Beyond Sushi – Vegan Sushi and Catering
DEAL
EPISODE SUMMARY
🕓 Air Date: October 21, 2018
Asking For:
$1,500,000 for 25%
Investor:
Matt Higgins, Lori Greiner (50/50)
Deal:
$1,500,000 for 30% (West) + 15% (East)
PRODUCT SUMMARY
Beyond Sushi is a multi-unit vegan restaurant in New York City, offering a modern twist on traditional sushi by using vegetables, fruits, and whole grains without fake meats.
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Background Story
Founded by Chef Guy Vaknin in 2012, Beyond Sushi has become a culinary gem in the heart of New York City, redefining the landscape of plant-based dining. Guy, both the chef and owner, hails from a background steeped in a passion for gastronomy and a commitment to sustainability. The roots of Beyond Sushi trace back to Guy’s vision of creating a vegan sushi experience that transcends traditional boundaries. Guy’s culinary journey began with the opening of the first Beyond Sushi location in July 2012. Armed with a modest investment of $70,000, sourced from his own life savings, Guy transformed a 280-square-foot space with 12 seats and a counter into a haven for innovative plant-based cuisine.
This initial venture laid the foundation for what would later become a flourishing multi-unit restaurant concept. The inspiration behind Beyond Sushi arose from Guy’s desire to craft a menu that not only catered to vegans but also appealed to a broader audience seeking healthier and sustainable dining options. Rejecting imitation, Beyond Sushi’s unique selling point lies in its use of fruits, vegetables, whole grains, and beans to create flavorful and nutritious alternatives to traditional sushi, without relying on fake meats.
As Beyond Sushi gained traction and popularity, Guy expanded the business to include six locations across Manhattan, catering to diverse customer preferences. In 2015, a strategic partnership with Sandy Beall, the founder of Ruby Tuesday, added a new dimension to Beyond Sushi’s growth, with Sandy holding a 25% stake in the company’s East Coast operations. Beyond Sushi’s success story is a testament to Guy’s entrepreneurial spirit, culinary expertise, and commitment to providing a sustainable and delicious dining experience. The brand’s journey reflects not only a shift towards plant-based eating but also a dedication to reimagining traditional cuisine in an innovative and health-conscious way.
The Product
Beyond Sushi offers a diverse and delectable array of plant-based dishes that go beyond the traditional sushi experience. The menu includes salads, wraps, dumplings, and rolls, with each item meticulously crafted to showcase Chef Guy Vaknin’s culinary innovation. The signature rolls, such as the Mighty Mushroom and Sunny Side, exemplify the brand’s commitment to using fruits, vegetables, whole grains, and beans, resulting in unique and flavorful alternatives to conventional sushi.
These plant-based rolls, comprising eight pieces each, come in a variety of intricate and delicious combinations. For example, the Mighty Mushroom features four-grain rice, baked tofu, shiitake, enoki, micro arugula, and a truffle shiitake sauce, while the Sunny Side boasts braised fennel, sun-dried tomato, avocado, roasted butternut squash, and a pesto sauce.
Beyond Sushi’s commitment to affordability is evident in its pricing, with a roll costing approximately $7.50. This accessible pricing aligns with the brand’s mission to provide healthier and sustainable dining options for a wide range of customers.
Customers can enjoy the Beyond Sushi experience through a user-friendly grab-and-go model. The fast-casual concept ensures quick service, making it convenient for individuals seeking a nutritious and delicious meal on the go. With a focus on quality and taste, Beyond Sushi has positioned itself as a go-to destination for both plant-based enthusiasts and those looking to explore innovative and sustainable culinary options in the heart of New York City.
How It Went
The company’s position before Shark Tank
Beyond Sushi has demonstrated robust performance and growth since its establishment in 2012, carving a niche for itself in the competitive New York City dining scene. The company’s health and position are marked by its strategic expansion to six locations across Manhattan, showcasing the brand’s appeal to a diverse and health-conscious customer base. Key to Beyond Sushi’s success is its strategic partnership with Sandy Beall, the founder of Ruby Tuesday, who holds a 25% stake in the company’s East Coast operations. This collaboration has not only added financial support but also brought valuable expertise and industry insights to the table.
The brand has positioned itself strategically by forming alliances with airports and stadiums, broadening its reach and making plant-based options more accessible to a larger audience. Beyond Sushi’s customer base includes health-conscious individuals, vegans, and those seeking innovative and sustainable dining experiences, contributing to the company’s positive reputation and consistent patronage. In terms of funding, Beyond Sushi relies on a combination of personal investments, private investors, and partnerships. Chef Guy Vaknin’s initial investment of $70,000 from his life savings kickstarted the venture, and subsequent rounds of funding have supported the company’s expansion and operations.
Financially, the company has experienced both successes and challenges. While achieving $4 million in sales in the last fiscal year, the transition to larger units led to a negative net income of $272,000. Chef Guy personally invested $160,000 to sustain operations during this period, showcasing a dedication to the brand’s longevity. Projected sales for the current fiscal year stand at an impressive $5.6 million, with a net income expected to reach $300,000. This optimistic projection, coupled with Beyond Sushi’s commitment to sustainability, positions the company for continued success.
Beyond Sushi is currently structured as a commissary-based business, featuring a centralized kitchen that supplies multiple restaurant locations. This model allows for flexibility in restaurant sizes, ranging from 250 to 2,500 square feet. The strategic alliance with Sandy Beall on the East Coast and Chef Guy’s ownership of the West Coast operations underpin a balanced and collaborative company structure.
The Negotiations:
The negotiations for Beyond Sushi in the Shark Tank were dynamic, with Chef Guy Vaknin seeking a $1.5 million investment in exchange for 25% of the planned West Coast venture and 5% of the existing East Coast operation. The pitch garnered interest from the Sharks, particularly Lori Greiner and Matt Higgins, who recognized the potential of Beyond Sushi’s innovative approach to vegan sushi.
The initial offer came as a joint proposition from Lori and Matt, who proposed a $1.5 million investment for 30% equity in the West Coast and 15% equity in the East Coast. This offer included not only financial support but also the promise of collaborative efforts and network access to propel Beyond Sushi’s growth. Mark Cuban, expressing concerns about the valuation, decided to opt out. However, Lori and Matt engaged in a deeper discussion about the alignment of interests and the potential for success on the West Coast. Chef Guy responded by adjusting the offer for the East Coast to 10%, addressing concerns about equity distribution and the potential success of the West Coast expansion.
Ultimately, Lori Greiner and Matt Higgins accepted the adjusted terms, finalizing the deal at $1.5 million for 30% equity in the West Coast and 15% equity in the East Coast. The negotiation showcased the Sharks’ belief in Beyond Sushi’s potential for success and their commitment to contribute not only financially but also strategically to the brand’s growth. Chef Guy expressed gratitude for the opportunity to work with Lori and Matt, emphasizing the value of their partnership in taking Beyond Sushi to new heights. The negotiation highlighted the collaborative spirit and shared vision for the brand’s future success.
