Cupbop Korean BBQ
DEAL
EPISODE SUMMARY
🕓 Air Date: May 2, 2022
Asking For:
$1,000,000 for 3%
Investor:
Mark Cuban
Deal:
$1,000,000 for 5%
PRODUCT SUMMARY
Cupbop offers quick-service Korean barbecue served in a convenient cup with customizable spice levels and various meat options.
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Background Story
Cupbop, a thriving quick-service Korean barbecue brand, originated in the bustling city of Salt Lake City, Utah. Dok, a Korean native with a background in finance and investment, had initially found himself drawn to the culinary world during his time in Salt Lake City. It was there that he chanced upon Junghun’s food truck, which served authentic and delectable Korean barbecue, igniting Dok’s passion for the rich and vibrant flavors of his cultural heritage.
Junghun, also of Korean descent, shared Dok’s fervor for introducing the intricacies of Korean cuisine to a broader audience. With a keen eye for recognizing the gap in the market for accessible Korean food options, the duo embarked on their journey to establish Cupbop, envisioning a brand that would not only offer an array of delicious and convenient Korean barbecue options but would also provide an immersive and engaging culinary experience for customers.
Driven by their mutual love for their heritage and a desire to share the distinct flavors of Korea with the world, Dok and Junghun poured their energy into crafting the Cupbop concept, ensuring that it encapsulated the essence of Korean cuisine while making it approachable and appealing to a diverse range of palates. With their combined experiences and passion for their cultural roots, they set out to create a brand that not only satisfied customers’ taste buds but also fostered a sense of community and celebration around Korean food and culture.
The Product
Cupbop offers a unique dining experience with its signature Korean barbecue served in a convenient cup format. Customers can enjoy a blend of flavorful ingredients such as sweet potato noodles, cold chop chips, and a choice of either bulgogi (beef) or hot spicy pork. The customizable spice levels, ranging from 1 to 10, cater to various taste preferences, allowing patrons to tailor their meals to their desired level of heat.
The product’s appeal lies in its fusion of authentic Korean flavors and quick-service convenience, making it an ideal option for busy individuals seeking a delicious and satisfying meal on the go. Customers can purchase Cupbop’s offerings at their various brick-and-mortar locations, which provide a lively and engaging atmosphere reflective of Korean culture.
The prices typically range between $8 to $10 per bowl, offering customers a relatively affordable yet high-quality dining option. With a strong emphasis on providing a memorable dining experience, Cupbop combines the rich and savory flavors of Korean barbecue with a dynamic and energetic ambiance, appealing to a diverse customer base seeking both flavorful cuisine and a vibrant dining atmosphere.
How It Went
The company’s position before Shark Tank
Cupbop, a dynamic quick-service Korean barbecue brand, has demonstrated robust growth and a strong position within the competitive culinary industry. With a solid foundation in place, the company has successfully expanded its presence, operating from 27 brick-and-mortar stores and having evolved from its initial food truck origins. Over the past 8 years, Cupbop has exhibited impressive sales figures, reaching $18.7 million in system-wide sales over the trailing 12 months, showcasing a notable growth trajectory from $7 million to $10.5 million in recent years.
Founded by Dok and Junghun, the company’s success can be attributed to its unique fusion of authentic Korean flavors with a quick-service model, resonating with a diverse customer base seeking a convenient yet high-quality dining experience. While Dok, with prior experience as an investor at a major hedge fund, brings financial acumen and strategic insight to the business, Junghun’s background as a former food truck owner has contributed to the company’s culinary expertise and operational excellence. Cupbop’s primary focus has been on organic cash flow growth, without external funding, leading to a well-structured business model and healthy profit margins.
While specific details regarding the company’s partners and wholesalers remain undisclosed, the company’s strong financial performance and notable sales figures have garnered substantial attention from potential investors and stakeholders within the culinary industry. The company’s emphasis on delivering a vibrant and engaging dining experience, combined with its consistent sales growth and strong gross margins of approximately 75%, highlights its robust financial health and operational stability. As Cupbop continues to expand its reach and establish itself as a prominent player within the quick-service dining sector, its commitment to providing an authentic, flavorful, and enjoyable dining experience remains a key driver of its continued success and growth.
The Negotiations:
In the negotiations on Shark Tank, the founders of Cupbop, Dok, and Junghun, made a bold ask for a substantial investment, seeking $1 million in exchange for a mere 3% of their company, valuing the business at $33 million. This sparked immediate interest from the Sharks, who were impressed by the company’s innovative approach and remarkable growth trajectory. Kevin O’Leary, known for his shrewd business tactics, proposed a loan of $1 million with a 10% interest rate and a 3% equity stake, emphasizing his ability to contribute significantly to the business’s growth and development.
Barbara Corcoran and Lori Greiner joined forces, offering a $1 million loan for 5% equity, underlining their capacity to bolster Cupbop’s marketing and visibility. Meanwhile, Robert Herjavec presented an offer of $5 million for 28% equity, valuing the company at $18 million, and emphasized his extensive experience in scaling businesses within the food industry. Mark Cuban, recognizing the potential for nationwide brand visibility, proposed a $1 million equity investment for 5%, stressing his ability to leverage his platform for widespread marketing and publicity.
Ultimately, Dok and Junghun accepted Mark Cuban’s offer of a $1 million equity investment for 5%, recognizing the substantial value that Cuban’s expertise and national platform could bring to the brand’s future expansion and market visibility. The negotiations concluded on a celebratory note, highlighting the founders’ passion, resilience, and determination to make Cupbop a widely recognized and beloved Korean culinary brand.
