d invest, in return for 50% of the business.
Lori Greiner had an offer to make, too. Her conditions were a name change,food trucks, and 30% of the business for her, in return for a $275,000 investment.
The couple made a counter-offer to Barbara: would she be willing to take only 25%? Lori interrupted — “I will, if you’ll decide right now with me.” The couple acquiesced immediately, and everyone’s pleasure in the deal is evident:
NYC is so excited to have @LoriGreiner on board with Bantam Bagels! Lines out the door!! pic.twitter.com/sOd7OVxz8E
— Bantam Bagels (@bantambagels) January 10, 2015
Final deal: Lori Greiner invested $275,000 in Bantam Bagels for a 25% stake, and would like the couple to look into a name change and food trucks.
Photo Credit: Bantam Bagels