Pizza Pack – Collapsible Pizza Container
DEAL
EPISODE SUMMARY
🕓 Air Date: September 23, 2022
Asking For:
$100,000 for 10%
Investor:
Lori Greiner
Deal:
$100,000 for 13%
PRODUCT SUMMARY
Mr. Cheese Pizza (Pizza Pack) offers an expandable and collapsible pizza storage container with divider trays, perfect for storing and reheating leftover pizza slices.
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Background Story
Tate Koenig, the founder of Mr. Cheese Pizza, hails from Aurora, Oregon. He had previously appeared on Shark Tank during Season 12 with a product called the Cheese Chopper, which did not secure a deal. Undeterred, Tate used that experience as motivation to return to the Tank with a new and innovative product.
Tate’s background includes work as a lumber broker and more recently, he purchased a farm where he lives with his girlfriend and their child. This farm also serves as the birthplace of his inventions. The inspiration for Mr. Cheese Pizza came from the frustration of trying to store leftover pizza slices in traditional pizza boxes, which took up a lot of space in the fridge and led to soggy reheated pizza.
With this new product, the Pizza Pack, Tate aimed to solve this common problem. He wanted to provide a convenient, space-saving, and effective solution for pizza lovers to store and reheat their favorite slices. Tate’s determination, coupled with his experience and passion for innovation, drove him to create a product that addressed a real need in households across the country.
The Product
Mr. Cheese Pizza’s flagship product, the Pizza Pack, is an expandable and collapsible pizza storage container designed to revolutionize how people store and reheat leftover pizza.
Customers can purchase the Pizza Pack online through the company’s website (theperfectpizzapack.com) as well as on popular online retail platforms like Amazon and Walmart.com. The product is competitively priced at $24.99, offering great value considering its multiple features and benefits.
How It Went
The company’s position before Shark Tank
Mr. Cheese Pizza has experienced significant growth and success since its launch in April. Within a few months, the company achieved over $250,000 in sales, with the majority of those sales occurring in the last two months before the pitch. The rapid growth indicated strong consumer demand for the Pizza Pack. The company primarily sells its products online through its website and on major e-commerce platforms like Amazon and Walmart.com.
Their marketing strategy involves social media advertising, particularly on TikTok, with a customer acquisition cost of approximately $2.83. Mr. Cheese Pizza operates with a three-way partnership, with Tate Koenig and two other partners owning equal shares of the company. Each of the partners initially invested $25,000 of their own money into the business. Importantly, the company has no outstanding debt.
While they started with a supply chain challenge in the early months, they have since resolved this issue and secured a reliable source of inventory. The product is manufactured in China, contributing to its competitive pricing and quality. The company’s profitability is promising, with substantial margins given the relatively low production costs.
The Negotiations:
Tate Koenig entered the Shark Tank seeking a $100,000 investment in exchange for a 10% equity stake in his company, Mr. Cheese Pizza. The Sharks immediately engaged in a lively discussion. Lori Greiner was the first to make an offer, proposing $100,000 for 15% equity. Mark Cuban followed with an offer of $100,000 for 20% equity but introduced the concept of a $2 royalty per unit until the initial investment was recouped, and then it would drop to 50 cents in perpetuity.
Tate expressed his desire to work with Lori and attempted to negotiate with her, suggesting a 12.5% equity stake. However, Mark Cuban interjected and made a surprise offer, proposing to buy Tate’s entire company for $1.5 million. He emphasized that Tate could use this substantial amount to pursue other inventions and dreams. The Sharks and the audience were taken aback by this bold offer.
After considering both offers, Tate chose to accept Lori Greiner’s offer of $100,000 for 13% equity with the $1 royalty arrangement. His decision was influenced by his belief that Lori could help him grow the business and take it to new heights. The deal was sealed, and Tate left the Shark Tank with a promising partnership.
