Avocaderia
DEAL
EPISODE SUMMARY
🕓 Air Date: February 11, 2018
Asking For:
$300,000 for 10%
Investor:
Barbara Corcoran, Mark Cuban (50/50)
Deal:
$400,000 for 20%
PRODUCT SUMMARY
Avocaderia offers a menu featuring dishes centered around avocados, including toast, salads, bowls, and smoothies, with an emphasis on both health and taste.
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Background Story
Alessandro, the co-founder, grew up in Italy surrounded by healthy and fresh food. Upon moving to the U.S., he noticed a growing awareness of healthy eating but found the alternatives bland. Inspired by the health benefits and tastiness of avocados, he founded Avocaderia in a food hall in Sunset Park, Brooklyn, with a focus on affordable and visually appealing avocado-based dishes. The company started five months ago and has achieved $75,000 in sales with an initial investment of $70,000.
The Product
Avocaderia’s menu revolves around avocados, offering a variety of dishes such as Mediterranean toast, beet toast (vegan option), mango smoothie, and vegan chocolate mousse.
The prices range from $6 to $14, aiming to be affordable. The company plans to open 20 locations in the next five years, with the second one already in progress. Each location is estimated to cost around $200,000, with half allocated for build-out expenses.
How It Went
The company’s position before Shark Tank
After five months, Avocaderia achieved $75,000 in sales with an initial investment of $70,000. The founders’ project closed the year with $750,000 in gross sales, fueled by the second location’s opening. The company plans to reach $4.3 million in sales the following year. They have received 50 franchising requests, have a six-figure cookbook deal, and claim to be already making a profit. Funding includes $170,000 from their own savings and a cookbook deal.
The Negotiations:
While the Sharks expressed enthusiasm for the unique concept, concerns were raised about the potential monotony of an avocado-centric menu. Lori and Rohan chose to opt out, citing potential customer fatigue. Robert was intrigued but questioned the $3 million valuation. In a joint effort, Barbara Corcoran and Mark Cuban made an offer of $300,000 for a 25% equity share.
The founder negotiated and eventually accepted a $400,000 investment for a 20% equity stake. Mark Cuban and Barbara Corcoran became proud partners in Avocaderia, excited about the potential for growth and success in the healthy food market. The partnership was celebrated as a strategic move to leverage the experience of the sharks, particularly in real estate and business scaling, to propel Avocaderia to greater success.
