Joe’s Gourmet Fish Fry
DEAL
EPISODE SUMMARY
🕓 Air Date: January 14, 2018
Asking For:
$150,000 for 15%
Investor:
Daymond John
Deal:
$150,000 for 25%
PRODUCT SUMMARY
Joe's Gourmet Fish Fry is an innovative, all-in-one seafood breading mix designed to elevate homemade dishes. Beyond seafood, it can be used for crispy-fried chicken, fried green tomatoes, crabcakes, and more, offering a versatile solution for at-home cooks.
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Background Story
Founded by Joe Dowell, a former blue-collar worker turned restaurateur, and his wife Maranda, Joe’s Gourmet Fish Fry emerged from a challenging journey. After successfully running six restaurants, Hurricane Katrina hit, leading to the closure of their businesses. Undeterred, Joe took to the streets, selling fried food at festivals.
The pivotal moment came when they decided to package and sell their breading mix, leading to their entry into local grocery stores three years ago. Now based in Atlanta, they have rapidly expanded to over 800 stores, including major retailers like Walmart, Kroger, Publix, Meijer, and ATB.
The Product
Joe’s Gourmet Fish Fry is a cost-effective breading mix, priced at $1.22 to produce and sold directly to consumers for $5. Wholesalers acquire it for $2.25 to $2.75, and retailers sell it for $2.99 to $4.25.
Its versatility extends beyond seafood to encompass various fried, baked, or air-fried dishes. With $409,000 in total sales to date and a projected $450,000 for the next year, the product’s popularity is on the rise.
The founders actively engage with consumers, selling on-site every week, ensuring a direct connection with their customer base.
How It Went
The company’s position before Shark Tank
Despite a family investment of $50,000, Joe’s father owns 85% of the business, showcasing their strong family ties. In their third year, they’ve achieved remarkable growth, transitioning from eight local stores to a nationwide presence in over 800 outlets. Currently focusing on Walmart, where they’ve been for seven weeks, they anticipate sales of $270,000 for the year. The founders express openness to external investment, highlighting their dedication to taking the company to new heights.
The Negotiations:
The Shark Tank negotiations saw Mark Cuban, Lori Greiner, and Kevin O’Leary bowing out due to concerns about valuation and alignment with their personal preferences. Despite the skepticism of other sharks about the valuation, Daymond John recognized the value in the Dowells’ hands-on approach and their deep understanding of the consumer market. Daymond John stepped in with a $150,000 offer for a 25% stake, initially countered by Joe and Maranda at 18%.
Eventually, they settled at the original terms of 25%, valuing the company at $600,000. The negotiation reflected the Sharks’ appreciation for the product’s taste and the founders’ relentless dedication, culminating in a successful deal with Daymond John, who recognized the potential of Joe’s Gourmet Fish Fry.
