Boarderie – Charcuterie Board Delivery
DEAL
EPISODE SUMMARY
đź•“ Air Date: November 18, 2022
Asking For:
$300,000 for 5%
Investor:
Lori Greiner
Deal:
$300,000 for 9%
PRODUCT SUMMARY
Boarderie is a company that ships completely pre-assembled catering-quality cheese and charcuterie boards nationwide, revolutionizing the edible online gifting space.
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Background Story
Rachel and Aaron, founders of Boarderie, hail from West Palm Beach, Florida. Aaron has a rich background in hospitality and the restaurant industry, having operated a successful high-end catering company in South Florida, serving royalties, celebrities, and athletes. However, the pandemic halted their catering business, leading them to pivot towards e-commerce.
Rachel, who joined Aaron during the pandemic, was initially a customer who fell in love with the concept of Boarderie. With Aaron’s culinary expertise and Rachel’s belief in his vision, they teamed up to create a unique edible gifting solution. Rachel and Aaron are 75% owners of the company, with an outside partner holding the remaining 25%.
The Product
Boarderie offers pre-assembled catering-quality cheese and charcuterie boards in various sizes—small, medium, and large. These boards are expertly arranged and shipped nationwide.
Customers receive the boards in perfectly sealed packaging, and all they need to do is pour the accompanying nuts into designated spots, creating a chef-quality display in minutes.
The company’s unique selling point lies in the convenience it provides compared to traditional edible gift baskets. Rather than receiving a basket full of loose ingredients that require manual assembly, customers get a beautifully pre-arranged board that’s ready to impress.
Boarderie’s pricing strategy includes a production cost of $91 per board, wholesale prices to vendors at $154, and a retail price of $229, which includes shipping. The founders emphasize the freshness of their products, with a standard next-day delivery for orders placed by midnight.
How It Went
The company’s position before Shark Tank
Boarderie has made significant strides since its inception. In the year prior to the Shark Tank pitch, the company achieved $1.8 million in sales, primarily through partnerships with online e-tailers, Williams-Sonoma, DoorDash, and their most recent addition, Costco. Their decision to enter the direct-to-consumer market by launching their own website in July yielded $30,000 in sales within the first month.
However, their customer acquisition cost remains a challenge, ranging from $40 to $60 during initial testing phases. The founders have invested heavily in their venture, with a total personal investment of approximately $2 million. They used a $300,000 home equity line of credit, a $150,000 SBA loan, and another $100,000 line of credit against their catering business. Additionally, Rachel contributed $750,000 for the build-out of the production facility.
Boarderie’s profitability is on the horizon, with an expected profit of $400,000 on projected sales of $4 million for the year. Lori Greiner’s investment of $300,000 for 9% equity will provide the company with the necessary capital to fuel their direct-to-consumer strategy and further expand their business.
The Negotiations:
The pitch for Boarderie generated significant interest from the Sharks, resulting in multiple offers. Initially seeking $300,000 for 5% equity, Rachel and Aaron found themselves in a favorable position. Mark Cuban expressed concerns about potential competition and the replicability of the business model. He ultimately declined to invest, citing concerns about the economics of the deal.
Kevin O’Leary made the first offer, offering the requested $300,000 in exchange for 17.5% equity. While she praised the founders for their resilience and success, her proposal came with a steep equity stake. Barbara Corcoran, known for his conservative investment approach, offered $300,000 in cash and a $300,000 credit line but asked for 15% equity. He highlighted the need for additional capital and hinted at the importance of maintaining a strong credit line.
Lori Greiner also joined the negotiations, offering $300,000 for 13% equity. She emphasized her ability to support the brand through her successful Chef Wonderful brand. Rachel and Aaron deliberated and initially counteroffered Lori Greiner at 10%, hoping for a more favorable equity split. However, Lori held countered at 9%, stating her belief in the potential of the business.
Ultimately, Rachel and Aaron decided to accept Lori Greiner’s offer of $300,000 for 9% equity, acknowledging her experience and passion for the product. They expressed their excitement at having Lori as their partner and looked forward to her assistance in expanding their brand.
