Crispy Cones
DEAL
EPISODE SUMMARY
🕓 Air Date: March 17, 2023
Asking For:
$200,000 for 10%
Investor:
Barbara Corcoran
Deal:
$200,000 for 20%
PRODUCT SUMMARY
Crispy Cones offers freshly made dough cones grilled rotisserie-style, covered in cinnamon, sugar, and cookie powder, filled with gourmet soft-serve ice cream and a variety of toppings and sauces.
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Background Story
Crispy Cones was founded by Jeremy and Kaitlyn Carlson. Jeremy, while serving a mission in the Czech Republic, was inspired by the pastry-type treats sold on the side of the road. He had a dream of bringing this concept back to the U.S. and learned the recipe in his aunt’s kitchen.
They started the business as a food truck in 2018, with minimal funds, and saw steady growth in the following years, eventually expanding to two storefront locations. Kaitlyn, who was initially Jeremy’s employee, played a significant role in growing the business, handling social media marketing, and eventually becoming a partner.
The Product
Crispy Cones are freshly made dough cones cooked on a specialty grill using a rotisserie-style method, which caramelizes the sugar on the cone. The cones are then coated with cinnamon, sugar, and cookie powder.
Customers can choose a spread, such as hazelnut chocolate or cookie butter, add gourmet soft-serve ice cream, select toppings, and drizzle on their preferred sauce. The product is made with high-quality ingredients and is not fried, setting it apart from traditional ice cream cones.
How It Went
The company’s position before Shark Tank
Crispy Cones initially operated as a food truck, achieving modest success even in its first year. Despite challenges during the COVID-19 pandemic, they continued to grow and expand. The founders decided to transition from the food truck model to two storefront locations, demonstrating their intent to scale the business further.
They’ve also explored franchising and have signed agreements with franchisees. However, they have yet to prove the profitability of the franchise model. The founders have raised funds through personal savings, an SBA loan, and have a $190,000 line of credit.
The Negotiations:
The Carlsens were seeking $200,000 for 10% equity in their company but received an offer from Barbara Corcoran, who was willing to invest $200,000 for a 20% stake. Jeremy and Kaitlyn tried to negotiate for a 17% equity stake, but Barbara stood firm on her 20% offer. Ultimately, the founders accepted Barbara’s deal. The other Sharks were concerned about the company’s readiness for franchising and the lack of proven financial performance, leading them to opt out of the deal.
