The Cereal Killerz Cereal Bar
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 30, 2020
Asking For:
$125,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
The Cereal Killerz Kitchen is the first and only cereal bar in Las Vegas, offering customers the chance to customize cereal bowls, waffles, iced coffees, ice cream, milkshakes, and more with over 140 cereals and 50 toppings.
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Background Story
The founders, Jess and Chris, came up with the idea for The Cereal Killerz Kitchen because they wanted to create a place where people could relive the joy of childhood cereal choices. They were inspired by their daughter, who has a mild case of Down syndrome and a love for cereal.
Jess had a background in insurance but was unhappy with his career, while Chris had faced significant challenges growing up but managed to overcome them through education and hard work.
The Product
The Cereal Killerz Kitchen offers a unique dining experience where customers can mix and match various cereals and toppings to create customized cereal bowls, waffles, iced coffees, ice cream, and milkshakes.
The menu includes signature shakes like hazelnut, Nutella, chocolate, and caramel, as well as creations like the Survivor, a peanut butter lover’s dream. Prices vary depending on the combination chosen.
How It Went
The company’s position before Shark Tank
The company had one open location and was in the process of opening a second one. They were also negotiating for three additional locations. However, their first location, situated in a mall, was struggling and losing around $8,000 per month. They mentioned using personal savings of around $40,000 to $50,000 to fund the expansion.
The Negotiations:
None of the Sharks made an offer. While they appreciated the concept and the founders’ resilience, they were concerned about the company’s financial health and readiness for investment. Mark Cuban expressed his admiration for the founders’ determination but ultimately declined due to the risky nature of their expansion plans.
Daymond John, also emotionally invested in the pitch, couldn’t commit because of a conflict with another investment in a similar space. Other Sharks raised concerns about the company’s profitability and advised the founders to focus on making one location successful before expanding.
