The Cookie Dough Cafe
DEAL
EPISODE SUMMARY
🕓 Air Date: January 31, 2014
Asking For:
$50,000 for 20%
Investor:
Lori Greiner, Steve Tisch (50/50)
Deal:
$50,000 for 30%
PRODUCT SUMMARY
The Cookie Dough Cafe offers safe-to-eat, gourmet cookie dough, specifically made for indulging straight from the jar without the need for baking.
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Background Story
The Cookie Dough Cafe, based in Normal, Illinois, was founded by sisters Joan Pacetti and Julia Schmid, who share a deep-rooted passion for baking inherited from their family. Growing up in a household of seven, the sisters were accustomed to homemade treats, instilling in them a love for creating delicious desserts from scratch. Their culinary journey began at a young age, baking alongside their mother in the kitchen, a tradition that continued into adulthood. After years of experimenting with recipes and perfecting their baking skills, Joan and Julia recognized a gap in the market for safe-to-eat cookie dough.
Aware of the risks associated with consuming raw cookie dough containing eggs, they sought to create a product that would allow consumers to indulge without worry. Drawing from their own experiences and a desire to offer a guilt-free indulgence, the sisters set out to develop a gourmet, edible cookie dough. Their entrepreneurial journey led them to establish The Cookie Dough Cafe, where they combined their baking expertise with a commitment to quality ingredients. By carefully crafting a recipe free from eggs and preservatives, they created a product that not only satisfied cravings but also addressed health concerns.
With their innovative approach to cookie dough, Joan and Julia aimed to provide a delicious treat that could be enjoyed straight from the jar, eliminating the need for baking. Driven by their shared vision and entrepreneurial spirit, the sisters transformed their passion for baking into a thriving business. With dedication, perseverance, and a commitment to excellence, they have positioned The Cookie Dough Cafe as a leader in the gourmet dessert market, delighting customers with their delectable creations while continuing to innovate and expand their product offerings.
The Product
The Cookie Dough Cafe offers a delectable range of gourmet, edible cookie doughs, meticulously crafted to provide a safe and indulgent treat. Made without eggs and preservatives, their cookie doughs can be enjoyed straight from the jar, offering a convenient and hassle-free snacking experience. Each jar is filled with creamy, buttery dough infused with real chocolate chips, candies, and other delicious ingredients, ensuring a mouthwatering taste with every spoonful.
One of the key benefits of The Cookie Dough Cafe’s product is its versatility. While it is perfectly enjoyable on its own, the dough can also be used to create a variety of desserts, including ice cream toppings, milkshake mix-ins, and even baked cookies (though the absence of eggs may result in flatter cookies). This versatility appeals to a wide range of consumers, from those seeking a quick and satisfying snack to baking enthusiasts looking for creative ways to incorporate cookie dough into their recipes.
Customers can purchase The Cookie Dough Cafe’s products online through their website or in select stores nationwide. Each jar typically retails for $6.99, making it an affordable luxury for cookie dough lovers looking to satisfy their cravings without compromising on quality or safety. With an array of delicious flavors and a commitment to using only the finest ingredients, The Cookie Dough Cafe offers a truly irresistible treat for cookie enthusiasts everywhere.
How It Went
The company’s position before Shark Tank
The Cookie Dough Cafe has shown promising growth since its inception, with a solid position in the market and increasing demand for its products. Operating out of Normal, Illinois, the company has established itself as a leader in the gourmet dessert industry, catering to a diverse customer base of cookie enthusiasts nationwide. With regards to partnerships, The Cookie Dough Cafe has secured agreements with select retailers and distributors to expand its reach and accessibility. Notable retailers include Fresh Market and Walgreens, indicating the company’s ability to secure prominent placement in well-known establishments.
The primary customer base of The Cookie Dough Cafe comprises individuals seeking indulgent yet safe-to-eat desserts. From families looking for a convenient snack to baking enthusiasts seeking high-quality ingredients, the company’s products appeal to a wide demographic. Additionally, partnerships with retailers like Walgreens suggest an opportunity to target a broader audience of on-the-go consumers. In terms of funding, The Cookie Dough Cafe initially relied on personal investments from founders Joan Pacetti and Julia Schmid to launch the business. However, as demand grew, the company sought additional capital to support expansion efforts, leading to a successful investment deal on the television show Shark Tank.
The infusion of funds from investors Lori Greiner and Steve Tisch provided the company with the necessary resources to scale production, enhance marketing efforts, and pursue new growth opportunities. Financially, The Cookie Dough Cafe has experienced steady revenue growth, with sales reaching $24,000 to date and recent expansion into 50 Fresh Market grocery stores. While specific profit figures are undisclosed, the company’s ability to secure partnerships and increase distribution channels suggests a positive trajectory. With available capital from the Shark Tank investment, The Cookie Dough Cafe is well-positioned to capitalize on its momentum and continue its upward trajectory in the competitive dessert market.
The Negotiations:
During the negotiations on Shark Tank, sisters Joan Pacetti and Julia Schmid of The Cookie Dough Cafe initially sought $50,000 for a 20% stake in their company. While their product received praise for its taste and unique concept, several sharks expressed concerns about the early stage of the business and its relatively low sales figures. Despite these reservations, the sisters highlighted their recent success, including a significant purchase order from Fresh Market grocery stores, indicating potential for growth.
Ultimately, Lori Greiner and Steve Tisch saw promise in The Cookie Dough Cafe’s product and offered $100,000 for a 30% stake in the company. This offer provided the necessary capital for expansion while also bringing valuable connections and expertise to the table. However, the sisters hesitated at the higher equity stake, preferring to retain more ownership of their company.
After some negotiation, Greiner and Tisch agreed to lower their equity ask to 30%, and the deal was accepted. This agreement not only provided The Cookie Dough Cafe with the financial resources needed to scale production but also offered access to Greiner’s expertise in product development and Tisch’s network of industry connections. Overall, the negotiations showcased the sisters’ passion and determination, culminating in a mutually beneficial deal that positioned The Cookie Dough Cafe for continued success and growth in the dessert market.
