Everytable – Ready-made Meals
DEAL
EPISODE SUMMARY
🕓 Air Date: January 28, 2018
Asking For:
$1,000,000 for 5%
Investor:
Rohan Oza
Deal:
$1,000,000 for 10%
PRODUCT SUMMARY
Everytable is a healthy, grab-and-go concept revolutionizing the restaurant industry by making nutritious meals affordable for everyone, with varying prices based on the community's economic status.
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Background Story
Everytable founders, Sam Polk and David Foster, both from Los Angeles, California, share a passion for making healthy food accessible to all. Sam, a former senior trader on Wall Street, shifted his focus after the 2008 financial crisis, starting a non-profit called Groceryships to help families in food deserts access healthy food.
Through this non-profit, Sam met David, and they joined forces to create Everytable. Their mission is driven by the belief that healthy food is a human right and that communities, particularly in food deserts, deserve access to affordable nutritious meals.
The Product
Everytable operates on a centralized production model where world-class chefs prepare fresh, healthy, and delicious meals in a central kitchen every morning. Meals include options like kale chicken Caesar salad, vegan miso grain bowls, and Jamaican jerk chicken.
These meals are then packaged and sent to Everytable’s various locations, which are strategically opened in both affluent and food desert communities. Prices vary based on the community’s economic status, ensuring affordability for everyone.
How It Went
The company’s position before Shark Tank
Everytable’s growth is evident through its multiple locations, with a current run rate of about $2.6 million annually across five stores. The company has attracted investors, raising $2.9 million in a seed round and an additional $2 million at a $23.5 million valuation cap. However, the company is currently burning money with a monthly burn rate of $125,000, reflecting heavy investments for growth. Despite the losses, Everytable aims for profitability and has a gross margin of 40-50% in food deserts and 60-70% in affluent markets.
The Negotiations:
The Sharks express concerns about Everytable’s $20 million valuation, given their current financials and the potential challenges ahead. While all the Sharks acknowledge the company’s mission, some express reservations about the founders’ entrepreneurial spirit and question the high valuation. Lori, Mark, Barbara, and Robert all opt out, citing concerns about execution, valuation, and the founders’ perceived lack of entrepreneurial drive.
Rohan Oza expresses interest but challenges the valuation, proposing a counteroffer at $1 million for 10% equity. After a brief discussion, Sam and David accept Rohan’s offer, securing a deal at a $15 million valuation. The founders express excitement about partnering with Rohan and leveraging his marketing skills to expand Everytable’s presence across the country. The deal is sealed with Rohan Oza investing $1 million for a 10% stake in Everytable.
