Press Waffle Co.
DEAL
EPISODE SUMMARY
🕓 Air Date: March 24, 2019
Asking For:
$200,000 for 8%
Investor:
Barbara Corcoran
Deal:
$300,000 for 15%
PRODUCT SUMMARY
Press Waffle Co. specializes in authentic Belgian waffle creations, using a dense, buttery, brioche-style dough with Belgian pearl sugar, offering a unique and flavorful waffle experience.
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Background Story
Press Waffle Co., a family-owned business based in Dallas, Texas, was founded by Bryan Lewis and Caleb Lewis. The entrepreneurial journey of Press Waffle Co. begins with the Lewis family’s shared passion for authentic Belgian waffles. The idea germinated during a transformative trip to Europe, where Bryan and Caleb experienced the unparalleled delight of Belgian waffles in a small café. Upon returning to the United States, the duo faced a surprising challenge – the absence of the delectable Belgian waffles they had grown fond of.
Undeterred, Bryan, and Caleb decided to embark on a culinary adventure, attempting to recreate the magic of the European waffle in their own kitchen. This endeavor marked the inception of Press Waffle Co. Their dedication to authenticity is reflected in the meticulous crafting of their waffles. The process involves a 24-hour rise of a dense, buttery, brioche-style dough, enriched with the addition of Belgian pearl sugar. This unique combination yields a waffle with a golden caramel crust and a chewy, fluffy center, offering a taste that transcends the conventional, frozen breakfast substitute waffles.
Located in the vibrant food scene of Dallas, Press Waffle Co. sets itself apart by not only delivering an exceptional product but also by offering a wide array of customization options. With over 16 different toppings and innovative savory selections like the best-selling chicken and waffles or the Monte Cristo waffle sandwich, Press Waffle Co. endeavors to redefine the waffle experience for its customers. The Lewis family’s journey from European inspiration to Dallas-based culinary success encapsulates their commitment to providing a unique and indulgent waffle adventure for enthusiasts across America.
The Product
Press Waffle Co.’s flagship product is a culinary masterpiece, a departure from the ordinary, frozen breakfast waffles. Crafted with dedication to authenticity and flavor, these Belgian waffles stand out for their unique preparation process. The journey begins with a 24-hour rise of a dense, buttery, brioche-style dough, creating a foundation that sets them apart from typical waffles.
What truly elevates these waffles is the addition of Belgian pearl sugar, which melts down in the iron, forming a golden caramel crust around a chewy, fluffy waffle center. The result is a delectable treat that redefines the waffle experience. Press Waffle Co.’s commitment to customization is a key feature. With a selection of over 16 different toppings, customers have the freedom to personalize their waffle, ensuring a delightful and tailored culinary experience. The menu also boasts innovative savory options like the best-selling chicken and waffles or the Monte Cristo waffle sandwich, showcasing the versatility of these indulgent creations.
Customers can indulge in Press Waffle Co.’s offerings through various channels. The waffles are available for purchase on the company’s website, providing a convenient online ordering experience. Additionally, the product can be enjoyed at the Dallas-based location, situated in the first European-style food hall in North Texas. Priced at $8 per waffle, Press Waffle Co. positions itself as a premium yet accessible indulgence, inviting waffle enthusiasts to savor the rich flavors and unique textures that define their culinary creations.
How It Went
The company’s position before Shark Tank
Press Waffle Co. has positioned itself as a thriving and innovative player in the culinary landscape, boasting a robust performance and strategic positioning in the market. Operating out of the first European-style food hall in North Texas, the company has achieved exceptional financial health and strategic growth. The company’s financial health is underscored by its impressive revenue generation, exceeding $5,000 per square foot. With a targeted revenue projection of $900,000 for the current year, Press Waffle Co. has demonstrated consistent profitability, maintaining a commendable 14% profit margin. This success is indicative of a well-executed business model and an effective market strategy.
The company’s commitment to growth is further evidenced by distribution agreements with major wholesalers, solidifying its position as a key player in the industry. The partnerships with wholesalers have contributed to the widespread availability of Press Waffle Co.’s products, expanding its reach to a broader customer base. Speaking of customers, Press Waffle Co. has successfully captured the attention of a diverse audience, particularly appealing to those seeking a unique and indulgent waffle experience. The company’s ability to cater to different tastes and preferences with over 16 toppings and savory selections has contributed to a loyal and expanding customer base.
The profitability and revenue generation may attract potential investors looking to capitalize on the company’s continued success. Press Waffle Co.’s current structure positions it as a family-owned business, adding a personal touch to its operations. The strategic decision to expand to seven other food halls demonstrates a commitment to scaling operations while maintaining profitability. As the company looks toward the future, its well-established partnerships, solid financials, and customer-centric approach lay a foundation for sustained success and growth in the competitive culinary market.
The Negotiations:
The negotiations for Press Waffle Co. in the Shark Tank unfolded as a captivating exchange, showcasing the Sharks’ enthusiasm for the unique culinary offering. The founders, Bryan Lewis and Caleb Lewis, initially sought $200,000 for 8% equity, emphasizing their commitment to bringing authentic Belgian waffles to a wider American audience. Barbara Corcoran, recognizing the potential of the business, made a compelling offer of $300,000 for 15% equity.
The founders appreciated the offer but attempted to counter, initially proposing $300,000 for 20%. However, as negotiations progressed, they expressed concerns about protecting the company’s value and eventually accepted Barbara Corcoran’s offer of $300,000 for 15%, valuing the company at $2 million. The negotiation process witnessed additional offers from fellow Sharks Kevin O’Leary and Lori Greiner, but these were ultimately declined in favor of Barbara Corcoran’s deal. O’Leary’s offer involved debt financing at a lower equity stake, while Greiner proposed two options: $200,000 for 15% or $400,000 for 30%.
The decision to accept Barbara Corcoran’s offer was influenced by the founders’ vision for the company and their alignment with her expertise. The negotiation showcased the founders’ strategic thinking, valuing not only the financial aspect but also the partnership that could propel Press Waffle Co. to greater heights. The successful negotiation marked a significant milestone for Press Waffle Co., securing not just the financial backing needed for expansion but a strategic partnership with Barbara Corcoran, a seasoned entrepreneur with a track record of nurturing successful ventures.
