Sub Zero Ice Cream
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 11, 2013
Asking For:
$300,000 for 12%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Sub Zero Ice Cream offers made-to-order frozen desserts using liquid nitrogen, providing a unique and interactive ice cream experience for customers.
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Background Story
Jerry and Naomi Hancock are the founders of Sub Zero Ice Cream, a family business born out of their desire to innovate the traditional ice cream experience. Based in multiple locations across the United States, the Hancocks have a background in culinary arts and business management, with a passion for creating unique frozen treats. The idea for Sub Zero Ice Cream came to them when they realized the potential of liquid nitrogen in rapidly freezing ice cream, resulting in a creamier texture and personalized experience for customers.
They embarked on a journey to develop a method of making frozen desserts right in front of the customer, using liquid nitrogen to freeze the ingredients instantly. With their combined expertise and dedication, they established Sub Zero Ice Cream as a pioneer in the industry, offering a one-of-a-kind experience that delights customers of all ages.
The Product
Sub Zero Ice Cream utilizes a patented method of making ice cream using liquid nitrogen, which freezes the ingredients instantly, resulting in a creamier texture compared to traditional ice cream. Customers can choose their flavor and mix-ins, and watch as their custom ice cream is made right before their eyes within minutes.
The process involves no preservatives and allows for endless flavor combinations. Sub Zero Ice Cream is available for purchase at their retail locations, where customers can enjoy the interactive experience of watching their ice cream being made, priced between $4 to $7 per serving depending on the size and toppings.
How It Went
The company’s position before Shark Tank
Sub Zero Ice Cream has experienced steady growth since its inception, with 18 franchised stores across multiple states and two corporate-owned locations. They have a projected revenue of $4 million by the end of the current year, indicating a strong market demand for their product. The company has invested approximately $750,000 of their own capital into the business, with additional funding obtained through a $275,000 loan.
However, they faced setbacks due to poor management decisions from a previous partnership, resulting in a loss of $500,000 to buy out the partner. Despite these challenges, Sub Zero Ice Cream remains committed to expansion and improving their operational efficiency.
The Negotiations:
The Sharks expressed interest in the innovative concept of Sub Zero Ice Cream but ultimately declined to invest due to concerns over the company’s valuation and business model. Jerry and Naomi Hancock sought $300,000 for 12% equity, valuing the company at $2.4 million, but failed to secure a deal.
The Sharks raised questions about the scalability of the business and the effectiveness of bringing in additional partners. While impressed by the product and the founders’ dedication, the Sharks ultimately decided to pass on the opportunity, leaving Jerry and Naomi to continue their journey of growing Sub Zero Ice Cream independently.
