Back 9 Dips Buffalo Chicken Dips
DEAL
EPISODE SUMMARY
🕓 Air Date: October 5, 2012
Asking For:
$150,000 for 15%
Investor:
Robert Herjavec, Lori Greiner (50/50)
Deal:
$150,000 for 25%
PRODUCT SUMMARY
Back 9 Dips offers an array of buffalo chicken dips that replicate the flavors of chicken wings on a chip, appealing to snack lovers and partygoers alike.
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Background Story
David and Dominique Mealy, residents of Tampa, Florida, found themselves facing financial strain after David lost his job during an economic downturn. David’s passion for cooking led them to start a barbecue catering company, Back 9 Barbecue, which eventually transitioned into a retail business specializing in their signature buffalo chicken dips. Their journey from job loss to culinary entrepreneurship fueled their determination to succeed, and they now seek the support of the Sharks to expand their product’s reach.
The Product
Back 9 Dips’ buffalo chicken dips are made from high-quality ingredients, including all-white meat chicken breasts and authentic wing sauces. The dips offer a convenient and delicious alternative to traditional chicken wings, providing the same flavors in a dip form suitable for pairing with chips or other snacks.
Priced between $7.99 and $8.99 for a 1-pound tub, the dips cater to consumers willing to pay a premium for superior taste and ingredients. With a wholesale cost of $5.25 per tub, the company ensures a healthy profit margin while maintaining competitive pricing.
Customers can purchase Back 9 Dips from various retail outlets, including supermarkets, where the company has secured a 60-store test run with promising initial results. The product’s success stems from its exceptional taste, which resonates with a diverse customer base ranging from college students to gourmet food enthusiasts.
How It Went
The company’s position before Shark Tank
Back 9 Dips has seen rapid growth, approaching $400,000 in revenue within two years of operation. With approximately 400 accounts and expanding distribution channels, including partnerships with supermarkets, the company demonstrates strong market penetration and consumer demand. Despite initial challenges, such as downsizing their living arrangements to sustain the business, the Mealy family’s resilience and commitment have propelled Back 9 Dips to success.
Funding-wise, the company has invested $150,000 into its operations, demonstrating confidence in its potential for growth. Profit margins remain healthy, thanks to the emphasis on quality ingredients and efficient cost management practices.
The Negotiations:
Initially seeking $150,000 for a 15% equity stake, Back 9 Dips attracted interest from Lori and Daymond, who offered the full amount but requested a 25% equity stake. Despite emotional moments and a brief reconsideration from Lori, the deal was eventually sealed with both Lori and Herjavec investing $75,000 each for a combined 25% ownership. The founders expressed gratitude for the opportunity and pledged to make the partnership a resounding success, leveraging the Sharks’ expertise to further expand their business.
