Yumble Kids Meal Delivery Kits
DEAL
EPISODE SUMMARY
🕓 Air Date: December 9, 2018
Asking For:
$500,000 for 4%
Investor:
Bethenny Frankel
Deal:
$500,000 for 6%
PRODUCT SUMMARY
Yumble is a weekly subscription service delivering healthy, fresh, and delicious kids' meals with fun activities and collectibles to busy parents, eliminating mealtime stress.
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Background Story
David and Joanna Parker, the dynamic duo behind Yumble, hail from Englewood, New Jersey. Their journey into the world of convenient and healthy children’s meals was fueled by a shared commitment to addressing a pervasive issue faced by parents – the struggle to provide nutritious meals amidst the chaos of busy schedules. David Parker, one of the founders, initiated the Yumble venture. Drawing from his personal experiences as a parent, he recognized the all-too-familiar scenario of racing home after a hectic day, only to face the challenge of preparing a nutritious dinner that children would adamantly refuse.
The ensuing chaos, with a messy kitchen and screaming kids, often resulted in parents succumbing to the ease of processed and unhealthy freezer meals just to quell the temper tantrums. It was this moment of parental frustration and the subsequent feelings of guilt and exhaustion that prompted David to conceptualize Yumble. The Parkers envisioned a solution that would not only alleviate the stress associated with meal preparation but also prioritize the health and well-being of children. Yumble was born as a response to this need, offering a weekly subscription service that delivers chef-curated, fresh, and delicious kids’ meals straight to the doors of busy parents.
The added touch of including fun activities and collectibles with each meal was a strategic move to keep children excited and engaged in the dining experience. The couple’s background experiences, combined with their shared dedication to fostering healthy eating habits for children, have driven the success of Yumble. Their location in New Jersey serves as a strategic base for reaching families in the surrounding areas, reflecting their commitment to making a positive impact on the lives of parents and children alike.
The Product
Yumble, a revolutionary children’s meal subscription service, offers a convenient and healthy solution for busy parents seeking nutritious meals for their kids. The service operates on a weekly subscription model, delivering chef-curated, fresh, and delicious meals directly to the doorsteps of families. Yumble’s menu includes a diverse selection of kid-friendly options, such as premium, antibiotic-free, hormone-free white meat chicken dishes like chicken pops, handmade baked empanadas, and Smac N’ Cheese cups that boast as much protein as a serving of chicken.
The subscription plans cater to various family needs, providing flexibility with options for 6, 12, or 24 meals per week. Each week, parents can choose from a menu featuring 22 different items, ensuring a variety of options for their children. The meals come in trays, allowing for easy storage and transportation, and the packaging includes a welcome packet with instructions for parents and engaging collectibles for the kids.
Yumble’s pricing structure ranges from $6.99 to $7.99 per meal, encompassing delivery costs and the added value of collectibles. This transparent pricing model simplifies the decision-making process for parents, providing an affordable and time-saving solution for ensuring their children receive nutritious and appealing meals without the stress of meal preparation. Overall, Yumble’s product offering combines culinary excellence with thoughtful packaging, creating a seamless experience for families prioritizing health and convenience.
How It Went
The company’s position before Shark Tank
Yumble has demonstrated robust performance, positioning itself as a thriving player in the competitive market of children’s meal subscriptions. With sales exceeding $1.3 million, the company has maintained an impressive monthly growth rate of around 30%. The customer-acquisition cost, a critical metric for subscription services, has been efficiently managed, decreasing from an initial $100 to a more sustainable $40. This optimization showcases the company’s commitment to refining its operations and maximizing efficiency.
The subscription-based model has garnered a dedicated customer base, with a few thousand active subscribers currently enjoying Yumble’s convenient and nutritious offerings. The company’s flexibility, allowing parents to choose from various meal plans (6, 12, or 24 meals) and a diverse menu of 22 items, caters to different preferences within its target demographic. Over 70% of customers who sign up for Yumble choose to reorder, indicating a high level of satisfaction and retention among its user base. Yumble’s financial health is further underscored by projections, with the founders anticipating reaching $5 million in revenue in the first full calendar year and an impressive $35 million in 2019. This forward-looking outlook suggests a strong trajectory for growth and market expansion.
In terms of partnerships, Yumble’s approach has been strategic. While the transcript doesn’t explicitly mention specific partners or wholesalers, the founders’ commitment to quality ingredients, such as premium, antibiotic-free, hormone-free white meat chicken, implies a focus on sourcing from reputable suppliers. These partnerships contribute to the overall quality and appeal of Yumble’s offerings. Funding for Yumble’s operations currently comes from the $500,000 investment secured during the Shark Tank episode. As for the company’s structure, the founders emphasize the importance of having skin in the game, indicating a commitment to their venture’s success.
The Negotiations:
The negotiations for Yumble on Shark Tank were marked by strategic considerations, competitive insights, and ultimately, a successful deal. David and Joanna Parker entered the Tank seeking a $500,000 investment for 4% equity in their rapidly growing children’s meal subscription business. The negotiation process kicked off with Bethenny Frankel expressing immediate interest and making an initial offer of $500,000 for 15% equity. However, in a subsequent twist, Bethenny swiftly adjusted her offer during negotiations, lowering the equity stake to 6%. This move was coupled with her commitment to become a spokesperson for the brand, leveraging her marketing expertise to elevate Yumble’s visibility and customer acquisition.
While Bethenny’s offer was compelling, Lori Greiner and Rohan Oza also expressed interest in Yumble. The founders faced tough questions from the Sharks, particularly regarding the competitive landscape and the potential challenges posed by industry giants like Amazon and traditional retail partnerships. Mark Cuban and Kevin O’Leary, however, opted out, citing concerns about industry risks and valuation. In a surprising turn, Bethenny dropped her offer by more than half and issued a take-it-or-leave-it ultimatum, emphasizing her value as a spokesperson, which she estimated to be worth more than a million dollars a year.
Faced with the pressure and recognizing the unique advantages Bethenny brought to the table, the founders accepted her final offer of $500,000 for 6% equity. The negotiation showcased the founders’ ability to navigate tough questions about the competitive market and highlighted the delicate balance between equity and the strategic value the Sharks could bring. Ultimately, the acceptance of Bethenny’s revised offer secured Yumble a powerful partnership, combining financial investment with a high-profile spokesperson to drive the brand’s growth in the competitive children’s meal-subscription industry.
