How Do You Roll? – Sushi Restaurant
DEAL
EPISODE SUMMARY
🕓 Air Date: February 15, 2013
Asking For:
$1,000,000 for 12%
Investor:
Kevin O'Leary
Deal:
$1,000,000 for 20%
PRODUCT SUMMARY
How Do You Roll? is a fast-casual restaurant where customers can customize their sushi rolls to their preferences.
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Background Story
Brothers Yuen and Peter Yung, hailing from a family deeply entrenched in the restaurant industry, drew from their upbringing to revolutionize the sushi dining experience. With roots in Chinese restaurants run by their parents, they were seasoned in the ins and outs of the culinary world.
Dissatisfied with the limited options available for sushi lovers, they embarked on their entrepreneurial journey, combining high-quality dining with the convenience of fast-casual service. Armed with their expertise and a vision to empower customers to craft their own sushi creations, they founded How Do You Roll? in Austin, Texas, igniting what they believed would be the next big thing in ethnic food.
The Product
How Do You Roll? offers a unique dining experience where customers have full control over their sushi rolls. They can choose from various wraps, proteins, veggies, sauces, and toppings to tailor their rolls to their taste preferences.
With a focus on quality ingredients and a fast-casual environment, the restaurant bridges the gap between upscale sushi dining and grocery store convenience.
Customers can visit the physical locations to create their custom rolls or explore franchise opportunities to bring the concept to new markets. The franchise fee includes comprehensive support for setting up and running the business, ensuring consistency across locations.
How It Went
The company’s position before Shark Tank
The company has seen rapid growth, with 15 locations opened within 2.5 years, including corporate and franchise stores across multiple states. Franchise sales have been strong, with promising profitability projections based on royalty revenues.
They’ve established a successful business model, leveraging their background in the restaurant industry to navigate the complexities of franchising. The founders have attracted interest from potential investors, including offers valuing the company at $6.6 million, indicating confidence in its potential.
The Negotiations:
The negotiation process saw several sharks bowing out due to concerns about the competitive nature of the sushi industry and the complexities of franchising. Ultimately, Kevin O’Leary made an offer of $1 million for 20% of the company, with a focus on monthly distributions for the partners.
While this meant relinquishing a larger portion of equity, the strategic alliance with Kevin was deemed valuable for the company’s growth trajectory. After considering their options, the founders accepted Kevin’s offer, recognizing the potential benefits of his expertise and the alignment of their visions.
