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Sam Stephens, owner of Oatmeals, came to the Sharks in the hopes of landing a strategic partnership and $500,00 for 20% of her company. Oatmeals is a NYC based cafe that serves a traditional food in a non-traditional way. Their menu that ranges from peanut butter banana to pomegranate pistachio to truffle risOATo to sundried pesto and parmesan (with many, many more options and the ability to customize your own bowl). Oatmeals is hoping to expand across America but would like to begin by expanding throughout NYC.
A former investment banker, Sam went back to culinary school while working full time to achieve her dream of having her own cafe. Over the past 6 years, Oameals has brought in $2.5 million. This year, she is currently projecting $500,000 in sales within a store that is 380 square feet. She also brings in additional revenue by being a spokesperson for Quaker Oats.
Upon trying the samples that were handed out, the Sharks all agree that Oatmeals product is some of the best food that they have ever tried in the Shark Tank. Kevin is concerned that she isn’t making enough money and that the company is not worth what she is asking and therefore, he’s out. Based on his calculations, Daymond feels that it would take him 12 years to get his investment back, so he is out as well.
Lori engages Sam in a discussion about packaging her product for sale in the freezer section of grocery stores. She feels that packaging and retailing Oatmeals product would be a great way to increase revenue. She offers $500,000 for a 33.3% share of the company, contingent upon finding distributors to sell the product. She has a vision of picking top flavors and sharing them with companies like Starbucks. Before she can decide, Barbara enters the discussion with a different vision and offer for Sam to consider.
Barbara Corcoran feels that Sam could expand Oatmeals by targeting corporate America and getting her food on to food carts in businesses. Barbara offers $500,000 for a 50% stake in only the cart business, with a caveat that the money she invests can only go towards that the expansion of the business into food carts. Ultimately, Sam feels that Lori’s offer and vision are most in line with what she would like to see for the future of Oatmeals, so she takes Lori’s offer.
When you’re so tied to your business, it’s hard to look at it from the outside. I know I can bring #OatMealsNY to the next level, but I’m not sure she could see that that. #SharkTank
— Barbara Corcoran (@BarbaraCorcoran) December 3, 2018
I hope this girl takes the deal with @LoriGreiner! I would buy Oatmeals at the store! I’m about to make a weeks worth of oatmeal in the slow cooker. #SharkTank
— Eileen (@eileeenk88) December 3, 2018
Bring an #OatMeals to Kansas City! Would be a fun place to meet a friend for coffee/breakfast date AND a good option when you need healthy breakfast (or other meal) on the go. @OatMealsNY #SharkTank
— Amy Naas (@AmyNaas) December 3, 2018
I really want all the oatmeal that’s in this OatMeals pitch on #SharkTank
— Steffanie (@sincerely_steff) December 3, 2018
I still cannot believe Lori snatched the deal away! I should have done a much better job selling Sammy on my merits as a perfect partner. @OatMealsNY #SharkTank
— Barbara Corcoran (@BarbaraCorcoran) December 3, 2018
Taste like the most delicious risotto BUT it’s oatmeal packed with fiber & higher nutrition!! #SharkTank @ABCSharkTank @OatMealsNY
— Lori Greiner (@LoriGreiner) December 3, 2018
This entrepreneur is inspiring. She knew she had a passion for something else and completely changed paths. #SharkTank #oatmeals
— Daymond John (@TheSharkDaymond) December 3, 2018
Most successful entrepreneurs start their business on the side of their day job with just a wing and a prayer, putting in lots of hours. @OatMealsNY #SharkTank
— Barbara Corcoran (@BarbaraCorcoran) December 3, 2018
OMG this is one of the BEST things I’ve ever tasted in the #SharkTank !! @ABCSharkTank @OatMealsNY
— Lori Greiner (@LoriGreiner) December 3, 2018
What do you think about Oatmeals’ product? Which offer would you have taken? Mark and Kevin are both in agreement that they think Sam made the wrong decision. Barbara thinks that Lori just cost Oatmeals millions of dollars and sent them down the wrong path. Do you think Sam made a good decision? Sound off in the comments below!
For a full summary of this episode, check out this article. Shark Tank airs on Sundays at 9:00 PM EST on ABC.