Salted Restaurant Delivery
NO DEAL
EPISODE SUMMARY
🕓 Air Date: May 13, 2020
Asking For:
$500,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Salted is the largest delivery-first restaurant group, offering a portfolio of better-for-you restaurant brands, including gluten-free cauliflower-crust pizza, vegan-friendly Chinese, healthy Korean-inspired bowls, and $5 salads.
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Background Story
Jeff Appelbaum, the founder of Salted, hails from Los Angeles, California. His journey with Salted began five years ago when he started the company. Initially, Salted operated as an online cooking school but evolved to address the fundamental problems in the meal-kit space.
Appelbaum’s perseverance led to the creation of a virtual restaurant empire focused on delivery, avoiding the challenges associated with traditional brick-and-mortar establishments. The current iteration of Salted features a diverse range of better-for-you brands, catering to health-conscious consumers.
The Product
Salted’s product lineup includes Califlower Pizza, offering gluten-free cauliflower-crust pizza with low-carb and only 100 calories per slice. Other brands in their portfolio feature Ginger Bird, a vegan-friendly, soy-free twist on Chinese cuisine, and Moonbowls, a healthy
Korean-inspired bowls concept. The $5 Salad Company provides affordable and delicious salads. Operating as a delivery-first model, Salted shares resources, ingredients, labor, and rent across multiple brands in each kitchen.
The flagship Califlower Pizza boasts a crispy New York-style cheese pizza experience with gluten-free cauliflower crust. Other offerings include avocado bulgogi and oven-fried orange chicken 2.0, showcasing Korean-inspired flavors. The innovative approach focuses on creating a virtual restaurant empire, capitalizing on the rising trend in food delivery.
How It Went
The company’s position before Shark Tank
Salted has achieved significant milestones, currently operating in Los Angeles, San Francisco, and Chicago, with five locations open. The company reported $250,000 in monthly revenue and a $3 million run rate. Despite a net negative $750,000 over the past year, Salted’s strategic partnership with major delivery platforms has kept customer acquisition costs at zero, thanks to subsidies from private and newly public companies supporting the online delivery market.
Having raised $5 million in external investments, Salted plans to leverage CloudKitchen infrastructure to reduce capital costs. The company’s growth strategy involves building strong brands and intelligent marketing to differentiate itself in a competitive market. While the current financials show a net negative, Salted is positioned to benefit from the booming online delivery market.
The Negotiations:
The negotiation round saw Jeff Appelbaum seeking $500,000 for a 5% stake in Salted. Despite an impressive presentation and a monthly revenue of $250,000, none of the Sharks were willing to invest. Rohan Oza expressed a conflict of interest, finding Appelbaum both likable and intimidating.
Other Sharks, including Kevin O’Leary, Mark Cuban, Lori Greiner, and Barbara Corcoran, raised concerns about the competitive market, valuation, and the challenges of managing multiple brands. Lori Greiner, despite initially expressing interest as a consumer of the food, felt that Appelbaum wasn’t fully committed to partnering with her. Ultimately, no deal was struck, and Appelbaum left the tank without securing an investment, reflecting the challenges of standing out in a crowded food delivery market.
