Biz Tips: Shark Tank Deal: Yumble Accepts $500,000 From Bethenny Frankel

Biz Tips: Shark Tank Deal: Yumble Accepts $500,000 From Bethenny Frankel

Biz Tip:

Shark Tank Deal: Yumble Accepts $500,000 From Bethenny Frankel

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New Jersey based, Yumble, entered the Shark Tank in hopes of walking away with $500,000 in exchange for 4% of their rapidly growing business. Husband and wife duo David and Joanna Parker created this subscription-based meal service as a way to help parents feed their children healthy yet convenient meals when they are pinched for time. Most parents can relate to the feeling of rushing home from work to make a quick dinner for your family. Yumble is an alternative to making unhealthy, processed foods for your children. Each meal also includes a collectible toy for children to stay excited and engaged with their meal service.

To keep variety in their meals, there are 22 meals to choose from each week and families are able to decide if they would like a 6, 12, or 24 meals in their subscription. Some meal choices include chicken pops, empanadas, and smac and cheese (which contains as much protein as a piece of chicken). Each meal comes in a tray that is able to fit into a lunch box.

The Sharks are all very impressed with the taste of the food and ask about the financials. Each meal sells for $6.99-7.99 per meal. Their current sales are at $1.3 million with a 30% growth rate month over month. They have also reduced their new customer acquisition to $40 from $100. Another promising metric is that 70% of their customers are re-ordering at the first opportunity that they are given.

While the Sharks are impressed with their product and the current financial health of Yumble, many are concerned about the competition in this market, specifically brick and mortar stores as well as large e-commerce businesses like Amazon. Without a retail partnership, this is a very risky company for a Shark to invest in. Because of this fear, Kevin O’Leary and Mark Cuban declined to make Yumble an offer.

Bethenny Frankel offers Yumble $500,000 for a 15% share in their company and she agrees to be a spokesperson for their product. Rohan Oza also extends an offer to Yumble. He offers $500,000 for a 12% share. He feels that he can help them with their branding and story and is willing to go in with Lori Greiner to help with their packaging and marketing as well. Bethenny really wants this company and counters back with $500,000 for 6%, threatening to withdraw her offer and walk away. They accept Bethenny’s offer.

What do you think of Yumble and their business model? Do you feel this is a risky business venture? Do you think they made the right decision by going with Bethenny over Rohan and Lori? Let us know what you think of this product and their deal in the comments below!

For a full summary of this episode, check out this article. Shark Tank airs on Sundays at 9:00 PM EST on ABC.

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